Capitala Private Advisors LLC

Item 5: Fees and Compensation
The fees and expenses paid to the Adviser by the Clients are governed by the Clients’ offering documents
and was negotiated with the Clients’ investors, respectively. As a result, compensation paid may vary for
each Client. Clients and investors should review the relevant offering documents to understand the total
amount of fees and expenses that may be charged.

Depending on the Client, management fees are generally based on capital commitments (including
committed leverage), invested capital, or net asset value. The annual rate of management fees paid will
vary based on the Client’s respective offering documents. Management fees are paid in advance for most
Clients, though some may pay management fees in arrears based on the terms of the Client’s offering
documents. The Adviser will either deduct management fees from the Client’s account or bill the Client
for quarterly management fees, as outlined in the Client’s respective offering documents. Management
fees payable by Funds that are licensed SBICs, such as Fund IV and Fund VI, are further subject to SBA
approval. The Adviser may, in its sole discretion, waive all or any portion of any management fees
otherwise payable to it by a Client. The Adviser and its affiliates have a history of granting fee waivers
from time to time. Clients should not assume, however, that the Adviser will in the future waive all or any
portion of management fees that may be due and owed to the Adviser.

Clients will be subject to a performance fee in the form of carried interest derived from the income generated
by the underling portfolio companies. Carried interest is typically allocated to an affiliate of the Adviser,
which generally is the Client’s general partner, pursuant to a contractual distribution schedule as negotiated
in the Client’s offering documents. See Item 6 below for a discussion of performance fees that may be
earned by the Adviser and its affiliates with respect to the Clients.

Certain Clients will also pay a one-time fee as portfolio investments are made. The fees are payable in cash
at the time of the closing of the portfolio investments at a rate negotiated between the Adviser and the Client
as outlined in the Client’s offering documents.

The Funds will be subject to other organizational expenses incurred in connection with the organization of
the Fund and the general partner. The Funds will incur costs in the evaluation, acquisition, and disposal of
investments including accounting and auditing fees, legal fees, due diligence fees, third party research or
consulting fees, and other service provider fees. The Adviser aims to minimize these expenses by requiring
an upfront deposit from the target portfolio company or having the portfolio company pay such expenses
directly at the time the investment is funded. The Funds will also incur other operational expenses as
outlined in the Fund’s offering documents, including but not limited to, interest and financing expenses on
any credit facilities, custody fees, any brokerage and finders’ fees, taxes, legal fees, audit and accounting
fees, administrator fees, fees for partnership meetings, and insurance (including premiums for directors’
and officers’ insurance). Please consult the offering documents for a complete list of all expenses charged
to a particular Fund.

In addition to fees paid by the Clients, the Adviser or its affiliates will also earn fees from portfolio companies for
certain administrative agent fees, monitoring fees, financing fees, divestment fees and other similar fees in
connection with portfolio investments of the Clients as compensation for services provided to its portfolio
companies. Such fees are not earned on all investments originated by the Clients and are dependent on the
terms negotiated between the Adviser or its affiliates and the portfolio company and the need for such services
by the portfolio company.

The Adviser or its affiliates, as part of its origination pipeline, will generate investment opportunities from
time to time that are not appropriate for the Clients or exceed the target allocation for any given Client. In
those instances, the Adviser or its affiliates will offer such investment opportunities to third party investors

and will typically receive a portion of the upfront origination fee as compensation for its work as negotiated
with the third-party investor. In addition to the upfront fee, the Adviser or its affiliates may also receive
carried interest as negotiated on a case by case basis with the third-party investor upon realization of the
investment.

Item 5 (E) of Form ADV Part 2A requires us to disclose whether we or any of our supervised persons accept
compensation for the sale of securities or other investment products, including asset-based sales charges or
service fees from the sale of mutual funds. Neither we, nor any of our supervised persons accept any such
compensation but the Adviser does have certain employees that are deemed dual-hatted as they are also
registered representatives of Capitala Securities LLC, a FINRA registered broker-dealer (see Item 10 (A)
for additional information). As such, certain registered representatives will receive transaction-based
compensation (i.e., bonus) from the broker-dealer. This compensation can be attributed to fees paid to the
broker-dealer for deal sourcing activities related to third-party arrangements or ongoing advisory services
to private companies, including portfolio companies of the Clients. Capitala Securities, LLC is responsible
for any compensation paid to its registered representatives.

Item 7: Types of Clients
As stated previously, our Clients are the Funds and SMAs. For more information, see Item 4—Advisory
Business. The minimum subscription for an investment in the Funds is $1 million (waivable by the Funds’
general partner, as the case may be).