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"
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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 Precan 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