EFTA01394595.pdf

GL0USI 40 Lawrence Hirsch Section 4. Glendower Capital Secondary Opportunities Fund IV. LP Glendower Capital Secondary Opportunities Fund IV. LP Attractiveness of Secondary Opportunities for Investors The Manager believes that secondary investments can form an important element of a diversified private equity portfolio: • Secondaries complement investment portfolio construction: a secondary investment program can be designed to complement a primary investment program by filling the gaps in an investors investment portfolio and providing exposure to older vintages or different strategies or geographies. • Secondaries provide the opportunity to pursue an attractive risk-reward profile. Exhibit 7: Attractiveness of Secondary Opportunities for Investors1B 000 1,400 Pricing Re-pine tooSbnn ?undid eSSOIS 1.200 4 Fiendlty - Capitalise on pnong inefficiencies ENO 1 300 Knowedge cie existing endearing companies Nitwit. Blind Mature assets typically yifid mare predictat4e cash eao 4 Poor Risk nom Mitigate - Shorter duraton of invastments ..t-Curie - Eamer cash distntutions 5 8 7 8 t' ID 11 Veen COltirkMent Accelerate deployment of caaaal .. ... ... ... - - Portfolio broaden back-seasoned thersrfied exposure - ,—,,,,, Cecensonswireesgents,:eles Construction across weer strategy incustry and rCceadly rne-beeci •••••••^Cumast...e..4.t, More specifically, the Manager believes that secondary investments offer the potential for an attractive risk-reward profile due to: • Pricing flexibility: capacity to re-price existing assets to reflect current performance and economic environment and to opportunistically target price inefficiencies resulting from market dislocation and supply-demand imbalances in the private equity market. • Mitigation of blind pool risk: a secondary manager is typically able to analyze existing assets and will therefore have greater visibility on cash-flows. • Mitigation of J-curve effect: typically secondary investments are drawn down more quickly and return capital more quickly than primary funds and therefore suffer less from the J-curve effect. Secondary Market Investment Opportunity Introduction Fundamentally, private equity assets — when held through funds, funds of funds, feeder funds or other similar holding structures - are illiquid investments with long holding periods (typically 10 to 12 years for fund interests) during which time investors have no, or limited, rights to liquidity and investors receive limited information about the performance of the underlying portfolio companies. M investor in such a structure that requires liquidity prior to the sale of the underlying assets by the fund has limited alternatives to selling the interest on the secondary market. A range of dynamics in the private equity industry, such as an evolving regulatory environment, ongoing limited partner portfolio management becoming standard and a rising number of GP-led Secondaries, can create attractive opportunities to purchase private equity assets on a secondary basis. TM Infemlabcn is for 04O411,00 PerPOSOS. The goar is an ems* fee riustrateve purposes and the actual cash flow profile of any gwen investment may vary substantially Confidential Prnrate Placement Memorandum 17 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0100623 CONFIDENTIAL SDNY GM_00246807 EFTA01394595