EFTA01392409.pdf

GL Din 1 28 PatriCk Gerschel Section 2: Investment Performance Glendower Capital Secondary Opportunities Fund IV. LP Investment Performance Secondaries Performance Highlights The Glendower SOF Team has delivered strong buyout-like returns27 to investors in the SOF Funds with an attractive risk profile, early cash flows, and negligible loss ratio. The performance of the SOF Funds in terms of the key closed-end funds metrics such as Net IRR, TVPI, and DPI is strong in absolute terms, compares favorably with its peers and shows strong consistency across fund vintages.28 Through September 30. 2017. the SOF Program had invested29 US$3.3 billion in 82 transactions resulting in distributions of over USS1.8 billion and had generated a 1.5x Net Multiple and a 23% Net IRR to investors. The mature funds in the SOF Program (SOF, SOF D, and SOF II) had generated a 1.7x Net Multiple and over 20% Net IRR. Exhibit 1: Performance of SOF Funds as of September 30, 2017" 3I " Fuld SOF SOFO SOF B SOF • Teti Voltage 2036 2010 2011 2014 (dseehomert stage) (narvesnng) (hanrearing) (mating) fee/ stage) Fund see USS565m USS147rn USS6l4m CS51664m USS2.980m Transactions. funds comperes s 21/ 154 i 1,774 1/28/193 29i 75t 737 35/149/2.837 Gossnue* 21x 3 Ca 17x 14x les Gross IRR 29% 37% 23% 31% 28% Net mutipk (WPM 1.1* 2.3x 1.5(c 1.3* 1.Sx Net distributed (OFF) ttx 2.1* 1.2* Lk 0.9)i Net RR 22% 29% 20% 30% 23% Peak net centred.ted °dotal 26% 51% 42% 44% For deer on purposes only. Source Glendower Capital based on Prow benchmark data fa the median TVPI and Net RR achevod by buyout funds kr vintages of 1997 to 2017 Average buyout TVPI = 159x Average Net RR o 155% Data as of September 30 2017 For further benchmathang of Glendower Copts lo buyout returns. pease refer to Exhdyil 3 Past performance is not a psocicil of the future performance of ruk SOF D SOF II or SOF III but is included to demonstrate the track record of the Glendower SOF Team and there can be no assurance that SOF N wdl achieve comparable results or that any target results wall be achieved 'invested' is dellned as the sum et me purchase dice and remaining unfunded ottgaton as of the time of closnd. or tee of expected closing for pending deals The performance figures have not teen audited and should be read and reqessed in comuncton with Apperido 5 Important Pertonnance inlonstaton which sets forth amongst other thngs important nfamation redacting me performance described above The SOF Funds' performance data is not expected to be represent&rve at the mvestment returns that wit to expenenced by xrvestors in the Fund Past performance of the SOF Funds is let a prediction ci future performance Both SOF and SOF D are invested in the DaVirici Portfolo - a Wel dyers/bed portfolio cf 28 prorate equity funds purchased through an SPV. providing exposure to buyout soecal situations, venture capital and real estate strategies in North America. Europe and Asa The nurnoer or funds and companes is an estimate and shows the aggregate of each deal at Posing and may include sane double obunbng TVPI = Taal Value to Paid in Caplet DPI o Dstritutons to Pad In Capital RR o Internal Rated Return SOF D is a Euro denomnated fund USS valued have been converted at September 30 2017 EURAJSS rate of 1 1822 Both SOF and SOF D are invested in the DaVirp Podiole, - dwell ddeersded portfolso of 28 private equity funds purchased through an SPV prcrodng exposure to buyout. spetal sr uabons venture cape& and real estate straleges in North Amenca. Europe and Asia The number d funds and companies is a best estimate and shows the aggregate at each deal at closing and may include sorne decide ocenbrig TVPI = Taal Value to Paid in csoiss. DPI = Dsvitutons to Pad In Capital. IRR = Internal Rate ot Return Conlidenhal Private Placement Memorandum 8 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0097629 CONFIDENTIAL SDNY_GM_00243813 EFTA01392409