EFTA01364566.pdf

GLDUS238 SOUTHERN FINANCIAL LLC Notes to Investment Performance Important Information on the Track Record. The Giendower SOF Team spun-oft from Deutsche Bare and its affiliates ('Deutsche Bank nii August 1.2017 and established Glendower Capital: LLP and its affiliates (together. Miketateeyi o:, independent private equity limn owned by its partners focused on secondary transactions in private markets The performance inferrnatken and track record set out in this Presentation in respect of the SOF Funds covers the period time from inception of the SOF Funds to date. including the time prior to the formation of Glendower. when the team were employees of Deutsche Bank In evaluating the track record. each Redeem should note that (i) Carlo Pirzio-Birce and Charles Smith have been permanent voting members of the SOP Funds investment comnettees sieee inception: (ii) Chi Cheung. Francesco Rigamonti and Adam Graev have attended as observers the majority of investment committees of the SOF Funds since inception. they were appointed in December 2011 during the SOF II investment period as voting members on a rotational basis and have been permanent voting members since January 2013: (iii) other employees of Deutsche Bank who were not part of the SOF investment team and that have not joined Glendower were involved at different times on the investment committees of the SOF Funds and the investment decision-making process in respect of the investments made by the SOF Funds and (iv) in connection with the investments comprising the track record, the Glendower investment professionals were part of a larger group within Deutsche Bank. The investment performance included herein is intended solely to provide Recipients with information about the Glendower SOF Team's investment experience. The performance information provided herein has been prepared by Deutsche Alternative Asset Management (Global) Limited ("DAAMIG)L') and provided to Glendower and relates le the SOF Funds and the related individual underlying transactions, in respect of which the Glendower SOF Team were involved in their capacity as portfolio managers andior investment committee members while employed at Deutsche Bank. Geri/dower takes responsibility for its use of this performance information and its comr.liance with all applicable laws, regulati.xis. rules and guidelines. including, but not limited to, the Investment Advisers Act of 1940, as amended, and in particular. Rule 204-2 thereunder, and DAAM(G)L takes no responsibility for the use of such performance information try Glendower. Investment returns. Unless otherwise stated, returns are as of September 30, 2017. are unaudited and are illustrative only. As used herein and unless otherwise iridicateci, 'Gross IRR" and Net IRR" shall mean an agar-agate. compound. annual, gross or net as applicable. internal rate of return on investments, based on daily cash haws. Calculations are presented based on actual ;ash tows to and from limited partners All IRRs are presented on a "gross' basis unless otherwise slated )i.e , they do not reflect the priority theta share, carried Interest. taxes. transaction costs in connection wall the disposition of unrealized investments and other expenses that are borne by investors in the applicable funds, all of which will reduce rattans and, in the aggregate: are expected to be substantial} Net IRR is presented after deducting all poorly profit share. cared interest, taxes. trarrsakin costs and other fees and expenses (other than taxes borne or to be borne by investors. Including as a result of an investors domicile). Further, note that the calculation methodology adopted to calculate Net IRR In respect of the SOF Funds Is impacted by the SOF Funds' use of subscription line facilities. Returns Pattie purchase price netting in all instances where subscription reedit lines. payment deferrals: and permanent fund borrowing have been uttizea. Although the manager maintains flexibility to do so, capital has not been recycled to dale. Distributions to Paid-in Capital CDPI"I represents aggregate distributions to Investor; in the SOF Funds relative to aggregate capital contributions to the SOF Funds. Residual Value to Paid-in Capital i*RVPI") represents the value of the SOF Funds investors' interest held withal the SOF Funds relative to aggregate capital contributions to the SOF Funds. net of the SOF Funds' carried interest, manatornent fees and other expenses. Total Value to Paid-in Capital rTVPI"): TVPI =DPI 4- RVPI Gross multiple represents Tolal Value divided by Funded Capital. Net fund data (net TVPI, etc.) net performance data reflects amounts net of the SOF Funds' carried interest. management fees and other expenses. Valuations. Valuations el unrealized investments are generally based on a good faith and reasonable determination by the general partner of the relevant investment hind. My such valuation of unrealized investment will be based on assumptions that such general penner believes are reasonable under the ckctirristannes. the actual realized returns on unrealized investments will depend on, among other factors. future operating results, the value of the assets and market conditions at the time of disposrtion. any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions on which the valuations used in the prior performance data contained herein are based. Accordingly. the actual realeted returns generated by these unrealized investments may differ materially from the returns indicated herein. Target returns. The targeted returns (the "Targets') presented herein are based on Glendowees views retarding the returns on investments that such funds may be able to achieve durinu their respective terms based on the investment performance of similar investments, current market conditions, potential investment opportunities that are being reviewed or have recently been reviewed. availability of financeig and certain assumptions about investing conditions and market fluctuation or recovery The Targets are also based on models. estimates, and assumptions about performance believed to be reasonable under the circumstances. There is no guarantee that the facts upon which such assumptions are based will materialize as anticipated and will be applicable to such funds' investments. €ndividual investments made by such funds rray have anticipated returns below or above the Targets The Targets are hypothetical and are neither a guarantee nor a prediction or projection of future performance. A broad range of risks could cause the funds to fail to meet thee Targets. As with other gross returns. gross Targets do not reflect the priority profit share. 'carried interest,' taxes, transaction costs in connection with the disposition of unrealized investments aivJ offer expenses that will be borne by investors, which will reduce returns and, in the aggregate, are expected to be substantial. Glendower SIR OILY CONFIDENTIAL Capital CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0055114 CONFIDENTIAL SDNY_GM_00201298 EFTA01364566