Lake Pacific Management Company LLC

Item 5. Fees and Compensation
The Adviser or its affiliates generally receive Management Fees and Carried Interest (each as
defined below). Fund portfolio companies will, from time to time, also make other payments to
the Adviser or its affiliates for certain management and other services provided to the portfolio
companies which offset the Management Fees payable by the applicable Fund. Additionally,
consistent with the organizational documents of a Fund, the Fund typically bears certain out-of-
pocket expenses incurred by the Adviser in connection with the services provided to the Fund
and/or the portfolio companies. Further details regarding these fees and expenses are set forth
below.

Certain current and/or former employees of the Adviser generally receive salaries and/or other
compensation derived from, and in certain cases including a portion of, the Management Fee,
carried interest or other compensation received by the Adviser or its affiliates.

Management Fees

As compensation for investment advisory services rendered to certain Funds, the Adviser and/or
certain of its affiliates are entitled to receive from each such Fund a management fee (each, a
“Management Fee”). The precise amount of, the manner and calculation of and the manner and
timing of payment of the Management Fee for each such Fund are established by the Adviser, as
modified by negotiations with investors in the applicable Fund, and are set forth in such Fund’s
Advisory Agreement, organizational documents and/or documentation received by each investor
prior to investment in such Fund. For certain Funds, Management Fees and other fees and
distributions described below are generally subject to waiver or reduction by the Adviser in its
sole discretion, both voluntarily and on a negotiated basis with investors. Management Fees may
differ from one Fund to another, and certain Funds may not pay Management Fees.

Generally, the Adviser charges an annual Management Fee payable quarterly in advance equal
to 2% of aggregate commitments of a Fund. The Management Fee commences as of the Fund’s

effective date based on aggregate commitments, regardless of when a limited partner is actually
admitted. Limited partners participating in a subsequent closing after the initial closing date will
be assessed Management Fees retroactive to the Fund’s effective date and, in addition, will be
charged an amount equal to the product of (i) the prime rate plus 2% per annum multiplied by
(ii) the amount of such assessed Management Fees, calculated from the date such Management
Fee payments would have been due if such limited partner were admitted for its full commitment
to the Fund on the initial closing date.

If a placement agent is retained in connection with the offer and sale of interests in a Fund to
certain potential investors, the Management Fee payable by a Fund generally will be reduced by
the amount of fees paid by such Fund to such placement agent, as well as by (1) expenses and
fees incurred by the Adviser in connection with the organization of such Fund that exceed a limit
specified in such Fund’s organizational documents and (2) certain Other Fees (as defined below)
received by the Adviser or its affiliates. The amount and manner of any such reduction is set forth
in the Advisory Agreement and/or organizational documents of the applicable Fund.
The Adviser reserves the right to, voluntarily and on a negotiated basis, waive or reduce fees with
respect to any investor. Upon termination of an Advisory Agreement and/or other organizational
documents of the Funds, Management Fees that have been prepaid, if any, are generally
returned on a prorated basis.

Other Fees Payable by Portfolio Companies

To the extent specified in a Fund’s organizational documents, the Adviser and its affiliates will,
from time to time, perform management, advisory, monitoring, transaction-related, financial
advisory and other services for, and receive fees from, portfolio companies or other investment
vehicles of the Funds. Such fees received from portfolio companies or other investment vehicles
of the Funds often include (a) advisory fees (“Advisory Fees”) and (b) transaction fees in
connection with mergers, acquisitions, financings, public offerings, sales and similar transactions
(“Transaction Fees,” and together with Advisory Fees, “Portfolio Company Fees”), in each case
pursuant to agreements with portfolio companies of the applicable Funds.

In addition, the Adviser and its affiliates will generally be permitted to receive fees in connection
with (i) serving on the board of directors (or similar governing body) of a publicly traded portfolio
company (“Director Fees”); and/or (ii) proposed transactions involving a prospective portfolio
company that are not consummated (“Break-Up Fees” and, together with Portfolio Company
Fees and Director Fees, “Other Fees”). The amount and timing of Break-Up Fees received by the
Adviser are generally specified in the agreement or other documentation governing the
transaction.

Other Fees may be substantial. Although these Other Fees are in addition to the Management
Fees, such fees offset the Management Fees paid by the applicable Fund in a specified percentage
(e.g., 80%). Any such reduction of a Fund’s Management Fees will be limited to the extent of such
Fund’s proportionate interest in any such portfolio company. The remaining portion of such
Other Fees will be retained by the Adviser. The Adviser determines the amounts of Other Fees, if

any, in its discretion, subject to negotiations and agreements with portfolio companies and their
management teams, lenders and counterparties to potential transactions, as applicable, and the
amount of Other Fees often will not (except in connection with the reductions described above)
be disclosed to investors in the Funds. In most circumstances, such Other Fees are not reviewed
or approved by an independent third party.

Expenses

Fund Expenses
...

Item 7. Types of Clients
The Adviser currently provides investment advisory services solely to the Funds and references
throughout this brochure to “clients” and to the Adviser’s related duties to and practices on
behalf of its clients should be construed accordingly. Investment advice is provided directly to
the Funds (subject to the direction and control of the General Partner of each such Fund, if
applicable) and not to investors in the Funds individually.

Interests in the Funds are offered pursuant to applicable exemptions from registration under the
Securities Act and the 1940 Act. Investors in the Funds are generally “accredited investors” as
that term is defined in Regulation D promulgated under the Securities Act, and/or “qualified
purchasers” or “knowledgeable employees” as defined in the 1940 Act, and generally include,
among others, high net worth individuals, banks, thrift institutions, sovereign wealth funds,
family offices, pension and profit sharing plans, trusts, estates, charitable organizations,
university endowments, corporations, limited partnerships, limited liability companies or other
entities. In some cases, service professionals from other professional services firms may be
investors in a Fund, as well as executives of portfolio companies.

The Adviser does not have a minimum size for a Fund, but minimum investment commitments
may be established for investors in a Fund. The General Partner of each Fund may, in its sole
discretion, permit investments below the minimum amounts set forth in the organizational
documents of such Fund.