Renovo Capital LLC

Item 5-Fees and Compensation
In general, Renovo receives a management fee (the “Management Fee”) and carried
interest distributions (the “Carried Interest”) in connection with advisory services
provided to the Funds. Renovo may receive additional compensation in connection with
management and other services performed for portfolio companies (e.g., monitoring and
other fees) of the Funds and such additional compensation may offset in whole or in part
the Management Fees otherwise payable to Renovo. In addition, Renovo may receive
compensation for management or other services performed in connection with co-

Renovo Capital, LLC

investments made in portfolio companies of the Funds. Investors in the Funds also bear
certain Fund expenses, as described below. The following is a general description of fees,
compensation, and expenses of the Funds. Certain Funds, primarily Parallel Funds (as
defined below), do not pay a Management Fee or a Carried Interest. Prospective and
existing Fund investors should review the applicable Fund’s Governing Documents for
details regarding its fees, compensation, and expenses.
Management Fees
During a Fund’s investment period, the Fund generally will pay Renovo or its affiliate an
annual Management Fee of up to 2.25% of aggregate investor capital commitments.
Generally, investors participating in a closing after the initial closing of a Fund bear the
Management Fee from the date of the initial closing of such Fund, plus an additional
amount, as applicable. Thereafter, on a date specified in the Governing Documents (the
“Stepdown Date”) and through the termination of a Fund, the annual Management Fees
will generally equal a percentage of the aggregate capital contributions of all limited
partners in such Fund used to make investments in portfolio companies that have not been
sold or determined by the applicable General Partner in its sole discretion to be
permanently and completely written off in full (such investments, “Impaired
Investments”). Because Management Fees are calculated based on invested capital
following the Stepdown Date, the Governing Documents do not require any reduction or
refund of Management Fees following a write-off, or a decrease (including a significant
decrease) in fair value, except with respect to investments that meet the applicable
Impaired Investment standard under the Governing Documents. Similarly, if the fair value
of an investment exceeds the aggregate investment contributions for that investment,
Management Fees payable after the Stepdown Date are not computed on the appreciated
value and instead continue to be determined by the amount of such investment
contributions. As a result, the Management Fees generally will not track changes in the
fair value of any individual investment or of a Fund, including after the applicable
investment period, and will not be decreased to reflect write-downs (whether temporary
or permanent), except with respect to Impaired Investments.
In addition, the Governing Documents do not require any reduction or refund of
Management Fees in connection with distributions (including those arising from dividend
recapitalizations), reorganizations, restructurings, roll-over investments, extraordinary
dividends or similar transactions (collectively, Recap Distributions”), where such events
do not result in a disposition of the relevant Fund’s interest, even where the value of the
Fund’s investment or the Fund’s ownership percentage has been reduced (including
materially reduced) as a result. In many cases, the post-Stepdown Date Management Fee
base will include capitalized, transaction-specific fees and expenses of unrealized
investments, including certain fees (such as External Fees) and expenses paid to third
parties or their affiliates. In addition, the Governing Documents generally do not provide
for the reimbursement or refund of Management Fees in the event of realizations,
dispositions, or partial write-downs or write-offs occurring mid–calculation period.
The Management Fee, with respect to a Fund, will generally commence as of the effective
date of such Fund based on aggregate commitments, regardless of when a limited partner

Renovo Capital, LLC

is actually admitted. The Management Fee will be paid quarterly in advance and may
either be paid from drawdowns that will reduce unfunded commitments or may be paid
out of disposition proceeds or other cash available for such payment. Installments of the
Management Fee payable for any period other than a full quarterly period are adjusted on
a pro rata basis according to the actual number of days in such period. Unless otherwise
agreed with a Fund’s investors, Management Fees will continue to be payable during any
term extensions. Certain fees received by Renovo from a Fund’s portfolio companies (as
further described below) will be credited as an offset of such Fund’s Management Fee.
Each General Partner generally reserves the right to waive all or a portion of any future
installment of the Management Fee.
Carried Interest
Renovo will generally be entitled to receive Carried Interest in accordance with the specific
provisions of the applicable Fund’s Governing Documents. The Carried Interest is
generally subject to the obligation of Renovo to return certain distributions pursuant to
“clawback” arrangements periodically and upon liquidation of the applicable Fund, as
provided in such Fund’s Governing Documents.
Transaction and Monitoring Fees
The portfolio companies in which a Fund invests may pay to Renovo or any of its
employees (i) acquisition and disposition fees, origination fees, and other fees earned on
or relating to the making, termination, cancellation, or disposition of a portfolio company
investment paid to Renovo and (ii) directors fees, executive fees, or consulting fees
(“External Fees”). Generally, a Fund’s Management Fee will be reduced by 100% of the
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Item 7-Types of Clients
Renovo provides management and discretionary investment advisory services directly to
the Funds, subject to the direction and control of the General Partner of each Fund. In
each case, Renovo does not provide advisory services individually to the investors.
Investors in the Funds may include high net worth individuals, institutional investors,
such as banks or thrift institutions, insurance companies, corporations, pension and
profit-sharing plans, trusts or estates, charitable organizations or other investment or
business entities, university endowments, sovereign wealth funds, family offices, third-
party advisors and/or consultants and service providers or, directly or indirectly, the
Principals or other Renovo employees or strategic advisors.
Investors in the Funds must generally qualify as “accredited investors,” as such term is
defined in Regulation D under the Securities Act, and “qualified clients,” as such term is
defined in Rule 205-3(d)(1) under the Advisers Act. In addition, the Funds generally
impose a minimum initial investment requirement, which varies from Fund to Fund. The
minimum investment requirement for Renovo’s most recent Fund was $5,000,000.
However, Renovo may waive this minimum initial investment requirement at its
discretion.

Renovo Capital, LLC