First Eagle Alternative Credit LLC

Item 5 – Fees and Compensation
          The following discussion represents our basic compensation and expense allocation arrangements.
However, compensation and expense allocations are negotiable in certain circumstances, and arrangements with
any particular Client or investor vary on a case-by-case basis. This is particularly true for SMAs, which typically
contain more customized fee provisions than the basic compensation and expense allocation arrangements
described below. All Clients and investors should review the relevant Clients Agreements and Supplemental
Disclosures, as applicable, for complete information on fees and compensation payable to us, including, without
limitation, information concerning calculation and payment methodology.
Fee Arrangements
Management Fees
FEAC’s advisory fees are generally as follows:
    •   Direct Lending and Asset-Based Lending– From its Direct Lending Clients, FEAC typically receives a
        management fee and, from time to time, a performance fee. The management fee may be based on gross
        assets under management which includes leverage, capital contributions or invested capital. Management
        fees generally range from 0.45% to 1.25%. A Client’s written agreement with FEAC and, where applicable,
        its public filings with the Securities and Exchange Commission describe the calculation and payment
        method for the fees paid to FEAC.
    •   Tradable Credit – From its Tradable Credit Clients, FEAC typically receives a management fee as a
        percentage of assets under management based on an annual rate and paid quarterly. The annual rate is
        established in the Client’s written agreement and typically applies to the sum of all cash and fair market
        value (including accrued interest) of the loans/securities in the account on the last day of the preceding
        quarter. Management fees generally range from 0.20% to 0.75% per annum with the lower rates generally
        being applicable to non-discretionary accounts. For larger accounts, FEAC, from time to time, offers break
        points at lower rates than these on assets above a certain level. FEAC also charges performance fees from
        certain Tradable Credit Clients.
        The Client’s written agreement with FEAC describes the calculation and payment method for the services
        provided by FEAC.
        FECOF invests in a combination of Direct Lending, Asset-Based and Tradable Credit strategies. FEAC’s
parent, FEIM, serves as investment adviser to FECOF. The fees charged to FECOF are set forth in FECOF’s
prospectus and vary by share class. FEIM pays FEAC a fee for the investment advisory services it provides to FECOF.
FECOF pays no advisory fee directly to FEAC.
         FEPCF invests the majority of its total assets in private credit investments to U.S. private companies
through directly originated first lien senior secured cash flow loans, directly originated asset based loans, club
deals (directly originated first lien senior secured loans or asset-based loans in which the FEPCF co-invests with a
small number of third party private debt providers), second lien loans, broadly syndicated loans, high yield bonds
and other debt securities. FEAC’s parent, FEIM, serves as investment adviser to FEPCF. The fees charged to FEPCF
are set forth in FEPCF’s offering documents and vary by share class. FEIM pays FEAC a fee for the investment
advisory services it provides to FEPCF. FEPCF pays no advisory fee directly to FEAC.
         AB FEAC invests primarily in Tradable Credit strategies. ABA serves as investment adviser to AB FEAC. The
fees charged to AB FEAC are set forth in AB FEAC’s prospectus and vary by share class. ABA pays FEAC a fee for
the investment advisory services it provides to AB FEAC. AB FEAC pays no advisory fee directly to FEAC.
        For its services provided to CLOs, FEAC receives a base management fee and a subordinated management
fee based on the aggregate principal balance of each CLO’s portfolio. Both these fees are based on a contractual
percentage per annum but differ in terms of their priority of payment relative to payments to the CLO investors.
        FEAC has made, and expects to make in the future, exceptions to its general fee range based on various
circumstances, such as a Client’s relationship to FEAC, expectations of significant capital additions in the future,
product line, or composition of portfolio, among other reasons. In such cases, different and reduced fee

arrangements have been, and generally will be, negotiated with Clients or underlying investors in a private fund.
FEAC also reserves the right to offer a blended fee rate for products that include both the direct lending and tradable
credit platforms.
Performance Payments
         FEAC receives a performance-based fee in compliance with Rule 205- 3 under the Advisers Act based on
the performance of certain Clients. Performance-based fees are discussed further in Item 6 – “Performance- Based
Fees and Side-By-Side Management.”
Transaction-Related Fees
          In connection with investments made by certain Clients and in addition to FEAC’s other compensation, FEF
Distributors (defined below), which is a limited purpose broker-dealer and affiliate of FEAC, may receive, from time
to time and as permitted under the applicable Client Agreements and applicable law, arrangement, documentation,
structuring, syndication, underwriting, placement, and/or other similar transaction fees from portfolio investments
in which one or more Clients invest or propose to invest. FEF Distributors, in turn, typically pays a substantial
portion of such fees as compensation to FEAC for making FEAC resources and personal available to FEF
Distributors. The potential for FEF Distributors, FEAC and their affiliates to receive these economic benefits creates
a conflict of interest, as FEAC and its affiliates have an incentive to invest in portfolio investments that generate such
...

Item 7 – Types of Clients
         FEAC provides advisory services to many types of Clients including insurance companies, banks,
corporations, pension and profit-sharing plans, trusts and estates, charitable organizations, mutual funds, closed-
end funds, BDCs, government entities, CLOs, private funds and other pooled investment vehicles. The terms and
conditions of Client accounts vary depending on the type of services provided or the type of Client, and these terms
and conditions generally vary from Client to Client.
         The minimum fee and account size requirements for opening an account are generally found in the
applicable Client Agreements. In most cases, FEAC can waive the minimum requirements.