Sierra Crest Investment Management LLC

ITEM 5. FEES AND COMPENSATION

Clients and investors should review the relevant Governing Documents or other operating
agreements to fully understand the total amount of fees and expenses that may be paid.
Compensation received by the Adviser is negotiated on a case-by-case basis and/or established in
connection with the formation of each Client.

Allocation of Fees, Costs, and Expenses among Multiple Clients. BC Partners may incur, from
time to time, fees, costs and expenses on behalf of one or more BC Partners Credit Clients. To the
extent that such fees, costs, and expenses are incurred for the account or for the benefit of one or
more Clients, such Clients will typically bear an allocable portion of any such fees, costs, and
expenses in proportion to the size of the investment made by each in the activity or entity to which
the expense relates (subject to the terms of the applicable Governing Documents of the Clients) or
in such other manner as we consider to be fair and reasonable, and in accordance with applicable
policies and procedures. BC Partners endeavors to allocate such fees, costs, and expenses on a fair
and reasonable basis.

BCIC

As compensation for investment advisory services rendered by the Adviser with respect to BCIC,
the Adviser will receive a management or advisory fee (an “Advisory Fee”) equal to: an annual
rate of 1.50% of BCIC’s average gross assets, excluding cash and cash equivalents, but including
assets purchased with borrowed amounts, at the end of the two most recently completed calendar
quarters; provided, however, that the management fee will be 1.00% of BCIC’s average gross
assets, excluding cash and cash equivalents, but including assets purchased with borrowed
amounts, that exceed the product of (i) 200% and (ii) the value of the BCIC’s net asset value at the
end of the most recently completed calendar quarter. The Advisory Fee for any partial month or
quarter will be appropriately prorated and adjusted for any share issuances or repurchases during
the relevant month or quarter. The Advisory Fee for the BCIC is payable quarterly in arrears on a
calendar quarter basis to the Adviser.

In addition, BCIC has retained BC Partners Management LLC (the “Administrator”), an affiliate
of the Adviser, as administrator pursuant to an agreement, pursuant to which the BCIC
Administrator oversees the performance of BCIC’s required administrative services, which
includes providing office space, equipment and office services, maintaining financial records,
preparing reports to stockholders and reports filed with the SEC, and managing the payment of
expenses and the performance of administrative and professional services rendered by others.
Under the agreement, BCIC pays the Administrator an amount equal to BCIC’s allocable portion
of the Administrator’s overhead resulting from its obligations under the agreement, including rent
and the allocable portion of the cost of BCIC’s Chief Compliance Officer and Chief Financial
Officer and their respective staffs.

AltCIF

As compensation for investment advisory services rendered by the Adviser with respect to AltCIF,
the Adviser receives an Advisory Fee, calculated daily and payable monthly in arrears, at the
annual rate of 1.85% of AltCIF’s average daily net assets.

Please see Item 6 below regarding “Performance Compensation” that the RICs may pay.

Each Regulated Fund will also bear all costs and expenses of its operations, administration and
transactions, including, which can include but are not limited to (i) investment advisory fees,
including management fees and incentive fees, to its respective adviser pursuant to the investment
advisory agreement; (ii) the Regulated Fund’s allocable portion of overhead and other expenses
incurred by its adviser in performing its administrative obligations under the investment advisory
agreement, and (iii) all other expenses of the Regulated Fund’s operations and transactions
including, without limitation, those relating to: (i) the cost of the Regulated Fund’s organization
and any offerings; (ii) the cost of calculating the Regulated Fund’s net asset value, including the
cost of any third-party valuation services; (iii) the cost of effecting any sales and repurchases of
the Regulated Fund’s common stock and other securities; (iv) fees and expenses payable under
any dealer manager or placement agent agreements, if any; (v) administration fees payable under
the applicable Administration Agreement and any sub-administration agreements, including
related expenses; (vi) debt service and other costs of borrowings or other financing arrangements;
(vii) costs of hedging; (viii) expenses, including travel expense, incurred by the Adviser, or

members of the investment team, or payable to third parties, performing due diligence on
prospective portfolio companies and, if necessary, enforcing the Regulated Fund’s rights; (ix)
transfer agent and custodial fees; (x) fees and expenses associated with marketing efforts; (xi)
federal and state registration fees, any stock exchange listing fees and fees payable to rating
agencies; (xii) federal, state and local taxes; (xiii) independent directors’ fees and expenses
including certain travel expenses; (xiv) costs of preparing financial statements and maintaining
books and records and filing reports or other documents with the SEC (or other regulatory bodies)
and other reporting and compliance costs, including registration and listing fees, and the
compensation of professionals responsible for the preparation of the foregoing; (xv) the costs of
any reports, proxy statements or other notices to stockholders (including printing and mailing
costs), the costs of any stockholder or director meetings and the compensation of personnel
responsible for the preparation of the foregoing and related matters; (xvi) commissions and other
compensation payable to brokers or dealers; (xvii) research and market data; (xviii) fidelity bond,
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ITEM 7. TYPES OF CLIENTS

The Adviser currently provides investment advisory services in respect to BCIC, AltCIF and F3C,
which such Clients are described more thoroughly in Item 4.

The Adviser does not have a minimum size for the BCIC nor a minimum investment for investors
therein. The BCIC’s common stock is quoted on The NASDAQ Global Select Market under the
symbol “BCIC” and are offered pursuant to an exemption from registration under the Securities
Act.

The Adviser does not have a minimum size for AltCIF. The minimum initial investment by a
shareholder for Class A, C, I, L, and W shares is $2,500 for regular accounts and $1,000 for
retirement plan accounts. Subsequent investments may be made in an amount not less than $100
under the fund’s automatic investment program. Subsequent investment not made pursuant to the
automatic investment program may be made in an amount not less than $1,000. AltCIF is
continuously offered through a third-party distributor and is not listed on an exchange.

The Adviser also provides investment advisory services to F3C, a private investment fund
structured as a “Collateralized Loan Obligation” or “CLO.” The Adviser acts directly as a sub-
adviser to F3C pursuant to a sub-advisory agreement with the Collateral Manager. In general, a
CLO is a pooled investment vehicle that has a tiered capital structure, issuing secured notes and
subordinated notes (together, “CLO Securities”). The CLOs are excepted from the definition of
an “investment company” and the CLO Securities are exempt from registration under the
Securities Act of 1933, as amended (the “Securities Act”). CLO Securities are offered and sold in
private placement transactions only to institutional investors. Additional details concerning
applicable investor suitability criteria are provided in the CLO’s Governing Documents.