HW Capital LLC

Item 5 – Fees and Compensation

HW Capital receives a flat management fee, which is negotiated with clients upon entering into an
investment management agreement. Management fees will vary depending on the nature and extent
of the services provided to each client. In addition, clients may, in their sole discretion, pay HW
Capital an annual discretionary bonus. HW Capital will only advise “qualified purchasers” as defined
in section 2(a)(51)(A) of the Investment Company Act of 1940.

HW Capital charges management fees on a quarterly basis. Clients are invoiced quarterly in advance
and are responsible for paying such fees directly. HW Capital does not deduct advisory fees from
client accounts. If a client terminates the advisory relationship during a quarter, the client will receive
a pro rata refund of fees for the period following termination. HW Capital also enters into non-
investment management consulting agreements for business consulting at a negotiated fee.

Investment management fees paid by clients are not based on the valuations of underlying
investments. However, clients may, among other non-performance factors, consider valuations of
underlying investments, such as those reported by third-party broker-dealers, investment managers,
private funds, and other sponsors (e.g., real estate operators), when determining whether to pay any
discretionary bonus to HW Capital.

HW Capital generally relies on values provided by third-party custodians, underlying managers, and
third party sponsors for client reporting purposes. These values may reflect fair valuation

determinations or other methodologies, such as cost basis, in accordance with the terms and
conditions of the applicable governing agreements. HW Capital may consider factors such as fund-
specific redemption restrictions, related transaction activity, events occurring since the last reported
valuation, and current market conditions which may affect the value of specific investments. For
illiquid alternative investments, and in the absence of updated valuations or adjustments discussed
above, HW Capital will roll-forward certain fair valuations or cost basis amounts for client reporting
purposes. For example, HW Capital will report the prior quarter’s capital statement valuation for
private equity fund investments to clients. Clients should compare HW Capital’s reports with
custodial statements and third-party capital account statements carefully.

Pursuant to clients’ investment management agreements, clients may be invoiced to reimburse HW
Capital for certain expenses relating to the identification, selection, and acquisition (whether or not
consummated) of investments. These expenses may include, without limitation, attorneys’ fees, due
diligence and similar costs, travel (which may include non-commercial travel), and other costs
associated with investment-related service providers. Any such expense reimbursement will be
allocated in a fair and equitable manner based on anticipated participation or other appropriate
methodology.

Clients will incur operational and transaction fees, costs, and expenses imposed by third-party
custodians, brokers, prime brokers, and other third-parties. Clients invested in third-party managed
pooled investment vehicles, including mutual funds, ETFs, private investment funds (such as private
equity or venture capital funds), as well as third-party separately managed accounts, will also incur
fees and expenses associated with those investments. These may include organizational fees,
management fees, performance allocations, and other fees and expenses charged by third-party
managers. Additional information regarding brokerage practices is described in Item 12 of this
brochure.

Clients invested in real estate and real estate-related vehicles will incur fees and expenses associated
with the acquisition, disposition, and management of properties. These may include brokerage fees,
property management fees, leasing fees, development and construction costs, financing costs, and
other expenses charged by sponsors and real estate operators.

Clients may also incur wire transfer fees and trustee fees. HW Capital does not receive any portion of
these operational, transactional, management, or performance fees.

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

Item 7 – Types of Clients

HW Capital provides wealth management services primarily to ultra-high-net-worth individuals and
their families, including related entities such as family limited partnerships, limited liability
companies, trusts, and foundations. HW Capital does not have a stated minimum to open an account;
however, clients typically have at least $25 million in investable assets under management.