K1 Investment Management LLC

Item 5.             Fees and Compensation
In general, K1 receives a management fee and a carried interest in connection with advisory services. The
Manager or other K1 entities or affiliates receive additional compensation in connection with management and
other services performed for portfolio companies of the Funds and certain of such additional compensation will
offset in whole or in part the Management Fees (as defined below) otherwise payable to K1 as described below.
Investors in a Fund also bear certain expenses. A summary of each Fund’s fees and expenses follows, but
investors should review the Governing Documents for details regarding that Fund’s fee structure and expenses.
Undefined terms not defined in this Brochure are defined in the applicable Limited Partnership Agreement.

Management Fees

K1 receives an annual management fee (the “Management Fee”) from each Fund, the terms of which differ from
Fund to Fund but for flagship Funds are generally 2% of aggregate investor commitments during the Fund’s
investment period, and thereafter 2% of (i) the aggregate investment contributions (including for bridge
financings), plus (ii) the aggregate amount of commitments reserved for pending investments, plus, (iii) any
borrowings made in anticipation or in lieu of the investors making investment contributions, less (iv) the
aggregate amount of investment contributions with respect to the portion of each investment that has been
disposed of or permanently written down. Management Fees generally are payable semi-annually, partially in
advance and in arrears. Installments of the Management Fee payable for any period other than a full quarterly
or semi-annual period are adjusted on a pro rata basis according to the actual number of days in such period.
Fees are deducted from the account of each Fund. The Management Fee generally will be reduced upon the
occurrence of certain events as described in the Governing Documents (the “Stepdown Date”) and discussed
below. K1 has the discretion to waive all or a portion of its Management Fee with respect to certain investors
(including, without limitation, Service Providers)n its discretion. For example, certain investors associated with
K1 or its affiliates, such as K1 personnel and their family members, are subject to a lower Management Fee than
other limited partners. As a general matter, Management Fees will be payable during term extensions unless
otherwise agreed with investors. The Manager reserves the right to make any such exemption from fees (and/or
carried interest) by a direct exemption, a rebate by K1 or through other Funds or vehicles which co-invest with
a Fund.

The Management Fee generally commences as of the effective date for a Fund based on aggregate
commitments, regardless of when a limited partner is actually admitted. Limited partners participating in a
subsequent closing after the initial closing date are assessed Management Fees retroactive to the effective date
of a Fund as if such limited partner was admitted for its full commitment on the effective date and, in addition,
will be charged interest as set forth in the Governing Documents. Any such amounts will be paid to the Fund’s

General Partner. The Management Fee will be paid out of current income and investment proceeds of the Fund
and/or, in the General Partner’s discretion, from drawdowns that will reduce unfunded commitments and/or
borrowings under the Fund subscription line (credit facility).

The Governing Documents provide that a Fund’s Management Fees will be calculated and charged on a basis
that generally is not tied to the Fund’s then-current net asset value. As further specified in the Governing
Documents, from the effective date of the relevant Fund until the Stepdown Date, Management Fees generally
will be charged based on a formula tied to the amount of the relevant Fund’s aggregate commitments. Further,
after the Stepdown Date, Management Fees generally will be charged and calculated based on a formula tied to
the amount of investment contributions (including, where applicable, a Fund borrowing component (including
interest expenses) and the amount of any capitalized Transaction Fees (as defined below) or expenses, including
costs of Special Consultants (as defined below)) (and other amounts as set forth above) made by the relevant
Fund relating to the Fund’s aggregate investment(s) in any portfolio companies that have not been realized or
permanently written down (such permanently written down investments, “Impaired Value Investments”). Due
to differences in the criteria set forth in their respective Governing Documents, in the event where more than
one Fund participates in an investment, there is the possibility that an investment will become an Impaired Value
Investment for purposes of one Fund’s Governing Documents but not those of one or more other Funds.

Under the Governing Documents, where the fair market value of an investment exceeds the total amount of
investment contributions relating to such investment, post-Stepdown Date Management Fees will not be
calculated based upon such appreciated value and will instead continue to be calculated based on the amount
of applicable investment contributions. Conversely, the Governing Documents do not require Management Fees
to be reduced or refunded following the occurrence of a writedown, decrease (including a significant decrease)
in fair value or other event not constituting a complete realization, such as a partial sale or disposition,
reorganization, recapitalization, roll-over investment in connection with a sale or dividend distribution, except
in the case of investments that have been fully realized or meeting the relevant Impaired Value Investment
standard under the Governing Documents. Following the Stepdown Date, portfolio company investments that
have been partially disposed of or permanently written down will only reduce the Management Fee to the extent
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Item 7.             Types of Clients
K1 provides investment advice solely to its Fund clients, and references throughout this Brochure to “clients”
and to K1’s related duties to and practices on behalf of its clients and/or investors should be construed
accordingly. The Funds generally include investment partnerships or other investment entities formed under
U.S. or non-U.S. laws and operated as exempt investment pools under the IC Act. K1 is also permitted to advise
certain related investment vehicles that invest alongside a Fund.

The relevant General Partner also generally is permitted to establish Funds that are alternative investment

vehicles in order to permit certain investors to participate in one or more particular investment opportunities in
a manner desirable for tax, regulatory or other reasons. Alternative investment vehicle sponsors generally have
limited discretion to invest the assets of these vehicles independent of limitations or other procedures set forth
in the organizational documents of such vehicles and the related Fund.

Investors in the Funds generally include other investment entities, pension and profit-sharing plans, university
foundations, family offices, insurance companies, estates or charitable organizations, banks and other financial
institutions, other business entities and high net worth individuals, and include, directly or indirectly, principals
or other personnel of K1 and its affiliates and members of their families, K1 Operations or other Service Providers
retained by K1 or a Fund, as well as portfolio company executives.

The Funds have minimum investment amounts ranging from $16,000 to $5 million for third-party investors. Fund
interests are offered and sold only to accredited investors that are also qualified clients and, unless waived by
the applicable General Partner, qualified purchasers (or qualified knowledgeable K1 personnel). K1 is generally
permitted to waive such minimum investment amounts.