Kramer van Kirk Credit Strategies LP

Item 5 Fees and Compensation

Management Fees

As compensation for its investment advisory services, KVKCS may receive a Senior Investment
Management Fee, a Subordinated Investment Management Fee and an Investment Manager
Incentive Fee Amount based on a percentage of client assets under management (“AUM”).
Typically, KVKCS will charge a Senior Investment Management Fee at a rate between .05 -
.20% per annum of the client assets managed, while a Subordinated Management Fee may be
paid at a rate between .04-.15% per annum of the client assets managed. The percentages may
vary based on the type of fund and the assets KVKCS’s manages. KVKCS may also be entitled
to an Investment Manager Incentive Fee Amount. Specific fee rates and the methodology for
calculating these fees will be described in the investment management agreement and the
relevant offering documents which will be provided to prospective investors. Clients are not
billed directly by KVKCS but are billed by a Fund’s trustee, quarterly in arrears as is detailed in
the relevant offering documents. Fees are deducted by the trustee from client assets and paid to
KVKCS. The existence of an incentive or “performance fee” incentivizes KVKCS to manage a
Fund’s assets in a more aggressive manner and the existence of differing fees among Funds
creates a conflict of interest with respect to the allocation of investment opportunities among the
Funds managed by KVKCS, particularly if KVKCS receives a performance fee from one Fund
but not another. KVKCS has implemented a trade allocation policy to address this potential
conflict of interest (See Item 6).

In accordance with the investment management agreement and indenture between KVKCS and
its client Fund, the Fund generally reimburses KVKCS for certain services provided by KVKCS
and third party service providers to the Fund. These additional expenses may include, among
other things, those pertaining to the establishment of the Fund, the Fund’s trustee, collateral
administrator, accountants, lawyers, rating agency, and regulators. Additionally, expenses
associated with financial statements, marketing, the acquisition, holding, settlement and
disposition of the assets may also be borne by the Fund. A discussion of brokerage fees paid by
the Funds can be found at Item 12 of this Brochure.

Item 6 Performance Fees and Side by Side Management

As noted in Item 5, KVKCS may receive an incentive fee from a Fund under its management.
Conflicts may arise in the management of Funds as KVKCS may have an incentive to favor
Funds for which the attainment of the incentive is more likely. KVKCS has a fiduciary
responsibility to act in each Fund’s best interest regardless of their compensation. Additionally,
conflicts may arise with respect to the allocation of loan purchases among the Funds KVKCS
manages as well as its proprietary account and Funds managed by KVKGS. KVKCS’ and
KVKGS’ compliance policies and procedures are designed to ensure that one Fund is not unduly
favored over another with respect to both potential compensation and the allocation of

opportunities. In determining allocations among Funds of approved purchases, KVKCS will
consider all pertinent information with respect to the asset being purchased compared to
investment guidelines and parameters of each Fund. Each asset opportunity will be evaluated
independently against, among other factors, a Fund’s available cash, industry and individual
asset concentration limits and diversity requirements. When possible within these parameters,
KVKCS will endeavor to allocate proportionally among Funds when an asset is equally
appropriate for more than one Fund. However, when this is not possible due to the size of the
opportunity, KVKCS may prioritize the allocation amount first to the Fund whose investment
parameters are best matched to the specific characteristics of the asset and second to a fund
which have the most available capital to invest. KVKCS may also take into consideration the
age of the particular Fund, whether it is “ramping” a warehouse for a new Fund and differences
in indenture restrictions. KVKCS’ overall objective is to ensure that over time, all Funds receive
a proportional share of appropriate investment opportunities.

Item 7 Types of Clients

Currently, KVKCS has six Clients which are CLO Funds. Two of the Firm’s CLO funds were
redeemed in 2017. KVKCS expects that most of its clients will be CLO Funds though KVKCS
may provide advisory services directly to institutional clients as well. Each Fund is structured
separately; however, they operate similarly in that each Fund is owned by a group of investors
who assume a certain percentage of equity interest in the Fund with another group of debt
investors providing the remaining capital.

Item 8 Methods of Analyses, Investment Strategies and Risk of Loss

Analyses and Investment Strategies

KVKCS focuses on creating high quality, well diversified loan portfolios for its Funds that
maximize market yield opportunities while minimizing the impact of any single credit event in
order to provide appropriate risk adjusted returns to its Clients. KVKCS invests predominantly
in senior secured floating rate leveraged loans made to corporate and other business entities.
KVKCS carefully scrutinizes all potential investments through an in-depth analysis on both a
macro and micro level, taking into consideration both the quality of an individual asset as well as
its fit within a broadly diversified portfolio. In constructing its portfolios, KVKCS intends to
focus on companies with historically stable cash flows, liquidity and access to capital.
Specifically, KVKCS’s analysis of potential investments includes industry and company
fundamentals, financial risk considerations, transaction structure and source, stress sensitivity,
relative value and risk adjusted return analyses. Investments have specific benchmarks assigned
for the particular company and industry. Benchmarks may include minimum EBITDA, free cash
flow, core revenue growth and other industry metrics. KVKCS’s portfolios are highly diversified

by both industry and by issuer. KVKCS may also invest in certain high yield bonds to the extent
permissible under the various indentures.

KVKCS employs a robust and highly disciplined approach to portfolio review to monitor
compliance with specific benchmarks, indenture restrictions and investment criteria. Using a
proprietary technology platform, KVKCS’s investment professionals manage investment
positions using current issuer and market information. KVKCS makes buy/hold/sell decisions
based on a number of factors regarding the asset which may include; the visibility, clarity and
transparency of the information on the issuer, current market price, Issuer’s overall
industry/market position, senior and total leverage versus enterprise value and the Issuer’s
liquidity position.

Risks

The following is a summary of some of the material risks associated with the investment strategy
KVKCS employs on behalf of its Funds. This summary does not attempt to describe all of the
potential risks associated with each Fund; instead the offering memorandum will contain a more
complete description of the risks associated with a Fund investment. Therefore, this summary of
risks is qualified entirely by the disclosures to be made in the offering memorandum of each
Fund.

All investment in securities involves the risk of loss. Structured products like the loans that
make up the Fund are complex instruments, typically involve a high degree of risk and are
intended for sale to only sophisticated investors. The material risk of investing in the Fund
generally relates to the underlying loans and other investments (if any) held by the Fund. Other
risks will include:

Credit Analysis - KVKCS employs a rigorous credit analysis prior to investing in loans for each
Fund. However, risks with respect to their analysis include the unpredictability of the general
economic, financial, industry and issuer specific conditions.

Limited Liquidity- The loans invested in by KVKCS are not traded on an organized exchange
but rather by banks and other counterparties and therefore are not as easily purchased and sold as
publicly traded securities. This risk may be heightened in times of economic downturn or in
response to a specific economic event. Trading in loans is subject to delays due to their unique
nature and transfer may require significant additional documentation as well as the consent of the
agent bank offering the loan or the underlying obligor. The investments in a Fund are designed
for long term investors and should not be considered a vehicle for short term trading.

High Leverage- Certain Funds may be highly leveraged and this may result in situations where
the interest expense due is greater than interest income collected. The use of leverage can
magnify the effects of deterioration in the performance of the investments. The more subordinate
the investor, the greater risk of non-payment.

Credit- A borrower may not make required principal or interest payment under its borrowing
terms.

Interest rate and prepayment- Companies are likely to prepay their outstanding loans
during periods of declining interest rates. Proceeds received from prepayment may be
reinvested in a lower yielding investment.

Non-investment grade investments - Non-investment grade loans will have greater
credit and liquidity risk than investment grade obligations and are more likely to be
impaired during periods of economic downturn.

Subordination – Some of the loans invested in may be subordinated to the claims of other loans
or senior lenders. Cash flows to senior claims may impact the ability to pay subordinated loan
holders.

Pricing - Prices of the loans are volatile and will fluctuate due to a variety of factors including
changes in interest rates, credit spreads, general economic and financial market conditions as
well as international and domestic political events.

Defaults - The loans purchased for the Funds will generally be secured by collateral; however a
Fund may be exposed to losses resulting from defaults.

High Yield Bonds – a Fund may invest in high yield bonds which bear the risk of losing their
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