EFTA Document EFTA01354257

GL0US143 Henry Nicholas Section 4. Glendower Capital Secondary Opportunities Fund IV. LP Glendower Capital Secondary Opportunities Fund IV. LP Secondary market supply/demand remains balanced Glendower believes that the secondary market supply I demand is balanced with an active set of both buyers and sellers. Greenhill estimates the available dry powder in the Secondary market at ca. US$125 billion. If compared with 2017 annual volume of US$58 billion, this represents a 2.2x ratio: Glendower believes that this represents a reasonable supply/demand balance of approximately two years of deal flow at current market volumes. a more favorable balance than in comparison to traditional private equity. Exhibit 12: Strong Secondary Capita! supply/' Exhibit 13: Dry powder/deal volume remains balanced" USSbn USSOA 140 • 700 120 • 600 , 500 corbowerCeptaissamafri wt wrraion/ man a CO . 100 masb•rodepty Settrdanos 400 60 Sec 300 40 200 20 100 0' 0 Dry110.5e Mewl Nei Voiume 05 Pow. • 040.5,4 • Ikryoui Seccnesne• Glendower believes the increase in absolute dry powder in the secondary market over the last few years has led some buyers - in an attempt to keep pace with capital deployment desires - to modify their investment discipline. Glendower emphasizes rigorous asset selection and has historically maintained a very disciplined approach in its opportunity selection, transacting approximately 1W° of total transaction volume by value since inception. Diverse and growing seller universe Seller composition in 2017 was highly diverse, with no institutional category accounting for more than a quarter of total deals by number. According to Greenhill, all types of sellers participated in the secondary market in the first half of the year. This reflects the evolution of the secondary market which now represents an efficient portfolio management tool that is used by market participants to strategically rebalance private equity portfolios. The varied seller make-up contrasts to the past where volumes were concentrated in financial institutions and pension plans. Glendower expects selling activity to remain broad-based with particular strength from (i) GPs, (ii) public pensions. and (iii) funds-of-funds as they continuously rebalance their portfolios and seek to liquidate older vintage vehicles. Glendower Capital based on Greenhll Cogent Secondary Market Trends & Cub* January 2018 2018 Pre can Global Private Equity 8 Venture casts Report Ban 8 Company Global P0V646 Equity Report 2018 and Greenhll Cogent Secondary Men et Trans 8 ()Weak January 2018 Deal flow iregmation represerts The aggregate deal flow by value reviewed by tht Glendower SOF Team between January 1. 2006 and September 30. 2017 Hed1C0C6Idear flow characteristics do rig provide a predation of Faure deal flow trends and there can be no guarantee that future deal flow will be comparable to histonc deal flew Confidential Prnrate Placement Memorandum 21 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0038851 CONFIDENTIAL SONY GM_00185035 EFTA01354257