Lightyear Capital LLC

Item 5: Fees and Compensation
General

The Governing Fund Documents of each Fund set forth in detail the fee structure relevant to such
Fund.

Lightyear typically receives compensation from fees based on a percentage of assets under
management, carried interest distributions, and payment of certain other fees or expenses as disclosed
in the Governing Fund Documents. A description of the carried interest distributions is included in
Item 6 below. As the fees and expenses incurred by each Fund vary, prospective and current investors
should review the fees and expenses listed below, as well as refer to the applicable Governing Fund
Documents for a description of all relevant fees and expenses to be paid by a Fund.

Management Fees

As compensation for investment advisory services rendered to certain of the Funds, Lightyear
receives a management fee (the “Management Fee”) based on committed capital through the
investment period and on invested capital thereafter, pursuant to the applicable Governing Fund
Documents. Certain of the Funds do not pay a Management Fee to Lightyear. With respect to certain
Funds, Lightyear reserves the right to waive or reduce the Management Fee for certain Limited
Partners including employees, Lightyear-affiliated feeder funds (or the limited partners of such feeder
funds), or affiliates of Lightyear. The Management Fee is typically collected from the Funds quarterly
in advance.

For certain legacy Funds, in the event Lightyear does not provide advisory services with respect to a
Limited Partner for the full period for which Management Fees have been paid, such Limited Partner
will receive a refund in an amount equal to (1) the Management Fee initially allocated to such Limited
Partner minus (2) its portion of the Management Fee recalculated as of the date that such advisory
services terminated with respect to such Limited Partner.

For certain more recent Funds, the Management Fees that have been paid in advance for a quarter
will not be refunded in the event Lightyear ceases to provide advisory services during such quarter.
Please see the applicable Fund’s Governing Fund Documents for specific information regarding
Management Fees and reimbursements.

Organizational Expenses

Each Fund bears offering and organizational expenses subject, in certain cases, to a maximum amount
as set forth in such Fund’s Governing Fund Documents.

Fund Expenses

Each Fund will bear certain costs, expenses and liabilities incurred in connection with the operation
and activities of its respective vehicles (including, but not limited to, parallel funds, alternative
investment vehicles, and feeder funds). The amount of these expenses will reduce the actual returns
received by Limited Partners on their investment in a Fund (and could, in certain circumstances,

reduce the amount of capital available to be deployed by a Fund to make investments). These expenses
vary significantly by Fund and Limited Partners and prospective investors should consult each Fund’s
applicable Governing Fund Documents for a description of all expenses which will be borne by such
Fund. While these expenses vary between Funds, they will typically include, without limitation, all
fees, costs and expenses that are incurred in connection with, related to, arising from or attributable
to (a) the operation and activities of any Fund, any parallel funds, any alternative investment vehicles,
any Employee Co-Investment Funds, and any Feeder Funds (b) identifying, sourcing, developing,
evaluating, investigating, researching, analyzing, negotiating, structuring, acquiring, holding,
monitoring, maintaining, financing, refinancing, pledging, restructuring, and disposing of portfolio
companies and all transactions related thereto and (c) the performance by Lightyear, the General
Partners, the Affiliated Advisers, the Funds and their respective affiliates (including employees
thereof) of their obligations under the relevant Governing Fund Documents and the agreements
contemplated therein, as determined by the applicable General Partner, including, without limitation,
all fees, costs and expenses that are incurred in connection with, related to, arising from or attributable
to: (i) Management Fees; (ii) placement fees; (iii) “Broken Deal Expenses” which include all fees,
costs and expenses incurred in identifying, sourcing, developing, evaluating, investigating,
researching, analyzing, negotiating or structuring any portfolio investment that is not ultimately made
including, without limitation, (a) expenses of Service Providers (as defined below), (b) all
commitment, financing or reverse termination fees, (c) administrative expenses, (d) travel, travel-
related and entertainment expenses (“T&E Expenses”) (as further described below), (e) the expenses
of attending industry conferences, and (f) to the extent not prohibited by applicable U.S. federal
securities laws, all fees, costs and expenses that are not otherwise borne by a co-investor (including,
without limitation, all fees, costs and expenses set forth in (a) through (e) above); (iv) any service
providers engaged in connection with the activities of the Funds, the General Partners, any related
investment funds and any portfolio companies, including, without limitation, any attorneys and legal
professionals, accountants, auditors, tax professionals, fund administrators, advisors (including,
without limitation, investment bankers engaged in connection with the purchase or disposition of any
investment), expert network providers, Consultants (as defined in Item 8) (including, without
limitation, members of any third-party advisory committees of the Funds and Operating Partners (as
defined below) engaged to provide services in respect of the Funds or one or more portfolio
companies), research, data and software providers, valuation and appraisal experts, public relations
consultants, local intermediaries, depositories, trustees, paying agents, custodians and safe-keeping
...

Item 7: Types of Clients
Lightyear provides investment advisory services to the Funds. Limited Partners will be required to
meet certain eligibility and suitability qualifications and make certain representations prior to
investing in a Fund. Details concerning applicable Limited Partner suitability criteria and minimum
investment commitments are set forth in the respective Governing Fund Documents. Lightyear
maintains the discretion to accept less than the minimum investment commitment.