Kobalt Capital Limited

ITEM 5: FEES AND COMPENSATION

   a) Compensation

KCL is compensated for its services through the receipt of a management fee and performance-
based fees. KCL compensation, as well as other costs associated with management by the
Adviser, is discussed generally below and in more detail in relevant offering materials.

       Funds

KCL receives a management fee from the funds managed generally on a quarterly basis payable
in arrears based on the assets under management in the Fund. It also may receive a performance
fee. Each Fund’s prospectus or offering documents specifies the amount and range of
management and performance fees, if applicable. The Fund may charge an upfront placement fee
to investors (as stipulated in the Prospectus) which could be paid to KCL or an affiliate.

       Managed Accounts

KCL may offer separate account management to clients with a fee equivalent to the one that the
Adviser receives for managing its private funds. This fee may be negotiable depending on the
account size, the total investment by that client in all products, the aggregate investment by
related accounts, the complexity of any additional guidelines provided by the client and other
discretionary factors.

   b) Billing

Fees are automatically deducted from the Funds. Separate Account Clients are billed for fees
incurred.

   c) Other Expenses

Funds managed by KCL do incur other expenses separate and apart from the Adviser’s
management fees. These expenses typically include legal, organizational expenses,
administrator’s fees, custodian and trustee fees, directors’ fees audit fees, accountancy, printing,
and postage, reasonable and attributable out-of-pocket expenses of placement agents, brokers
and intermediaries. Any commissions payable to placement agents, brokers and intermediaries
shall be borne by the Adviser.

   d) Advance Billing

As discussed above, with respect to the Funds the management fee is payable quarterly in arrears
five business days following the quarter end. Investors in the Funds who withdraw will generally
not be refunded any portion of the management fee payable for that calendar quarter. With
respect to managed accounts, management fees may be paid quarterly or monthly, in advance or
in arrears, as agreed on with the Client. For Separate Accounts that are terminated prior to the
end of the period, fees paid in advance will be refunded only if agreed to by the parties.

   e) Sales-based Compensation

Neither the Adviser nor any of its employees or affiliates accepts additional compensation for the
sale of any other securities, or other investment services or products.

ITEM 7: TYPES OF CLIENTS

 KCL provides investment advisory services to certain Private Equity Funds (the “Funds”)
organized as limited partnerships. The Funds qualify for exemption from the definition of an
“investment company” under the Investment Company Act of 1940, as amended (the
“Investment Company Act”) under Section 3(c) (1) or Section 3(c) (7) of the Investment
Company Act, and the Adviser offers interests to Investors pursuant to Regulation D under the
Securities Act of 1933, as amended (the “1933 Act”).

Fund investors are qualified investors, such as state and corporate pension plans, university
endowments, wealthy families and individuals, and funds of funds. Generally, the minimum
commitment to a Fund is $3,000,000. However, the minimum initial investment in a Fund can be
waived by the General Partner.

The Adviser’s separately managed accounts generally include high net worth individuals and
other institutions. There is no minimum for managed accounts subject to individual negotiation.