EFTA01355419.pdf

GLDUS141 Greg Martin 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, 201711 31 J2-" Fuld SOF SOFO SOF B SOF • Tote Voltage 2036 2010 2011 2014 (deuerdoesore stage) (eanresang) (naerNtreg) freedltrin0 fee/ stage) Fare sae LoSS565rn USS147m LISS614er USSI.E54m US52.980m Transactons. funds. COMpeneS s 21/154/1,774 1/281193 29/75/737 35/149/2.837 Gossnue* 2Ix 3 Ca 17x 1 dx IC), Gross IRR 29% 37% 23% 31% 28% NetmultIpk (WPM 1.1x 2.3x 1.52 1.3x 1.Sx NetdIstributord (OFF) 1.tx 2.1x 1.2* 0.3x Ole NetIRR 22% 29% 20% 30% 23% Peak net centrested °dotal 26% 51% 42% 44% For +rout^ en purposes only. Source Glendower Capter based on Precm benchmark data for the median 1VPI and Net RR echoer+ by buyout funds trx vintages of 1997 to 2017 Average buyout TVPI = 159x Average Net RR x 155% Data as of September 30 2017 For further benonswarlang of Glendower Captai to tuyoul returns. pease refer to Waal Pas, performance is not a peocicil of the future performance of SOF SOF D SOF II or SOF III but is included to demonstrate the track record of the Glair:beer SOF Team and there can be no assurance that SOF IV wet achieve comperatie results or that any target results will be achieved 'Invested' is dens as the sum et me purchase price and remaining unfunded ottgaten as of the time of closng. or tee at expected close+ for pending deals T re performance figures have net teen audited and should be reed and re.newed in comuncton with Appends 5 Important Pertonnance inbannaton which sets forth amongst other dynes important nfamatim regarcing me performance described above The SOF Finds' performance data is rice expected to be representente ct the vestment returns that we to expenenced by en/esters in the Fund Past performance or the SOF Funds is ra a predictor, of forum performance Both SOF and SOF D are invested in the DaVeire Portfolod - a Wel dveredied portfolio itt 28 private equity funds purchased through an SPV. provide+ exposure to knout spec/al situations, venture captal and real estate strategies in North America. Europe and Asa The number of funds and companes is an estimate and shows the aggregate of each deal at dosing and may include sane double counting TVPI = Taal Value to Paid in Capes'. DPI e Dstritutons to Pad In Capital IRR = Internal Rate of Return SOF D rs a Euro denomnated fund USS valued have teen converted at September 30 2017 EURAJSS rate of 1 1822 Both SOF and SOF D are invested in the DaVino P041/06, - dwell drversrted confab° of 28 private equity funds purchased through an SPY prcrodng exposure to buyout. spetal srtuations venture caps: and real estate sumeges in North Amenca. Europe and Asia The number et funds and canpanies is a best estimate and stoves the aggregate of each deal at closing and may include some double °among TVPI = Taal Value to Paid in capital. DPI = Dspitutons to Pad in Capital. IRR = Internal Rate ot Return Confidenhal Private Placement Memorandum 8 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0040578 CONFIDENTIAL SDNY_GM_00186762 EFTA01355419