First Trust Capital Management LP

Item 5 - Fees & Compensation

FTCM Fund Management Fees

The FTCM Funds are subject to a variety of fees and expenses. These fees and expenses generally include
management fees and may include performance-based incentive allocations collected by both FTCM and/or
the unaffiliated managers chosen by FTCM; fund legal, administrative, and audit costs; costs incurred in
connection with the acquisition, ownership, financing, hedging or sale of investments; and taxes for the FTCM
Funds and for the underlying funds in which they invest. These fees and expenses are described in detail in
each registered fund’s prospectus, each private fund’s confidential offering materials, and the offering
materials for the underlying funds.

Each investor that invests in the FTCM Funds indirectly bears his or her proportional share of the fees and
expenses of the applicable fund. These fees and expenses are charged to the relevant FTCM Fund and not
billed directly to each investor. If the above expenses are incurred jointly for the accounts of an FTCM Fund
and any other fund managed by FTCM or its affiliates, such expenses will generally be allocated in proportion
to the size of the investment made by each fund to which the expense relates, or in such other manner as
FTCM considers fair and reasonable to all of the funds over time.

The payment of management fees, performance-based fees, and administrative and operating expenses at
the underlying fund, and possibly sub-fund levels, as well as the payment of administrative and operating
expenses incurred by the FTCM Funds, may result in a layering of fees and significant expenses.

Additional Services

Fees for institutional due diligence and other services are negotiated on a project-by-project basis.

Other Fees & Expenses

FTCM’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and expenses
which may be imposed by custodians, brokers, third party managers, and other third parties. These
additional charges may include custodial fees, deferred sales charges, transfer taxes, wire transfer fees,
electronic fund fees, commissions or mark-ups, and other fees and taxes on brokerage accounts and
transactions in those accounts. These fees are paid directly to the custodian and/or broker. See “Brokerage
Practices” below for a description of the factors that FTCM considers in selecting or recommending broker-
dealers for Client transactions and in determining the reasonableness of their compensation (e.g.,
commissions).

Separately managed accounts, non-affiliated managed funds, mutual funds, ETFs, and other investment
products (including certificates of deposit (“CDs”) and other instruments) are subject to additional fees,
commissions and administrative costs that are borne by their investors. Clients’ trading activity in stocks,
bonds, mutual funds, ETFs, and other financial instruments (including CDs) will result in commissions and
other transaction costs in accordance with each Client’s arrangements with its broker/dealer and custodian.

Mutual funds, ETFs and private funds also charge internal management fees and/or incentive fees, which are
disclosed in a fund’s prospectus or offering documents.

Neither FTCM nor its supervised persons accept compensation for the sale of securities or other investment
products.

Transactions or Arrangement between Certain Related Parties

As a component of FTCM investment strategies, FTCM may utilize underlying mutual funds, ETFs or FTCM
Private Funds advised by FTCM or its affiliate(s) or distributed by a registered broker-dealer affiliate, First
Trust Portfolios L.P. (“FTP”) (“Affiliated Funds”). Vest, an affiliated RIA, also acts as sub-adviser for several
FTCM Funds. In such situations, FTCM or its affiliate(s) receive fees from the Affiliated Funds for serving as
investment adviser, sub-adviser, distributor, or other service provider to the Affiliated Fund, as detailed in
the Affiliated Fund’s offering materials. These fees create a financial incentive for FTCM to utilize Affiliated
Funds so that fees and expenses charged by the fund or manager are earned by FTCM or its affiliate, rather
than a non-affiliate.

FTCS and Vivaldi Capital Management LP (“VCM”) are parties to a Platform Access Agreement that provides
VCM advisors access to FTCS’s proprietary investment platform (the “FTCS Investment Platform”), including
the FTCM Private Funds, the proprietary strategy models, research materials and technology systems, as well
as certain administrative and other services, for a fixed annual fee. VCM advisors utilize the models’ building
blocks to construct diversified client portfolios to meet client goals and objectives, which may include
investments in FTCM Private Funds and other investment vehicles (whether managed by FTCM or unrelated
managers). VCM utilizes the technology provided by the FTCS Investment Platform for tracking, reporting,
and creating a more seamless and effective client experience. VCM is controlled by VFT Holdings LP, which
in turn controls one of the members of FTCS.

Item 7 - Types of Clients

FTCM provides investment management services to institutional accounts such as funds registered under
the Investment Company Act private investment funds offering a wide spectrum of alternative investments.
FTCM currently serves as the investment adviser to two daily liquid mutual funds (First Trust Merger
Arbitrage Fund and First Trust Multi-Strategy Fund) and to eight closed-end funds (First Trust Alternative
Opportunities Fund, First Trust Real Assets Fund, First Trust Private Credit Fund, First Trust Private Assets
Fund, First Trust Hedged Strategies Fund, First Trust Enhanced Private Credit Fund, Destiny Alternative
Fund, and Infinity Core Alternative Fund) in addition to a series of closed-end funds with substantially
identical investment strategies which are offered at varying periods throughout the year (FT Vest Registered
Fund Series). FTCM will serve as the investment advisor to additional closed-end funds as they may be
created and registered in the future. FTIT provides research, model strategies and technology-related
services to FTCM and third-party investment advisory firms on a contract basis.