EFTA01478823

Financials Monday, March 24, 2014 Revenue ($)MM Desk KCP U.S. WIC U.S. KCP Weekly Business Review Revenue-Pipeline deals-Transactions closed-Client updates-Trade ideas 2012 29.7 26.1 KCP LATAM 2.1 WIC LATAM 0.0 Total 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 Jan Feb Mar 57.9 2013 23.6 23.4 0.5 2.2 49.7 JAN 5.9 2.8 0.2 0.2 8.8 FEB 3.9 1.4 0.2 0.3 5.9 2014 9.9 4.2 0.4 0.5 15.0 EFTA01478823 Y/Y (%) v 2013 revenue 152 9 365 35 81 2014 Target 40.0 32.0 6.5 6.5 85.0 Y/Y (%) v 2014 budget 49 (21) (63) (63) 6 Pipeline NNA* 13.9 0.5 3.5 0.2 18.1 360 5.5 85.0 Revenue Target USD (MM) DB Revenue USD (MM) 150 0.5 210 CBV** New Client Revenues 5.0 21.3 21.3 21.3 21.3 10 Apr 2014 Budget: Euro 65 million Y/Y based on annualized 2014 revenue EFTA01478824 Totals may not sum due to rounding (nearest 100k to 1 decimal place) May Jun 2Q Jul Aug Sep 3Q Oct Nov Dec 4Q Total *Net New Assets — New funds transferred in / out for both AuM and Lending Volume **Client Business Volume — AuM plus Lending Volume For internal use only 1 EFTA01478825 Pipeline Monday, March 24, 2014 Client KCP US Pipeline 1 Miles Nadal 2 GH Palmer Associates 3 JHAC 4 5 Olson Jaws, Forest, Toro 6 Angelo Tsakopoulos 7 Price Family Office 8 EnTrust 9 Wilbur Ross 10 Robert Sillerman 11 Veritas (Y-P Au) 12 Mayweather 13 Inland Real Estate 14 Jaws/JHAC KCP Weekly Business Review Revenue-Pipeline deals-Transactions closed-Client updates-Trade ideas Ticket Size Trade MDCA Stock Loan TRS for real estate developer Project Troop, financing leisure resort $45mm TBD $20mm TBD TBD Expected Revenue 1,500,000 5,000,000 1,000,000 CMBS; RB Olson Development (Marriott/Hospitality) $20-30mm 500,000 Spitfire 3.0 $45mm loan vs $76mm Water Rights Contract (20yr) $45mm loan 500,000 VWAP dialogue (PSMT) - Block Trade Treasuries on repo and long SPY Puerto Rico 5y TRS 300,000 FX Management (SFXE) PACE financing & Retrofit origination/opportunity Aman Hotel Equity (capital raise) PACE bond program Tobacco bonds $750mm 2,500,000 $100mm 3,000,000 EFTA01478826 Ongoing 500,000 TBD $50mm TBD TBD 1,000,000 1,000,000 TBD TBD 1,400,000 Delta 18,200,000 55% 95% 75% 75% 70% 75% 50% 50% 50% 50% 25% 20% 20% TBD TBD Estimated Annual Revenue 7,500,000 1,000,000 TBD 1,000,000 TBD 1,000,000 TBD 500,000 1,000,000 1,000,000 500,000 500,000 1,000,000 TBD TBD KCP US deals closed: Trafigura (a/c receivable) , Athena (VFN renewal), Gapstow (Pru CLO), Gallagher (Yacht loan), Loeb (Yacht Put) Product Focus: RIN, SOF III, Maryland Proton Centre, Bastille, Project Troop, Marinas International Client KCP LATAM Pipeline EFTA01478827 1 Noble 2 Angelini Family 3 Siemel Company 4 Belford 5 Fundacion 6 ProAltus 7 Bulgheroni Family 8 Stars 9 Signature Capital Fixed Income portfolio Structured notes Bond portfolio with a cross currency overlay dbSelect linked note Structured note switch into dbSelect linked note CROCI filtered notes Fixed Income portfolio US Corportate Loans/CLO/Loan Funds Leveraged Exposure to Structured Notes 10 Tendencia Asset Management Equity Swap 11 Arizona Financing of CRE portfolio KCP LATAM deals closed: CDS, ETF, MM Fund, Structured Notes, GLD Bullion Product Focus: SOF III, WAM CLO, Credit axes, THL CLO Client WIC US Pipeline 1 2 Various 3 MS Employee 4 Pearl operations (Golub) 5 New client 6 Various 7 Ferrell Capital 8 New client 9 Corporate 10 New client WIC US deals closed: Product Focus: 2 For internal use only Corporate Executive 15k Shares SOF III Feeder Fund Stock hedging & monetization Equity Block Trade (NADL) Fx Long/Short (USDJPY, USDMXN) SOF III Feeder Fund SOF III Feeder Fund Cash & bonds, structured notes EFTA01478828 Single stock hedging & monetization Estate liquidation, corp, muni, preferreds' Trade Ticket Size $15k $4mm $50mm $0.2mm $10mm $2-3mm $5mm $18-20mm $6mm 200,000 100,000 10% 95% 50% TBD $34mm Convey German Banking Team PB New York New York 95% $20mm Russell Daulton PB Expected Revenue Delta Estimated Annual Revenue NNA Relationship Manager Carlos Arrizurieta Channel PB Office Miami WIC Joseph Cothron Harrington San Francisco Harrington Chris Quartararo Vahe Stepanian Joseph Cothron Joshua Shoshan Chris Quartararo EFTA01478829 Chris Quartararo Chris Quartararo Trade Ticket Size $10mm $10mm Expected Revenue 3,480,000 75,000 30,000 $30/50mm 300,000 $5mm $5mm 100,000 100,000 $10/15mm 200,000 $100mm 200,000 $30/50mm 300,000 $10/20mm 100,000 $20mm $75mm 75,000 2,000,000 Delta 34% 95% 90% 50% 30% 30% 30% 20% 20% 20% 10% 10% Estimated Annual Revenue 2,450,000 250,000 250,000 TBD 500,000 500,000 100,000 TBD 100,000 TBD 250,000 EFTA01478830 500,000 NNA Relationship Manager Antonio Braun Patricio Leon Patricio Leon Cristian Gonzalez Cristian Gonzalez Mercedes Sampedro Jan Eddicks Patricio Leon Antonio Braun Joseph Jacinto Ana Sosa Channel Office PWM Miami PWM Miami PWM Miami PWM Miami PWM Miami PWM NY PWM Hamburg PWM Miami PWM Miami PWM NY PWM Geneva KCP Zagury/Chaves Zagury/Chaves Zagury/Chaves Zagury/Chaves Zagury/Chaves Zagury/Chaves Zagury/Chaves Zagury/Chaves Zagury/Chaves Zagury/Chaves Zagury/Chaves NNA Miles Nadal Cheryl Paller Bill Furber Elisabeth Schreiber Various Ed Lok Carolin Botzenhard Patricia Bennett Robert Leidy Terri Sohrab Ed Lok EFTA01478831 Various Tim Riley Various Relationship Manager Channel PCS PB PCS PCS PCS PB PB PB PCS PB PB Office New York KCP Thomas ORorke Los Angeles Tazia Smith Boston Los Angeles Tazia Smith NY, MIA David Mann David Mann San Francisco Tazia Smith Los Angeles David Mann Los Angeles David Mann Palm Beach David Mann New York PB/PCS Various PCS PCS New York Various Tazia Smith San Francisco Tazia Smith Bruce McDermott David Mann David Mann EFTA01478832 Transactions Monday, March 24, 2014 KCP Weekly Business Review Revenue-Pipeline deals-Transactions closed-Client updates-Trade ideas Client KCP US Transactions closed 1 2 4 5 6 Charles Gallagher Dan Loeb Ansbacher Bahamas Ultimate Beneficial Owner Gapstow Capital Partners Chris .7 Acito JVB Properties Prudential CLO Jack Thompson Turbo Call Spread Charles Gallagher Yacht Loan ("Project Gametime") Yacht Put Caribbean CLN KCP US deals closed: Trafigura, Athena, Gapstow, Loeb, Gallagher Product Focus: RIN, SOF III, Maryland Proton Therapy, Spitfire 3.0 Client KCP LATAM Transactions closed 1 2 3 4 5 6 7 Arizona Drake Stars Angeline Family Fundacion Pragma Noble Ultimate Beneficial Owner Trade Credit Default Swap on Chilean Bank ETF Money market fund Structured Note Structured Notes with Fundacion Gold ETF sale and switch into Gold Bullion EFTA01478833 Fixed income porfolio turnaround KCP LATAM deals closed: CDS, ETF, MM Fund, Structured Notes, GLD Bullion Product Focus: SOF III, RDIF, WAM CLO, Credit axes Client WIC US Transactions closed 1 2 3 Norman Tulchin Norman Tulchin Chaim Katzman 4 5 WIC US deals closed: Product Focus: SOF III Client WIC LATAM Transactions closed 1 2 3 4 5 WIC LATAM deals closed: Product Focus: 3 For internal use only Ultimate Beneficial Owner Trade Ticket Size Expected Revenue Delta Estimated Annual Revenue NNA Relationship Manager Channel Office WIC Investor Type Ultimate Beneficial Owner Trade FX Option USD/JPY FX Option USD/MXN Restricted stock sale Ticket Size $3.4mm EFTA01478834 $3.6mm Expected Revenue 12,000 12,000 10,000 Delta 100 100 100 Estimated Annual Revenue 50,000 50,000 NNA Relationship Manager Ticket Size $5mm $50mm $120mm $5mm $2mm $20mm $10mm Expected Revenue 0.2mm 50,000 18,000 TBD 10,000 20,000 TBD 80,000 Delta Estimated Annual Revenue NNA Relationship Manager Channel Office KCP Investor Type Trade Ticket Size Expected Revenue EFTA01478835 11.6mm $30mm Delta Estimated Annual Revenue 11.1mm 1,200,000 95% 500,000 $0.4mm 100,000 100% 100,000 $60mm $3mm $10mm 5,000,000 95% 5,000,000 5,000,000 95% 5,000,000 300,000 100% 500,000 Mark Gonzales Edward Maier Mike McCarthy PB PB Rosemary Vrablic PB New York PCS Chicago Chicago New York Andrew Mandala PCS Miami Thomas ORorke Fund of Funds / HF Private Investment Co David Mann Thomas ORorke Mega-Yacht Loan / Trust David Mann David Mann NNA Relationship Manager Channel Office KCP Investor Type Channel 12,000 Susan Burnett PB 12,000 Susan Burnett PB 10,000 Carlos Arrizurieta PB Office WIC Los Angeles Los Angeles Miami Joseph Cothron Joseph Cothron Joseph Cothron EFTA01478836 Investor Type EFTA01478837 Private Markets & Alts Monday, March 24, 2014 Product: Private Markets: ARA Infrasturcture Rated Infrastucture Notes (RIN) Live Jorge Rodriguez Jonathan Newman CB&S Maryland Proton Therapy Live Exotic Muni Trading Michael Kuras Bastille Pipeline CB&S ECM Jeff Mortara TBD Post NDA Package TBD Presentation PPM 1. QIBs only 2. Offshore Reg S 3. ECM to send all docs Upon request $25mm target raise ECC 3/31 close Teaser NDA Watermarked PPM Teaser TBD TBD $96.2mm CB&S 1. Call March 25th QIB Only US Only PMs are available for meetings $75mm target raise AWM KCP Live or Pipeline: KCP Weekly Business Review EFTA01478838 Sponsor: Contacts: Revenue-Pipeline deals-Transactions closed-Client updates-Trade ideas Process & Steps: Dates: Materials: READY TO SEND DO NOT SEND 1. Pre-approve clients 2. Communicate infrastructure offering and investment thesis 3. Articulate CLO Equity warehouse structure 4. Offer calls/meetings with PMs 5. Follow up and document feedback Management Meetings: Target Raise: Fees/Revs: NPA & DD: Marketing Plan: 1. Please ask all PCS and/or PB CFP's if they have any UHNW ($100mm +) families that would be interested at the $50 mm level or above. Upon request ECM Marinas Pipeline Chad Cooper TBD Presentation 1. QIBs only 2. Offshore Reg S 3. ECM to send all docs Perhaps first week of April for large accounts $300mm target raise $50-100mm from KCP 3% net fee = $1.5-3mm TBD 2. Any other accounts that would be potentially interested in a minority stake at $2 mm or more that are FINRA 2111 eligible. We are considering a Reg. D slot for these accounts (144a = QIB) Our nest step is to provide management to large accounts for 1:1 meetings to explore interest more deeply. The smaller accounts may participate in a group call. The calls/meetings may occur in the first week or April. CB&S Base Metal & Mining Loans EFTA01478839 EcoMotors Alternatives: AFS Private Markets SOF III Live Carlos Munoz-Lucas Billy Obregon Wes Sturdevant RREEF RDIF LiquidAlts Omega Seed Capital RetroFit Live Remy Marino AFS Pipeline Carlo-Edoardo Carlon ARA Pipeline Todd Henderson Globl Markets Hyperion Homes Pipeline GCT Structuring London Liechty TBD Non-DB teaser from management TBD TBD MN scheduled meeting with WIS LDN TBD TBD TBD 3/31 close 4/30 first document deadline Sub doc package 1. Pre-approval for Adam Graev for Teaser 3. AIS request 4. Send customized Sub Doc package once AIS is approved PPM Presentation Teaser TBD TBD 1 . Pre-approval for Todd Henderson or EFTA01478840 Teaser 2. Send to agreed KCP list Available TBD TBD No traction $25mm 5-6 weeks WM AFS/GCG Policies TBD Waiting on Compliance for final KPRC approval KCP target list (BMcD, MN) Available to QIBs $4.5mm of interest $20-25mm target 75bps mgmt fee WM Create prospect client list Track feedback and interest Closing, Total = $22.2m (Firm = $10m + Soft $12.2) Pipeline Pipeline Commodity Unwind Chris Zhou TBD TBD TBD TBD TBD n/a TBD 3-4 loans 1st loan: $75mm 2nd loan: $25-75mm TBD TBD TBD Demand assessment TBD 4 For internal use only EFTA01478841 Private Markets & Alts Monday, March 24, 2014 KCP Weekly Business Review Revenue-Pipeline deals-Transactions closed-Client updates-Trade ideas Product: Lodging & Real Estate: Virgin Miami Live or Pipeline: Sponsor: Contacts: Dates: Materials: Process & Steps: Management Meetings: Pipeline CB&S REIB Chad Cooper AFS/ARA Citroen - Lyon, France Pipeline Ronen Ribek AFS Project Aman Pipeline Bernard Abdo Branded Hotel Development Real Estate in Mexico and Carribean Bacalr Beach, Ambergris Caye Belize Pipeline Pipeline KCP Pipeline David Mann Pierre Economacos AFS Las Olas Tower Pipeline Paul A. Milotis Ronen Ribak AFS Parker Place Pipeline Paul A. Milotis Ronen Ribak Closed Deals: Fotress WWT&I Top Up EFTA01478842 Live KCP Bruce McDermott 3/31 close PPM Consent Letter Call with management previously held $20-50mm target raise 125bps net = 300-600mm $45mm, gross 2% 50% close 50% May ECC 1. Contact RMs whose clients participated in first round 2. Guage interest form existing investors 3. Remaining top-off goes to other Fortress clients 4. DB investors TBD Teaser Internal teaser for puproses of demand assesment TBD $20-25mm Demand assessment TBD Teaser Internal teaser for puproses of demand assesment TBD $25-30mm Demand assessment TBD DD Items TBD 30-Apr Deck Data Room 1. Evaluate capital structure or posiible refinance or equity raise 2. Equity intros only Upon introduction and signed cert doc EFTA01478843 $50mm 3% n/a intro Introduction only TBD Teaser ARA/AFS JV Target Raise: Fees/Revs: NPA & DD: Marketing Plan: TBD TBD REIB CFP Show to two LatAm Clients TBD If piece remains, can show to new 5 For internal use only EFTA01478844 Clients Monday, March 24, 2014 KCP Weekly Business Review Revenue-Pipeline deals-Transactions closed-Client updates-Trade ideas Client Ultimate Beneficial Owner TIER 1: Clients Currently Being Onboarded 1 Butterfly Trust 2 Gapstow 3 Parkwood Capital 4 EnTrust Palmetto LLC 5 MDCA 6 Tisch Family (TFMG) 7 Omidi 8 Black 9 Porticoes LLC 10 TOMS Capital 11 Dan Loeb TIER 2: Clients Approved for Adoption 1 Thirdlake 2 Freestyle Capital 3 Terrapin Partners 4 JVB Properties 5 Sage Capital 6 Heritage Provider Network Jeffrey Epstein Fund of Funds Mandel Family EnTrust Capital Miles Nadal Laurence Tisch Julian Omidi Leon Black Les Lieberman Noam Gottesman Daniel Loeb Wanek Family Michael Stone Nathan Leight Jack Thompson Raz Steinmetz Richard Merkin TIER 3: Clients Who Have Requested Coverage 1 National Commerce Bank 2 Barry Kitt (CIO TOMs Capital) 3 Meredith Corp 4 The Roosevelt Investment Company 5 Geffen EFTA01478845 6 Spielberg 7 Katzenberg 8 Lucas Clients not approved 1 Voltaire Capital 2 RJET (Republic Airway Holdings) Publicly held Barry Kitt Meredith Family Institutional MM David Geffen Steven Soielberg Jeffrey Katzenberg George Lucas New Worth / AUM 16,100,000,000 1,000,000,000 1,000,000,000 1,000,000,000 1,500,000,000 350,000,000 5,000,000,000 125,000,000 4,000,000,000 125,000,000 2,000,000,000 1,500,000,000 7,123,000,000 1,500,000,000 1,000,000,000 58,000,000 65,000,000 500,000,000 4,000,000,000 0 Estimated Annual Revenue 5,850,000 500,000 500,000 500,000 100,000 1,000,000 500,000 1,000,000 500,000 250,000 1,000,000 5,000,000 2,050,000 500,000 EFTA01478846 100,000 100,000 100,000 250,000 1,000,000 250,000 250,000 less than 250k N/A N/A N/A N/A Relationship Manager Channel Office KCP Investor Type Industry Paul Morris Mark Gonzales Patricia Bennett Patricia Bennett Miles Nadal Paul Morris Matthew Ayers Paul Morris Charles Rudnick Paul Morris/Brad LaConte Rosemary Vrablic Paul Morris Jarret Brady Edward Maier Edward Maier Michael David Cheryll Paller Andrew Mandala Brad LaConte Jeff Neal Todd Kurowski Cheryll Paller Cheryll Paller Cheryll Paller Cheryll Paller PB PB PB PB PCS PB PCS PB PCS EFTA01478847 PB PB PB PCS PCS PCS PCS PB PCS PCS PCS PCS PB PB PB PB New York New York Tazia Smith Los Angeles David Mann Los Angeles David Mann New York New York New York New York New York New York Self-directed capital markets flow Thomas Ororke Fund of Funds / HF Family Office Fund of Funds Thomas Ororke Equity Margin Loan / Individual Media & Telecom Tazia Smith Los Angeles Tazia Smith Tazia Smith New York/Miami David Mann Tazia Smith David Mann Tazia Smith San Francisco Tazia Smith Chicago Chicago New York David Mann David Mann David Mann Los Angeles Tazia Smith Miami Miami EFTA01478848 Chicago Baltimore David Mann Tazia Smith David Mann Los Angeles Tazia Smith Los Angeles Tazia Smith Los Angeles Tazia Smith Los Angeles Tazia Smith Family Office Family Office Individual Private Investment LLC Family Office Individual Family Office PE/ Hedge Fund Individual / PE Firm Owner Private Investment Co Family Office Family Office Publicly Held Bank Individual Family Office Thomas Ororke Institutional Long Only MM Family Office Family Office Family Office Family Office Industrials, Real Estate, Technology Financial Services, Industrials Technology Healthcare Financial Services, Real Estate Financial Services Healthcare, Real Estate Financial Services, Real Estate Krishan Rattan Noam Gottsman 500,000 100,000 Mark Gonzalez Frank Winford PB PCS New York Houston Thomas ORorke Thomas ORorke Investment Manager EFTA01478849 Corporate Holding Co 6 For internal use only EFTA01478850 Trade Ideas Monday, March 24, 2014 KCP Weekly Business Review Revenue-Pipeline deals-Transactions closed-Client updates-Trade ideas Trade Idea: Implementation / Themes Date 24th February 28th February Japan Puerto Rico Sector Government Government Trade Long DXJ Buy s/t debt Upcoming bond sale will fuel a rally in PR securities 28th February Macy's Consumer Aug call spread Outlook for strong margin performance, good free cash flow 3rd March USDJPY Fx Buy USDJPY call options 14th March Delphi Automotive Auto Buy Jan 17 2015 calls at $10.30 Sell Jan 17 2015 calls at $2.80 Sell Jan 17 2015 calls at $2.80 Net debit is $3.40 Profit potential: $11.60 Sell May 2014 65 put at $2.40 Net credit is $2.40 Profit potential, credit received Buy Aug 2014 125 call for $5.80 Sell Aug 2014 140 call for $1.53 Sell Aug 2014 115 put for $4.75 20th March The Boeing Company Aviation/Defense Sell May 2014 120 put for $3.80 Net credit is $3.80 Profit potential, credit received Flight to quality from turmoil in Ukraine strengthened Yen EFTA01478851 Cheaper entry point Rationale Risk Investment Area Capital Markets Capital Markets Capital Markets Capital Markets DB analyst Buy rating, "top pick", DLPH benefitting from themes on fuel economy, connectivity and safety Capital Markets DB analyst Buy rating, on long-term growth potential and broader profitability within the global airline market Naked sold puts in each trade could result in substantial losses Capital Markets For internal use only 7 EFTA01478852