EFTA01389762.pdf

GLDUSI32 EverWatch Financial 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 d7 J2' " Fuld SOF SOFO SOF B SOF • Toted Voltage 2036 2010 2011 2014 (06eetapesee stage/ (4gveseng) (laweetteg) (mdltring) fee/ stage) Fun] see L65565on LOS:5147m L15361441 USSI.E54m US52.980m Transactons. funds. COCCI:end. s 21/154/1,774 It 28/ 193 29/75/737 35/149/2.837 Cates mule* 2Ix 30r 17x 14x IC), Gross IRR 29% 37% 23% 31% 26% Net multiple (TOPPI 1.1x 2.3x 1.52 1.3x 1.Sx Net elstributed (OFF) 1.tx 2.1x 1.2* 0.3x Ole NetIRR 22% 29% 20% 30% 23% Peak net cent/We/I °dotal 26% 51% 42% 44% For dem^ en purposes only Source Glendower Capital based on Proem benchmark data for the median 1VPI and Net RR achovod by buyout funds kr vintages et 1997 to 2017 Average buyout TVPI = 159x Average Net RR v 155% Data as of September 30 2017 For further bencnsharleng of Glendower Captal to buyout returns. pease refer to Exhibit 3 Past performance is not a peocicil of the future performance of r -,F SOF D SOF II or SOF Ill but is included to demonstrate the track record of the Gknclona SOF Team and there can be no assurance that SOF N wdl achieve comperatie results or that any target results wall be achieved 'Invested' is dens as the sum et me purchase price and remaining unfunded ottgaton as of the time of closng. or time of expected close+ for pending deals The performance figures have na teen audited and should be read did resnewed in comunoton with Appends 5 Important Performance inbannaton which sets forth amongst other thngs important nramacon regarcing me performance described above The SOF Finds' performance data is not expected to be represaNaaNe ot the investment returns that we be expenenced by esestors in the Fund Past performance of the SOF Funds is ra a prediction el forum performance Both SOF and SOF D are invested in the DaVirire Portfolio - a wel {Men:died portfolio ct 28 private equity funds purchased through an SPV. provide+ exposure to knout stecal situations, venture captal and real estate strategies in North America. Europe and Mid The nurnoer et funds and companes is an estimate and shows the aggregate of each dear at dosing and may include sane double counting TVPI = Taal Value to Paid in Capital. DPI e Dstritutons to Pad in Capital RR e Internal Rate of Return SOF D rs a Ebro denominated fund USS vaned have been converted at September 30 2017 EURAJSS rate of 1 1822 Both SOF and SOF D are invested in the DaVino P041/06, - dwell diversrted portfolio of 28 private equity funds purchased through an SPV proving exposure to buyout. spetal &Mations venture caps: and real estate straieges in North amenca. Europe and Asa The number of funds and companies is a best estimate and shows the aggregate at each deal at closing and may include sorne double counong TVPI = Taal Value to Paid in capital. DPI = Dsoitutons to Pad in Capital. IRR = eternal Rate ot Return Confidential Private Placement Memorandum 8 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0094127 CONFIDENTIAL SDNY_GM_00240311 EFTA01389762