Lionstone Partners LLC

FEES AND COMPENSATION

In general, Lionstone Partners receives a management fee (“Management Fee”) paid by the Funds in connection with
advisory services it provides. These Management Fees are defined for each Fund and include fee structures based on a
percentage of asset value, cash flow and/or invested or committed capital. In addition, Lionstone Partners or other
Lionstone entities or affiliates receive additional compensation in connection with management and other services
performed on behalf of the Funds, including fees in connection with the acquisition and disposition of certain investments.
Although these fees are in addition to the Management Fees, such fees may offset in whole or in part the Management Fee
otherwise payable to Lionstone Partners. In addition, Lionstone may receive compensation for management and other
services performed in connection with co-investments made in portfolio companies of the Funds. Limited Partners in the
Funds also bear certain fund expenses. Lionstone Partners does not require prepayment of management fees more than
six months in advance or have any other events requiring disclosure under this item of the Brochure.

In addition to the management fees and any carried interest allocation as described below, investors in the Funds will bear
indirectly (to the extent not reimbursed by a portfolio company) the fees and expenses charged to the Funds. Those fees
and expenses will vary by Fund, but typically will include, among other things: fees and expenses associated with the
acquisition, holding and disposition of investments, broken deal expenses, financing, legal, auditing, consulting, and
accounting fees and expenses, interest on fees and expenses arising out of all borrowings made by the Funds, and expenses
of the Advisory Boards for the Funds and meetings of the Limited Partners.

The types of fees and expenses that will be charged to the Funds in relation to the acquisition, holding and disposition of
investments, include, where contemplated by the applicable fund documentation, among other things: meals,
entertainment, lodging and travel expenses (which may, on occasion, include the use of non-commercial planes, in which
case the actual allocable cost of such chartered jet travel will be charged to the Funds in accordance with the applicable
fund documentation). Furthermore, a portfolio company or other entity in which one or more Private Investment Funds
may invest may reimburse Lionstone or service providers retained at Lionstone’s discretion for expenses (including
without limitation travel expenses) incurred by Lionstone or such service providers in connection with its performance of
services for such entity and these reimbursements may create conflicts of interest. However, as more fully described in

Conflicts of Interest under METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS, Lionstone
believes that the existence of certain factors help mitigate these conflicts.

In certain circumstances, Lionstone advances amounts related to the expenses of the Fund(s) and receives reimbursement
from the Funds to which such expenses relate.

As described above, in certain circumstances, the relevant General Partner is expected to permit certain investors to co-
invest in investments alongside one or more Funds, subject to Lionstone’s related policies and the relevant fund
documentation and/or side letter(s) or similar arrangements. Where a co-invest vehicle is formed, such entity will bear
expenses related to its formation and operation, many of which are similar in nature to those borne by the Funds. In the
event that a transaction in which a co-investment was planned, including a transaction for which a co-investment was
believed necessary in order to consummate such transaction, ultimately is not consummated, all fees and expenses, or
other liabilities or obligations, incurred for transactions not consummated (“Broken Deal Expenses”) relating to such
unconsummated transaction will be borne by the Fund(s), and not by any prospective co-investors, that were to have
participated in such transaction. However, to the extent that such co-investors have already invested in a co-investment
or other vehicle in connection with such transaction, such vehicle is expected to bear its share of such Broken Deal
Expenses.

Fees and compensation related to the Funds are detailed in the Limited Partnership Agreement, Limited Liability Company
Agreement, or Investment Management Agreement of the Funds, as the case may be, and/or the Private Placement
Memorandum of the relevant Fund. Investors should review all fees charged by Lionstone, its affiliates, and others to fully
understand the total amount of fees to be paid by the Funds and, indirectly, their limited partners.

PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

Lionstone Partners does not directly receive a carried interest allocation (“Carried Interest”) for its advisory services to
the Funds. This is more fully described in the Fund’s Limited Partnership Agreement, Limited Liability Company
Agreement, or Investment Management Agreement of the Funds, as applicable. Lionstone Executives are also investors
in each of the foregoing Funds, indirectly through the General Partner of such Funds, and/or through a limited partner of
such, and consequently, the Lionstone Executives, certain Lionstone employees and Lionstone affiliates may also
participate in the Carried Interest of a Fund. The receipt of Carried Interest by Lionstone Partners’ affiliates may create
an incentive for Lionstone to make investments on behalf of the Funds that are riskier or more speculative than would be
the case in the absence of such compensation. However, Lionstone seeks to treat all its clients in a fair and equitable
manner over time, adheres to a disciplined investment policy and practice, and will act in a manner that it believes
to be in the best interests of its clients.

TYPES OF CLIENTS

Lionstone Partners provides investment advice to Private Investment Funds. Private Investment Funds may include
investment partnerships or other investment entities formed under domestic laws and operated as exempt investment pools
under the Investment Company Act of 1940, as amended. The investors participating in Private Investment Funds may
include individuals, banks or thrift institutions, other investment entities, university endowments, sovereign wealth funds,
family offices, pension and profit-sharing plans, trusts, estates, endowments, charitable organizations, corporations or
other business and investment entities and may include, directly or indirectly, employees of Lionstone Partners and its
affiliates and members of their families and other service providers retained by Lionstone.

Lionstone Partners, through affiliated entities, also provides discretionary or non- discretionary advice to one or more
managed accounts (“Accounts”) through an investment management agreement or similar arrangement (“Investment
Management Agreement”) with respect to ownership of certain real estate properties and assets, as well as provide
management services with respect to certain of such properties.

Interests in each existing Fund were offered and sold solely to “accredited investors” as defined in Regulation D

promulgated under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and other sophisticated and
institutional investors. The Funds’ investors are “qualified purchasers” as that term is defined under the U.S. Investment
Company Act of 1940, as amended.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

General
Lionstone specializes in researching, conceptualizing and executing national investment strategies based upon proprietary
data and ideas. The primary emphasis of the firm is to seek to carefully identify and manage the risks inherent in real
estate investing while producing attractive risk-adjusted returns through the Funds.

The Advisers provide investment advisory services to the applicable Funds. As described below and in the applicable
Limited Partnership Agreement, Limited Liability Company Agreement and Investment Management Agreement, each
Fund has a unique investment methodology and strategy. There can be no assurance that the Advisers will achieve the
investment objectives of each of the Funds and a loss of investment may be possible.

While Lionstone Partners winds down its advisory business and operations, Lionstone Partners has entered into sub-
advisory agreements with the SEC-registered investment advisers that will ultimately manage the Funds following
completion of the wind-down process. Pursuant to such sub-advisory agreements, during the interim period between the
signing of such sub-advisory agreements and the date that the SEC-registered investment advisers ultimately manage the
Funds, the SEC-registered investment advisers will assist in the transition of investment-level management and
operational activities as well as Fund-level services during such interim period, in each case, subject to the oversight and
supervision of Lionstone Partners.

Investment and Operating Strategies
The Funds typically pursue their investment strategies by investing through one or more limited partnerships, limited
liability companies or other entities that, in turn, invest in the properties described below. Moreover, as described below,
certain Accounts may also follow one or more of the typical real estate investment strategies – Cash Flow and Value-Add.

Cash Flow Strategy
The Cash Flow Strategy invests in office buildings, multi-family complexes and retail centers in areas close to amenities
with good demographics and strong infrastructure. Increasingly, this strategy looks for real estate investments in a mixed-
use environment. This strategy applies to CREAD and includes a development component (with a view towards a long-
term hold).

The Value-Add Strategy
The Value-Add Strategy, applicable to LVA Four, LVA Five, and portions of LORE and CREAD is a value-add real
estate investment strategy that uses a systematic approach to target transitional real estate investments that Lionstone
believes will capitalize on imbalances in supply and demand to generate disproportionate rent growth and appreciation.
The strategy for LVA Four, LVA Five, LORE, and CREAD also includes a development component.

RISKS OF LOSS

Each Fund and its investors bear the risk of loss that the applicable Advisers’ investment strategy entails. Investors should
review each Fund’s Private Placement Memoranda and each Fund’s Limited Partnership Agreement, Limited Liability
Company Agreement or Investment Management Agreement, as applicable, for additional information regarding risks
specific to each Fund. An investment in the Funds involves a high degree of risk and, therefore, should be undertaken
only by qualified investors whose financial resources are sufficient to enable them to assume these risks and to bear the
loss of all or part of their investment.

In general, the risks involved with the Adviser’s investment strategy and an investment in the Funds include the risks
discussed below. The following risk factors should be considered carefully but are not meant to be an exhaustive listing
of all potential risks associated with an investment in the Funds. Investors should consult with their own financial, legal

and tax advisors prior to investing in the Funds.

Absence of Recourse to General Partner
The Limited Partnership Agreement, Limited Liability Company Agreement or Investment Management Agreement, as
applicable, limit the circumstances under which the General Partners can be held liable to the Funds. As a result, investors
may have a more limited right of action in certain cases than they would in the absence of this provision.

Additional Government or Market Regulation
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