Colchis Capital Management LP

Item 5.         Fees and Compensation

Colchis is an SEC-registered adviser that delivers this brochure to prospective investors in the
RBLF Funds that are qualified purchasers as defined in section 2(a)(51)(A) of the Investment
Company Act of 1940, as amended. Therefore, information on how Colchis is compensated for
its advisory services and its fee schedule with respect to those funds are not included here.

With respect to the Real Properties Funds, Colchis charges a management fee equal to 0.25% (RP
Fund I) and 0.375% (RP Fund II and RP Fund III) per calendar quarter (approximately 1% to 1.5%
per year) of each investor’s capital commitment or remaining invested capital, as described in each

fund’s offering documents. Colchis also receives from each investor a carried interest distribution
of up to 20% of certain profit distributions from each Real Properties Fund (subject to certain
adjustments as described in detail in each fund’s offering documents). Carried interest
distributions may create an incentive for Colchis to make more risky and speculative investments
than it would otherwise make.

Colchis deducts or is allocated or distributed management fees (generally monthly or quarterly for
the funds), performance-based special profit allocations (generally annually or on withdrawals)
and carried interest distributions, if any, directly from the applicable fund.

For the SMA, Colchis does not deduct its fees directly, but bills the SMA Client for management
fees monthly in arrears and performance-based incentive fee as allowed by the account agreement.

Colchis complies with Rule 205-3 under the Investment Advisers Act of 1940, as amended, to the
extent required by applicable law. Colchis believes that its fees are competitive with fees charged
by other investment advisers for comparable services. Comparable services may be available,
however, from other sources for lower fees.

The disclosure in this Item 5, together with the disclosure in Item 12, allow a plan that is subject
to the Employee Retirement Income Security Act of 1974 and that invests in a Colchis fund, to use
the “alternative reporting option” to report Colchis’s and its affiliates’ compensation as “eligible
indirect compensation” on the Schedule C of the plan’s Form 5500 Annual Return/Report of
Employee Benefit Plan.

Relationships with Colchis’s investment funds and the SMA, other than the Real Properties Funds
(which are fixed term funds), are terminable on specified prior written notice, subject to certain
limitations described in each investment funds’ offering documents or the SMA’s account
agreement.

In all cases, expenses and the performance-based special profit allocation, incentive fee or carried
interest distributions through the date of termination are charged to the applicable Client. An
investor who withdraws from a fund on a date other than the last day of a quarter does not receive
a refund of the management fee previously paid. The SMA pays fees in arrears, and therefore
there is no management fee to be refunded on termination. Investors may not withdraw from the
Real Properties Funds.

The Real Properties Funds pay additional fees and services for property management services
provided by IHPM, an independent third party property management firm.

Each fund and the SMA is responsible for its own costs and expenses, including trading costs and
expenses (such as brokerage commissions, expenses related to short sales or derivative positions,
and clearing and settlement charges), ongoing legal, accounting and bookkeeping fees and
expenses, and the fees and expenses charged by any fund administrator for its accounting,
bookkeeping and other services. Colchis bears its own operating, general, administrative and
overhead costs and expenses, other than the expenses described above. All or part of these costs
and expenses may be paid, however, by securities brokerage firms and futures commission
merchants that execute Clients’ securities trades, as discussed in Item 12 below.

Item 7.        Types of Clients

Colchis provides investment advice to investment funds and the SMA. Investors must invest a
minimum of $1,000,000 in the RBLF Funds. Colchis may and sometimes does waive these
minimums. The Income Funds and Real Properties Funds are closed to new investors. Colchis
does not expect to manage additional separate accounts, although it may elect to do so and will
determine the appropriate terms and conditions.