Kestrel Partners LLP

Item 5: Fees and Compensation

The Firm is paid a management fee and a performance fee as applicable and agreed to with
each client. Generally, fees are paid out of the client’s account but fees are sometimes paid
directly. Frequency of payments are detailed in the relevant investment advisory agreements.
Pursuant to the agreements in place, certain expenses incurred by the Firm may be paid for
by the clients e.g. custodian fees, legal fees and certain exchange fees. Kestrel and its
employees do not accept compensation, including sales charges or service fees, from any
person for the sale of securities or other investment products.

Kestrel Partners LLP                                                        Form ADV Part 2A

Management fees charged are based on a pre-agreed percentage of the assets under
management. This percentage will depend on the client type, the strategy, and the size of the
mandate. Additional custody fees, which are paid to the relevant custodian, may be applicable,
the terms and payment methods of which will be agreed with each client. With closed ended
vehicles the Firm may receive an upfront arrangement fee based on a percentage of the
contributed capital.

In addition to management fees, the firm receives performance fees of generally 15% of
realised profits if a hurdle is met or of the amount exceeding a hurdle value. In the case of
one closed ended SPV certain Firm personnel will receive carried interest of 10% or 20% of
realised profits based on achieving specific hurdles.

Additionally, the Firm is compensated where a partner or employee has taken a directorship
role on certain investee company boards. See Item 10: Other Financial Industry Activities and
Affiliations.

Item 7: Types of Clients

As set out in Item 4, the Firm provides investment management services to a Guernsey based
OEIC, U.S.-domiciled Special Purpose Vehicles, a private equity LP and separately managed

Kestrel Partners LLP                                                        Form ADV Part 2A

accounts. Managed account services are offered to non-US individual and institutional
investors, in addition to family offices. Minimum account sizes vary.