UBS Hedge Fund Solutions LLC

Item 5        Fees and Compensation

Overview
This section of the Firm Brochure contains information regarding how we are compensated for our
advisory services. We manage assets for clients in pooled investment vehicles or separately managed
accounts.

Fees

HFS does not have a standard fee schedule. HFS generally receives management fees equal to a
percentage of net assets under management. In some cases, HFS receives a fixed fee for its services.

Additionally, HFS may receive a performance-based fee, as further described in Item 6 below.
Management fees and performance-based fees payable to HFS are separate, distinct, and in addition to
other expenses that may be charged to clients and disclosed in their applicable investment management
agreements or investment advisory agreements.

Fees (including management fees, flat fees, performance-based fees, or allocations) are negotiated on a
client by client basis and are based, in part, on the size and scope of the relationship. Management fees,
flat fees, performance-based fees or allocations may be reduced, waived or calculated differently with
respect to certain clients and investors in the underlying hedge funds on a case-by-case basis as agreed
between the respective parties.

Other fees

In addition to management and performance-based fees or allocations, HFS clients will also bear, directly
or indirectly: (i) investment-related expenses (e.g., placement fees, interest on indebtedness, custodial
fees, bank service fees, bank charges, other expenses related to the purchase, sale or transmittal of fund
investments, fees for market data services, software fees, professional fees, including, without limitation,
expenses of consultants and experts who may be used to conduct due diligence, analyze or negotiate
existing or potential investments in or redemptions from hedge funds); (ii) the due diligence, analysis,
research and monitoring of hedge fund managers and hedge funds in which a fund may invest or consider
for investment, including the reasonable cost of due diligence-related travel (subject to internal travel
polices which permit, under certain circumstances, business class); (iii) the costs of background checks on
hedge fund managers; (iv) the cost of any operational due diligence conducted on hedge fund managers;
(v) the cost of third parties that provide (a) investment analysis on hedge funds and hedge fund managers,
(b) risk and performance related analytics utilized by HFS to assess hedge funds and hedge fund managers,
(c) market data (e.g., Bloomberg terminals)); (vi) organizational expenses, legal, accounting, audit and tax
preparation expenses, corporate licensing fees, and regulatory reporting expenses (including, but not
limited to, expenses incurred in connection with complying with SEC, Commodity Futures Trading
Commission, BHCA and European Union reporting obligations, as well as out-of-pocket costs of preparing
regulatory filings related to the hedge funds or the hedge fund managers) with respect to the underlying
hedge funds; (vii) the management fees and the performance fees or allocations charged by underlying
hedge funds; (viii) liability insurance premiums of the board of directors of the underlying hedge funds;
(ix) fees and expenses, including travel, of the board of directors of the underlying hedge funds; (x) entity-
level taxes; and (xi) expenses incurred in connection with the offer and sale of shares of the underlying
hedge funds. The foregoing is not an exhaustive list of the expenses that a client may incur. Further
information with respect to expenses can be found in the applicable offering memorandum of the relevant
Private Fund or negotiated advisory agreement.

Most Favored Nations clauses
HFS may enter into “most favored nations” clauses wherein we agree that the fees charged to a client
shall not be more than the most favorable rates (or relevant business terms) we offer to any other

UBS Hedge Fund Solutions LLC
Form ADV Part 2A Firm Brochure

comparable client for similar services (i.e., a client for whom HFS manages a portfolio of similar size and
type, under similar terms and conditions, and with similar commercial expectations). Such clauses may
also be entered into with investors within a particular client.

Payment of fees

Generally, fees are determined monthly and are paid monthly or quarterly in arrears. Typically, fees
payable to HFS will be deducted directly at a frequency disclosed in the applicable offering memorandum
or negotiated advisory contract; however, there are cases where HFS invoices a client separately. We
typically do not charge fees in advance.

UBS Hedge Fund Solutions LLC
Form ADV Part 2A Firm Brochure

Item 7          Types of Clients

Overview
In this section of the Firm Brochure, we provide information about the types of clients to whom we provide
investment advice. We also discuss the conditions we may impose on the management of client accounts.

Client types

HFS provides investment advisory services to various types of clients which may include, but is not limited
to:

   •   Pension and profit-sharing plans (other than plan participants);
   •   State or municipal government entities;
   •   Banking or thrift institutions;
   •   Investment companies;
   •   Other pooled investment vehicles (e.g., fund-of-funds);
   •   Corporations or other businesses;
   •   High net worth individuals;
   •   Other investment advisers;
   •   Insurance companies; and
   •   Sovereign wealth funds.

ERISA Clients

HFS provides investment management services to plan clients subject to the Employee Retirement and
Income Security Act (“ERISA”) and may rely on the Prohibited Transaction Exemption 84-14 (the "QPAM
exemption") as well as other available exemptions including, but not limited to, the Service Section
408(b)(2) of ERISA, the “Service Provider exemption”. To the extent HFS relies on the QPAM exemption
or Service Provider exemption, it must also comply with the individual Prohibited Transaction Exemption
(PTE 2023-14) issued by the Department of Labor, requiring HFS to maintain, implement and follow
written policies and procedures. Upon request, HFS can make such policies and procedures available to
ERISA plan clients.

Conditions for managing accounts

HFS generally requires a client to fund a separate account with at least USD 25,000,000; however, this
minimum is negotiable based on the nature of the services to be provided and/or such client’s overall
relationship with HFS and/or one of its affiliates.

Investment by a Private Fund into a fund advised by HFS is not subject to the foregoing minimum; instead,
it is subject to the minimum amount specified in the offering document for such fund.

Legal proceedings—class actions and other matters

For separate accounts, HFS will not advise or act for the client in legal proceedings, including class actions,
bankruptcies or other similar legal matters with respect to securities held or that were held in a client
account. HFS encourages clients to contact their custodians to ensure they are receiving the proper
notification of any such legal proceedings. Further, we encourage clients to seek the advice of counsel
regarding the participation and filing requirements associated with such matters. HFS will not be
responsible for any failure to meet the filing or other requirements of legal proceedings with respect to
securities held or that were held in a client account.

UBS Hedge Fund Solutions LLC
Form ADV Part 2A Firm Brochure

Tax matters

HFS will not advise or act for the client on tax matters. We encourage clients to seek independent
professional tax advice on any taxation matters. HFS will not be responsible for any failure to meet the
filing or other requirements of tax proceedings with respect to securities held or that were held in a
client account.

UBS Hedge Fund Solutions LLC
Form ADV Part 2A Firm Brochure