Recurring Capital Management Company LLC

Item 5:       Fees & Compensation
The following is a general description of the fees, compensation, and other expenses of the Funds. Each Fund’s
Governing Documents will describe fees, compensation and expenses in greater detail. Investors should refer
to such Governing Documents of the applicable Fund for a complete understanding of how Recurring Capital
is compensated for its advisory services.

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With respect to each Fund, the respective General Partner, in its sole discretion, is permitted to enter into side
letters and other agreements granting more favorable rights or terms to specific investors. These rights or
terms may include among other items: rights to receive additional, more frequent or specialized reports and
rights to reduced or waived performance fees, breakpoints, limits, co-investments and/or management fees.

Management Fee Payable to Recurring Capital

The Funds generally compensate Recurring Capital for its advisory services through the payment of a
management fee (the “Management Fee”) as detailed in each Fund’s Governing Documents. The Management
Fee for the Funds is generally 2.0% per annum of the aggregate capital commitments or cost basis of loans and
investments. Fees are calculated and collected quarterly, either in arrears or in advance as set forth in the
applicable offering documents.

Certain Funds and/or direct or indirect investors in such Funds may bear higher or lower or no Management
Fee from time to time. Investors should refer to the Governing Documents of the applicable Fund for a
complete understanding of how Recurring Capital is compensated for its advisory services; the information
contained herein is a summary only and is qualified in its entirety to those documents.

Carried Interest

As more fully described in the applicable Governing Documents, a Fund’s General Partner will generally receive
a carried interest (the “Carried Interest”) with respect to such Fund generally, while subject to change, equal
to 20% of cumulative distributions in excess of capital invested, subject to preferred return provisions. The
Carried Interest distributed to the General Partner would usually be subject to a potential clawback at the end
of a Fund’s life if such General Partner has received excess cumulative distributions, and at certain interim
intervals as provided in the Governing Documents. Each Fund’s Carried Interest arrangement differs and is
further described in full detail in the relevant Fund’s Governing Documents. In some situations, Carried Interest
tax distributions are made to the General Partner before all capital is returned and the preferred return is
delivered to investors. In these situations, the tax distributions are applied as reductions to future Carried
Interest distributions.

Certain Funds and/or direct or indirect investors in such Funds can incur higher or lower or no Carried Interest
from time to time. Firm personnel, as well as partners, members, employees, officers, directors, business
associates, consultants, advisors and their respective affiliates of Recurring Capital (and its affiliates) may
invest in the Funds indirectly through the Funds’ General Partners (or other affiliates), and in certain cases may
not pay Carried Interest with respect to their investments in the Funds.

Expenses

Recurring Capital and/or the relevant General Partner will generally, in accordance with and subject to each
Fund’s Governing Documents, be responsible for its own operating and overhead expenses, including facilities
expenses, employee compensation and employee benefits, office rent, equipment expenses and utilities. The
Funds will typically bear all costs and expenses incurred in originations, purchases, sales or exchanges made
in connection with the Funds’ lending and investment activities, including legal, auditing, consulting,
administration, custodian, tax returns and accounting fees and expenses. In the case that one or more co-
investment vehicles are established to co-invest in a portfolio investment, then the Funds and any co-
investment vehicles will share fees and expenses related to such portfolio investment.

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Special Purpose Vehicles

Recurring Capital may earn management and performance fees or carried interest from third parties or co-
investment vehicles in connection with any such special purpose investment vehicle. Any such fees or carried
interest earned by a General Partner or affiliates from third parties in connection with such special purpose
vehicles will be paid to the General Partner or affiliates according to the terms of the special purpose vehicle
Governing Documents. Special purpose vehicles generally pay an up-front management fee and expense
allocation. In general, expenses related to any special purpose investment vehicle will be split pro rata among
the applicable special purpose investment vehicle investors whereas expenses related to a portfolio company
with multiple investing entities will be split equitably among the investing entities, including special purpose
investment vehicles, as applicable.

Item 7:       Types of Clients
Recurring Capital provides investment advisory services to pooled or other investment vehicles that operate
as private investment funds organized as limited partnerships. The Funds are offered privately to a limited
number of qualified investors, which may include institutional investors and individuals qualified to invest in
the Funds (depending on the applicable exemptions under the federal securities and other applicable laws).

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Each Fund’s minimum capital and investor qualification requirements are set forth in the Fund’s Governing
Documents and each investor is furnished with a copy of the partnership agreement (or equivalent – e.g.,
operating agreement) and other Governing Documents which detail the terms, conditions and risks regarding
the investment.

Recurring Capital’s Clients may include co-investment vehicles designed to aggregate third-party investments,
alongside a Fund, directly into a single portfolio asset. The General Partner may offer co-investment
opportunities in its sole discretion, to one or more (but not necessarily all or even any) Fund investors, affiliates
of Recurring Capital, and/or third parties if it determines that:

    •   an investment requires additional capital;
    •   all or a portion of the applicable opportunity is not required to be offered to a Fund;
    •   the full investment opportunity is not appropriate for a Fund, whether due to concentration
        restrictions contained in the Fund’s Governing Documents or otherwise; or
    •   Recurring Capital believes the Fund will benefit from the participation of the co-investor(s).

In determining whether to offer any portion of an investment opportunity as a co-investment, Recurring
Capital will take into account its fiduciary duties of loyalty and care to its Funds and Fund investors.
Furthermore, co-investment opportunities may be made available to select Fund investors and third parties,
including, without limitation, management or founders of the applicable portfolio company, co-sponsors,
strategic investors, lenders, investment bankers, deal sources (including finders and consultants), other
sponsors (including other private equity or venture capital firms), sector experts, strategic advisors, other
persons or entities affiliated, associated or otherwise known to Recurring Capital or its personnel. Also, certain
service providers, including lenders and individuals who source transactions, may in the future negotiate co-
investment rights or co-investment priority rights as a component of their compensation in connection with
the services provided.

The investors participating in the Funds and special purpose vehicles may include individuals, banks, or other
thrift institutions, other investment entities, pension and profit-sharing plans, trusts, estates, or charitable
organizations of corporations or business entities and may include, directly or indirectly, principals or other
employees, consultants or service providers of Recurring Capital and its affiliates.

Recurring Capital provides investment management services only to Funds as described in Form ADV, including
this Brochure.

Important Notice

This Brochure may be provided to prospective investors in a Fund, together with the Fund’s confidential
Private Placement Memorandum (“PPM”) and other related documents in connection with an investor’s
consideration of an investment in a Fund. While this Brochure may include information about Recurring Capital
or a Fund, it is not a complete representation of all the features, risks or conflicts associated with the Fund.
Additional documentation, for example the PPM and other related documents, should be reviewed carefully
prior to investing in a Fund.

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