Carlyle Global Credit Investment Management LLC

ITEM 5. FEES AND COMPENSATION

Carlyle Global Credit Investment Management L.L.C.                                             Carlyle | 8

CGCIM or its affiliates3 generally receive management fees, incentive fees, carried interest or similar
profit allocations from Advisory Clients. Advisory Clients, excluding the BDCs, CCIF, CAPM, CAPS
and CTAC, frequently also indirectly incur or generate other fees payable to CGCIM or its affiliates,
depending on the nature of their portfolio activities. CGCIM or its affiliates, for example, earn fees and
other compensation from prospective and actual portfolio companies, purchasers, sellers and other
parties as compensation for services (collectively, “Service Fees”). These Service Fees can include
project, structuring, topping, termination, break-up, directors’, organizational, set-up, investment
banking, underwriting, syndication, closing, commitment, advisory, consulting, amendment, servicing,
and other similar fees in connection with the purchase, monitoring, or disposition of underlying
investments (including warrants, options, derivatives and other rights in respect of securities) or from
unconsummated transactions. In general, the specific legal and/or organizational documents of the
relevant Advisory Client, the investment management agreement between CGCIM (or an affiliate) and
such Advisory Client or the agreements in respect of the portfolio investments describe the basic fee
structure relevant to the investors in such Advisory Client. To the extent provided in such organizational
documents or investment management agreement, CGCIM’s management fees from Advisory Clients
generally are reduced (offset) by a specified portion of the Service Fees that arise out of such Advisory
Client’s investment activities. The Service Fees can be and often are substantial, and if not fully offset
pursuant to organizational documents will be indirectly borne by investors.

Certain fees are excluded from the definition of “Service Fees” and not subject to a management fee
offset. For certain Advisory Clients, capital markets fees earned by GCM (which includes a broker-
dealer affiliate of CGCIM that is a U.S.-registered broker-dealer and other affiliates providing similar
services with respect to loans) for conducting a financial services, loan origination, structuring,
placement or other similar business, including, for example, as a broker, dealer, distributor, syndicator,
arranger, servicer or originator of securities or loans, are not considered “Service Fees” subject to any
management fee offset. As described in more detail below, these capital markets fees include offering,
placement, financing, syndication, capital structure advisory, turnaround, workout, underwriting,
solicitation, investment banking, currency, hedging, structuring, loan agent, loan servicing, rating
advisory or similar fees in connection with the activities of an Advisory Client and its portfolio
companies, including with respect to an initial public offering or private placement, the arranging or
provision of credit facilities (including any related extensions or refinancing) for an Advisory Client or
one of its portfolio companies and other vehicles managed or controlled by Carlyle, the placing of co-
investment, the distribution or placement of loans or equity securities of an Advisory Client portfolio
company or otherwise arranging or providing financing for such portfolio company alone or with other
lenders, which could include other vehicles managed or controlled by Carlyle (any such fees, “GCM
Fees”). GCM may manage or otherwise participate in underwriting syndicates and/or selling groups
with respect to the securities and/or loans and debt instruments of portfolio companies and other non-
controlled entities in or through which certain Advisory Clients invest, including in respect of securities
or other instruments of such portfolio companies in which Advisory Clients have not invested. GCM
also manages or otherwise participates in underwriting syndicates and/or selling groups with respect to
securities and/or loans and other instruments held directly or indirectly by certain co-investment vehicles.

  For the purposes of this Brochure, references to “CGCIM or its affiliates” or “CGCIM and its affiliates” do not include
references to Carlyle-affiliated advisers, such as CIM, Carlyle CLO, CELF, CASP, CAPDP, AlpInvest, unaffiliated advisers,
such as Atlas NV, NGP Energy Capital Management, LLC (“NGP”) and Riverstone, or any Carlyle portfolio companies,
including portfolio companies that are investment advisers registered with the SEC (e.g., Content Partners LLC, or the
separately registered investment advisers affiliated with TCW Group, Inc.).

Carlyle Global Credit Investment Management L.L.C.                                                          Carlyle | 9

Further, GCM will be involved in the public offering or private placement of such securities and/or loans
and other instruments, and/or sometimes provide capital markets advisory services to portfolio
companies and other non-controlled entities in or through which Advisory Clients invest, including in
connection with mergers, acquisitions, and restructurings; and will alone, or with other counterparties,
provide acquisition financing, lines of credit and other corporate lending or financing products and
services to such entities in addition to financing provided through an Advisory Client’s investment. In
addition, certain of Carlyle’s investment advisory professionals will be involved in such activities of
GCM, and their activities are expected to give rise to GCM Fees that are not subject to any management
fee offset, even though such persons are involved in investment-related activities on behalf of one or
more Advisory Clients. In addition, fees attributable to co-investors or internal or external co-investment
...

ITEM 7. TYPES OF CLIENTS

The majority of CGCIM’s Advisory Clients are pooled investment vehicles. CGCIM also provides
advisory services to separately managed accounts, two BDCs, CCIF, CAPM, CAPS and CTAC and is
the collateral manager to several CLOs.

CCGIM and its affiliates typically require that each third-party investor in an Advisory Client be an
“accredited investor” as defined in Regulation D under the Securities Act and a “qualified purchaser” as
defined in the 1940 Act. Typically, a minimum investment amount is imposed on third parties investing
in the investment vehicles for which CGCIM acts as investment adviser or collateral manager. This
minimum often is set at $5-10 million, but can be subject to a reduction upon prior agreement by CGCIM
or an affiliate (subject to applicable legal requirements and is often much lower for investment vehicles
targeted at high-net worth individuals) and may not be applicable with respect to certain Advisory

  For example, if one Advisory Client is in a net loss position and another Advisory Client is in a net gain position, the
Advisory Client in the net loss position will either (i) not generate a carried interest from such investment, or (ii) generate
less carried interest from such investment to the extent profits are required to make up for previous losses.

Carlyle Global Credit Investment Management L.L.C.                                                               Carlyle | 29

Clients. A minimum investment amount can also be established pursuant to the laws of the jurisdiction
in which the investment vehicle was established.

As noted above, shares of common stock of CSL trade on the Nasdaq Global Select Market under the
symbol “CGBD.” Shares of common stock of CCIF trade on the New York Stock Exchange under the
symbol “CCIF.” The offer and sale of shares of CARS common stock are not registered under the
Securities Act. CTAC is a continuously offered, non-diversified closed-end management investment
company that is operated as an interval fund. CTAC accepts initial and additional purchases of shares
on each business day, and conducts quarterly repurchase offers for a limited amount of its shares (at
least 5%).