Warburg Pincus LLC

Item 5. Fees and Compensation

Management Fees, Carried Interest

With the exception of management fees from the Semi-Liquid Funds, we generally receive management
fees—deducted in computing Fund profits—paid to us by the Funds quarterly in advance. As is
customary in the private equity industry, our affiliates that act as general partners of our Funds receive an
allocation of net profits, or “carried interest.”

The management fees and carried interest that we or our affiliates receive from our Funds are predetermined
in written agreements among Warburg Pincus, our affiliates and our Funds. Generally, management fees
are a percentage of a Fund’s capital commitments, converting after a designated investment period to a
percentage of the cost of the remaining assets and decreasing in the later years of the Fund. Management
fee percentages for the Private Equity Funds, the Capital Solutions Funds, the Real Estate Funds, and the
Secondaries Funds generally range from 1.0 % to 1.5% per annum. As a general matter, management fees
will be payable during term extensions unless otherwise agreed with investors. Except as otherwise
agreed, the general partner and limited partners who are affiliates, employees, or other designees of
Warburg Pincus will not be subject to a Fund’s management fee or other performance-based fees.
Typically, the affiliated general partner of our Funds will receive carried interest equal to 20% of the net
profits of a Fund.3

From the Semi-Liquid Funds, we will generally receive a management fee payable monthly, in arrears in
an amount up to 1.25% per annum of the month-end net asset value attributable to the applicable class
investor units of a Semi-Liquid Fund. The management fee will be pro-rated for partial periods. The
Semi-Liquid Funds do not have a Stepdown Date (as described below). Warburg Pincus may elect to
receive the management fee in cash, investor units in a Semi-Liquid Fund, and/or shares or units of any
intermediate entities. Each management fee payment will, as determined in the sole discretion of the
general partner of such Semi-Liquid Fund, either (i) result in a reduction of the net asset value of the
applicable class of units to which such payment relates, or (ii) result in a reduction in units held by the
unitholders of the applicable class.

As is typically the case in private equity funds, management fees will be calculated and charged on a basis
that generally is not based on the respective Fund’s then-current net asset value. Subject to the Funds’
governing documents and related management agreements, from the effective date of the relevant Fund
until a date specified (the “Stepdown Date”), management fees generally will be charged based on a
percentage of the relevant Fund’s aggregate commitments (or, in limited circumstances, invested capital).
Following the Stepdown Date, management fees generally will be charged and calculated in part based on
the average cost basis of all remaining portfolio investments (including, where applicable, a Fund-
borrowing component (including interest expenses) and the amount of any capitalized transaction-specific
expenses, fees, compensation or other similar payments (including transaction-specific expenses, fees,
compensation or other similar payments, including any consulting fees, monitoring fees, investment
banking fees, advisory fees, transaction fees, fees for services provided by the Value Creation Team or
similar fees paid to Warburg Pincus or an affiliate (such fees, the “Portfolio Company Fees”)), less any
write-offs. Where the fair market value of an investment exceeds the cost basis relating to such
investment, management fees will not be calculated based upon such appreciated value and will instead
continue to be calculated based on the cost basis of the applicable investment. Conversely, the relevant
private equity Funds’ governing documents do not require management fees to be reduced or refunded
following the occurrence of a write-down, decrease (including a significant decrease) in fair value or

    Certain continuation Funds and other Funds formed by Warburg Pincus, including a Capital Solutions Fund, a
    Secondaries Fund, and WP Dynasty, charge reduced management fees and/or carried interest.

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other event not constituting a complete realization, such as a partial sale or disposition, reorganization,
recapitalization (including recapitalizations involving dividends), roll-over investment in connection with
a sale or dividend distribution, except in the case of investments that have been written off pursuant to the
relevant governing documents. As a result, with the exception of the Semi-Liquid Funds, the amount of
management fees typically will not correspond with fluctuations in the net asset value of individual
investments or of a Fund, and will not be reduced in connection with any write-downs (whether
temporary or permanent), except in the case of investments written off.

The cost basis component of the management fee will include capitalized transaction-specific fees and
expenses of unrealized investments including certain fees (such as Portfolio Company Fees) and expenses
paid to Service Providers (as defined below), Warburg Pincus or its affiliates. Warburg Pincus will
evaluate multiple investments in a portfolio company, on an aggregated basis, to determine whether a
Private Equity Fund’s investment in such portfolio company, collectively, should be written off.
However, the basis by which the management fee is calculated is described in the relevant Fund’s
governing documents, and certain Funds provide for a different methodology for calculating management
fees.

Each Fund’s governing documents and related management agreements set forth the full list of terms under
which management fees will be reduced, offset or otherwise be limited, and consequently investors should
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Item 7. Types of Clients

Warburg Pincus and its affiliates serve as advisers, sponsors, general partners, and/or managers of the
Funds and as investment sub-advisers to a reinsurance entity. Our Funds are generally pooled investment
vehicles offered on the basis of a predetermined investment strategy rather than to meet the individual
objectives of its investors. In addition, as described above in Item 4. Advisory Business, Warburg Pincus
has established other investment vehicles, including continuation, co-investment and sponsored secondary
funds. Interests in our Funds are privately offered from time to time to qualified investors. Investors in our
Funds generally include state, city and corporate pension plans, financial and insurance institutions,
sovereign wealth funds, foundations, endowments, executives of portfolio companies, certain of our

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employees, and other individuals. Our Funds are not registered or required to be registered under the
Investment Company Act of 1940. While the other Funds are also exempt from registration under the
Exchange Act, a Semi-Liquid Fund has registered its units under the Exchange Act when so required.

When offered, the Funds typically require a minimum commitment from investors, which may differ by
type of investor, and which may differ from Fund to Fund depending on the Firm’s view of the prevailing
market terms at the time of the offering; however, we have discretion to accept a lower commitment
amount.