Private Equity Investors Inc

Item 5. Fees and Compensation

As compensation for investment supervisory services rendered to the Funds, the Adviser receives
from each such Fund an advisory fee (each, an “Advisory Fee”). Advisory Fees paid by a Fund
are indirectly borne by investors in such Fund.

For each Fund, the “investment period” has expired. Accordingly, the Advisory Fee paid by each
Fund for the balance of the term of the Fund is 1.75% per annum of the net asset value of such
Fund. Advisory Fees for a specific Fund may be higher or lower depending on various factors
such as the size of the Fund and the nature of the Fund’s investment program and strategy.

In addition, the Adviser and its affiliates may perform management, advisory, transaction-related,
financial advisory and other services (“Related Services”) for, and receive fees from, actual or
prospective Underlying Funds or other investment vehicles of the Funds, including break-up fees,
directors’ fees, advisory fees, consulting fees, financing fees, transaction fees, closing fees, or
equivalent compensation from Underlying Funds and other persons. Although these fees are in
addition to the Advisory Fees, the Adviser will in some circumstances reduce the amount of
Advisory Fees paid by the applicable Fund in connection with the receipt of such fees. The amount
and manner of such reduction is set forth in the Advisory Agreement and/or organizational
documents of the applicable Fund. For a discussion of material conflicts of interest created by the
receipt of such fees and reimbursements, please see Item 11 below.

The precise amount of, and the manner and calculation of, the Advisory Fees for each Fund are
established by the Adviser, as modified by negotiations with investors in the applicable Fund, and
are set forth in such Fund’s Advisory Agreement, organizational documents and/or other
documentation received by each investor prior to investment in such Fund. The Advisory Fees
and other fees and distributions described above are generally subject to waiver or reduction by
the Adviser in its sole discretion, both voluntarily and on a negotiated basis with investors. The
fee structures described above may be modified from time to time.

Advisory Fees are billed to and received from the Funds at the rate of 1.75% per annum of the net
asset value of each Fund, payable quarterly in advance.

The Advisory Fees paid by certain Funds will be reduced by the amount of fees paid by such Fund
to persons acting as a placement agent in connection with the offer and sale of interests in such
Fund to certain potential investors, as well as by fees incurred by the Adviser in connection with
the organization of such Fund that exceed a limit specified in such Fund’s limited partnership
agreement or analogous organizational documents.

To the extent provided in the Advisory Agreements and the partnership agreements and other
organizational documents of the Funds, each Fund may bear certain expenses relating to it, which
may include, but are not limited to, (i) expenses (including extraordinary expenses) incurred in
connection with Fund operations, including all brokerage commissions, all costs, fees, expenses
and liabilities incurred in the purchase and sale of securities and certain temporary investments
(whether or not completed), all fees and expenses of custodians, paying agents, registrars, counsel,
consultants, auditors, bankers and third party accounting and administrative service providers; (ii)

costs and expenses incurred in connection with the preparation of or relating to reports made to
the investors; (iii) costs and expenses related to litigation involving the Fund, directly or indirectly,
including attorneys’ fees incurred in connection therewith, (iv) costs and expenses related to
preparing for and holding the annual meetings of investors of such Fund and meetings of the
advisory board of such Fund (if applicable); (v) costs and expenses related to such Fund’s
indemnification or contribution obligations; (vi) directors’ and officers’ insurance premiums, costs
and expenses, subject to the limitation on costs set forth in the organizational documents; (vii)
costs, fees, expenses and liabilities relating to transactions that are not consummated; (viii) costs
and expenses of liquidating such Fund; (ix) taxes, fees or other governmental charges levied
against such Fund, and expenses incurred in connection with any tax audit, investigation,
settlement or review of the Fund; and (x) any other expense or liability, whether ordinary or
extraordinary, determined by such Fund’s advisory board to relate to the affairs of the Fund. The
Adviser will pay out of Advisory Fees certain operating expenses, including expenses on account
of rent, utilities, office supplies, office equipment, compensation of its partners and employees
(other than Carried Interest described in Item 6 below) and other routine administrative expenses
relating to the services and facilities provided by the Adviser to the Funds, as well as any other
fees or expenses incurred by a Fund in connection with such Fund’s operations that are not
specifically set forth above as being paid by the Fund.

Item 7. Types of Clients

The Adviser currently provides investment supervisory services to the Funds. Investment advice
is provided directly to the Funds (subject to the direction and control of the general partner of each
such Fund, if applicable) and not individually to investors in such Fund.

Interests in the Funds are offered pursuant to applicable exemptions from registration under the
Securities Act and the 1940 Act. Investors in certain Funds relying on an exemption under Section
3(c)(7) of the 1940 Act are “qualified purchasers” as defined in the 1940 Act, and may include,
among others, high net worth individuals, thrift institutions, estates, charitable organizations,
banks, pension and profit sharing plans, trusts, university endowments, corporations, limited
partnerships and limited liability companies or other entities. Investors in other Funds relying on
an exemption under Section 3(c)(1) of the 1940 Act may not be “qualified purchasers.”

The Adviser does not have a minimum size for a Fund, but minimum investment commitments
may be established for investors in the Funds. The general partner of each Fund may in its sole
discretion permit investments below the minimum amounts set forth in the offering documents of
such Fund.