Littlejohn & Co LLC

Item 5 – Fees and Compensation
Management Fees and Performance Compensation

Management Fees

Management fees charged to each Private Equity and Littlejohn Credit Partnership are generally
payable quarterly in advance, whereas with respect to Direct Lending and the Financial Solutions
Strategy Partnerships, management fees are payable quarterly in arrears. In all cases, management
fees are non- refundable, and are pro-rated for any period that is less than a full calendar quarter. The
management fee structure charged to each Partnership is specified in the governing documents of such
Partnership and vary depending on the specific strategy. While the following is a basic description of
management fee terms, it is not an exhaustive representation of how each Partnership’s fees are
calculated. For a specific explanation of the fees for any particular Partnership, investors should
carefully review the offering documents of that Partnership.

The management fee with respect to Private Equity Partnerships is typically determined based upon a
percentage of up to 2.0% per annum of the capital commitments of limited partners to such
Partnership during its investment period. With respect to the standalone Littlejohn Credit Partnerships,
the management fee during the investment period is up to 1.5% per annum based on the lesser of (i)
the limited partners’ capital contributions or (ii) the cost basis of the investments held by the
Partnerships and their subsidiaries, calculated in accordance with U.S. generally accepted accounting
principles (“GAAP”). With respect to the Putnam Hill Partnerships, the management fee will typically
be up to 1.15%, with a cap of 1.50% of the net asset value, with the management fee base equal to
the cost basis of investments, calculated in accordance with GAAP. Finally, the Financial Solutions
Strategy Partnerships charge a management fee of 0.425% of the gross asset value per annum.

After the investment period, the management fee percentage charged to each Private Equity
Partnership (other than the Executive Funds, co-investment vehicles, and Partnerships that no longer
collect management fees) is reduced and the management fee base is determined pursuant to a
calculation specified in the Partnership’s governing agreements, generally the lesser of aggregate

capital contributions or the cost basis of investments, not to exceed partners’ capital commitments.
The cost basis of investments is determined in accordance with GAAP. As such, the cost basis is
reduced upon the occurrence of certain events (e.g., extinguishment of securities), but may also
increase as a result of certain events (e.g., receipt of payment-in-kind interest). Capital is called from
each limited partner in a Partnership for such limited partner’s pro rata portion of the management
fee. For more specific discussion of management fee amounts, calculations, and other terms,
investors should carefully review the offering materials for the applicable Partnership.

With respect to distributions received as a result of a dividend recapitalization or other similar
leveraged recapitalization, Littlejohn applies GAAP, as opposed to the tax or other treatment
accorded by the underlying portfolio company, to determine whether the distributions received
constitute dividend income, which does not reduce the cost basis of an investment, or the return of
capital, which may reduce the cost basis of an investment. This is a facts-and-circumstances analysis
and Littlejohn has developed a set of tests that it applies to distributions resulting from such
transactions. In our experience, in the application of these tests, distributions received as a result of
dividend recapitalization transactions are usually determined to constitute dividend income, as
opposed to the return of capital, and therefore do not reduce the cost basis of the relevant investments.

The management fees charged to a Hedge Fund vary according to the particular Hedge Fund’s terms.
These management fees are generally paid quarterly, in advance, and are debited against the capital
accounts of the underlying limited partners. For more specific discussion of management fee amounts,
calculations, and other terms, investors should carefully review the offering materials for the
applicable Partnership.

Performance Compensation

Generally, each Partnership (other than the Executive Funds and co-investment vehicles) pays the
general partner of such Partnership carried interest or incentive distributions. For the Private Equity
and Littlejohn Credit Partnerships, that carried interest is 20% of profits on distributions derived from
the disposition of investments or securities, after accounting for a preferred return to limited
partners of up to 8% per annum. The carried interest for the Putnam Hill Partnerships is 15% after
accounting for a preferred return to limited partners of 7% per annum. The incentive distributions for
the Financial Solutions Strategy Partnerships are 25% of distributable proceeds after accounting for
a preferred return to limited partners of 12% per annum. The carried interest and incentive
distributions paid to the general partner of a Partnership is subject to claw back under certain
circumstances as set forth in each Partnership’s governing documents.

Generally, the Hedge Fund pays the general partner of the Hedge Fund performance compensation
(the “Performance Allocation”) equal to 20% of the increase in value of each investor’s investment in
the Hedge Fund. Investors should refer to the Hedge Fund offering documents for specific
information regarding the Performance Allocation.

General

While Littlejohn’s fees are generally not negotiable, the firm reserves the right to reduce or waive its
fees for certain investors. In particular, fees may be waived for key employees of Littlejohn or family
members of such key employees.

Co-Investments.
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Item 7 – Types of Clients
Littlejohn provides advisory services to the Partnerships, as described in the Advisory Business
section.

The investors in the Partnerships are typically institutional investors such as foundations, endowments
and pension plans, as well as family offices and accredited investors.