Lago Asset Management LLC

ITEM 5: FEES AND COMPENSATION

The Adviser receives compensation from the private funds it advises in the form of a management fee and a
performance-based allocation (commonly known as “carried interest”). See Item 6 of this Brochure for additional
discussion of carried interest.

Management Fee
The Funds generally pay the Adviser an annualized management fee of 2% of Capital Commitments during the Investment
Period and 2% of the aggregate cost basis of all investments, thereafter, as set forth below, and as further described in
each Fund’s offering documents (the “Management Fee”). Capital Commitment for each Fund is generally defined as
the amount of cash that a limited partner in the Fund has agreed to contribute to the Fund. The aggregate cost basis of
investments is determined as the GAAP cost basis of all investments as of the first day of the fiscal quarter for which
the management fee is paid or begins to accrue, reduced by the GAAP cost basis of any Investments held at such date
that are no longer ongoing concerns or that have been fully reserved in accordance with GAAP. The Management Fee
is typically paid quarterly in advance and is deducted from the applicable Fund.

The BDC pays the Adviser a Management Fee quarterly in arrears, at an annual rate of 1.50% of the BDC’s average
adjusted gross assets. The average adjusted gross asset balance will be the average of total gross assets (including assets
acquired with leverage but adjusted to exclude cash and cash equivalents) at the end of the two most recently completed
calendar quarters.

Other Expenses
The Funds are responsible for their operating expenses including, without limitation, legal, accounting, tax, auditing and
administrative fees, and all costs and expenses incurred in connection with the offering of Interests (“Organizational
Expenses”), pursuant to each Fund’s Limited Partnership Agreement. Organizational Expenses are typically capped and
any excess is borne by the Adviser. Details of each Fund’s Organizational Expenses are set forth in the Fund’s governing
documents.

The Adviser will pay for normal overhead and administrative expenses incurred by the Adviser in connection with the
management of the Funds. Generally, this covers compensation of all employees of the Adviser, travel and
entertainment, occupancy, and regulatory compliance expenses.

Allocation of Expenses

Certain expenses will be incurred that are attributable to one or more Funds. The allocation of such expenses among
the Funds raises potential conflicts of interest. The Adviser intends to allocate any such common expenses in accordance
with the applicable Organizational Documents of the Funds.

To the extent not addressed in the Organizational Documents, the Adviser intends to allocate any such common
expenses among the Funds in a fair and equitable manner as determined by the Adviser in good faith, taking into account
such factors that it determines to be relevant for the particular expense. The relative percentage of these expenses that
are borne by various stakeholders is expected to depend upon the level at which such expenses are charged or incurred.
If multiple Funds evaluate a potential investment that is not consummated, the Adviser will generally allocate broken-

deal costs pro-rata based on their expected participation in such investment opportunity.

The Adviser has in the past caused, and expects to continue to cause, the Funds to purchase or bear premiums, fees,
costs and expenses (including any expenses or fees of insurance brokers) for insurance to insure the applicable Funds,
their applicable General Partners, the Adviser itself and their respective directors, officers, employees, agents,
representatives, members of the Funds’ limited partner advisory committees, and other indemnified parties, against
liability in connection with the activities of such funds. The Adviser will make judgments about the allocation of
premiums, fees, costs and expenses for such “umbrella” or other insurance policies among the various Funds and the
Adviser itself, on a fair and reasonable basis. A copy of the Adviser’s expense allocation policy is available upon request.

Miscellaneous Information about Fees and Compensation
In the event of termination of a Fund’s investment advisory agreement, fees will be prorated. Any paid but unearned
fees will be promptly refunded to such Fund, and any fees due to the Adviser from this Fund will be invoiced or deducted
from the Fund prior to termination. The Adviser, in its sole discretion, may reduce or waive the Management Fee for
any investor in a Fund.

The Adviser and its supervised persons do not receive any compensation for the sale of securities or other investment
products.

Additional information related to the foregoing fee discussion is set forth below under “Performance-Based Fees and
Side-By-Side Management” and “Brokerage Practices”.

ITEM 7: TYPES OF CLIENTS

 Investment management services and advice are provided exclusively to the Funds, subject to the direction and control
 of the Fund Manager of each fund. Investment advice is not provided individually to the investors in the Funds.

 Interests in the Funds are offered pursuant to applicable exemptions from registration under the Securities Act and the
 1940 Act, except for the BDC. The BDC offers securities exempt from the Securities Act, however the BDC is
 registered under the 1940 Act. The investors in each Fund may include high net worth individuals, banks, thrift
 institutions, pension and profit-sharing plans, funds of funds, trusts, estates, charitable organizations and other business
 entities.

 The minimum investment requirement for the Funds is typically $250,000. However, the Fund Manager of each Fund,
 in its sole discretion, may permit investments that are less than the required minimum investment commitment set
 forth in the applicable Fund’s offering documents.