Monroe Capital Real Estate Credit Advisors LLC

Item 5 – Fees and Compensation
In consideration for MCRE's advisory and other services, MCRE and/or certain of its affiliates generally
are entitled to receive management fees and, in certain cases, performance-based compensation with respect
to Clients. While the fees, allocations and compensation applicable to each Client are described in detail in
the applicable Governing Documents, side letters and/or fee agreements, an overview of MCRE's basic
compensation arrangements is summarized below. A potential investor should read and review all
applicable Governing Documents in their entirety before making any investment decisions.
Fee Schedules
Management Fees: In consideration for its advisory services to certain Clients, MCRE receives a
“Management Fee” based on net asset value (“NAV”), payable periodically in arrears as set forth in the
applicable Governing Documents. As reflected in the applicable Governing Documents, management fees
for Clients may range from 0.70% to 1.25% of NAV per annum, depending on the applicable Client and
share class. The management fee may be payable, at MCRE's election, in cash or certain class shares, or
any combination thereof.
Performance-Based Compensation: Certain Clients may also pay performance-based compensation as set
forth in the applicable Governing Documents, side letters and/or fee agreements. As reflected in the
applicable Governing Documents, performance-based compensation may vary depending on the applicable
Client and share class and may range from 4.0% to 12.5% of the applicable performance measure, in each
case subject to applicable hurdle amounts or other conditions described in the Governing Documents.
Performance-based compensation will only be charged in accordance with applicable law. MCRE's receipt
of performance-based compensation may create an incentive to cause a Client to make investments that are
riskier or more speculative than would be the case in the absence of such compensation arrangements.
Expenses and Reimbursements: In addition to the compensation paid to MCRE pursuant to the applicable
Governing Documents, a Client generally will pay all of its costs and expenses directly or reimburse MCRE
or its affiliates for costs and expenses incurred on behalf of the Client, other than expenses required to be
borne by MCRE. Subject to the applicable Governing Documents, such fees, costs and expenses may
include, without limitation:
         •        organization and offering expenses, including, without limitation, offering document
expenses and related legal, tax, accounting, consulting, marketing, printing, mailing, filing, transfer agent,
registrar, trustee, depositary and other similar offering-related costs;
        •        acquisition, origination, investigation, structuring, development, financing, refinancing,
holding, monitoring, servicing, restructuring, workout and disposition expenses relating to actual or
potential investments, whether or not consummated, including legal, appraisal, title, accounting, due
diligence, travel and communications expenses;
        •       Origination Fees and Borrower Servicing and Closing-Related Fees not paid by the
applicable borrower;
        •       administration fees and expenses, if any, payable under any administration agreement,
including amounts based on the applicable Client's allocable share of overhead and the allocable portion of
compensation and related expenses of finance, accounting, valuation, tax, legal, risk management,
operations, compliance and other non-investment personnel who spend time managing the affairs of the
applicable Client;
          •       fees, costs and expenses in connection with the issuance, origination, acquisition, purchase,
sale, settlement, financing and refinancing of investments, including brokerage commissions, hedging costs,
custodial expenses, clearing and settlement charges, forfeited deposits and other investment-related fees and
expenses;

        •        fees payable to third parties and affiliates, including administrators, consultants, attorneys,
accountants, tax advisers, technology providers, valuation agents, appraisers, auditors, transfer agents,
escrow agents, custodians, prime brokers, asset managers, loan servicers, special servicers, capital markets
advisers, credit originators and other service providers;
         •       the actual cost of goods and services used by the applicable Client and obtained from
affiliates or non-affiliated third parties, including legal, tax, accounting, auditing, finance, administrative,
operations, treasury, investment banking, capital markets, data and technology services and other non-
investment advisory services;
       •        interest, fees and expenses arising out of borrowings, credit facilities, repurchase facilities,
hedging arrangements, letters of credit, securitizations, derivatives and other financing arrangements,
whether or not implemented;
         •       fees, costs and expenses of preparing financial statements, investor reports, notices, tax
returns and related schedules, and the costs of creating, translating, printing and distributing the same;
        •       compliance-related expenses, regulatory filing expenses and legal, accounting, audit and
other expenses incurred to comply with applicable law or regulation, including expenses relating to the
preparation of Form PF and other similar regulatory filings, but excluding the preparation and filing of
MCRE’s own Form ADV except to the extent allocable to Client activities under the applicable Governing
Documents;
         •       insurance premiums, including errors and omissions, fidelity, crime, cybersecurity,
directors' and officers' liability and similar coverage for persons acting on behalf of the applicable Client,
to the extent permitted by the applicable Governing Documents;
        •       expenses of any litigation, governmental review, audit, inquiry, investigation or proceeding
...

Item 7- Types of Clients
As discussed in Item 4 of this Brochure, MCRE provides discretionary portfolio management and
investment advisory services to privately offered pooled investment vehicles, including REIT vehicles and,
in the future, potentially real estate credit funds, feeder vehicles, parallel vehicles and other U.S. and non-
U.S. pooled investment vehicles, where permitted by applicable law.
Each respective Client’s minimum investment amount is stated in the applicable Governing Documents.
The Adviser or an affiliate may waive the applicable minimum in its discretion, subject to applicable law.
Generally, investors participating in the Clients are required to meet certain suitability and net worth
qualifications, as set forth in the applicable Governing Documents. As such, the Clients MCRE manages
are generally exempt from registration as investment companies under Section 3(c)(5)(C) of the Investment
Company Act of 1940, as amended.