KVK Global Strategies LLC

Item 5 Fees and Compensation

Management Fees

With respect to CLOs, KVKGS may receive a Senior Investment Management Fee, a
Subordinated Investment Management Fee and an Investment Manager Incentive Fee Amount
based on a percentage of assets under management (“AUM”). Typically KVKGS will charge
each CLO a Senior Investment Management Fee at a rate between .05 -.20% per annum of the
assets managed, and a Subordinated Management Fee at a rate between .30-.45% per annum of
the client assets managed. The percentages may vary based on the type of Fund and the assets
KVKGS manages for the Fund. KVKGS 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 CLO offering documents
which will be provided to prospective investors. KVKGS may elect in the future to waive or
defer all or a portion of its Investment Management Fees. Typically, the Fund’s Trustee bills
the Fund quarterly in arrears as will be detailed in the relevant offering documents. Fees will be
deducted by the Trustee from the Fund’s assets and paid to KVKGS.

In accordance with the investment management agreement between KVKGS and the CLO Fund
and the indenture for the CLO Fund, the CLO Fund will generally reimburse KVKGS for certain
services provided by KVKGS and for fees and expenses of third party service providers to the
Funds. These additional fees 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, the
acquisition, holding, settlement and disposition of the assets may also be borne by the Funds. A
discussion of brokerage fees paid by the Funds can be found at Item 12 of this Brochure.

With respect to the Opportunity Fund, Limited Partners will be asked to elect one of two
Management Fee structures. Limited Partners may choose to pay a quarterly Management Fee
equal to (i) 0.375% (1.5% per annum) of the Fund’s quarter-end net asset value and not pay the
Performance Allocation, or (ii) 0.25% (1.0% per annum) of the Fund’s quarter-end net asset
value and pay a Performance Allocation of 10% annually of the appreciation (as defined in the
Offering Memorandum) achieved by each such Limited Partner’s capital account with respect to
such Interest calculated as of December 31 each year, (and where a Limited Partner withdraws
all or a portion of such capital account, calculated as of the date of such withdrawal).

 The Opportunity Fund will bear the Organizational Expenses of the Fund as well as the all
 costs and expenses relating to the Fund's activities (“Fund Expenses”), including legal,
 auditing, consulting and accounting expenses (including expenses associated with the
 preparation of the Fund's financial statements, tax returns and Schedules K-1), insurance
 expenses, custodial expenses, governmental registrations, license fees and ongoing offering
 expenses. More detail regarding Operational Expenses and Fund expenses may be found in
 the Opportunity Fund’s Offering Memorandum.

The existence of an incentive or “performance fee” may incentivize KVKGS to manage the
Funds’ assets in a more aggressive manner and the existence of differing incentive fees among
funds in the future may create a conflict of interest with respect to the allocation of investment
opportunities among the Future funds managed by KVKGS. KVKGS has implemented a trade
allocation policy that addresses this potential conflict of interest (See Item 6).

Item 6 Performance Fees and Side by Side Management

As noted in Item 5, KVKGS may receive an incentive fee from a fund under its management.
Conflicts may arise in the management of the Funds as KVKGS may have an incentive to favor
funds for which the attainment of the incentive is more likely. Additionally, conflicts may arise
with respect to the allocation of loan purchases among the Funds KVKGS manages as well as
those Funds managed by KVKCS its related investment adviser to the extent that certain Funds
have performance fees while others do not. KVKGS has a fiduciary responsibility to act in each
of the Fund’s best interest regardless of their compensation. A conflict may also arise among
KVKGS, KVKCS and KVKCS’ proprietary second lien account in those circumstances where
KVKCS and KVKGS Fund accounts may also invest in second lien loans. Both KVKGS’ and
KVKCS’ 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 of investment opportunities among Funds, KVKGS
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,
KVKGS 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, KVKGS 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. KVKGS may also take into consideration the
age of the particular Fund, whether it is “ramping” a warehouse for a new CLO Fund, and

differences in indenture and investment restrictions. KVKGS’ overall objective is to ensure that
over time, all Funds receive a proportional share of Fund appropriate opportunities.
...

Item 7 Types of Clients

KVKGS manages one CLO Fund and one private limited partnership. In the future, KVKGS
expects that all of its future managed CLO Funds will be established and structured to comply
with CRD IV and the U.S. Risk Retention Rules. Each Fund will be structured separately and
may require that KVKGS retain different levels of interest in each Fund to comply with such
retention regulations; however, they will operate similarly in that each Fund will be 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. Currently, the Opportunity Fund
manages funds from both internal and external investors. KVKGS may also provide advisory
services directly to institutional clients in the future.

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

Analyses and Investment Strategies

KVKGS will focus 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. For its CLOs, KVKGS invests
predominantly in senior secured floating rate leveraged loans made to corporate and other
business entities. For the Opportunity Fund, KVKGS invests primarily in below investment
grade leveraged loans and floating rate bonds (both 144A and registered). The Fund maintains
the flexibility to pursue other investment strategies and asset classes with a similar volatility
profile to the single B rating within the S&P/LSTA Leveraged Loan Index in order to achieve the
Fund’s stated risk and return targets. The Fund may from time to time utilize options strategies,
including selling call premium to enhance yield or buying put premium to protect principal on
the Fund’s underlying public holdings. In no case will the Fund hold derivatives either long or

short, without pairing against an underlying risk, including specific company risk, sector risk or
general market risk.

 KVKGS 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, KVKGS will focus on
companies with historically stable cash flows, liquidity and access to capital. Specifically,
KVKGS’ 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. All investments will 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. KVKGS’ portfolios are highly diversified by
both industry and by issuer.

KVKGS employs a robust and highly disciplined approach to portfolio monitoring to ensure
compliance with specific benchmarks, indenture restrictions (in the case of CLOs) and
investment criteria. Using a proprietary technology platform, KVKGS’ investment professionals
manage investment positions using the most current issuer and market information. KVKGS
makes 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
KVKGS will employ on behalf of the 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 investment products like the
loans that will make up the Funds 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 Funds generally relates to the underlying loans and other investments (if any) held by the
Funds. Other risks will include:

Credit Analysis - KVKGS will employ 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 KVKGS will not trade on an organized exchange but
rather by banks and other counterparties and therefore will not be 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- The Funds will 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
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