Invus Financial Advisors LLC

Item 5: Fees and Compensation
The Adviser is compensated for advisory services with fees that are not based on capital
appreciation (collectively, the “Management Fees” and each such fee a “Management Fee”). All
Investors should review the governing documents of the relevant Client in conjunction with this
Brochure for complete information on the fees and compensation payable with respect to that
particular Client.

For certain Private Equity Funds, the Management Fee is based on aggregated committed capital
for the first several years of the Fund’s life (the “Investment Period”); and thereafter, on net
remaining cost of the aggregate investments of the Fund after the Investment Period ends as
described in each Client’s governing documents. The Management Fee is charged at a rate
equivalent of up to 2% annually. For certain other Funds investing in both private and public
securities, the Management Fee is based on all of the relevant Adviser’s actual costs and
expenses, including travel expenses, incurred in connection with investment management of
each Fund or Managed Account, as determined by the general partner in its sole discretion and
in accordance with the relevant Fund’s governing documents. Funds investing in public securities
within the master-feeder structure are generally assessed a Management Fee of up to
approximately 2% of the net asset value of the Fund. For the Fund of Hedge Funds, the
Management Fee is based on aggregate assets under management and is charged at a rate of up
to 1% of assets under management annually.

For each Client, the Adviser is also compensated with a fee based on invested capital, a share of
capital gain, carried interest or capital appreciation of the account assets (the “Incentive
Allocation,” see Item 6 below). For the Funds, the Management Fee and Incentive Allocation are
not generally negotiated separately with each Investor; however, the Adviser or its affiliates can
negotiate, waive or agree to a reduction of amounts of the Management Fees and/or Incentive
Allocation with individual Investors at its discretion in consideration of the size of such Investor’s
capital commitment or other factors. In the sole discretion of the Adviser, the Management Fee
and/or Incentive Allocation has in the past and may in the future be waived, reduced or
calculated differently for Adviser-related Investors. For a discussion of potential conflicts of
interest, please see “Item 6. Performance-Based Fees and Side-by-Side Management.” Typically,
the Adviser calls capital from Investors in certain Funds, including one of the Funds of Hedge
Funds, for the Management Fee. For Funds within the master-feeder structure, Funds of Hedge
Funds and Managed Accounts, the Management Fees are invoiced by the Adviser directly to the
respective Client as described in more detail in each Client’s governing documents.

As described in each Client’s governing documents, in addition to the Management Fees and any
Incentive Allocation, Clients generally bear all legal and organizational expenses incurred in their
formation. Clients also pay all expenses directly related to their individual operations,
investments, and portfolio companies (unless paid or reimbursed by the portfolio companies).
Such costs and expenses include, but are not limited to, all costs and expenses with respect to
the actual or proposed acquisition, holding and disposition of investments, which include
research, monitoring, due diligence, and investment banking; underwriting and syndication fees;

brokerage commissions; custodial, consulting, financing, legal, accounting, auditing, appraisal,
and administrative fees, expenses, and outside services; litigation expenses; other extraordinary
expenses; entity-level taxes and other governmental fees and charges; directors’ fees; travel
expenses; break-up fees and out of pocket expenses incurred in connection with transactions not
consummated; annual or special meetings of Investors and periodic reports to Investors; and
printing, duplication, telephone and mailing expenses. In accordance with the applicable
agreements, such fees and expenses often are received and retained by the Adviser or its
affiliates, and do not offset or reduce the Management Fees borne by Clients and received by the
Adviser unless explicitly stated in the applicable agreements. The Adviser is responsible for
certain of its overhead expenses, including salaries and employee benefits, rent, utilities and
general office expenses.

The Clients typically incur other fees and expenses charged by brokers and other third parties,
including, without limitation, investment banking fees, due diligence and indemnity expenses,
underwriting fees, commissions, markups on securities, wire transfer fees, electronic fund fees,
Fund administration service provider fees, other fees and taxes on brokerage accounts and
securities transactions, and costs otherwise authorized by each Client’s governing documents.
Such fees and expenses do not offset or reduce the Management Fees borne by Clients and
received by the Adviser unless explicitly stated in the applicable agreements. See “Item 12.
Brokerage Practices” below for further discussion of the factors that the Adviser considers in
selecting or recommending broker-dealers for Client transactions and determining the
reasonableness of their compensation. Such expenses and liabilities to third parties incurred in
connection with an investment opportunity or potential investment opportunity, are allocated
among the Clients pro rata according to the amount invested by each Client in such investment
opportunity or, in the case of an unconsummated portfolio investment, pro rata according to the
amount to be invested by each Client in such opportunity. Investors in certain Private Equity
Funds structured to contain separate classes of membership interests or segregated investment
...

Item 7: Types of Clients
The Adviser provides investment advice to the Funds, which are private pooled investment
vehicles that are exempt from registration under the Investment Company Act of 1940, as
amended (the “Investment Company Act”). Investors in these vehicles may include high net
worth individuals and institutions, high net worth families, endowments, and funds of funds.

Clients require Investors to meet certain suitability qualifications, such as being (A) “accredited
investors” under SEC Regulation D of the Securities Act of 1933 or (B) “qualified purchasers,” as
defined in Section 2(a)(51)(A) of the Investment Company Act of 1940. It is anticipated that any
future advisory clients managed by the Adviser will have similar eligibility standards as the
Clients.

Investors in the Funds should refer to the applicable Fund’s governing documents and
subscription materials for information on minimum investment requirements and investor
suitability criteria. Information on minimum investment requirements for the Funds is described,
as appropriate, in the Form ADV, Part 1A. For each of the Funds, the minimum initial commitment
is subject to the discretion of the applicable Fund’s general partner.

The Adviser also provides advisory services to the Managed Accounts on both a discretionary and
non-discretionary basis in accordance with each Managed Account’s governing documents. One
Managed Account advised on a discretionary basis is a single-investor fund Client organized as a
limited partnership that operates as a means for the Adviser to provide individualized investment
advice to the underlying Investor.