Pearlstone Alternative UK LLP

Item 5: Fees and Compensation

The fees charged are a 1.25%-1.75% management fee and a 15%-20% performance fee.
Although it will vary from client to client, fees are generally deducted from assets, with the
management fees deducted on a quarterly basis and performance fees deducted annually.
Fees are negotiable. Our clients may incur other fees or expenses such as brokerage fees (see
Item 12 of this Brochure for further information), fund expenses and custodian fees.

Item 7: Types of Clients

The Firm will manage funds and segregated managed accounts. The target client/investor base
consists of large institutional investors spanning a range of institutions that encompass pension
funds, public endowments and plans, insurance companies and private investment firms.
Minimum subscription levels will be $125,000 - $5,000,000.