EFTA Document EFTA01354259

GLOUS143 Henry Nicholas Section 4. Glendower Capital Secondary Opportunities Fund IV, LP Glendower Capital Secondary Opportunities Fund IV. LP Growth and prominence of GP-led Secondaries The volume of GP-led Secondaries in 2017 was US$14 billion, representing approximately 24% of total Secondary market deal volumes.63 These transactions included recaps and restructurings. tender offers, direct secondaries and spin-outs. Historically, transactions involving buyout funds have dominated the landscape (70% of all GP-led Secondaries volume in 201669; however, there was significant growth in the real assets space with infrastructure funds representing 15%, followed by real estate, energy and venture. Exhibit 17: GP-led Secondaries Transaction Volume (2006 - 2017)" USSbn 15 14 13 12 % of Secondary market deal valume 30% 140 25% 18% 11 GASP 10 90 20% 9 8 71 15% 7 6 5 10% 4 3 2.4 27 2 1.9 6 9 5% 1 1 0.6 0 0% 2C06 2007 2038 2009 2010 2011 2012 2013 2014 2015 2016 2017 GP.led sceondates —GP4ed secondaries as % of foul A number of factors are driving the trend for the general partners of underlying funds to organize liquidity solutions on behalf of their investors: • The global financial crisis left many GPs delaying exits by several years resulting in a build-up of inventory of assets for sale. Today, there is US$0.6 trillion of unrealized private equity assets locked in vintages 2008 and earlier. • LPs are taking a more proactive approach to rebalancing their portfolios, which have included growing demands for the liquidity that GPs have long promised. ■ A greater and growing ntrnber of high-quality managers are now utilizing the Secondary market to solve unique issues among their funds (i.e., end of fund life planning, additional capital to support existing portfolio companies, release of capital for latest offering etc.). ■ Continued evolution and refinement of transaction structures. Glendower believes that this reality has led to an influx of GP-led liquidity offerings and restructurings Once mere Greenhill Cogent Secondary Market Trends 8 Oak.* January 2018. Greenlel Cogent Secondary Market Trends 8 OLO:0k JallUaly 2017. Glenckwer Carmel based on Greenler Secondary market Trends 8 Outkok January 2018 and EvercoreHt 2017 Seem:Wry Market Survey Rasa Confidential Prnrate Placement Memorandum 23 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0038853 CONFIDENTIAL SONY GM_00185037 EFTA01354259