EFTA01389758.pdf

GLDUS132 EverWatch Financial Section 1: Executive Summary Glendower Capital Secondary Opportunities Fund IV, LP Bespoke liquidity solutions or GP-led Secondary deals, another key target area for the Fund, are an evolving and growing segment of the market. Today they represent just under 25%12 of the market and include spin-in/spin-outs, tail- end funds (i.e., funds raised at least 10 years ago) restructuring, asset liquidations, and LP tenders. Distinctive investment strategy The Manager intends to replicate the consistent, distinctive investment strategy13 pursued by the SOF Team (while at Deutsche Asset Management") in each of the SOF Funds. This strategy is built around five main pillars: ■ A focus on less competitive transactions such as smaller US$5-100 million Fund Secondaries, US$100-250 million GP-led Secondaries and larger, more complex deals where the Glendower SOF Team has an angle. As of September 30, 2017, the SOF Funds had completed 82 transactions with an average deal size of US$40 million. ■ Pursuing a selective. true value approach through bottom-up, in-depth fundamental analysis rather than deal structuring / leveraging. Positioned as a mid-sized alpha value investor vs larger levered beta players. the SOF Team has screened approximately 3.000 potential deals since 2007 valued at around US$400 billion in the aggregate and have transacted around 1% of this deal-flow by value. • Buying margin of safety and mitigating blind pool risk by purchasing mature fund interests at a discount to FMV. The SOF Team has historically purchased at an average 20% discount to FMV over 350 fund interests which were around 80% funded and typically past their investment period at the time of purchase. t6 ■ Pursuing an efficient portfolio management approach. The SOF Team has historically (i) not utilized leverage at transaction level and horded at portfolio level, (ii) systematically implemented currency hedging to mitigate 50 to 60% of market volatility, (Ho consistently diversified the SOF portfolios across a maximum of 30 to 40 transactions to mitigate over 90% of non-market deal risk. ■ Pursuing a portfolio construction according to a barbell approach adjusted to market cycles. Since inception, the SOF Team has completed around 58% of its transactions in Fund Secondaries and 42% in GP-led Secondaries and Single Asset Dealsi6 adjusting to focus on the former during market corrections and on the latter during normalized market conditions. It is expected that the Fund will opportunistically pursue transactions in a broad range of private equity fund investments (including funds of kinds. feeder funds and other similar structures), portfolios of direct private equity assets. and co- investments in individual assets alongside private equity sponsors where the Glendower SOF Team has an angle. More specifically: ■ Informational advantage, by leveraging the Glendower SOF Team's relationships with over 180 Fund Sponsors" and its investments in more than 350 fund interests worldwide.ls • Relationship with sellers, by working directly with sellers to address their objectives, which often include non- monetary factors such as confidentiality, speed of transaction, and certainty of execution. • Opportunity to solve for complexity, by leveraging the Glendower SOF Team's transactional expertise to structure more complex transactions at a smaller size than other larger secondary funds. Source Glendower Capital based on Gmenha Secondary Market Trends a Outlock. January 2018 Past performanoe is net a prediction of the future pertormance of SOF. SOF D. SOF It or SOF III but is included 10 demonstrate the track record cO the Glendower SOF Team and there can be no assurance that SOF al wdl where comparable results or that any target results will be achieved Prospective 'mestere should note that while at Deutsche Asset Management the SOF Team were able to make tree of platform personnel and resources in connection with the SOF Program tnat will not be avalable to the Glendower SOF Teem in connecbon with the management and operation of SOF ry Source Glendower Capitals proprietary friOrraaeon Represents % d aggregate invested capital m the SOF Funds as or September 30. 201T Past poetIcao coma:won d the SOF Funds e not a prediction of the Funds portfolo construcbon Source. Glendower Capeats proprietary inlommocn Source Glendower Caesars proprietary irsormaticn Confidential Pintate Placement Memorandum CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0094123 CONFIDENTIAL SDNY_GM_00240307 EFTA01389758