Eldridge Structured Credit Advisers LLC

ITEM 5 – FEES AND COMPENSATION

Management and Incentive Fees

The Adviser receives a management or advisory fee (“Management Fee”) from each Advisory
Client. The Adviser may also receive performance-based fees (“Incentive Fee,” and together, with
the Management Fee, the “Fees”) from Advisory Clients. The Adviser does not maintain a fixed
fee schedule for Advisory Clients. Fees are negotiable and vary across Clients based on the type of
services provided, size of the account, and the overall relationship between the Adviser and the
Advisory Client. Fees charged may vary among Fund Investors in the same Fund. The Adviser, in
its sole discretion, may reduce, waive, or calculate differently the fees with respect to any Fund
Investor through Client Documentation.

The amount of the Management Fee will be based on a percentage of either the net asset value of
a Client, the gross asset value of Client, or such other reference amount as negotiated with a Client
and as. detailed in the applicable Client Documentation. The Adviser expects to deduct the
Management Fee directly from Clients or otherwise bill Clients on a monthly or quarterly basis in
arrears and expects to generally prorate such fees for a period that is less than a calendar quarter.
In the event a Client pays Management Fees to the Adviser in advance, a pro rata portion of such

fees will be refunded if such Client is terminated prior to the end of the billing period based on the
number of days elapsed during such period.

In addition, certain Clients will be assessed Incentive Fees based on the net profits allocable to the
Client during a particular performance period, which may be quarterly, annually, or may extend to
the life of the Client. Such Incentive Fees may be subject to certain specified preferred returns or
hurdle amounts. The Adviser’s receipt of Incentive Fees will be set forth in the applicable Client
Documentation that is provided to prospective Clients. Incentive fees will be structured in
accordance with the Investment Advisers Act of 1940, as amended (the “Advisers Act”).

In instances where the Adviser may serve as “structure advisor” with respect to a CLO (as further
described in Item 8—Methods of Analysis, Investment Strategies and Risk of Loss), the Adviser
receives a fee for these services from the CLO issuer based on a percentage of the total assets in
the CLO. Any such structure advisory fee is negotiated between the Adviser and the CLO issuer
at the time of The Adviser’s engagement as structure advisor. The assets related to the structure
advisory fees are not included in the Adviser’s calculation of assets under management.

Additional Fees

The Adviser may charge SMA Clients additional fees such as subscription fees, commitment fees,
and/or exit fees in addition to the Fees mentioned above, each as agreed in the relevant Client
Documentation. The Adviser, in its sole discretion, can elect to reduce, waive, or calculate
differently the fees with respect to any Client.

The one-time subscription fee is typically a mutually agreed upon fixed amount, which will be
payable one time in connection with the opening of an SMA. This fee is designed to compensate
the Adviser for the costs of establishing the SMA. The one-time fee may vary from Client to Client
based upon the type of services provided, the size of the account, and the relationship between the
Client and the Adviser.

The ongoing subscription fee is typically a mutually agreed upon fixed amount, which will be
payable on a monthly, quarterly, or annual basis pursuant to the Client Documentation. This
ongoing fee is designed to compensate the Adviser for ongoing non-investment related services
the Adviser may provide to certain Clients. Such services are expected to include, without
limitation, reviewing and consulting on the structure of CLOs and ABS, assisting with obtaining
ratings for assets, consulting on balance sheet management in connection with structured products,
and other non-investment advisory services that may be requested by Clients and subject to Client
Documentation.

The Adviser may also charge an exit fee upon early termination of an SMA Client. The purpose
of such fee is to provide compensation to the Adviser for seeking to identify, source, or present
investment opportunities from the date of the SMA until termination of the SMA in accordance
with its terms. Exit fees compensate the Adviser for services rendered and resources committed
by the Adviser prior to such early termination.

All fees applicable to a Client will be described in the applicable Client Documentation. Clients,

Investors, and prospects should review applicable Client Documentation carefully before making
any investment decision. To the extent there is a deviation between the general descriptions
provided in this Brochure and the provisions and disclosures in Client Documentation applicable
to a specific Client, the terms of the Client Documentation shall govern.

Expenses

In addition to the fees described above, Clients bear (or reimburse the Adviser) the costs and
expenses described below, subject to the relevant Client Documentation.

Expenses paid by SMA Clients will be separately negotiated and documented in the relevant Client
Documentation.

Private Funds will generally be responsible for their own expenses, as described further in the
applicable Fund Documentation. For example, the Adviser expects the Private Funds to pay
expenses including, but not limited to: legal; accounting (including external accounting and
valuation expenses); auditing and other professional expenses; tax preparation and other tax related
expenses (including preparation costs of financial statements, tax returns, and reports to Investors);
administrator and other service provider fees and expenses; insurance expenses (including
directors’ and officers’ insurance, errors and omissions insurance, fidelity insurance, and other
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ITEM 7 – TYPES OF CLIENTS

Clients include Eldridge Industries and its affiliates, as well as third-party insurance companies,
other institutional investors, the Registered Funds, and the Private Funds. An Investor in a Private
Fund generally must be an “accredited investor” within the meaning of Rule 501 of Regulation D
under the Securities Act and a “qualified purchaser” as defined in Section 2(a)(51) of the
Investment Company Act. Clients are also expected to include, directly or indirectly, employees

of the Adviser or its affiliates and members of their families and/or affiliates of the Adviser or
Eldridge. In the case of structure advisory services, Clients are also expected to include CLO
issuers.

The minimum initial investment in the Private Funds will be set forth in the applicable Client
Documentation; however, the applicable General Partner may, in its sole discretion, permit
investments below the minimum amount. Minimum investment amounts and investor qualification
standards for SMAs and other Clients will be determined on a case-by-case basis, considering,
among other things, the nature of the investment strategy and investment objectives. Accordingly,
there is no set minimum amount for SMAs, and such amounts could vary.