Capra IBEX Credit Opportunities LLC

Item 5: Fees and Compensation

CCM generally bills fees to Clients monthly or quarterly in arrears or upon completion of a
project. Clients are responsible for all expenses related to trading assets, including any initial
and per trade fees, other brokerage or transactional fees, custodial fees, interest on margin
borrowing and soft dollar expenses related to research. CICO charges a fixed fee based on
an agreed annual budget to CCM for investment advisory and sub-advisory services and
receives reimbursement for certain expenses incurred in the provision of those services.

Item 7: Types of Clients

The Firm manages a number of SMAs and provides investment consultation services on behalf
of corporate Clients.

Capra Ibex Credit Opportunities LLC                                          Form ADV Part 2A

Item 8: Methods of Investment Analysis, Strategies and Risk of Loss

Methods of Analysis and Investment Strategy

The Firm’s investment strategy is to continually review and analyse opportunities in the fixed
income market with the intent of building an investment portfolio with an appropriate balance
of yield, principal protection, pledge capacity, duration and convexity, liquidity and
diversification To achieve this, we generally provide investment ideas derived from our
fundamental analysis of certain investment products, including but not limited to: treasuries,
municipal bonds, structured mortgage securities (both pass through and structured products)
whole loans, asset back securities, agency paper, CLO equity and debt, and both domestic and
foreign dollar denominated debt. We will also recommend and/or review hedging strategies
that could be employed to mitigate duration or convexity gaps. We will also provide advice
on the best tactics and on the pricing and execution of such hedging strategies. All investment
suggestions are vetted by our Clients for compliance with bank regulations and other recent
regulatory rules.

Risk of Loss Factors

All investments involve the risk of loss, which Clients should be prepared to bear, including
(among other things) loss of principal, a reduction in earnings (including interest, dividends and
other distributions) and the loss of future earnings. Although we strive to manage risk in
accordance with our investment strategies, we can provide no guarantee that our efforts will
be successful. Set forth below is a non-exhaustive list of such risk factors.

Nature of Investments

Investments will primarily consist of investments in fixed income securities and other financial
instruments, including, without limitation, asset and mortgage backed securities, consumer and
commercial loans and receivables, high yield investments and related synthetic instruments,
and credit linked notes that may be affected, among other things, by business, financial market
or legal uncertainties. There can be no assurance that we will correctly evaluate the nature
and magnitude of the various factors that could affect the value of and return on investments.
Prices of investments may be volatile, and a variety of factors that are inherently difficult to
predict, such as domestic or international economic and political developments, may
significantly affect the results of the Clients’ activities and the value of their investments.

Collateralized Loan Obligations

CICO may invest or suggest that a Client invest in senior, subordinated and equity securities
issued by issuers of collateralized loan obligations (“CLOs”). The Firm is not involved in
collateralized debt obligations (“CDOs”) in any way.

CLOs are subject to credit, liquidity and interest rate risks. A holder of CLO equity will
typically have limited remedies available upon the default of the CLO. CLOs often invest in
concentrated portfolios of assets. The concentration of an underlying portfolio in any one
obligor would subject the related CLO securities to a greater degree of risk with respect to
defaults by such obligor, and the concentration of a portfolio in any one industry would subject
the related CLOs to a greater degree of risk with respect to economic downturns relating to
such industry. The value of the CLO securities owned by a Client will generally fluctuate with,
among other things, the financial condition of the obligors or issuers of the underlying portfolio
of assets of the related CLO (“CLO Collateral”), general economic conditions, the condition
of certain financial markets, political events, developments or trends in any particular industry
and changes in prevailing interest rates. If distributions on and/or the realization of the CLO

Capra Ibex Credit Opportunities LLC                                          Form ADV Part 2A

Collateral are insufficient to make payments on the CLO securities, no other assets will be
available for payment of the deficiency and following realization of the CLO securities, the
obligations of such issuer to pay such deficiency generally will be extinguished. CLO Collateral
will generally consist primarily of senior secured corporate loans and, to a lesser extent,
second lien corporate loans and subordinated corporate loans. U.S. CLOs issued before
January 2014 also typically hold high-yield bonds in their portfolios. The equity securities issued
by a CLO typically are under-secured. The lower ratings of high yield securities and below
investment grade loans reflect a greater possibility that adverse changes in the financial
condition of an issuer or in general economic conditions or both may impair the ability of the
related issuer or obligor to make payments of principal or interest.

Commercial Mortgage-Backed Securities (“MBS”)

We may also recommend our Clients consider investments in commercial MBS. Mortgage
loans on commercial properties often are structured so that a substantial portion of the loan
principal is payable at maturity and repayment of the loan principal thus often depends upon
the future availability of real estate financing from the existing or an alternative lender and/or
upon the current value and salability of the real estate. Therefore, the unavailability of real
estate financing may lead to default. Most commercial mortgage loans underlying MBS are
effectively nonrecourse obligations of the borrower, meaning that there is no recourse against
the borrower’s assets other than the collateral. If borrowers are not able or willing to
refinance or dispose of encumbered property to pay the principal and interest owed on such
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