Lovell Minnick Partners LLC

Item 5         Fees and Compensation

Each Partnership’s General Partner receives an annual management fee (the “Management Fee”)
and a carried interest in connection with the provision of advisory services to its clients. The precise
amount of, and the manner of calculation of, the Management Fee differs among the various
Partnerships, depending upon where it is in the life of that particular Fund. In addition, the
Management Fees with respect to individual investors may be calculated on varying formulas, such
as the size of the particular investor’s commitment, but only if and to the extent permitted by that
Fund’s Partnership Agreement and/or applicable Side Letters. Co-Investment Aggregators do not

pay a separate Management Fee, carried interest or transaction fees, but Parallel Co-Investment
Entities do, in specific cases, pay fees for the advisory services provided by the applicable General
Partner, which may include an advisory fee payable upon the consummation of the investment in,
and/or the disposition of, the underlying portfolio company, or at such other times as agreed by the
investors in the Parallel Co-Investment Entity, management fees and/or carried interest, in each
case in accordance with such Parallel Co-Investment Entity’s Partnership Agreement. Any such
compensation received from Parallel Co-Investment Entities does not offset or reduce any
Management Fees.

The General Partners or their affiliates receive additional compensation in connection with
management and other services performed for certain portfolio companies of the Funds, and such
additional compensation offsets in whole or in part the Management Fees otherwise payable to the
applicable General Partner to the extent provided by such Fund’s Partnership Agreement.

Investors in the Funds also bear certain expenses described below and in each Fund’s specific
Partnership Agreement.

With respect to each Fund (other than a Parallel Co-Investment Entity) that pays a Management
Fee, such fee is initially equal to a fixed percentage of aggregate investor capital commitments to
the Fund (“Commitments”). Upon a date specified in the applicable Partnership Agreement (such
date, the “Stepdown Date”), the Management Fee will be reduced to a fixed percentage of the
aggregate amount of investment contributions (including, where applicable, a Fund borrowing
component) made by the relevant Fund relating to investments that have not been disposed of or
completely written-off for U.S. federal income tax purposes (as more fully described in the
applicable Partnership Agreement), less the aggregate amount of any permanent write-downs
required pursuant to the applicable Partnership Agreement for investments that have not been
disposed of or completely written-off for U.S. federal income tax purposes (such investments,
“Impaired Value Investments”). An investor participating in a closing after the initial closing of
a Fund is required to bear its share of the Management Fee already paid by the earlier partners in
the Fund, plus interest, as provided in that Fund’s Partnership Agreement. The Management Fee
generally will be payable until proceeds from all portfolio investments are distributed or until a
General Partner’s relationship with the applicable Fund is terminated for other reasons (as
described in the applicable Partnership Agreement). Installments of the Management Fee payable
for any period other than a full Management Fee period are adjusted on a pro rata basis according
to the actual number of days in such period.

As is generally the case in private equity funds, the Partnership Agreements provide that a Fund’s
Management Fees will be calculated and charged on a basis that generally is not tied to the Fund’s
then-current net asset value. As further specified in the Partnership Agreements, from the effective
date of the relevant Fund until the Stepdown Date, Management Fees generally will be charged
based on a formula tied to the amount of the relevant Fund’s aggregate Commitments. Further,
after the Stepdown Date, Management Fees generally will be charged and calculated based on a
formula tied to the amount of investment contributions that are not deemed to be Impaired Value
Investments. Subject to the terms of each Fund’s Partnership Agreements, an investment shall
generally only be treated as completely written down to the extent that, for at least four (4)
consecutive fiscal quarters, the fair market value of the applicable investment is less than 25% of
the aggregate amount of investment contributions (including, where applicable, a Fund borrowing

component, including interest expenses) and the amount of any capitalized Supplemental Fees (as
defined below) or expenses, including costs of operating partners, made with respect to such
investment and, if at any time subsequent to any write-down described in above, the fair market
value of such investment is greater than or equal to 25% of the aggregate amount of investment
contributions made with respect to such investment, then such investment shall not be treated as
permanently written down. Due to differences in the criteria set forth in their respective Partnership
Agreements, in the event where more than one Fund participates in an investment, there is the
possibility that an investment will become an Impaired Value Investment for purposes of one
Fund’s Partnership Agreement but not those of one or more other Funds.

Under the Partnership Agreements, where the fair market value of a Fund’s aggregate investments
in a portfolio company exceeds the total amount of investment contributions (including any Fund
borrowings in anticipation or in lieu of investment contributions) relating to such investment, post-
Stepdown Date Management Fees will not be calculated based upon such appreciated value, and
will instead continue to be calculated based on the amount of applicable investment contributions.
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Item 7         Types of Clients

The Managers provide investment advice solely to their Fund clients, and references throughout
this Brochure to “clients” and to Lovell Minnick’s related duties to and practices on behalf of its
clients and/or investors should be construed accordingly. The Funds are investment partnerships
or other investment entities formed under U.S. or non-U.S. laws and operated as exempt
investment pools under the Investment Company Act of 1940, as amended (the “Investment
Company Act”). Investors participating in the Funds generally include, but are not limited to,
individuals, banks or thrift institutions, insurance companies and other investment entities,
including funds of funds, family offices, state and private pension and profit-sharing plans, trusts,
foundations, charitable organizations, other corporations or business entities and, directly or
indirectly, principals or other employees of and advisors to Lovell Minnick and its affiliates and
members of their families, Lovell Minnick Advisors or other Service Providers retained by Lovell
Minnick, as well as executives of portfolio companies.

The Funds generally have a minimum investment amount of $5 million for third-party investors,
although individual Commitments of lesser amounts are permitted to be accepted at the discretion
of the applicable General Partner.

Investors must be “accredited investors” as defined under Regulation D of the Securities Act of
1933, as amended, and are required to be “qualified purchasers” or “knowledgeable employees” as
defined under the Investment Company Act.

The General Partners have complete and sole discretion with respect to each Fund investment to
determine whether or not there will be co-investors, whether some or all of the Limited Partners of
the applicable investing Fund will be invited to participate as co-investors, and the allocation of co-
investment opportunities among participants. The General Partners reserve the right to consider
various factors in determining which investors are invited to invest in a particular co-investment,
including, but not limited to, applicable tax, regulatory and securities law considerations, the size
of the co-investment opportunity and the practicality of dividing it up among multiple investors, the
minimum and maximum investment size sought, the ability of the investor to fund the investment
on a timely basis, historically expressed interest in co-investments, the investor’s expertise in the
industry to which to investment opportunity relates, the investment criteria expressed by investors
(such as preferred industries, geographies, etc.), ability to participate in anticipated follow-on
investments, and for strategic or other reasons.