Trident Management LLC

Fees and Compensation (Item 5)

Management Fees
Generally, the Funds pay Trident an annual management fee (the “Management Fee”). On the first
day of each quarter, the Fund will pay to Trident, or an affiliate thereof, a management fee equal to
(i) during the Investment Period, 2.0% per annum of the investors’ funded and unfunded Capital
Commitments; and (ii) following the Investment Period, 2.0% per annum of Net Invested Capital.
“Net Invested Capital” means the original amount of capital invested by the Fund in portfolio
investments (portfolio securities) as of the date of calculation, excluding the amount of any portfolio
investments that have been disposed of.

A description of the calculation and payment of the Management Fee payable to Trident is provided
in the limited partnership agreements and private placement memoranda (“offering documents”) for
each Fund. Prospective investors should refer to these documents for additional information
regarding fees and compensation.

Other Fees and Management Fee Offset
The General Partner, Trident, and their affiliates may receive closing, commitment, break-up,
termination, monitoring, directors’, advisory, consulting, and other similar fees in connection with
the purchase, monitoring, or disposition of investments or from unconsummated transactions,
including warrants, options, derivatives, and other rights in respect of securities owned by a Fund
(“Other Fees”).

A Fund’s allocable share of Other Fees will, subject to the terms of its offering documents, first be
applied to reimburse the General Partner, Trident, and their affiliates for their out-of-pocket
expenses in connection with the transaction giving rise to such Other Fees, and any broken deal
expenses that they have elected to pay.

The aggregate Management Fee paid by a Fund in any fiscal year will, subject to the terms of its
offering documents, be reduced by an amount equal to the sum of 100% of any organizational
expenses in excess of the cap on organizational expenses, 100% of any Other Fees (net of out-of-
pocket expenses incurred by the General Partner in connection with the transactions out of which
such Other Fees arose and any unrecouped broken deal expenses and fund expenses that the
applicable Fund’s general partner or Trident has elected to pay, as described above), and 100% of
any placement agent fees (but not expenses) borne by the Fund.

Services Income
Trident, through its Trident American Dreams Fellowship program, provides professional
development to entrepreneurs from underrepresented communities. Trident is reimbursed by an
unrelated third party for the costs it incurs to administer the program.

Trident Management LLC                                                                    5|Page

Performance-Based Fees and Side-by-Side Management (Item 6)
Because Trident is compensated, in part, based on capital appreciation, there is an incentive for
Trident to make riskier or more speculative investments than would be the case in the absence of
such a compensation framework.

Trident (or an affiliate of Trident) is paid performance-based compensation by its private pooled-
investment vehicle clients. In addition, Trident’s investment personnel are compensated on a basis
that includes a performance-based component.

Performance-based compensation arrangements create an incentive for Trident to take risks in
managing assets that would not otherwise be taken in the absence of such arrangements. Trident
has adopted and implemented policies and procedures intended to address conflicts of interest
relating to the management of clients with performance-based fee arrangements.

Currently, Trident does not manage accounts with different fee structures; however, subject to the
terms of the Funds’ governing documents and to the extent not inconsistent with Trident’s fiduciary
duties to the Funds, Trident may in the future manage accounts with different fee structures. To the
extent that future Trident co-investors or fund investors are willing to pay performance-based
compensation at higher rates to Trident, Trident may become incentivized to disproportionately
allocate time, services, or functions to such accounts. However, Trident recognizes its fiduciary
duty to act in the best interests of the Funds and would exercise due care to ensure that investment
opportunities are allocated fairly and in accordance with the terms of the Funds’ governing
documents. The Funds’ governing documents address such matters in detail, including to what
extent opportunities must be allocated to the Fund, the permissibility of co-investments, and on
what terms Trident, any of its affiliates, and other future investment vehicles may participate in
those opportunities. Subject to compliance with those terms and the terms of the governing
documents dealing with potential conflicts that must be reported to the Funds’ limited partner
advisory committee or that require its consent or those of the Funds’ investors, investment decisions,
including allocations, are made in the reasonable discretion of Trident.

Trident Management LLC                                                                    6|Page

Types of Clients (Item 7)
The types of clients to whom Trident provides investment advice are private pooled investment
funds. Investors in the Funds may include, but are not limited to, individuals, public and private
pension plans, charitable foundations, endowments, trusts, funds of funds, and other institutional
investors.

Any client that is a pooled investment fund will have a minimum investment level as stated in the
fund’s offering documents; however, such minimums could be waived for certain investors.

Trident Management LLC                                                                7|Page

Methods of Analysis, Investment Strategies, and Risk of Loss (Item 8)
Investment Strategies
Trident provides advisory services to the Funds. The investments made by the Funds are typically
private equity and equity-related investments with a long-term time horizon. The methods of
analysis that Trident applies to prospective investment opportunities include a review of historical
and prospective portfolio company financial information; research related to the prospective
portfolio company’s management, industry, markets, products and services and competitors; on-
site visits; discussions with management, employees, customers and/or vendors of the prospective
portfolio company; and background investigations. Trident also conducts due diligence on the
operators associated with any prospective portfolio company, which includes a review of their track
record, an analysis of their industry experience, a review of their capacity to make follow-on
investments in the prospective portfolio company alongside Trident, and reference checks.

Once an investment is made, Trident maintains an active relationship with the portfolio company.
Trident will monitor the financial trends of each portfolio company to determine if it is meeting its
business plan and to seek to assess the appropriate course of action for each portfolio company and
will opportunistically seek exit opportunities when Trident believes there is a strong business
rationale for recapitalization.

Trident American Dreams Fund I, LP and Trident American Dreams Fund I (Cayman), LP. Invests
in small businesses located in the United States, which generally will be focused on (but not
necessarily limited to) investment opportunities that are designed primarily to promote the public
welfare, including the welfare of low- and moderate-income communities or families, such as
investment opportunities that directly or indirectly provide housing, services, or jobs for such
communities.

A more detailed description of Trident’s investment strategy(s) and processes for each Fund is
included in such Fund’s offering documents and/or governing documents.

Material Risks
Investing in securities of the type acquired by the Funds is speculative, involves a high degree of
risk, and is suitable only for persons of adequate financial means who have no need for liquidity
from their investment. There can be no assurances or guarantees that (i) Trident’s investment
objective for its clients will be realized, (ii) Trident’s investment strategy for its clients will prove
successful, or (iii) investors will not lose all or a portion of their investment. This Brochure provides
an overview of the principal risks that exist when employing the strategies described herein.
Additional risks involved in each Fund strategy can be found in such Fund’s offering documents.

       Business and Market Risk
       While service providers have established business continuity plans and risk management
       systems, these plans and systems have inherent limitations, including the possibility that
       certain risks may not have been identified. Changes in economic conditions, including
       fluctuations in interest rates, inflation rates, industry conditions, government regulations,
       competition, technological advancements, political events and trends, tax laws, and

Trident Management LLC                                                                      8|Page

      numerous other factors, can substantially and adversely impact the business and prospects
      of the Fund.

      Cybersecurity Risk
      The information and technology systems of Trident and key service providers to Trident and its
      clients, including banks, broker-dealers, custodians and their affiliates are vulnerable to potential
      damage or interruption from computer viruses, network failures, computer and
      telecommunication failures, infiltration by unauthorized persons and security breaches, usage
      errors by their respective professionals, power outages and catastrophic events such as fires,
      tornadoes, floods, hurricanes and earthquakes. For instance, cyber-attacks may interfere with
      the processing or execution of Trident’s transactions, cause the release of confidential
      information, including private information about the Funds and their investors, subject Trident
      or its affiliates to regulatory fines or financial losses, or cause reputational damage. Additionally,
      cyber-attacks or security breaches (e.g., hacking or the unlawful withdrawal or transfer of funds)
      affecting any of Trident’s key service providers may cause significant harm to Trident and the
      Funds, including the loss of capital. Similar types of cybersecurity risks are also present for
      issuers of securities in which Trident may invest. These risks could result in material adverse
      consequences for such issuers and may cause Trident’s investments in such issuers to lose value.
      Although Trident has implemented various measures designed to manage risks relating to these
      types of events, if these systems are compromised, become inoperable for extended periods of
      time or cease to function properly, it may be necessary for Trident to make a significant
...