Lone Star Investment Advisors LLC

Item 5-Fees and Compensation
Below is a discussion of how the Adviser is compensated in connection with providing advisory
services to a Fund. The Adviser enters into fee arrangements on a Fund by Fund basis.

For its services to the Funds, the Adviser generally receives a management fee at an annual rate of
2% of capital commitments, or the amount an investor has agreed to invest with the Fund. The fee
is billed to investors semi-annually though the general partner of the Funds has the discretion to
deduct the fee from distributable cash due investors.

The Funds, and therefore their investors, are also generally responsible for all Fund level expenses,
including (i) investment costs, such as investment banking fees and brokerage and underwriting
commissions, transfer taxes and finder's commissions; (ii) domestic and foreign taxes payable by
the Funds; (iii) fees and disbursements of outside audits; (iv) fees and disbursements of attorneys,
consultants and other professionals rendering services to or for the benefit of the Funds, including
to the Adviser or the Fund’s general partner for monitoring investments; (v) interest expenses; (vi)
lender closing fees and lender legal fees and expenses; (vii) closing fees; (viii) any reasonable
expenses of members of investor advisory board to the Fund; and (ix) any expenses related to any
annual or special meeting of investors. Once the relevant Fund has been established and
commenced operations, such compensation and expenses are generally not negotiable, although the
Adviser may, from time to time, enter into side letters or other agreements with specific investors
in certain Funds whereby such investors receive reductions of management fees or other
compensation otherwise payable with respect to their investments in the Fund.

For a more complete discussion of the Adviser’s fees and compensation, investors should refer to
the Funds’ respective Offering Documents.

Item 7-Types of Clients
The Adviser provides investment advisory services on a discretionary basis to the Funds, which are
private investment limited partnerships that focus on investing in private equity transactions. The
minimum initial investment for the Funds is one million dollars ($1,000,000), though lesser
amounts may be accepted at the sole discretion of the respective Fund’s general partner.