Domain Capital Advisors LLC

FEES AND COMPENSATION

At the outset of an investment, Domain negotiates fees and other compensation with the client.
The fee structure is typically a percentage of committed and/or invested capital or a fixed fee.
Domain could also receive an incentive fee based upon achieved return hurdles or equity multiples

Form ADV – Part 2A Brochure Document | Domain Capital Advisors, LLC

and could also receive a disposition fee upon investment liquidation in certain cases. Domain will
sometimes receive other types of fees which will be set forth in the relevant governing documents.

Fee documents can call for a quarterly fee either in advance or in arrears. Investments that begin
or cease during the quarter are charged a prorated fee unless the fee document states otherwise.
Upon dissolution or other liquidation of an investment, Domain will promptly refund the prorated
amount of any prepaid but unearned fees. Domain typically receives its fees directly from the
vehicle holding the particular investment opportunity.

The client or vehicle holding the client’s investment will pay operational expenses of the
investment, including but not limited to valuation, audit, tax, legal and travel-related costs in
connection with managing the investment. Some of these expenses will be paid directly by the
client or vehicle holding the investment, and for others, Domain will advance the payment and
receive reimbursement from the client or vehicle. Investment vehicle organizational documents
typically outline some of the common expenses Domain expects the entity will incur. Clients and
investors receive quarterly reports for each investment vehicle, and these reports reflect totals for
each category of expenses paid directly or indirectly by the investment vehicle. Detailed line-item
reports for all expenses incurred by or on behalf of the investment vehicle are available upon
request.

Clients generally will pay, or will reimburse Domain for, all reasonable expenditures made on
behalf of any commingled fund vehicle, including without limitation: (i) legal, auditing,
consulting, bookkeeping and accounting fees and expenses (including, without limitation, tax
advisory, tax compliance and costs for preparation of reports to the limited partners and financial
statements); (ii) expenses of meetings of any limited partner advisory committee; (iii) insurance
and indemnification expenses; (iv) all costs, fees and expenses associated with the purchase or sale
and any proposed purchase or sale, holding and disposition of investments, including any and all
expenses incurred in connection with unconsummated transactions; (v) all extraordinary expenses
such as litigation expenses; (vi) all expenses of liquidating the fund; (vii) any taxes, fees or other
governmental charges levied against the fund and all expenses incurred in connection with any tax
audit, investigation, settlement or review of the fund ; (viii) expenses incurred in connection with
the organization of the fund and any parallel vehicles, the general partner as applicable, the
manager and any alternative investment vehicles subject to any applicable cap; and
(ix) management and performance fees as described above.

The applicable client agreement or governing fund documents will set forth fees and expenses in
more detail. Domain may be reimbursed for expenses it incurs on behalf of any particular client
or investment vehicle.

When a client decides to invest in a third-party vehicle or opportunity, the third party may charge
additional fees and costs as specified in the relevant governing documents.

In some cases, Domain receives compensation from parties other than its clients in connection
with an investment. The compensation varies in form and can be an upfront due diligence or
origination fee, or a recurring management fee. These fees are typically paid directly by the 3rd
party investment sponsor/partner or borrower, respectively. The payment from sponsor or partner
is disclosed to, agreed to, and documented with, our client in our executed fee documents.

Form ADV – Part 2A Brochure Document | Domain Capital Advisors, LLC

Domain addresses the conflicts of interest created by these payments by disclosing the relevant
facts and circumstances and by obtaining written consent and acknowledgement of the client
impacted by the arrangement.

Domain, with respect to certain funds, sells interests and/or shares in the Private Funds through
broker-dealers, placement agents and other persons and pays a marketing fee or commission in
connection with such activities. In some scenarios, the cost of this fee is borne by the investor, and
thus it increases the cost of the investment to such investor. In other scenarios, the cost of the fee
is borne by the investor, but they receive a dollar-for-dollar reduction versus management fees.
Investors who do not invest through such placement agent or broker-dealer do not pay such a fee.

                 PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

Domain receives incentive fees on certain investments. These incentive fees, typically structured
as a carried interest, give Domain additional compensation if certain investment thresholds or
investment return multiples are met.

In addition, Domain receives asset management fees on certain investments that are calculated as
a percentage of earnings before interest, taxes, depreciation and amortization (“EBITDA”). These
fees are determined in accordance with GAAP and payable quarterly in arrears. These fees are tied
to an investment’s financial performance rather than to assets under management, which therefore
are considered performance-based compensation.

As discussed in the Fees and Compensation section above, Domain will receive a variety of fees,
based upon negotiation with each applicable client. As a result, Domain has an inherent conflict
of interest between its responsibility to manage each investment and its interest in maximizing any
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TYPES OF CLIENTS

Domain provides investment advisory and management services exclusively to institutional and
high net worth investors.

             METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS