Newpoint Real Estate Investment Management LLC

ITEM 5 FEES AND COMPENSATION
All fees charged to the Fund are described in the Fund’s Offering Documents. All investors and
prospective investors should carefully review the Offering Documents of the Fund, together with
this Firm Brochure, for complete information on the fees and compensation payable with respect
to the Fund. NREIM is generally compensated for its advisory services through an asset-based

    “Interest” means an interest in the Partnership of the Fund.

management fee. Investors in the Fund shall generally be subject to a quarterly management fee,
to be paid to NREIM in arrears. The IMA can be terminated on 60-90 days written notice.

Additional Fees and Expenses. NREIM will pay all of its ordinary administrative and overhead fees,
costs, and expenses (including, but not limited to, salaries, rent, equipment and administrative
expenses) and placement agent fees incurred in connection with the performance of its
obligations under the IMA and the Fund’s governing documents. Carried Interest 2 (if any),
servicing fees and other fees to be retained by or paid to the applicable NewPoint Parties as
described in the Fund’s Partnership Agreement, and the terms applicable to such fees, may vary
as compared to the Other Accounts. Certain costs and expenses related to the Fund’s business,
including without limitation, administrative expenses that are borne by the Fund on a cost basis,
may also relate to the business of Other Accounts and other clients of the NewPoint Parties.
Certain costs and expenses may be incurred on an aggregate basis, and therefore will be allocated
among the Fund and such other clients in a manner that the NewPoint Parties believe is fair and
reasonable.

The method of calculating Carried Interest may result in conflicts of interest between the
NewPoint Parties, on the one hand, and the Limited Partners, on the other hand, with respect to
the management and disposition of Investments and the determination of the order, timing, and
amount of distributions by the Fund. For example, the percentage of profits the applicable
NewPoint Parties are entitled to receive and the terms applicable to carried interest distributions
(or other performance fee arrangements) may vary among the Fund and Other Accounts. Because
the opportunity to receive carried interest distributions is based on the success of investments, to
the extent Carried Interest percentages or terms applicable to Carried Interest distributions differ
among the Fund and Other Accounts, the applicable NewPoint Parties will be incentivized to
dedicate increased resources and allocate more profitable or more attractive investment
opportunities to Other Accounts bearing higher carried interest percentages or to Other Accounts
whose governing documents contain less restrictive terms regarding carried interest distributions
or other fee arrangements. In addition, the applicable NewPoint Parties will be incentivized to
allocate investment opportunities away from Other Accounts that have suffered losses and have
not yet achieved a priority return threshold and, instead, allocate them to the Fund or Other
Accounts that are more likely to actively generate Carried Interest distributions or other fee
arrangements. Similarly, higher management fees or other fees (such as financing fees) will
incentivize the applicable NewPoint Parties to dedicate increased resources and allocate more
profitable or more attractive investment opportunities to Other Accounts who are charged such
higher management fees (or charged such other fees).

ITEM 7 TYPES OF CLIENTS
NREIM provides advisory services to Funds, which are pooled investment vehicles; investors in the
Funds are generally “accredited investors” within the meaning under the Securities Act of 1933,
as amended and are generally either “qualified purchasers” within the meaning of Section 2(a)(51)
under the Investment Company Act of 1940, as amended, or “qualified clients” within the meaning
of Rule 205-3 under the Advisers Act.