EFTA Document EFTA01394198

GLDUS129 OF Enterprises 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 1000 Pricing FkOitlarty Re-rhe Conto0 funded 85555 - Capitalise on pacing inefficiencies Mtgale Blind Pool Pi* Mitigate ..t-Curie COrts440Ment Portfolio Construction Knowedge of existing underlying COMpanieS Mature assets typically men awe predicted., cash Con - Shorter euraten of investments - Earlier cash entre:000re Accelerate deployment of capital Proven back-seasoned &Reseed exposure across enter strategy onustry and recently 1200 ENO 'so edpi 400 200 dept voo) coo .1 s 8 7 8 ID 11 Veen .. ... ... ... _ _ - —re. Careasile weneesgenererse rarer core-brute 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 irlonatrem a for 01SM MSPOSOS The Orr is an example fee dlustratere purposes and the nice cash flow profile of any gwen investment may vary substantially Confidential Private Placement Memorandum 17 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0100190 CONFIDENTIAL SDNY GM_00246374 EFTA01394198