DSF Advisors LLC

Item 5 – Fees and Compensation

Each Fund pays DSF an annual asset management fee payable in advance in quarterly
installments. This fee is typically equal to a percentage of the aggregate capital commitments to
a Fund during its applicable investment period and a percentage of the outstanding capital
contributions to the Fund invested in assets (subject to certain reductions described in the
applicable limited partnership agreement) thereafter. DSF does not include a fee schedule in this
brochure because it is delivered only to qualified purchasers as defined in the Investment
Company Act. Because asset management fees are paid in advance, they are generally required

DSF Advisors, LLC                                                              Form ADV Part 2A

to be returned to the Funds (and indirectly to the investors in the Funds) if DSF’s asset
management services to the Funds are terminated prior to the end of the period in respect of
which the fees have been paid (including, for example, situations in which the final distribution
by a Fund occurs prior to the end of a period for which asset management fees have already been
paid).
Pursuant to the provisions of the respective limited partnership agreements, DSF Funds make
carried interest distributions to the Funds’ general partner entities (which are affiliates of DSF
and allow certain employees of DSF and its principals to participate in the capital investments in
the DSF Funds and to receive carried interest). The carried interest is generally calculated as a
percentage of the investment proceeds otherwise allocable to the limited partners of the DSF
Funds, after each limited partner has received distributions equal to the capital contributed to
the applicable DSF Fund and a preferred return on such amounts, as disclosed in the limited
partnership agreement of each DSF Fund.
Fees charged to clients are in accordance with each Fund’s respective private placement
memorandums and limited partnership agreements.
DSF’s fees are deducted from the cash accounts of each Fund. DSF’s fees are not paid directly by
the investors in any Fund.
Each Fund pays the offering and organizational expenses incurred in the formation of the Fund
and the related entities up to a certain maximum limit detailed in each Fund’s limited partnership
agreement.
Each Fund generally pays all expenses related to its activities (other than DSF’s general overhead
expenses detailed in each Fund’s limited partnership agreement), including without limitation:

   •   Travel costs, fees and commissions of brokers, transfer taxes and other expenses directly
       related to the investigation of opportunities (whether or not consummated) or the
       acquisition, ownership, management, leasing, financing, refinancing, renovation, or sale
       of any asset of the Fund
   •   Costs of meetings with the Fund’s limited partners and advisory committee
   •   Expenses associated with the preparation and distribution of reports to the Fund’s limited
       partners
   •   Federal, state and local taxes and filing fees
   •   Third party consultants, accountants, auditors and legal counsel
   •   Insurance
   •   Litigation expenses
DSF’s Funds generally do not purchase publicly traded securities. DSF and its supervised persons
are not compensated for the sale of securities or other investment products.

DSF Advisors, LLC                                                                 Form ADV Part 2A

Item 7 – Types of Clients

DSF serves as the investment adviser to the Funds. Investors in these Funds consist primarily of
institutional investors and other eligible investors, all of which are qualified purchasers as defined
in the Investment Company Act. Investors in the DSF Funds are also “accredited investors” under
Regulation D of the Securities Act of 1933, as amended. DSF requires Fund investors to make
representations concerning their financial sophistication and ability to bear the risk of loss of
their entire investment.
In general, the minimum capital commitment for the Funds is set forth in the limited partnership
agreement of each Fund.
While DSF currently manages Funds only, it may in the future consider managing separate
accounts.