Citigroup Alternative Investments LLC

Item 5 Fees and Compensation
Fees Charged: Private Equity Fund Products

Each Private Equity Investment Fund and Private Equity Feeder Fund will generally pay CAI a
management fee quarterly in arrears, at an annual rate based on the aggregate capital commitments
of the Fund’s investors during a defined investment period; thereafter, on invested capital. In
addition to the management fee, a Private Equity Investment Fund pays CAI an incentive
allocation based on the return of the Fund and/or its investments, often only after exceeding a
hurdle rate of return to the Fund’s investors. The amount of the management fee and incentive
allocation for a particular Fund will be set forth in the offering materials for that Fund. Investors
pay fees directly to the relevant Fund. Certain funds in their late stages no longer charge
management fees. Certain funds are charged an annual administration fee instead of a
management fee.

Fees Charged: Real Estate Products

Each Fund of Real Estate Funds pays CAI a management fee quarterly in arrears, at an annual rate
generally based on the aggregate capital commitments of the Fund’s investors during a defined
investment period; thereafter, on invested capital or the net asset value. In addition to the
management fee, a Fund of Real Estate Funds pays CAI an incentive allocation and/or incentive
fee based on the return of the Fund and its investments. The amount of the management fee,
incentive allocation and/or incentive fee for a particular Fund will be set forth in its offering
materials.

Multiple Layers of Fees and Expenses

Investors in a Fund of Funds or in a Feeder Fund will in effect pay two sets of fees and expenses.

For a Fund of Funds, investors will generally pay management fees to CAI and vehicle expenses
at the Fund level and will also indirectly pay management fees to the sponsor of the Underlying
Fund and vehicle expenses at the Underlying Fund level. In certain Funds, management fees are
paid to sub-advisors and origination channels. As a result, investors pay more in fees by investing
in a Fund of Funds than they would by investing directly in the underlying Real Estate Funds.
However, because of high minimum investment levels and other reasons, investors in a Fund of
Funds generally would not have the opportunity to invest directly in the Underlying Funds. In
addition, by investing in a Fund of Funds, investors receive the benefit of diversification through
professional management of a portfolio consisting of multiple Underlying Funds.

Investors in Feeders also pay multiple sets of fees and expenses: one directly at the Feeder level
and one (indirectly) at the Underlying Fund level. As a result of the payment of multiple levels of
fees and expenses, investors pay more fees by investing in a Feeder than they would by investing
directly in the Underlying Fund. Because of high minimum investment levels and other reasons,
however, investors in Feeders generally would not have the opportunity to invest directly in the
relevant Underlying Fund.

Method of Payment of Fees

Funds will pay any management and incentive fees at such times and in such manner specified in
their respective offering materials and other governing documentation. Such fees will typically be
paid from the Fund and deducted from an investor’s net asset value per share or capital account,
as applicable.

Additional Compensation Received by Affiliates

Affiliates of CAI have typically received placement fees for placing interests in Funds from the
Funds and/or from CAI as a Fund’s manager. Where the Funds placed were Feeder Funds, these
affiliates and/or CAI also typically received compensation from the manager of the Underlying
Fund. CAI also receives fees from certain Funds for the provision of administrative services, the
responsibility for all or a portion of which may be subcontracted to affiliates of CAI or to
unaffiliated third parties. Affiliates of CAI also may have direct relationships with, and provide
certain other services to, a Fund or a Fund’s portfolio companies for which the affiliate receives
compensation.

Additional Fees and Expenses

As described in more detail in the relevant offering documentation, each Fund typically bears its
organizational and offering expenses and its operating and other expenses, which may include, but
not be limited to, direct investment-related expenses (e.g. custodial fees, interest expense,
consulting and other professional fees relating to particular investments), reporting and legal
expenses, accounting, audit and tax preparation expenses, remuneration to directors or managing

members, as applicable, insurance, administrator fees, liability insurance premiums, any
extraordinary expenses and other similar expenses related to the Fund.

Compensation of CAI Personnel

CAI’s personnel and supervised persons do not receive commissions tied directly to the sale of
any securities or other investment products advised by CAI in the form of asset-based sales charges
or services fees. However, historically certain CAI personnel were registered as broker-dealer
representatives of Citigroup Global Markets Inc. and as such marketed CAI’s Funds to institutional
investors in the past, as further described in Item 10 “Other Financial Industry Activities and
Affiliations.” Affiliates of CAI that served as placement agents, referral agents or distributors for
CAI products and third-party marketers received compensation for those activities.

Payment of Fees in Advance and Arrears

Generally, fees payable to CAI are paid in arrears or less than six months in advance.

Item 7 Types of Clients

CAI provides investment advice only to Funds. However, the ultimate investors in Funds advised
by CAI are institutional investors, funds of funds, and high net worth individuals

Private Equity Fund Products: Ultimate investors in each Private Equity Investment Fund and
Private Equity Feeder Fund generally were required to make a minimum capital commitment
ranging from $25,000 to $3,000,000. The minimum for any specific Fund was set forth in the
offering materials for that Fund.

Real Estate Products: Ultimate investors in each Fund generally were required to make a minimum
capital commitment ranging from $250,000 to $5 million, depending on the terms of the specific
Fund.

In its discretion, CAI retained the right to accept a lower capital commitment from an investor.