EFTA01364776.pdf

GLDUS238 SOUTHERN FINANCIAL LLC Section 4. Glendower Capital Secondary Opportunities Fund IV. LP Glendower Capital Secondary Opportunities Fund IV. LP million, make it a potential buyer of choice in these transactions. Maturity of fund interests The mid-sized fund segment of the market is further differentiated through the maturity of fund interests targeted. Some strategies target interests in immature buyout funds which are between 15% and 50% drawn down. These strategies do a primary style analysis of the blind pool portion of the portfolio - focusing on the capability of the Fund Sponsor to invest the remaining commitments well, alongside a secondary pricing analysis of the existing assets. Complementary to this. some secondaries funds target interests in Fund Sponsors that are considered by their primary fund investment businesses to be of high quality on the basis that these interests, even if bought at close to par value, represent a compelling purchase. In contrast to these approaches, the Fund will focus only on mature fund interests (at least 50% drawn, typically over 80% drawn). This approach provides the Manager with visibility on the underlying assets and reduces reliance on the Fund Sponsor to select strong investment opportunities (reduces 'blind pool risk'). Investment Process Overview The Glendower SOF Team has developed a robust and selective investment process to support its focused and disciplined investment strategy. Exhibit 20: Secondaries Investment Process Deal Screening irp,estment Frbnitonfo and due decision and risk Inwstrcent PIIgination realizaticn and sourcing damer , closing mom* Apretyal by Rexers or Toe (Min Investment Weekly °now cA realssabons and identdcation et Committee Ptehne uPla:0s on attract?. assets pertonnarce at - Revew ceshrlows Final neadlialaCen Stelling and weakly nVoling from uncOlong Focus on key Poontoration funds Seller *nice% • Swinge( GOD ng transited:in CetarleCI LOttCen- exelcaton Cd Sale &alume and Preeceve eating eons u2 doe dIrconce otopolunthes execute • GP consent other realisatrons hew* closing condemns Transit tan Funnel coadorly he hoe CISCIetiCei Leong olds rajah:Mon and location and potential beats onto FX Inadian9 Shuttering pOdirrainte name riNew Cooing ValuabOn Model PSA and Valuation memo IC memo Popolew suteencton 8 IC memo documents Cuarterly revery Sale documents Deal origination and sourcing The Glendower SOF Team will seek to purchase funds in exclusive or minimally competitive negotiated transactions through its own extensive network of industry relationships. which includes financial sponsors. Fund Sponsors, portfolio companies, intermediaries/placement agents, and investment banks. The Glendower SOF Team will seek to proactively identify private equity funds through a combination of top-down and bottom-up analysis. Top-down identification of assets: an extensive private equity database listing certain funds is maintained with recent Confidential Private Placement Memorandum 26 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0055324 CONFIDENTIAL SONY GM_00201508 EFTA01364776