Lee Equity Partners LLC

Item 5.         Fees and Compensation
Lee Equity Compensation

Lee Equity generally receives management fees from our Clients for our investment management services
as specified in the limited partnership agreement and/or investment management agreements. These fees
are paid quarterly in advance and are negotiated when the Fund is formed. Some Clients, including Affiliated
Funds, whose investors may be members, partners, employees, related persons of Lee Equity, or others, may
pay reduced or no management fees. Management fees may be waived by us, and under certain
circumstances are subject to reduction.

Management fees are typically paid from undrawn capital commitments by the investors or will be withheld
from proceeds otherwise distributable by such Fund, as outlined in the Fund’s limited partnership
agreement. If we do not provide services for the full fee period, we will return a pro rata portion based upon
the number of days remaining in the applicable time period.

Additionally, we may receive directors, consulting, monitoring and other similar fees or other transaction
fees in connection with the investment activities of the Funds (“Other Fees”). We may also be reimbursed by
portfolio companies for expenses incurred while providing services that give rise to Other Fees. These
reimbursed amounts are not considered part of Other Fees but are indirect expenses that the Fund must
bear. Other Fees are typically agreed upon when the Fund makes an investment in a portfolio company.

                                                              Lee Equity Partners, LLC - Part 2A of Form ADV

In general, the management fees that the Funds pay us is reduced by a portion of Other Fees, if any, in
connection with the activities of the Funds. If the next installment of the management fee payable by a
Fund is reduced to zero as a result of our receipt of Other Fees, the excess is carried over to the succeeding
management fee payment date and applied as a reduction, but not below zero.

Generally, upon dissolution of a Fund, we will refund the excess (up to the amount of aggregate management
fees previously paid by such Fund) to such Fund for the benefit of its limited partners. We typically receive
Other Fees from, co-investors (including any Affiliated Funds) in an investment. The receipt of these fees will
not reduce the management fee payable by any Fund(s) also investing in the same opportunity. As a result,
each Fund will generally only benefit from its share of the fee, and not from the portion that applies to the
co-investors, which have the potential to be significant.

Senior Advisors and Executive Advisory Board Members

We have exclusive relationships with several senior professionals who provide certain key value-added
services to the portfolio investments of the Funds (the “Senior Advisors”). In addition, Lee Equity and/or
portfolio companies may retain other professionals to provide services to portfolio companies, including
strategic, operating, and other advisory services, based on such person’s industry expertise and business
experience (the “Executive Advisory Board” or “EAB”). These Senior Advisors and EAB members are not
employees or members of Lee Equity, although in some cases Senior Advisors are members of the applicable
General Partner and have an interest in the Funds’ portfolio investments. In addition, the Senior Advisors
and EAB members are not subject to certain restrictions we impose on our supervised persons. In some
instances, Senior Advisors and EAB members will receive compensation from the Funds’ portfolio
investments and such compensation will not result in offsets to or reductions of the management fees.

Senior Advisors and EAB members co-invest through a vehicle established for employees of, and consultants
to, Lee Equity, to invest side-by-side with the Funds. As described in Item 6 and 8 below, such employee co-
investment funds will pay no management fee and no carried interest and will invest in portfolio companies
of the Funds at the same time and on terms no more favorable than those of the other applicable Funds.
Please see additional information regarding potential conflicts of interest in Item 8 below.

Broken Deal Expenses

The Funds’ investments may incur substantial expenses during the due diligence process before making an
investment. These expenses may include, but are not limited to, professional fees for due diligence, legal
fees, travel, lodging, and meal costs. Lee Equity will allocate fees and expenses to be borne by the Funds
(including expenses incurred in connection with transactions which are not consummated – i.e., “broken
deal expenses”) in accordance with the Fund Documents. To the extent such expenses are not addressed in
such documents or agreements, the Firm, in its sole discretion, will allocate such fees and expenses using
good faith and its best judgment. Please see additional information below regarding allocation of broken
deal expenses to co-investment Funds.

                                                             Lee Equity Partners, LLC - Part 2A of Form ADV

Allocation of Fees and Expenses

Each Fund will typically pay legal, organizational, and offering expenses, including the out-of-pocket
expenses of the Fund’s General Partner and its agents, actually incurred in the formation of the Fund and
such General Partner. Investors in the Funds will typically receive a reduction in management fees with
respect to all such organizational expenses in excess of specific amounts and any placement agent fees as
described in the limited partnership agreement.

In addition, each Fund will typically pay all costs and expenses relating to its operations, including, but not
limited to the following:

      •    expenses, costs, and liabilities associated with the operation of the Fund and its portfolio
           investments, including the management fee;
...

Item 7.       Types of Clients

As described in Item 4, Lee Equity provides investment supervisory services to the Funds in accordance with
the Fund Documents. Investment advice is provided directly to the Funds and not to any individual investor.

Interests in the Funds are offered pursuant to applicable exemptions from registration under the Securities
Act and the Investment Company Act. Investment in the Funds is generally only available to “accredited
investors”, “qualified clients”, “qualified purchasers” or “knowledgeable employees” as defined within the
meaning set forth in the Securities Act, Investment Company Act and/or other applicable law.

Limited partnership interest holders may include, among others, governmental and corporate pension and
profit-sharing plans, endowments, private funds, banks, insurance companies, sovereign wealth funds, high
net worth individuals, family offices, trusts, estates charitable organizations, corporations, partnerships, and
limited liability companies, or other entities. In addition, some employees and other persons associated with
Lee Equity and/or its affiliates, including the General Partner, make capital contributions to the Funds.

An affiliate of Lee Equity serving as the General Partner will make specific capital commitment to each Fund,
subject to specific terms as set forth in the Fund Documents.

The Funds generally have a specified minimum commitment as set forth in the Fund Documents. The General
Partner of each Fund may, in its sole discretion, accept investment commitments of lesser amounts than the
stated minimum. In general, there is no minimum capital commitment amount for investors in certain co-
investment vehicles.