Pacific General Capital Management LLC

5. Fees and Compensation
PacGen’s fees and compensation arrangement may vary among the Funds. The Firm generally
charges a 1% - 2% management and/or administration fee based on aggregate investor
commitments or assets under management. For Qualified Clients, the Firm and its affiliated
General Partner entities may receive 10% - 20% performance fees with respect to certain of its
underlying portfolio investments, including potentially a performance-based profit allocation
(“Carried Interest”).
The funds need not invest the entire amount contributed by investors. Funds may retain a
portion of the investment, typically in order to pay Fund expenses without ongoing capital calls.
The funds normally are responsible for paying their administrative fees, the details of which are
disclosed in each fund’s offering documents. These fees typically include formation fees, legal
fees associated with the formation and routine operation of the fund, auditor fees, tax preparation
fees, and bank fees. The fund is expected to reimburse the Firm when the Firm pays expenses
properly chargeable to the fund. The Firm and its affiliates may in their sole discretion assume
some of these administrative costs.
PacGen does not accept compensation for the sale of securities or other investment products. Its
persons do not earn commissions for selling PacGen funds to investors. However, its persons -
in their roles as registered representatives of a broker/dealer—may earn compensation for the
sale of securities to the funds. This presents a conflict of interest as our principals have an
additional incentive to recommend investment in our funds based on compensation received,
rather than our investors’ needs. The principals may also have an incentive to advise the funds to

Pacific General Capital Management               3                                              1.1

purchase securities based on the principal’s representation of those securities. The Firm will
disclose if a representative is expected to earn an investment banking fee related to a fund.
Our funds (and the investments that our funds make) are generally available only from PacGen.
PacGen may utilize third parties to market our funds to the public. Where these outside persons
earn a commission, it is paid by PacGen, not by the funds.
PacGen and its supervised persons may occasionally earn strategic advisory fees, board member
fees, or similar miscellaneous fees from invested companies. Generally, PacGen does not reduce
our advisory fees to offset these indirect payments.

7. Types of Clients
As further described in Section 4 of this Brochure, the Firm provides investment advice to the
Funds, which are private fund investment vehicles that are exempt from registration under the
Investment Company Act. Sale of these Funds are limited to individuals and entities that meet
the criteria of “qualified clients,” and/or “qualified purchasers.”
Prospective investors in the funds should refer to the Offering Documents of each respective
fund for information on minimum investment requirements.