NorthStar Capital Funds LLC

Item 5.      Fees and Compensation

The Adviser charges the client an investment management fee of 2.0% per annum based on the value of
the client’s assets under management. Investment management fees are charged each month in arrears
based on the total market value of the assets in the client account (including net unrealized appreciation
or depreciation of investments and cash, cash equivalents and accrued interest) on the last day of each
month. If a new client account is established during a month or a client makes an addition to its account
during a month, the investment management fee will be prorated for the number of days remaining in the
month. If a client’s investment management agreement is terminated or a withdrawal is made from a
client account during a month, the fee payable to the Adviser will be calculated based on the value of the
assets on the termination date or withdrawal date and prorated for the number of days during the month
in which the investment management arrangement was in effect or such amount was in the account.
Under certain circumstances, these fees are negotiable. The investment management fees are generally
deducted from the client account by client’s administrator upon the Adviser’s proper instructions.

The Adviser will also be paid a performance-based compensation, which is compensation that is based
on a share of capital gains on or capital appreciation of the assets of a client. The performance-based
compensation is 20% per annum and is charged at the end of each fiscal year, provided that the
performance-based compensation may be paid on amounts withdrawn on any date other than the end of
a fiscal year. Under certain circumstances, this compensation is negotiable.

In addition to paying investment management fees and performance-based compensation, the Fund
bears certain expenses in accordance with its governing documents, including, without limitation, Fund
legal, tax (including preparation and mailing costs of financial statements, tax returns and other reports to
limited partners in the Fund (the “Limited Partners”), third-party administration, audit, accounting and
other professional expenses; Fund regulatory compliance, filings and reporting (including Section 13,
Section 16, Form D, Form PF, the Foreign Account Tax Compliance Act, anti-money laundering
compliance, state security filings, general regulatory compliance and non-U.S. position reporting filings, if
applicable, and any other non-U.S. filings); all investment-related costs and expenses (i.e., expenses that,
in the Adviser’s sole discretion, are related to the investment of the Fund’s assets, whether or not such
investments are consummated), including commissions and charges, interest on margin accounts and
other indebtedness, expenses relating to short sales, clearing and settlement charges, option premiums
and custodial and bank service fees, research-related expenses; expenses attributable to the preparation
and distribution of reports and statements to the Limited Partners; any taxes (including, without limitation,
any withholding taxes, transfer taxes, stamp duties and other governmental or self-regulatory agency-
related charges or duties); any fees and expenses related to the Fund’s liquidation, if applicable;
expenses relating to the offer and sale of limited partnership interests in the Fund and withdrawals and

transfers thereof; other expenses related to the purchase, sale or transmittal of Fund assets as
determined by the Adviser in its sole discretion; and any extraordinary expenses (e.g., Fund litigation and
indemnification expenses).

Item 7.      Types of Clients

Currently, the Adviser’s sole client is the Fund, a private pooled investment vehicle intended for
sophisticated investors and institutional investors. Any initial and additional subscription minimums are
disclosed in the Fund’s offering memorandum and are subject to waiver by the Adviser in its sole
discretion.