PCCP LLC

Item 5 – Fees and Compensation
General

Investors in our Clients are generally all qualified purchasers, as defined in Section 2(a)(51)(A) of the
Investment Company Act of 1940 (the “Investment Company Act”). We do not have a set basis for
compensation by our Clients, but instead negotiate fee arrangements on a case-by-case basis. With
respect to new Funds that we create, this negotiation generally takes place between PCCP and the
prospective lead investor(s) in the Fund. Pursuant to the applicable Client governing documents, fee
arrangements involve a combination of one or more of the following types of fees described below,
certain of which are typically more applicable to a specific investment strategy and/or services provided.

Fees Based on AUM. If permitted under the Client’s negotiated governing documents, PCCP charges
fees based on AUM. Such fees are calculated per the terms of the Client’s negotiated governing

documents, including, as applicable, based on gross asset value (i.e., without consideration of third-party
debt), net asset value (i.e., after deducting third-party debt), capital commitment (either investor
commitment to the investment vehicle or commitment by the investment vehicle to an investment), or
invested capital (i.e., the outstanding basis of the Client’s investment).

Variable Performance-Based Fees. If permitted under the Client’s negotiated governing documents,
PCCP charges fees based on a portion of the profit (or in limited instances, gross proceeds) generated by
an investment. Profit is calculated in a number of ways, including after deduction of the cost of capital,
per the terms of the Client’s negotiated governing documents.

Origination Fees. If permitted under the Client’s negotiated governing documents, PCCP charges a one-
time, initial fee for creating an investment for a Client with respect to the origination of loans secured by
commercial real estate. Such fees are calculated based on loan commitment, and such fees are paid either
in full at closing or in part at closing and in part at repayment of the loan, per the terms of the Client’s
negotiated governing documents.

Acquisition Fees. If permitted under the Client’s negotiated governing documents, PCCP charges a one-
time, initial fee for creating an investment for a Client with respect to the non-securities acquisition of
commercial real estate equity interests. Such fees are calculated based on gross asset value, net asset
value, investor commitment, or investor basis, per the terms of the Client’s negotiated governing
documents.

Fixed Fees. If permitted under the Client’s negotiated governing documents, PCCP charges a fixed fee
for investing a Client’s capital. Such fees are determined by negotiation. Fixed fees are either charged
to the Client or investor directly or are borne by the Fund if there are multiple investors in the Fund.
Fixed fees, and the method in which such fees are paid by the Client, are always determined by
negotiation, regardless of whether the fee is borne directly by the investor or the Fund. Our fees are
generally assessed based on capital commitments or invested capital, measured quarterly and are
automatically deducted from Client accounts, however the exact arrangements are subject to negotiation.

Syndication Fees. If permitted under the Client’s negotiated governing documents, PCCP charges a one-
time fee for a percentage of certain fee income paid to or for the benefit of a Client with respect to a
portion of an investment (including a proposed investment that is not consummated) that is syndicated
to a third-party or in which a third-party receives a participation interest, per the terms of the Client’s
negotiated governing documents.

Property-specific Fees. If permitted under the Client’s negotiated governing documents, PCCP charges
a one-time, initial fee for the acquisition of commercial real estate related to an investment based on the
purchase price paid by the Client, per the terms of the Client’s negotiated governing documents.

Recurring Advisory Fees. PCCP charges a fixed fee for recurring advisory services that are provided to
Advisory Clients, as described under Item 4 above, if permitted under the Advisory Client’s negotiated
governing documents. Such fees are paid either monthly or quarterly in arrears, per the terms of the
Advisory Client’s negotiated governing documents.

Transactional Advisory Fees. In connection with recurring advisory services provided to Advisory
Clients, if permitted under the Advisory Client’s negotiated governing documents, PCCP charges a one-
time fee to run a process for transactional debt financings for such Advisory Clients. Such fees are
calculated based on the amount at closing of the financing or credit facility (in certain instances subject
to a minimum amount per transaction), per the terms of the Advisory Client’s negotiated governing
documents. Subject to the advance written approval of an Advisory Client, PCCP may provide additional

services for which it would charge a fee, the terms of which will be subject to the Advisory Client’s
negotiated governing documents. Such additional services include the restructure of indebtedness with
an existing lender, restructure, workout or replacement of debt, and/or loans to facilitate.

Additional Information Related to Fees

In some cases, investors have negotiated for management fees to be calculated based on invested capital.
Such fees might be seen as incenting PCCP to invest capital for the sake of fees, rather than as a result
of an attractive investment opportunity. Generally, in such cases, PCCP is also entitled to receive
performance-based fees and we believe that our desire to earn performance fees mitigates any
misalignment with investors resulting from fees earned only on invested capital. Additional information
relating to performance-based fees is provided under Item 6 below.
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Item 7 – Types of Clients
PCCP provides investment advice to the Funds, and also provides investment advice to institutional
investors through Managed Accounts. Investors in the Funds are primarily institutional, including but
not limited to pension plans, sovereign wealth funds, banking institutions, insurance companies, asset
managers and wealth managers, and high net worth individuals. PCCP also provides commercial real
estate and capital advisory services to Advisory Clients, including public pension plans. In certain
instances, PCCP provides investment advice through a sub-advisory agreement with an unaffiliated third-
party. Although PCCP does not have any strict requirements for maintaining an account, PCCP may
accept or reject any account in its complete discretion.