Grand Central Music LP

Fees and Compensation
Management Fees
GCM charges each client a management fee equal to 2% per year of the client’s committed
capital, as specified in the governing documents of each Fund. Management fees are typically

charged quarterly in advance, though specific billing arrangements may vary by Fund. All fee
terms, including calculation methodology, timing, and any applicable offsets, are described in
each Fund’s governing documents.

Other Fees and Expenses
Investors in the Funds bear their allocable share of Fund expenses, which may include, among
other costs:

   •   audit and tax preparation fees;
   •   legal and compliance expenses;
   •   administrative, accounting, and custody costs;
   •   third-party valuation expenses;
   •   technology platform costs;
   •   insurance costs;
   •   interest and financing costs;
   •   licensing, catalog administration, and royalty collection fees related to music publishing
       and recorded music rights; and
   •   any other expenses permitted under the Fund’s governing documents.

These expenses are paid directly by the Funds (or paid by GCM and recharged to the Funds) and
are separate from and in addition to the management fee and carried interest.

Fee Negotiation and Differentiation
GCM generally does not negotiate fee rates with investors; however, certain investors may pay
reduced fees if permitted under each Fund’s governing documents or through side letter
arrangements where applicable.

Material Terms Related to Termination and Refunds

The terms under which an investor or the Fund may terminate the advisory relationship are set
forth in each Fund’s governing documents and the management agreement. Upon withdrawal or
other termination of an investor’s interest as provided in the partnership agreement or offering
documents, management fees that were paid in advance will be prorated through the effective
termination date. Any unearned prepaid fees will be refunded to the withdrawing investor in
accordance with the timing and procedures described in the governing documents.

Investors should review the applicable Fund’s governing documents for a complete description of
termination rights, notice requirements, withdrawal limitations (if any), and the method by which
prepaid fees are calculated and refunded.

Additional Conflicts and Considerations
Because the Firm receives both a commitment-based management fee and performance-based
compensation, GCM has a financial incentive to:

   •   favor Funds or clients that pay higher fees based on percentage of commitment; and
   •   take on greater investment or liquidity risk.

The Firm addresses these conflicts through policies on valuation, allocation, and transaction
oversight, and by providing full disclosure in this Brochure and in Fund offering materials.

If a client forms part of a closing during a quarter, GCM will prorate the fees based on the timing
of the capital call notice in relation to the closing.

Performance Based Fees and Side-by-Side Management
GCM charges performance-based compensation in the form of a 20% carried interest on realized
profits of the Funds. Because the Firm receives performance-based fees, GCM has an incentive to
make investments that are riskier or more speculative in order to generate higher performance
compensation.

GCM only advises its private Funds and does not manage other client accounts with different fee
structures. As a result, the Firm does not engage in side-by-side management of accounts with
materially different compensation arrangements, and the types of conflicts that can arise in
managing performance-fee and non-performance-fee accounts simultaneously are not present at
GCM.

The Firm addresses any remaining conflicts through its allocation, valuation, and compliance
policies and through disclosures in this Brochure and in each Funds’ governing documents.

Types of Clients
GCM provides investment advisory services to the Funds. GCM does not currently provide
investment advisory services to individual investors, separately managed accounts, or other
clients.
The Funds’ investors are limited partners or shareholders of the Funds.

Methods of Analysis, Investment Strategies and Risk of Loss