CVC Credit Partners LLC

5. Fees and Compensation

As a general matter the Client Agreements for each Client detail the fees payable by such Client. These
fees are typically negotiated, will vary from Client to Client, and typically include a management fee and
incentive fees, which are at the rates and under the terms described in the relevant governing
documents.

The discussion below summarizes representative fee arrangements for each type of Client. All fees
are negotiated with CLOs, Managed Funds and Managed Accounts before the advisory relationship
commences. The governing documents of each CLO, Managed Fund and Managed Account include
detailed information regarding fees and expenses paid by the Client.

Clients and investors should review the provisions related to fees and expenses in the relevant
governing documents and offering materials for further information regarding the nature and total
amount of fees and expenses they will incur. All Clients, including Managed Accounts, will incur
expenses that are allocated among multiple Clients or among Clients and CVC Credit, in the manner
described below.

Investors in Managed Funds and CLOs will indirectly bear fees and expenses of the Managed Fund or
CLO, including a pro rata share of the fees and expenses described below, for the time period they are
invested in the Managed Fund or CLO. The amount and nature of fees and expenses incurred by
Managed Funds and CLOs, and indirectly borne by investors, can vary significantly.

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Fees

CLOs

With respect to its CVC Credit-managed CLOs (“CVC Credit CLOs”):

    •   CVC Credit receives a senior management fee that is typically up to 20 basis points, calculated
        as a percentage of assets under management of such CVC Credit CLO.

    •   CVC Credit receives a subordinated management fee that is typically up to 35 basis points and
        is calculated as a percentage of assets under management of such CVC Credit CLO.

    •   CVC Credit also charges the CVC Credit CLOs an incentive fee, which is generally 20% of
        distributions which would otherwise be payable to the equity class of securities for each CVC
        Credit CLO when such class of securities has achieved a specified internal rate of return on
        investment.

Managed Funds

With respect to its Managed Funds:

    •   CVC Credit Partners receives a management fee, typically up to 150 basis points of assets
        under management or net invested capital.

    •   CVC Credit Partners also charges certain Managed Funds performance fees or carried interest,
        of up to 20% of the overall profits of the account. Performance fees typically are payable
        subject to such Managed Fund’s investments exceeding a specified internal rate of return on
        investment.

Managed Accounts

With respect to its Managed Accounts:

    •   CVC Credit Partners receives a management fee that is typically up to 75 basis points of assets
        under management or net invested capital.

    •   CVC Credit Partners also charges certain Managed Accounts performance fees or carried
        interest, of up to 15% of the overall profits of the account. Performance fees typically are
        payable subject to such Managed Account’s investments exceeding a specified internal rate of
        return on investment.

All fees attributable to CVC Credit CLOs are paid quarterly to CVC Credit by independent trustees for
the CLOs in accordance with the terms of the applicable indenture. The management fee attributable
to each CLO is calculated by the trustee and confirmed by CVC Credit. Base management fees and
incentive fees attributable to Managed Funds and Managed Accounts are paid quarterly (with respect
to the management fees) and annually (with respect to incentive fees) to CVC Credit Partners by the
Client or an independent third-party custodian. Certain Managed Funds are required to pay base
management fees quarterly in advance of the calendar quarter. If an investor in a Managed Fund
redeems that interest during the quarter (as opposed to the end of the quarter), the investor is entitled
to a pro-rata share of unearned management fees.

CVC Credit Subscription and Servicing Fees

In respect of certain Clients, certain distributors or other financial intermediaries through which an
investor acquires an interest in such vehicle may charge such investor upfront selling commissions,
placement fees, subscription fees, administrative fees or similar fees (“Subscription and Servicing
Fees”). In certain circumstances, the Subscription and Servicing Fees may be paid to CVC Credit or a
Client and reallocated, in whole or in part, to the distributor or other financial intermediary through which
an investor acquires an interest in such vehicle. Further details with respect to Subscription and
Servicing Fees for a specific Clients are included in such vehicle’s governing and/or offering documents.

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Types of Expenses Charged to CVC Credit Clients

CVC Credit’s advisory fees are not inclusive of all the fees and expenses that Clients (and, indirectly,
investors) may pay. The fees and/or expenses that Clients may possibly pay will typically fall into three
general categories: (1) organizational expenses, (2) operational expenses, and (3) investment-related
expenses. A summary of these expenses, which is not intended to be exhaustive, is provided below.
The relevant Client Agreement may set forth specific expenses that will (or will not) be borne by a Client,
and the provisions of Client Agreements will supersede this brochure to the extent of any direct conflict.

Organizational Expenses

Organizational expenses typically include fees, costs and expenses in connection with establishing and
...

7. Types of Clients

CVC Credit provides investment advice to CLOs, Managed Funds and Managed Accounts. Managed
Account Clients and investors in CLOs and Managed Funds include high net worth individuals, banks,
thrift institutions, pension and profit-sharing plans, sovereign wealth funds, trusts, estates, charitable
organizations, university endowments, corporations, limited partnerships and limited liability companies
or other business entities. Investments in CLOs and Managed Funds are generally only available to
institutional investors, professional investors, wholesale investors and certain high-net worth investors
who are qualified purchasers or can be opted up to professional investor status. Acceptance of non-
US investors into CVC Credit Partners’ Managed Funds also generally requires qualification as an
institutional investor under local regulatory requirements of the jurisdiction in which they are based.
CVC Credit Partners’ Managed Funds generally have a specific minimum investment amount, which is
set forth in their Investment Agreements.

Certain Clients are not registered or required to be registered under the Investment Company Act, and
their securities are not registered or required to be registered under the Securities Act and their
securities will be privately placed to qualified investors in the United States and elsewhere.

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Certain of the Clients have a specified minimum initial investment as set forth in their offering
documentation; such minimums range from $25,000 to $10,000,000. Details concerning applicable
investor suitability criteria are set forth in the relevant Client’s offering documents.