Monachil Capital Partners LP

Item 5. Fees and Compensation

The Adviser, or one of its affiliates, typically receives compensation for providing investment
advisory services from each of its Clients in the form of (1) an annual management or advisory fee
of up to 1.75% per annum based on a percentage of assets managed (“Management Fee”)
(generally based on capital committed or the cost basis of portfolio investments); and (2)
performance-based compensation of up to 20% of all net income and gains and losses derived from
portfolio investments which is typically referred to as carried interest or an incentive fee (“Carried
Interest”). The Clients’ advisory agreements and other constituent documents provide for a
preferred rate of return to the Clients, typically on a fixed basis in the range of 7%. Additionally,
consistent with the Governing Documents of each Client, the Client typically bears certain out-of-
pocket expenses incurred by the Adviser in connection with the services provided to the Client.

The Interval Fund pays the Adviser a Management Fee that consists of two components: (i) an
advisory fee, and (ii) an incentive fee. The advisory fee is paid at the annual rate of 1.25%, accrued
daily and payable monthly in arrears, based upon the Interval Fund’s daily Managed Assets during
such period. “Managed Assets” means the total assets of the Interval Fund (including any assets
attributable to money borrowed for investment purposes) minus the sum of the Interval Fund’s
accrued liabilities (other than money borrowed for investment purposes). The incentive fee is
calculated and payable quarterly in arrears based upon the Fund’s “pre-incentive fee net investment
income” for the immediately preceding fiscal quarter. The incentive fee component is subject to a
hurdle rate, expressed as a rate of return on the Interval Fund’s adjusted capital equal to 1.50% per
quarter (or an annualized hurdle rate of 6.00%), subject to a “catch-up” feature. With respect to
any separately managed account, the Adviser separately negotiates the fees with each respective
Client.

The details of how the Adviser calculates its Management Fee and Carried Interest is set forth in
each Client’s Governing Documents. Fees for advisory services are negotiable. The Adviser only
receives performance-based compensation when distributions occur in accordance with the
relevant Governing Documents for each Client relationship.

If applicable, the Adviser deducts its Management Fees directly from Clients’ accounts quarterly
in arrears. Clients who pay Management Fees in advance may be refunded a prorated portion of
the fee if the advisory relationship is terminated prior to the end of the relevant billing period.

Clients may bear any and all fees, costs and expenses attributable to the activities of the Clients or
the Adviser incurred for the benefit of the Clients, in accordance with the terms of the investment
advisory agreements or other Governing Documents.

Fees costs and expenses attributable to the activities of the Clients or the Adviser and/or its
affiliates on behalf of the Clients include, but are not limited to, those related to the evaluation,
discovery, investigation, development, origination, acquisition, managing, holding, monitoring,
restructuring or disposition of investments (whether or not consummated). These include, but are
not limited to, the fees, costs and expenses (including disbursements) related to: loan fees, private
placement fees, brokerage and sales fees, commissions, appraisal fees, research fees and dealer
spreads; any affiliated or unaffiliated service providers (including fixed fees (such as retainers)
and/or performance-based fees), including persons providing tax or accounting services and any
agent in respect of any investment including any service provider that is engaged to service any
assets or pools of assets including loans; charges by underlying investment vehicles; interest and
clearing and settlement charges, commitment fees, taxes, including transfer taxes and premiums,
and underwriting commissions and discounts; fees, costs and expenses relating to short sales; fees,
costs and expenses related to market data (including, without limitation, expenses incurred in
connection with any multimedia, analytical, database, news or third-party research or information
services and market data providers and any computer hardware and connectivity hardware
incorporated into the cost of obtaining such research and market data); legal, accounting, audit,
investment banking, and third party industry and due diligence experts (including, without
limitation, for credit and risk analytics, collateral review and loss mitigation); fees, costs and
expenses any finders, senior advisors, originators, consultants and other persons acting in a similar
capacity (in each case, whether or not such persons are engaged by the Adviser and/or its affiliates
in respect of a client in a dedicated or exclusive capacity), including fixed fees (such as retainers)
and/or performance based fees and allocations, in each case, whether in the form of cash, options,
warrants, stock or otherwise, and including expenses of any of the foregoing persons, including
communications (including internet access fees), travel (including international cellular charges),
meals, lodging as well as late car services; fees, costs and expenses incurred in connection with
organizing, maintaining and operating entities controlled the Adviser and/or its affiliates that
facilitates a Client’s investments (including rent, salaries and ancillary costs of such entities, costs
and expenses of service providers of such entities, and expenses related to the corporate
governance of such entities); any management fees and/or performance based compensation of
any third-party advisor or sponsor in connection with a Client’s direct or indirect purchase of
securities issued by collateralized loan obligations (“CLOs”), collateralized debt obligations
...

Item 7. Types of Clients

The Adviser provides investment supervisory services to the Clients. Investment advice is
provided directly to the Clients and not individually to investors in any Client. The Adviser’s
Clients are Private Funds, the Interval Fund, and institutional separately managed accounts.
Investors in these vehicles include or may in the future include:

   •   individuals;
   •   pension and profit sharing plans (domestic and foreign);
   •   segregated accounts formed by insurance companies;
   •   family offices;
   •   trusts, estates, charitable organizations and endowments; and
   •   limited liability companies, corporations and other institutional investors.

Investors in Private Funds that are U.S. persons must be “Accredited Investors” under Regulation
D under the Securities Act and “Qualified Clients” under the Advisers Act so as to be eligible to
be charged a performance fee.

Generally, the Clients have a stated minimum investment amount as described in the relevant
Governing Documents. The Adviser typically has the discretion to waive minimum investment
requirements for investment in the Clients.