Highland Rim Capital LP

Item 5. Fees and Compensation

The Firm is compensated for advisory services provided to the Funds through management
fees and performance-based compensation. The specific terms applicable to each Fund are
described in the applicable Offering Documents.

Management Fee

Each Fund pays a management fee to the General Partner or an affiliate thereof. The
management fee is equal to 2.0% per year of the aggregate capital commitments of the
Limited Partners and is payable quarterly in advance beginning at the Fund’s initial closing.

Following the fifth anniversary of the Fund’s final closing, the management fee is reduced
annually by 10% of the prior year’s fee. The management fee will not be reduced below 1.0%
of aggregate capital commitments per year.

Management fees are paid by the applicable Fund, and Limited Partners do not receive
separate invoices. Certain Limited Partners may receive different economic or other terms
pursuant to side letters or similar arrangements. Because the Funds are closed-end
investment vehicles, Limited Partners generally do not have withdrawal or redemption
rights, and prepaid management fees are not typically refundable except as otherwise
provided in the applicable Offering Documents.

Performance-Based Compensation

The General Partner or its affiliates are entitled to receive performance-based compensation
in the form of carried interest based on the performance of each Fund, as described in the
applicable Offering Documents.

Each Fund utilizes a whole fund distribution model pursuant to which carried interest
generally becomes payable only after Limited Partners have received distributions equal to
their contributed capital plus a preferred return of 8% per year. Thereafter, additional
distributions are typically allocated 80% to Limited Partners and 20% as carried interest to
the General Partner or its affiliates.

The applicable Offering Documents contain additional provisions governing the calculation
and distribution of carried interest, including clawback and other protective mechanisms
intended to limit the receipt of excess carried interest over the life of a Fund.

Expenses

In addition to management fees and carried interest, each Fund bears its own
organizational, offering, operating, and investment-related expenses. These expenses may
include legal, accounting, auditing, tax, compliance, regulatory, insurance, administration,
reporting, due diligence, research, travel, financing, and other expenses associated with the
sourcing, evaluation, acquisition, monitoring, holding, and disposition of investments, and
are more fully set forth in the Offering Documents.

The General Partner, the Firm, and their affiliates generally bear their own ordinary overhead
and operating expenses, including employee compensation, rent, utilities, and routine
administrative expenses, except to the extent otherwise allocable to a Fund under the
applicable Offering Documents.

The Funds may also bear broken deal expenses associated with unconsummated
investment opportunities. To the extent expenses relate to multiple funds or affiliated
investment vehicles, such expenses are generally allocated among the applicable entities as
set forth in the Offering Documents.

In certain circumstances, the Firm, the General Partner, or their affiliates may receive
compensation or reimbursement from portfolio companies or prospective portfolio
companies in connection with investments made by the Funds. Additional information
regarding these arrangements is described in Item 14.

Other Compensation

Neither the Firm nor its supervised persons receives commissions, asset-based sales charges,
or other compensation in connection with the sale of securities or investment products to
the Funds. The Firm does not receive compensation from broker-dealers, custodians, or
other third parties based on the Funds’ investment activities.

Additional information regarding brokerage practices is provided in Item 12.

Item 7. Types of Clients

The Firm provides investment advisory services to the Funds. The Limited Partners in the
Funds are typically institutional investors, including pension plans, endowments,
foundations, and funds of funds, as well as family offices and high net worth individuals.

The Funds are offered pursuant to exemptions from registration under the Investment
Company Act of 1940 and are generally available only to investors that meet certain eligibility
and suitability requirements, including qualification as “qualified purchasers” under
applicable law.

The Funds may enter into side letters or similar arrangements with certain Limited Partners
that modify or supplement the terms of the Offering Documents as they apply to those
investors. Such arrangements may provide for rights or terms that differ from those
applicable to other Limited Partners.