GCM Grosvenor Pacific, L.P. Private Equity and Infrastructure · PDF...

THE NOTES AND DISCLOSURES FOLLOWING THIS REPORT ARE AN INTEGRAL PART OF THIS REPORT AND MUST BE READ IN CONNECTION WITH YOUR REVIEW

OF THIS REPORT. THIS REPORT HAS BEEN PREPARED BY THE GCM CUSTOMIZED FUND INVESTMENT GROUP, L.P. (REFERRED TO HEREIN AS “GCM GROSVENOR

PRIVATE MARKETS”) AND GRV SECURITIES LLC. © 2017 GCM CUSTOMIZED FUND INVESTMENT GROUP, L.P. ALL RIGHTS RESERVED

GCM Grosvenor Pacific, L.P. Private Equity and Infrastructure September 30, 2016 Quarterly Report

GCM Grosvenor Pacific, L.P. September 30, 2016 Quarterly Report

Table of Contents Page

GCM Grosvenor Pacific, L.P.

Update Letter ................................................................................................................................................ 1

Summary Tables ............................................................................................................................................ 5

Underlying Fund Investment Reports ......................................................................................................... 14

Co-Investment Reports ............................................................................................................................... 41

Notes & Disclosures ............................................................................................................................................................... 54

Appendix – 3Q 2016 Market Overview .................................................................................................................................. 55


1

Update Letter

Dear Partner:

We are pleased to provide you with the third quarter 2016 report for GCM Grosvenor Pacific, L.P. (the “Fund” or the “Partnership”).

Fund Overview

Since the formation of the Fund in September 2009, GCM Grosvenor Private Markets has pursued a disciplined, but opportunistic approach of implementing the stated strategy of identifying top quartile managers, and constructing a portfolio of investments in leveraged buyout funds and special situation investments such as mezzanine, distressed debt and secondary investments. The Fund also opportunistically invests in co-investments and potentially other non-traditional investments that may offer enhanced net returns, as well as accelerate capital deployment to meet SDCERS’ private equity allocation targets. GCM Grosvenor Private Markets has also actively targeted strategies that lessened the “J-curve” effect of private equity investing. In 2011, GCM Grosvenor Private Markets also began to implement the strategy of investing in infrastructure fund investments (primary and secondary) and infrastructure co-investments. GCM Grosvenor Private Markets pursues a global total return strategy while also seeking current cash and “J-curve” mitigation, with an emphasis on North American infrastructure and other U.S. dollar-based investments.

A summary of the Fund as of September 30, 2016 is as follows:

Since inception, the Partnership has committed $756.3 million to 54 total underlying funds and 32 total co-investments.

The Partnership had contributed a total of $502.8 million to investments, representing 66.5% of commitments to investments.

Cumulative distributions from investments totaled $217.6 million, representing approximately 43.3% of capital contributed to investments.

The Partnership’s investments continued to progress well during the third quarter of 2016. Top drivers of performance include1:

Private Equity Funds

Avista Capital Partners II, L.P. was held at 2.11x cost, with 12 of its 15 investments marked at or above cost, generating a net IRR of 19.4%.1

Castlelake Aviation II, L.P. (fka Airline Credit Opportunities II, L.P.) was held at 1.56x cost, with 30 of its 53 investments market at or above cost, generating a net IRR of 13.5%.1

Cerberus Institutional Partners V, L.P. was held at 1.51x cost, with 85 of its 129 investments marked at or above cost, generating a net IRR of 16.7%.1

Cerberus Institutional Partners, L.P. (Series Four) was held at 1.20x cost, with 13 of its 42 investments marked at or above cost, generating a net IRR of 21.0%1.

Clearlake Capital Partners III, L.P. was held at 1.90x cost, with 18 of its 23 investments marked at or above cost, generating a net IRR of 33.2%.1

Crestview Capital Partners, L.P. was held at 1.27x cost, with 5 of its 10 investments marked at or above cost, generating a net IRR of 27.3%.1

Crestview Partners II (TE), L.P. was held at 1.28x cost, with two of its six investments marked at or above cost, generating a net IRR of 28.7%.1


2

Darby Asia Mezzanine Fund II, L.P. generated an infinite net IRR.2

Darby Converging Europe Mezzanine Fund, L.P. was held at 275.16x cost, generating an infinite net IRR. 1,2

Excellere Capital Fund II, L.P. was held at 2.15x cost, with six of its eight investments marked at or above cost, generating a net IRR of 35.4%.1

GCM Grosvenor Secondary Opportunities, L.P. was held at 1.43x cost, generating a net IRR of 35.5%.1

KRG Capital Fund III, L.P. was held at 1.85x cost, generating an infinite net IRR.1,2

KRG Capital Fund IV, LP was held at 1.53x cost, with 7 of its 14 investments marked at or above cost, generating a net IRR of 37.9%.1

Revelstoke Capital Partners Fund I, L.P. was held at 1.31x cost, with its seven investments marked at or above cost, generating a net IRR of 24.3%.1

Siris Partners II, L.P. was held at 1.39x cost, with five of seven its investments marked at or above cost, generating a net IRR of 24.5%.1

TPG Opportunities Partners II (A), L.P. was held at 1.64x cost, with 44 of its 53 investments marked at or above cost, generating a net IRR of 17.5%.1

TSG6, L.P. was held at 2.10x cost, with 12 of its 13 investments marked at or above cost, generating a net IRR of 40.0%.1

The Veritas Capital Fund IV, L.P. was held at 1.92x cost, with 8 of its 9 investments marked at or above cost, generating a net IRR of 17.3%.1

VIP I A L.P. was held at 1.17x cost, with 8 of its 12 investments marked at or above cost, generating a net IRR of 18.2%.1

Private Equity Co-Investments

The Private Equity Co-Investment Portfolio was held at 1.44x cost, with 27 of the 29 co-investments marked at or above cost, generating a net IRR of 27.2%.1

Infrastructure Funds

Alinda Infrastructure Fund I, L.P. (secondary) was held at 1.96x cost, generating a net IRR of 15.8%.1

Alinda Infrastructure Fund II, L.P. (secondary) was held at 1.70x cost, generating a net IRR of 16.8%.1

EIV Capital Fund II, L.P. was held at 1.51x cost, generating a net IRR of 22.8%.1

HighStar Capital II, L.P. (secondary) was held at 1.65x cost, generating a net IRR of 17.8%.1

IDFC Private Equity (Mauritius) Fund II (secondary) was held at 3.89x cost, generating a net IRR of 319.1%.1

Infracapital Partners LP (secondary) was held at 1.39x cost, generating a net IRR of 18.2%.1

KoFC Macquarie Korea Growth Champ 2010-1 Private Equity Fund (secondary), was held at 1.43x cost, generating a net IRR of 21.7%.1

Macquarie European Infrastructure Fund I, L.P. (secondary) was held at 1.75x cost, generating a net IRR of 14.4%.1

Macquarie European Infrastructure Fund 4, L.P. (secondary) was held at 1.30x cost, generating a net IRR of 21.0%.1

Macquarie Infrastructure Partners I, L.P. (secondary) was held at 1.96x cost, generating a net IRR of 29.9%.1

Macquarie Infrastructure Partners I, L.P. (Project Key) (secondary) was held at 1.51x cost, generating a net IRR of 53.3%.1

Rockland Power Partners II, LP was held at 1.39x cost, generating a net IRR of 24.2%.1

Infrastructure Co-Investments

The Infrastructure Co-Investment Portfolio was held at 1.14x cost, with all three co-investments marked at or above cost, generating a net IRR of 6.0%.1

1 Returns do not take into account application of management fees, allocable expenses and carried interest, if applicable, at the GCM Grosvenor Private

Markets level. Returns would be lower if net-of-fee performance was presented. Past performance is not necessarily indicative of future results. 2 Little or no capital has been funded in respect of this investment, which together with the current market value and distributions, produces an infinite

IRR.


3

Limited Partner Summary

As of September 30, 2016, the estimated market value of San Diego CERS’ Combined Partnership interest plus cumulative distributions totaled $666.8 million, representing a net multiple of 1.35x cost. 1,2 Cumulative distributions totaled $192.9 million, representing approximately 39.0% of capital called. The net IRR on San Diego CERS’ investment was 16.1%.1,2

As of September 30, 2016 the estimated market value of San Diego CERS’ Private Equity Series Partnership interest plus cumulative distributions totaled $546.7 million, representing a net multiple of 1.37x cost. 1,2 Cumulative distributions totaled $149.7 million, representing approximately 37.5% of capital called. The net IRR on San Diego CERS’ investment was 17.5%.1,2

As of September 30, 2016 the estimated market value of San Diego CERS’ Infrastructure Series Partnership interest plus cumulative distributions totaled $120.1 million, representing a net multiple of 1.26x cost.1,2 Cumulative distributions totaled $43.2 million, representing approximately 45.4% of capital called. The net IRR on San Diego CERS’ investment was 11.2%.1,2

Market Overview

Global fundraising in 3Q 2016 decreased by 14% compared to the amount raised in 2Q 2016.3 Global IPO issuance increased from $27.0 billion in 2Q 2016 to $29.0 billion in 3Q 2016.4 The global IPO market continued to make a recovery despite uncertainties surrounding Brexit at the end of 2Q 2016. IPO proceeds in Asia and Europe in 3Q 2016, accounting for 68% and 13% of total proceeds raised in 3Q 2016, respectively.

Global mergers & acquisitions (“M&A”) increased by 9% in 3Q 2016 from the prior quarter.5 M&A activity from 1Q-3Q 2016 decreased 20% from the same period in 2015. Political uncertainty, increased regulation and decreased confidence on boards has hampered M&A activity in 2016. Europe experienced a decline in M&A activity in 3Q 2016, while the U.S. and Asia experienced pickups in activity during the quarter, as compared to 2Q 2016.5 The largest M&A deal in 3Q 2016 was Bayer AG’s $65.0 billion acquisition of Monsanto Company.5 In terms of global M&A volume during 1Q-3Q 2016, the industrials and chemicals sector ranked first at $417.0 billion (19% share) followed by $322.0 billion (15% share) from the energy, mining and utilities sector.5

New Commitments

During the quarter, the Fund made commitments to one seasoned primary fund investment and one co-investment, along with one follow-on commitment to a co-investment totaling $60.6 million, bringing total commitments to $756.3 million.

Private Equity Investments

GCM Grosvenor Co-Investment Opportunities Fund, L.P.

Seasoned Primary Fund Commitment: $45.0 million

GCM Grosvenor Co-Investment Opportunities Fund, L.P. was formed on October 20, 2014 to make private equity co-investments alongside premier middle market buyout managers. GCM Grosvenor Private Markets seeks to create a portfolio that is diversified across private equity sponsors, industries and vintage years.

1 The net multiple and IRR of SDCERS’ Partnership interest is net of management fees, allocable expenses and carried interest at the Partnership level. 2 Estimated net IRRs and multiples for SDCERS’ Partnership interests are reflective of investments made in respect of private equity and infrastructure investments across the

Partnership’s 2009-1 Investment Series, 2011-1 Investment Series, 2012-1 PE Investment Series and 2014-1 Investment Series. Please note that for purposes of the respective net IRR and multiple calculations, Partnership-level management fees were calculated for each specific investment. Partnership-level expenses were allocated across private equity and infrastructure investments based on original commitment amounts related to investments. The calculations also reflect carried interest that has been allocated across private equity and infrastructure investments based on the net gains achieved on the respective strategies. Additional information on the calculation methodology described above is available upon request.

3 Source: Thomson ONE, November 2016. 4 Source: Renaissance Capital IPO Intelligence, Global IPO Market 3Q 2016 Quarterly Review. 5 Source: Mergermarket, Global and Regional M&A: Q1-Q3 2016.


4

Project Denali

Co-Investment Follow-On Investment: $5.6 million

Project Denali (the “Company”) provides integrated technology solutions in the information technology (IT) industry worldwide. The Company designs, develops, manufactures, markets, sells, and supports mobility and desktop products, including notebooks, workstations, tablets, smartphones, and desktop PCs, as well as servers and networking products and storage products to enterprises, public, small and medium businesses, and consumers. Project Denali offers high performance rack, blade, and tower servers for enterprise customers, value tower servers for small organizations, networks, and remote offices, and storage area networks, network-attached storage, direct-attached storage and backup systems.

Project Therapy

Co-Investment Commitment: $10.0 million

Project Therapy (or “Company”) is a leading provider of comprehensive outpatient rehabilitation services for the treatment of acute and chronic orthopedic injuries. The Company combines best practices from the disciplines of physical therapy, exercise physiology and athletic training. Project Therapy’s full suite of comprehensive services include: physical therapy; work conditioning; hand therapy; aquatic therapy; functional capacity assessments; sports medicine; women’s health; employer services; and fitness programs. The Company operates nearly 200 clinics throughout Illinois, Wisconsin, Indiana, Ohio, Delaware, Maryland and Pennsylvania.

Partnership Highlights

The following summarizes the combined activity during the quarter:

The Partnership made three capital calls to San Diego CERS totaling $39.3 million.

The Partnership made one non-recallable distribution to San Diego CERS totaling $25.2 million.

* * * * *

As always, we welcome the opportunity to speak with you. Please feel free to contact Bernard Yancovich at (646) 362-3737 or [email protected] should you wish to discuss your investment.

Sincerely,

GCM Grosvenor Private Markets


5

Summary Tables

Partnership Summary1

The Partnership Summary presents the total commitments and cash flows for the Partnership from inception to date. In the first section, the table details the dollar value of the total Partnership commitments, capital calls and distributions from inception through September 30, 2016. The second section pertains to San Diego City Employees’ Retirement Systems only.

1 Numbers may appear as zero due to rounding. 2 Includes amounts called for underlying fund investments and co-investments, reduced by recallable returns of capital. 3 Represents non-recallable proceeds received from investments. Amounts may be inclusive of escrow proceeds receivable. 4 Includes amounts contributed for underlying fund investments, co-investments, Partnership expenses and management fees, reduced by recallable

returns of capital, a portion of which amount may not reduce remaining commitments. 5 Represents non-recallable proceeds returned to partners. 6 Estimated net IRRs and multiples for SDCERS’ Partnership interests are reflective of investments made in respect of private equity and infrastructure

investments across the Partnership’s 2009-1 Investment Series, 2011-1 Investment Series, 2012-1 PE Investment Series and 2014-1 Investment Series. Please note that for purposes of the respective net IRR and multiple calculations, Partnership-level management fees were calculated for each specific investment. Partnership-level expenses were allocated across private equity and infrastructure investments based on original commitment amounts related to investments. The calculations also reflect carried interest that has been allocated across private equity and infrastructure investments based on the net gains achieved on the respective strategies. Additional information on the calculation methodology described above is available upon request. SDCERS’ balances, multiples and IRRs relating to the individual 2009-1 Investment Series, 2011-1 Investment Series, 2012-1 PE Investment Series and 2014-1 Investment Series are reflected in the quarterly capital account statement and/or are available upon request.

GCM Grosvenor Pacific, L.P. As of September 30, 2016

Private Equity Infrastructure Total

Capital Committed 622,237,225$ 134,073,969$ 756,311,194$

Capital Contributed to Investments2 409,250,541 93,514,112 502,764,653

Capital Contributed to Investments as a % of Capital Committed 65.8% 69.7% 66.5%

Number of Active Investments 57 22 79

Distributions from Investments3 171,294,237 46,297,500 217,591,737

Distributions from Investments as a % of Capital Contributed to Investments 41.9% 49.5% 43.3%

Estimated Market Value of Investments 405,511,454 77,278,330 482,789,784

Estimated Market Value of Investments as a % of Capital Contributed to Investments 99.1% 82.6% 96.0%

Estimated Market Value of Investments as a % of Total Market Value 84.0% 16.0% 100.0%

Total Value of Investments 576,805,692 123,575,829 700,381,521

San Diego City Employees' Retirement System (SDCERS) As of September 30, 2016

Private Equity Infrastructure Total

Capital Contributed by SDCERS4 399,599,357$ 95,069,931$ 494,669,289$

Unfunded Commitment - - 330,738,517

Total Distributions to SDCERS5 149,716,956 43,156,754 192,873,710

SDCERS' Distributions as a % of Capital Contributed 37.5% 45.4% 39.0%

Estimated Market Value 397,024,253 76,931,619 473,955,872

Estimated Market Value as a % of Capital Contributed 99.4% 80.9% 95.8%

Estimated Market Value of Investments as a % of Total Market Value 83.8% 16.2% 100.0%

SDCERS' Total Value 546,741,209 120,088,373 666,829,582

Net Total Value Multiple (TVM)6 1.37x 1.26x 1.35x

Net Internal Rate of Return (IRR)6 17.5% 11.2% 16.1%


6

The graphs below details the sources of value generated from the Fund’s underlying portfolio investments:

GCM Grosvenor Pacific, L.P. Total Funded to Current Total Value (Since Inception) 12

Private Equity Investments Total Funded to Current Total Value (Since Inception)

Infrastructure Investments Total Funded to Current Total Value (Since Inception)

1 Represents investments made to the underlying funds plus capitalized expenses paid. 2 Represents market value of investments plus non-recallable proceeds received from investments. Amounts may be inclusive of escrow proceeds receivable.

$502.8

$482.8

$197.6

$217.6

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

$800.0

Total Funded Since Inception Gain/(Loss) Total Value

Am

ou

nt

(in

US$

mill

ion

s)

$700.4

1 2

$409.3

$405.5

$167.6

$171.3

$50.0

$150.0

$250.0

$350.0

$450.0

$550.0

Total Funded Since InceptionGain/(Loss)

Total Value

Am

ou

nt

(in

US$

mill

ion

s)

$576.8

1 2

$93.5

$77.3

$30.1

$46.3

$25.0

$50.0

$75.0

$100.0

$125.0

Total Funded Since InceptionGain/(Loss)

Total Value

Am

ou

nt

(in

US$

mill

ion

s)

$123.6

1 2$0.0$5.0$10.0$15.0$20.0$25.0$30.0$35.0

Total FundedSince Inception Gain/(Loss)Total Value

Market Value Distributions


7

Summary Tables (cont’d) Summary of Investment Performance As of September 30, 2016

Note: Unless otherwise specifically indicated, returns do not take into account application of management fees, allocable expenses and carried interest, if applicable, at the GCM Grosvenor Private Markets level. Returns would be lower if net-of-fee performance was presented. Past performance is not necessarily indicative of any future results. Please see “Notes & Disclosures.”

1 The Macquarie European Infrastructure Fund I, L.P. and Alchemy Special Opportunities Fund II, L.P. commitments have been converted to U.S. dollars as of the investments’ f inal close and the GCM Grosvenor Pacific, L.P. – Private Equity’s

commitments to the respective investments. 2 Represents investments made to the underlying funds and co-investments, plus capitalized expenses paid less recallable returns of capital. A portion of the funded amount may not reduce the Partnership’s remaining commitment to the

underlying funds or co-investments. 3 Represents non-recallable returns of capital, interest, gains and dividend proceeds received from the investments. Amounts may be inclusive of escrow proceeds receivable. 4 Represents the Market Value plus Distributions. 5 Represents the Total Value divided by the funded amount. TVMs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. 6 The IRR is as of September 30, 2016. IRRs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. Performance information for underlying investments with less than 365 days of cash flows has

been calculated using a periodic IRR while information for underlying investments and underlying investment with more than 365 days of cash flows has been calculated using an annualized IRR. 7 Represents all other assets and/or liabilities other than investments, consisting of cash balance, accrued management fees, accrued Partnership expenses, and/or any other receivable and payables, where applicable. 8 The SDCERS total funded amount includes capital called for underlying fund investments, co-investments, Partnership expenses and management fees, less recallable returns of capital. The SDCERS total distributions reflects the total proceeds

returned to SDCERS (excludes recallable returns of capital). However, the SDCERS TVM and IRR reflect recallable and non-recallable returns of capital. TVMs and IRRs are net of underlying funds fees and expenses and net of GCM Grosvenor fees and expenses.

9 Estimated net IRRs and multiples for SDCERS’ Partnership interests are reflective of investments made in respect of private equity and infrastructure investments across the Partnership’s 2009-1 Investment Series, 2011-1 Investment Series, 2012-1 PE Investment Series and 2014-1 Investment Series. Please note that for purposes of the respective net IRR and multiple calculations, Partnership-level management fees were calculated for each specific investment. Partnership-level expenses were allocated across private equity and infrastructure investments based on original commitment amounts related to investments. The calculations also reflect carried interest that has been allocated across private equity and infrastructure investments based on the net gains achieved on the respective strategies. Additional information on the calculation methodology described above is available upon request. SDCERS’ balances, multiples and IRRs relating to the individual 2009-1 Investment Series, 2011-1 Investment Series, 2012-1 PE Investment Series and 2014-1 Investment Series are reflected in the quarterly capital account statement and/or are available upon request.

Investment Type # of Investments Committed1 Funded2 Distributed3 Market Value Total Value4 TVM5 IRR6

Private Equity Secondaries 11 100,141,029$ 65,449,183$ 26,338,212$ 64,753,023$ 91,091,235$ 1.39x 40.1%

Private Equity Seasoned Primaries 7 113,000,000 54,237,729 14,064,395 61,639,403 75,703,799 1.40 14.5%

Private Equity Primaries 17 234,796,186 122,166,691 59,903,672 108,650,248 168,553,920 1.38 15.2%

Private Equity Co-Investments 29 174,300,011 167,396,938 70,987,958 170,468,780 241,456,738 1.44 27.2%

Active 22 144,389,437 138,616,755 21,718,452 170,468,780 192,187,232 1.39 23.0%

Fully Realized 7 29,910,574 28,780,183 49,269,506 0 49,269,506 1.71 36.7%

Total Private Equity Investments 64 622,237,225$ 409,250,541$ 171,294,237$ 405,511,454$ 576,805,692$ 1.41x 20.8%

Infrastructure Secondaries 14 66,545,366$ 59,183,283$ 40,223,279$ 43,614,749$ 83,838,028$ 1.42x 15.7%

Infrastructure Seasoned Primaries 2 26,000,000 4,013,732 1,408,787 3,209,351 4,618,138 1.15 13.2%

Infrastructure Primaries 3 27,500,000 16,328,374 2,870,993 16,349,142 19,220,135 1.18 11.4%

Infrastructure Co-Investments 3 14,028,604 13,988,723 1,794,441 14,105,087 15,899,528 1.14 6.0%

Total Infrastructure Investments 22 134,073,969$ 93,514,112$ 46,297,500$ 77,278,330$ 123,575,829$ 1.32x 13.9%

GCM Grosvenor Pacific L.P. Gross Returns 86 756,311,194$ 502,764,653$ 217,591,737$ 482,789,784$ 700,381,521$ 1.39x 19.3%

Other Fund Net Assets/(Liabilities)7 7,946,856

Total Partnership Value 490,736,640$ 708,328,377$

SDCERS Net Returns8,9 494,669,289$ 192,873,710$ 473,955,872$ 666,829,582$ 1.35x 16.1%


8

Summary Tables (cont’d) Partnership Investment Report1 The Partnership Investment Report presents underlying fund portfolio level information as well as the size, commitment and cash flow information regarding the Partnership’s investments in the underlying private equity funds and co-investments. The Partnership adopts the underlying fund managers’ fair market value for the underlying portfolio companies. The General Partner, in its reasonable and good faith direction, determines the fair value of each co-investment.

As of September 30, 2016

($ in millions)


1 Numbers may appear as zero and may not sum due to rounding. 2 The Macquarie European Infrastructure Fund I, L.P. and Alchemy Special Opportunities Fund II, L.P. commitments have been converted to U.S. dollars as of the investments’ final close and the GCM Grosvenor Pacific, L.P. – Private Equity’s commitments to

the respective investments. 3 Represents investments made to the underlying funds and co-investments, plus capitalized expenses paid less recallable returns of capital. A portion of the funded amount may not reduce the Partnership’s remaining commitment to the underlying funds

or co-investments. 4 Represents non-recallable returns of capital, interest, gains and dividend proceeds received from the investments. Amounts may be inclusive of escrow proceeds receivable. 5 Represents the Market Value plus Distributions. 6 Represents the Total Value divided by the funded amount. TVMs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. 7 The IRR is as of September 30, 2016. IRRs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. Performance information for underlying investments with less than 365 days of cash flows has been calculated

using a periodic IRR while information for underlying investments and underlying investments with more than 365 days of cash flows has been calculated using an annualized IRR. Figures may appear as N/M for certain recent investments for which meaningful IRRs were not calculable as of the report date.

8 Little or no capital has been funded in respect of this investment, which together with the current market value and distributions, produces an infinite IRR. 9 Investment type is Stapled Secondary – Primary Partnership. 10 Given the short holding period, the current contributions, market value and distributions result in an infinite IRR.

Investment Name Vintage Year Strategy Commitment2 Funded3 Distributions4 Market Value Total Value5 TVM6 IRR7

Private Equity Fund Investments

Private Equity Secondary Investments

Cerberus Institutional Partners, L.P. (Series Four) 2006 Distressed 2,190,116$ 1,772,276$ 49,874$ 2,084,821$ 2,134,695$ 1.20x 21.0%

Cressey & Company Fund IV LP 2010 Buyout 6,417,785 5,809,777 391,812 5,788,964 6,180,776 1.06 5.1%

Crestview Capital Partners, L.P. 2005 Buyout 963,703 841,147 0 1,070,707 1,070,707 1.27 27.3%

Crestview Partners II (TE), L.P. 2009 Buyout 5,522,137 4,310,879 140,471 5,372,093 5,512,564 1.28 28.7%

Darby Asia Mezzanine Fund II, L.P. 2006 Mezzanine 808,408 0 1,724,781 167,256 1,892,037 N/M ∞8

Darby Converging Europe Mezzanine Fund, L.P. 2006 Mezzanine 222,838 5,419 818,688 672,321 1,491,010 275.2 ∞8

GCM Grosvenor Secondary Opportunities Fund, L.P. 2015 Pooled 58,223,508 34,289,078 15,821,752 33,090,565 48,912,317 1.43 35.5%

KRG Capital Fund III, L.P. 2005 Buyout 1,005,415 803,488 1,466,838 15,779 1,482,617 1.85 ∞10

KRG Capital Fund IV, L.P. 2008 Buyout 7,744,352 6,647,844 3,739,179 6,450,915 10,190,094 1.53 37.9%

Mountaingate Capital Fund I, L.P. (fka KRG Capital Fund V, L.P.)9 2016 Buyout 8,371,046 2,543,419 0 2,386,032 2,386,032 0.94 (6.2%)

VIP I A L.P. 2007 Buyout 8,671,720 8,425,856 2,184,817 7,653,569 9,838,386 1.17 18.2%

Private Equity Secondary Investments Total 100,141,029$ 65,449,183$ 26,338,212$ 64,753,023$ 91,091,235$ 1.39x 40.1%

Private Equity Seasoned Primary Investments

Avista Capital Partners II, L.P. 2008 Buyout 8,000,000$ 7,197,848$ 9,837,893$ 5,315,282$ 15,153,175$ 2.11x 19.4%

Avista Capital Partners III, L.P. 2011 Buyout 15,000,000 13,674,916 631,737 15,535,275 16,167,012 1.18 6.5%

Capital Partners Private Equity Income Fund II, L.P. 2012 Buyout 15,000,000 9,434,718 1,740,435 9,206,598 10,947,032 1.16 10.1%

Cerberus Institutional Partners V, L.P. 2012 Distressed 15,000,000 14,946,066 1,743,276 20,806,970 22,550,246 1.51 16.7%

GCM Grosvenor Co-Investment Opportunities Fund, L.P. 2015 Buyout 45,000,000 0 0 0 0 N/A N/A

Glendon Opportunities Fund, L.P. 2014 Distressed 5,000,000 3,274,961 0 3,400,752 3,400,752 1.04 2.5%

Revelstoke Capital Partners Fund I, L.P. 2014 Buyout 10,000,000 5,709,220 111,054 7,374,527 7,485,581 1.31 24.3%

Private Equity Seasoned Primary Investment Total 113,000,000$ 54,237,729$ 14,064,395$ 61,639,403$ 75,703,799$ 1.40x 14.5%


9

Summary Tables (cont’d) Partnership Investment Report1


($ in millions)


1 Numbers may appear as zero and may not sum due to rounding. 2 The Macquarie European Infrastructure Fund I, L.P. and Alchemy Special Opportunities Fund II, L.P. commitments have been converted to U.S. dollars as of the investments’ final close and the GCM Grosvenor

Pacific, L.P. – Private Equity’s commitments to the respective investments. 3 Represents investments made to the underlying funds and co-investments, plus capitalized expenses paid less recallable returns of capital. A portion of the funded amount may not reduce the Partnership’s

remaining commitment to the underlying funds or co-investments. 4 Represents non-recallable returns of capital, interest, gains and dividend proceeds received from the investments. Amounts may be inclusive of escrow proceeds receivable. 5 Represents the Market Value plus Distributions. 6 Represents the Total Value divided by the funded amount. TVMs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. 7 The IRR is as of September 30, 2016. IRRs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. Performance information for underlying investments with less

than 365 days of cash flows has been calculated using a periodic IRR while information for underlying investments and underlying investments with more than 365 days of cash flows has been calculated using an annualized IRR. Figures may appear as N/M for certain recent investments for which meaningful IRRs were not calculable as of the report date.

8 Amounts reflect the aggregate investment held in both Maranon Mezzanine Fund II, L.P. and Maranon Mezzanine GP II, L.P.

Investment Name Vintage Year Strategy Commitment2 Funded3 Distributions4 Market Value Total Value5 TVM6 IRR7

Private Equity Primary Investments

Alchemy Special Opportunities Fund II, L.P. 2010 Distressed 8,000,000$ 7,442,312$ 6,110,248$ 3,755,167$ 9,865,415$ 1.33x 9.3%

Audax Mezzanine Fund III, L.P. 2011 Mezzanine 10,000,000 8,752,448 5,298,989 5,341,645 10,640,634 1.22 9.3%

Castlelake Aviation II, L.P. ( fka Airline Credit Opportunities II, L.P.) 2010 Distressed 12,000,000 9,680,452 11,026,939 4,098,280 15,125,219 1.56 13.5%

Centerbridge Special Credit Partners II, L.P. 2012 Distressed 15,000,000 13,500,000 5,712,613 8,154,098 13,866,711 1.03 0.9%

Cerberus Institutional Partners VI, L.P. 2015 Distressed 22,500,000 2,500,761 24,144 2,642,871 2,667,015 1.07 4.3%

Clearlake Capital Partners III, L.P. 2012 Distressed 7,500,000 6,451,136 3,809,206 8,440,116 12,249,322 1.90 33.2%

Excellere Capital Fund II, L.P. 2012 Buyout 8,316,385 3,264,932 2,190,693 4,822,676 7,013,370 2.15 35.4%

Maranon Mezzanine Fund II, L.P.8 2014 Mezzanine 20,000,001 15,806,005 266,978 16,604,231 16,871,209 1.07 6.7%

Siris Partners II, L.P. 2011 Buyout 15,000,000 11,171,389 5,164,516 10,337,611 15,502,127 1.39 24.5%

Siris Partners III, L.P. 2014 Buyout 20,000,000 8,634,858 0 8,320,961 8,320,961 0.96 (9.7%)

Sycamore Partners II, L.P. 2014 Buyout 15,000,000 3,700,582 1,133,299 2,418,080 3,551,379 0.96 (3.8%)

TPG Opportunities Partners II (A), L.P. 2011 Distressed 15,000,000 10,559,982 11,053,470 6,294,527 17,347,997 1.64 17.5%

TSG6 L.P. 2012 Buyout 9,537,800 6,471,338 3,310,347 10,282,576 13,592,923 2.10 40.0%

TSG7 A L.P. 2016 Buyout 20,000,000 3,034,216 0 2,773,493 2,773,493 0.91 (91.0%)

TSG7 B L.P. 2016 Buyout 20,000,000 1,433,861 0 1,166,132 1,166,132 0.81 (21.4%)

The Veritas Capital Fund IV, L.P. 2010 Buyout 10,000,000 8,984,030 4,802,230 12,426,921 17,229,151 1.92 17.3%

Wynnchurch Capital Partners IV, L.P. 2015 Buyout 6,942,000 778,389 0 770,863 770,863 0.99 (1.1%)

Private Equity Primary Investments Total 234,796,186$ 122,166,691$ 59,903,672$ 108,650,248$ 168,553,920$ 1.38x 15.2%

Total Private Equity Fund Investments 447,937,214$ 241,853,603$ 100,306,280$ 235,042,674$ 335,348,954$ 1.39x 17.5%


10

Summary Tables (cont’d) Partnership Investment Report1 (cont’d)


($ in millions)


1 Numbers may appear as zero and may not sum due to rounding. 2 Represents investments made to the underlying funds and co-investments, plus capitalized expenses paid less recallable returns of capital. A portion of the funded amount may not reduce the Partnership’s remaining commitment to the

underlying funds or co-investments. 3 Represents non-recallable returns of capital, interest, gains and dividend proceeds received from the investments. Amounts may be inclusive of escrow proceeds receivable. 4 Represents the Market Value plus Distributions. 5 Represents the Total Value divided by the funded amount. TVMs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. 6 The IRR is as of September 30, 2016. IRRs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. Performance information for underlying investments with less than 365 days of cash flows

has been calculated using a periodic IRR while information for underlying investments and underlying investments with more than 365 days of cash flows has been calculated using an annualized IRR. Figures may appear as N/M for certain recent investments for which meaningful IRRs were not calculable as of the report date.

7 The unfunded portion of this Co-Investment is reserved for follow-on investments.

Investment Name Vintage Year Commitment Funded2 Distributions3 Market Value Total Value4 TVM5 IRR6

Private Equity Co-Investments

Active Co-Investments

Project Animal 2015 10,000,000$ 10,000,000$ 0$ 12,500,000$ 12,500,000$ 1.25 25.0%

Project Bruins 2016 6,329,294 6,329,294 0 6,329,294 6,329,294 1.00 0.0%

Project Bulldog 2016 7,585,194 7,585,194 0 9,616,942 9,616,942 1.27 26.8%

Project California7 2013 3,626,634 3,517,835 1,767,037 4,051,462 5,818,499 1.65 25.3%

Project Danube 2015 10,000,000 10,000,000 0 12,100,000 12,100,000 1.21 12.2%

Project Denali 2013 12,637,316 12,567,316 0 19,533,316 19,533,316 1.55 26.1%

Project Encore 2014 6,439,926 6,439,926 0 9,015,897 9,015,897 1.40 26.1%

Project Fresh 2015 4,315,528 4,319,484 2,333,883 5,997,672 8,331,555 1.93 79.9%

Project Heat7 2012 2,658,873 1,994,155 0 3,888,546 3,888,546 1.95 18.1%

Project IPM7 2010 3,014,534 2,855,890 1,378,725 2,144,682 3,523,407 1.23 5.2%

Project Life 2014 6,271,248 6,271,248 0 8,779,747 8,779,747 1.40 21.9%

Project Mobile Comm 2013 3,259,791 3,259,791 0 6,701,462 6,701,462 2.06 24.6%

Project Pangea 2015 6,583,416 6,583,416 0 6,583,415 6,583,415 1.00 0.0%

Project Pulse 2014 7,084,210 7,084,210 0 3,728,582 3,728,582 0.53 (26.3%)

Project Spruce 2015 10,000,000 10,000,000 0 10,000,000 10,000,000 1.00 0.0%

Project Statue 2015 10,000,000 6,666,667 0 8,699,097 8,699,097 1.30 25.5%

Project Storm 2014 6,368,188 6,368,188 0 7,283,223 7,283,223 1.14 5.7%

Project Suzy7 2015 8,472,575 7,482,509 3,831,770 9,345,954 13,177,724 1.76 56.8%

Project Sync 2011 3,000,000 3,000,000 2,615,149 462,968 3,078,117 1.03 1.1%

Project Therapy 2016 9,975,673 9,975,673 0 10,924,455 10,924,455 1.10 9.8%

Project Torrid 2015 1,767,037 1,315,959 436,095 9,140,980 9,577,075 7.28 321.5%

Project Trident 2013 5,000,000 5,000,000 9,355,793 3,641,085 12,996,878 2.60 52.3%

Active Co-Investments Total 144,389,437$ 138,616,755$ 21,718,452$ 170,468,780$ 192,187,232$ 1.39x 23.0%


11



($ in millions)


1 Numbers may appear as zero and may not sum due to rounding. 2 Represents investments made to the underlying funds and co-investments, plus capitalized expenses paid less recallable returns of capital. A portion of the funded amount may not reduce the Partnership’s



7 While IRR is not calculable given the total write off of investment, the IRR for a de minimis value received on an investment would be approximately (100%). 8 The SDCERS total funded amount includes capital called for underlying fund investments, co-investments, Partnership expenses and management fees, less recallable returns of capital. The SDCERS total

distributions reflects the total proceeds returned to SDCERS (excludes recallable returns of capital). However, the SDCERS TVM and IRR reflect recallable and non-recallable returns of capital. TVMs and IRRs are net of underlying funds fees and expenses and net of GCM Grosvenor fees and expenses.


Investment Name Vintage Year Commitment Funded2 Distributions3 Market Value Total Value4 TVM5 IRR6

Fully Realized Co-Investments

Project Alt7 2010 3,000,000$ 3,000,000$ 0$ 0$ 0$ 0.00x N/M

Project LD 2010 3,920,000 3,920,000 5,323,542 0 5,323,542 1.36 21.2%

Project Health 2012 7,000,000 7,000,938 10,369,151 0 10,369,151 1.48 22.1%

Project Melrose 2012 3,702,280 3,702,280 14,722,090 0 14,722,090 3.98 148.5%

Project Polished 2013 5,000,000 5,000,000 6,086,047 0 6,086,047 1.22 17.0%

Project Solution 2010 3,000,000 2,797,869 5,432,030 0 5,432,030 1.94 45.7%

Project Spine 2013 4,288,294 3,359,096 7,336,647 0 7,336,647 2.18 255.2%

Fully Realized Co-Investments Total 29,910,574$ 28,780,183$ 49,269,506$ 0$ 49,269,506$ 1.71x 36.7%

Total Private Equity Co-Investments 174,300,011$ 167,396,938$ 70,987,958$ 170,468,780$ 241,456,738$ 1.44x 27.2%

Total Private Equity Investments 622,237,225$ 409,250,541$ 171,294,237$ 405,511,454$ 576,805,692$ 1.41x 20.8%

SDCERS - Total Private Equity Investments8,9 399,599,357$ 149,716,956$ 397,024,253$ 546,741,209$ 1.37x 17.5%


12


As of September 30, 2016 ($ in millions)


1 Numbers may appear as zero and may not sum due to rounding. 2 Represents investments made to the underlying funds and co-investments, plus capitalized expenses paid less recallable returns of capital. A portion of the funded amount may not reduce the Partnership’s



7 The Partnership invests in Alinda I through a Special Purpose Vehicle, GCM Grosvenor Infrastructure Partners, L.P.

Investment Name Vintage Year Strategy Commitment2 Funded2 Distributions3Market Value Total Value4 TVM5 IRR6

Infrastructure Fund Investments

Infrastructure Secondary Investments

Alinda Infrastructure Fund I, L.P.7 2006 Infrastructure 5,030,311$ 4,249,705$ 2,696,286$ 5,637,371$ 8,333,657$ 1.96x 15.8%

Alinda Infrastructure Fund II, L.P. 2008 Infrastructure 1,194,078 1,040,316 158,859 1,612,973 1,771,832 1.70 16.8%

HighStar Capital II, L.P. 2004 Infrastructure 363,576 356,182 143,182 444,656 587,838 1.65 17.8%

HighStar Capital III, L.P. 2007 Infrastructure 1,191,238 1,173,691 588,953 842,766 1,431,719 1.22 5.5%

IDFC Private Equity (Mauritius) Fund II 2006 Infrastructure 1,821,607 1,196,459 3,222,566 1,436,795 4,659,361 3.89 319.1%

Infracapital Partners LP 2006 Infrastructure 2,289,573 2,136,185 1,344,617 1,626,390 2,971,007 1.39 18.2%

KoFC Macquarie Korea Growth Champ 2010-1 Private Equity Fund 2010 Infrastructure 14,259,179 13,240,184 8,318,915 10,675,246 18,994,161 1.43 21.7%

Macquarie European Infrastructure Fund 4 LP 2012 Infrastructure 14,723,241 11,555,988 838,152 14,143,257 14,981,409 1.30 21.0%

Macquarie European Infrastructure Fund I, L.P. 2004 Infrastructure 8,625,000 8,627,979 14,040,643 1,023,443 15,064,086 1.75 14.4%

Macquarie Infrastructure Partners I, L.P. 2006 Infrastructure 1,823,925 1,813,277 1,534,108 2,017,840 3,551,948 1.96 29.9%

Macquarie Infrastructure Partners I, L.P. (Project Key) 2006 Infrastructure 2,761,179 2,744,128 713,471 3,442,528 4,156,000 1.51 53.3%

Tenaska Power Fund, L.P. 2005 Power 2,017,076 2,017,076 257,934 159,267 417,201 0.21 (55.3%)

TPF Genco Co-Investment Fund, L.P. 2005 Power 3,798,888 3,783,102 558,766 84,136 642,901 0.17 (60.7%)

TPF II, L.P. 2007 Power 6,646,495 5,249,012 5,806,826 468,084 6,274,909 1.20 18.7%

Infrastructure Secondary Investments Total 66,545,366$ 59,183,283$ 40,223,279$ 43,614,749$ 83,838,028$ 1.42x 15.7%

Infrastructure Seasoned Primary Investments

EIV Capital Fund II, LP 2013 Energy 16,000,000$ 1,775,733$ 1,166,542$ 1,519,727$ 2,686,270$ 1.51x 22.8%

Star America Infrastructure Fund, LP 2013 Infrastructure 10,000,000 2,237,999 242,245 1,689,624 1,931,869 0.86 (15.2%)

Infrastructure Seasoned Primary Investments Total 26,000,000$ 4,013,732$ 1,408,787$ 3,209,351$ 4,618,138$ 1.15x 13.2%


13

Summary Tables (cont’d) Partnership Investment Report1 (cont’d) As of September 30, 2016 ($ in millions)


1 Numbers may appear as zero and may not sum due to rounding. 2 Represents investments made to the underlying funds and co-investments, plus capitalized expenses paid less recallable returns of capital. A portion of the funded amount may not reduce the Partnership’s remaining commitment to the

underlying funds or co-investments. 3 Represents non-recallable returns of capital, interest, gains and dividend proceeds received from the investments. Amounts may be inclusive of escrow proceeds receivable. 4 Represents the Market Value plus Distributions (Total Value of Investments plus the Other Partnership Net Assets/(Liabilities) is $708,328,377 at September 30, 2016). 5 Represents the Total Value divided by the funded amount. TVMs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. 6 The IRR is as of September 30, 2016. IRRs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. Performance information for underlying investments with less than 365 days of cash flows

has been calculated using a periodic IRR while information for underlying investments and underlying investments with more than 365 days of cash flows has been calculated using an annualized IRR. Figures may appear as N/M for certain recent investments for which meaningful IRRs were not calculable as of the report date.

7 Represents all other assets and/or liabilities other than investments, consisting of cash balance, accrued management fees, accrued Partnership expenses, and/or any other receivable and payables, where applicable. 8 The SDCERS total funded amount includes capital called for underlying fund investments, co-investments, Partnership expenses and management fees, less recallable returns of capital. The SDCERS total distributions reflects the total

proceeds returned to SDCERS (excludes recallable returns of capital). However, the SDCERS TVM and IRR reflect recallable and non-recallable returns of capital. TVMs and IRRs are net of underlying funds fees and expenses and net of GCM Grosvenor fees and expenses.


Investment Name Vintage Year Strategy Commitment2 Funded2 Distributions3Market Value Total Value4 TVM5 IRR6

Infrastructure Primary Investments

Energy Capital Partners Mezzanine Opportunities Fund A, L.P. 2012 Energy 10,000,000$ 6,676,932$ 1,891,820$ 5,039,291$ 6,931,111$ 1.04x 2.2%

HitecVision VII, L.P. 2014 Energy 10,000,000 3,386,092 0 3,565,887 3,565,887 1.05 5.7%

Rockland Power Partners II, LP 2014 Power 7,500,000 6,265,349 979,173 7,743,964 8,723,136 1.39 24.2%

Infrastructure Primary Investments Total 27,500,000$ 16,328,374$ 2,870,993$ 16,349,142$ 19,220,135$ 1.18x 11.4%

Total Infrastructure Fund Investments 120,045,366$ 79,525,389$ 44,503,058$ 63,173,243$ 107,676,301$ 1.35x 15.2%

Infrastructure Co-Investments

Project Atlanta 2014 Power 4,897,759$ 4,897,760$ 437,094$ 5,139,019$ 5,576,112$ 1.14x 7.3%

Project Holdco 2015 Energy 5,059,325 5,059,325 13,272 5,959,671 5,972,943 1.18 11.7%

Project Summit 2011 Energy 4,071,519 4,031,639 1,344,076 3,006,397 4,350,473 1.08 2.3%

Total Infrastructure Co-Investments 14,028,604$ 13,988,723$ 1,794,441$ 14,105,087$ 15,899,528$ 1.14x 6.0%

Total Infrastructure Investments 134,073,969$ 93,514,112$ 46,297,500$ 77,278,330$ 123,575,829$ 1.32x 13.9%

SDCERS - Total Infrastructure Investments8,9 95,069,931$ 43,156,754$ 76,931,619$ 120,088,373$ 1.26x 11.2%

Total Partnership Investments (Private Equity & Infrastructure) 756,311,194$ 502,764,653$ 217,591,737$ 482,789,784$ 700,381,521$ 1.39x 19.3%

Other Partnership Net Assets/(Liabilities)7 7,946,856

Total Partnership Value 490,736,640$

SDCERS - Total Partnership Value8,9 494,669,289$ 192,873,710$ 473,955,872$ 666,829,582$ 1.35x 16.1%


14

Underlying Fund Investment Reports1 The Underlying Fund Investment Report presents the size, commitment and cash flow information regarding the Partnership’s investments in the underlying funds. The Partnership adopts the underlying fund managers’ fair market value for the underlying portfolio companies. Up or down arrows indicate a change in ranking from the previous quarter-end.

As of September 30, 2016 ($ in millions)

Fund Name: Alchemy Special Opportunities Fund II, L.P. Performing2

Investment Type: Private Equity – Primary Fund

Vintage: 2010

Fund Size3: $722.1 million

Commitment: $8.0 million

Commitment as % of Alchemy II: 1.2%

Fund Strategy:

Alchemy Special Opportunities Fund II LP (“Alchemy II” or the “Fund”) is being established in order to achieve superior risk-adjusted returns by investing in loans, debt and equity securities and other obligations of European companies that are in financial distress, and other special situations. The Fund categorizes its investments into restructuring, non-restructuring and special situations investments.

Fund Name: Alinda Infrastructure Fund I, L.P. Outperforming2

Investment Type: Infrastructure – Secondary Fund

Vintage: 2006

Fund Size3: $2,011.0 million


Commitment as % of Alinda I: 0.25%

Fund Strategy:

The Partnership invests in Alinda Infrastructure Fund I, L.P. (“Alinda I” or the “Fund”) through CS Infrastructure Partners, L.P. Alinda I seeks to capitalize on attractive infrastructure investment opportunities in North America and Europe. Alinda I invests across the spectrum of infrastructure sectors including roads, bridges and tunnels, airports, ports and rail, water supply and wastewater treatment, gas transportation, storage and distribution, power generation and electric transmission and utility services for residential, commercial and industrial customers.

1 Numbers may appear as zero and may not sum due to rounding. 2 For Primary Fund Investments: Too Early to Tell: Limited or no capital has been deployed. Performing: Capital has been deployed and returns are approximately second quartile

according to relevant Cambridge Associates data. Outperforming: Capital has been deployed and returns are approximately upper quartile according to relevant Cambridge Associates data. Underperforming: Fund has deployed capital and returns are approximately third or fourth quartile according to relevant Cambridge Associates data. For Secondary Fund Investments and Co-Investments: Too Early to Tell: Limited or no capital has been deployed. Performing: Capital has been deployed and valued at or near cost. Outperforming: Investment is valued above cost and / or distributed investment proceeds. Underperforming: Capital has been deployed and investment is valued below cost.

3 If applicable, fund sizes are as of September 30, 2016, and reflect the aggregate fund sizes which may include additional investment vehicles to which GCM Grosvenor Pacific, L.P. may not have commitments. Non-U.S. dollar fund sizes and commitments have been converted to U.S. dollars as of the respective investments’ final close and GCM Grosvenor Pacific, L.P.’s commitments to the investments, respectively.

4 Represents investments made to the underlying funds and co-investments, plus capitalized expenses paid less recallable returns of capital. A portion of the funded amount may not reduce the Partnership’s remaining commitment to the underlying funds or co-investments.

5 Represents the most recent available valuation. 6 Represents non-recallable returns of capital, interest, gains and dividend proceeds received from the investments. Amounts may be inclusive of escrow proceeds receivable. 7 Represents the Market Value plus distributions. 8 Represents the Total Value divided by the funded amount. TVMs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. 9 The IRR is as of September 30, 2016. IRRs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. Performance information for

underlying investments with less than 365 days of cash flows has been calculated using a periodic IRR while information for underlying investments and underlying investment with more than 365 days of cash flows has been calculated using an annualized IRR.

Asset Class Geography Commitment

Funded

Amount4 % Funded

Remaining

Commitment

Market

Value5 Distributions6

Total

Value7 TVM8 IRR9

Distressed Europe $8.0 $7.4 93.0% $1.0 $3.8 $6.1 $9.9 1.33x 9.3%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Infrastructure United States/Europe $5.0 $4.2 84.5% $0.8 $5.6 $2.7 $8.3 1.96x 15.8%


15

Underlying Fund Investment Reports (cont’d)1 As of September 30, 2016 ($ in millions)

Fund Name: Alinda Infrastructure Fund II, L.P. Outperforming2


Vintage: 2008



Commitment as % of Alinda II: 0.03%

Fund Strategy:

Alinda Infrastructure Fund II, L.P. (“Alinda II” or the “Fund”) seeks to capitalize on attractive investment opportunities in infrastructure in North America and Europe. The Fund targets investments that provide essential services to communities, governments and businesses. Specifically, the fund invests in roads, bridges, tunnels, airports, ports and rail transportation, utilities, gas storage, transportation and distribution, electric generation and utility services for residential, commercial and industrial customers.

Fund Name: Audax Mezzanine Fund III, L.P. Performing2


Vintage: 2011



Commitment as % of Audax III: 1.0%

Fund Strategy:

Audax Mezzanine Fund III, L.P. (“Audax III” or the “Fund”) invests primarily in a diversified portfolio of mezzanine securities, with a specific focus on middle market companies with $10.0 million to $60.0 million of EBITDA. The Fund has both debt and equity components, and may include senior debt, subordinated debt, convertible debt, preferred stock, common stock and/or common stock warrants.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Mezzanine United States $10.0 $8.8 87.5% $1.2 $5.3 $5.3 $10.6 1.22x 9.3%


16


Fund Name: Avista Capital Partners II, L.P. Outperforming2

Investment Type: Private Equity – Seasoned Primary Fund

Vintage: 2008



Commitment as % of Avista II: 0.5%

Fund Strategy:

Avista Capital Partners II, L.P. (“Avista II” or the “Fund”) was launched in 2008 and expects to make controlling or influential minority investments of approximately $50.0 million to $300.0 million, primarily in U.S. companies, in connection with various transaction structures including leveraged buyouts, build-ups and growth financings. The Fund anticipates that it will have between 15 and 20 portfolio companies in the Fund. Leveraging its Global Partnership Strategy, the Fund intends to focus its efforts on three sectors: energy, healthcare and media sectors.

Fund Name: Avista Capital Partners III, L.P. Underperforming2


Vintage: 2011



Commitment as % of Avista III: 1.1%

Fund Strategy:

Avista Capital Partners III, L.P. (“Avista III” or the “Fund”) makes private equity and equity-related investments in growth-oriented companies operating in the following sectors: energy, healthcare, media, consumer and industrial. The Fund expects to make 15 to 20 controlling or influential minority investments of $50.0 million to $300.0 million in U.S.-based middle-market companies in connection with various transaction structures including leveraged buyouts, build-ups, structured investments and growth financings.







10 Fund size was updated to include amounts raised through offshore vehicles.


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Buyout United States $8.0 $7.2 90.0% $1.6 $5.3 $9.8 $15.2 2.11x 19.4%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



17


Fund Name: Capital Partners Private Equity Income Fund II, L.P. Underperforming2


Vintage: 2012

Fund Size3,10: $360.0 million


Commitment as % of Capital Partners PE Fund II: 4.2%

Fund Strategy:

Capital Partners Private Equity Income Fund II, L.P. (“Capital Partners PE Fund II” or the “Fund”) seeks to make equity and equity-related investments in North American companies that provide an attractive current yield and long-term appreciation. The Fund aims to invest in established, well-positioned private service, distribution and manufacturing businesses that possess relatively stable cash flows and require modest capital expenditure requirements. Capital Partners PE Fund II will make control or substantial minority equity investments in companies with revenue ranging from $20.0 million to $250.0 million and having stable operating profits from $4.0 million to $25.0 million.

Fund Name: Castlelake Aviation II, L.P. Outperforming2


Vintage: 2010



Commitment as % of Castlelake II: 2.1%

Fund Strategy:

Castlelake Aviation II, L.P. (“Castlelake II” or the “Fund”), managed by TPG Credit Management, L.P., aims to achieve attractive long-term capital appreciation combined with reduced risk through the purchase of airline assets (primarily aircraft and engines) and credit obligations (primarily distressed senior secured instruments). The Fund seeks to make 15 to 25 investments, ranging from $5 million to $75 million.





5 Represents the most recent available valuation. 6 Represents non-recallable returns of capital, interest, gains and dividend proceeds received from the investments. Amounts may be inclusive of escrow proceeds receivable. 7 Represents the Market Value plus distributions. 8 Represents the Total Value divided by the funded amount. TVMs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. 9 The Net is as of September 30, 2016. IRRs are net of underlying funds fees and expenses but do not include GCM Grosvenor fees and expenses. Performance information for


10 Fund size reflects additional amount raised in final close to reach hard cap.


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Distressed United States $12.0 $9.7 80.7% $2.3 $4.1 $11.0 $15.1 1.56x 13.5%


18


Fund Name: Centerbridge Special Credit Partners II, L.P. Underperforming2


Vintage: 2012



Commitment as % of CSCP II: 0.7%

Fund Strategy:

Centerbridge Special Credit Partners II, L.P. (“CSCP II” or the “Fund”) employs a flexible, value oriented approach that allows the Fund to capitalize on market opportunities throughout the current credit cycle. CSCP II expects to focus its investments on senior or secured debt instruments, predominantly originated in North America and Europe, due to the inherent level of collateral protection generally afforded to these instruments. The Fund may also invest in performing and non-performing real estate assets, including mortgage loans and commercial and residential mortgage-backed securities and asset-backed securities as well as other assets, businesses or any other type of financial claim. CSCP II seeks to make non-control, influence, activist and negative control investments employing a two-pronged analytical approach to distressed investment, which combines elements of traditional value investing and event / legal analysis.

Fund Name: Cerberus Institutional Partners V, L.P. Outperforming2


Vintage: 2012



Commitment as % of Cerberus V: 0.6%

Fund Strategy:

Cerberus Institutional Partners V, L.P. (“Cerberus V” or the “Fund”) seeks to construct a portfolio comprised of publicly-traded or privately-issued debt, equity and equity-related securities, bank debt, mortgage-backed securities, asset-backed securities and other structured finance instruments to distressed companies, distressed real estate and real estate-related securities (including debt secured by real estate). The Fund seeks to invest between $100.0 million and $1.0 billion in 75 to 150 investments primarily in North America, Western Europe and Asia.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Distressed United States/Europe $15.0 $13.5 90.0% $1.5 $8.2 $5.7 $13.9 1.03x 0.9%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



19


Fund Name: Cerberus Institutional Partners VI, L.P. Too Early to Tell2


Vintage: 2015



Commitment as % of Cerberus VI: 0.7%

Fund Strategy:

Cerberus Institutional Partners VI, L.P. (“Cerberus VI” or the “Fund”) is targeting to invest opportunistically across the capital structure, primarily in two broad categories: Distressed Securities and Assets and Private Equity. The Fund will make control, active and passive investments in a wide range of industries and geographies, although the primary geographic focus is expected to be in the U.S. and Western Europe. Cerberus IV is seeking to make 100-200 investments, with an investment size of $10.0 to $500.0 million.

Fund Name: Cerberus Institutional Partners, L.P. (Series Four) Outperforming2

Investment Type: Private Equity – Secondary Fund

Vintage: 2006



Commitment as % of Cerberus: 0.0%

Fund Strategy:

Cerberus Institutional Partners, L.P. (Series Four) (“Cerberus” or the “Fund”) invests in debt securities that are senior in the capital structure and often secured. Such securities may include bonds, debentures, notes, mortgage or other asset-backed securities, equipment lease and trust certificates and commercial paper.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Distressed Global $2.2 $1.8 80.9% $0.4 $2.1 $0.0 $2.1 1.20x 21.0%


20


Fund Name: Clearlake Capital Partners III, L.P. Outperforming2


Vintage: 2012



Commitment as % of Clearlake III: 1.0%

Fund Strategy:

Clearlake Capital Partners III, L.P. (“Clearlake III” or the “Fund”) will follow the investment strategy of its predecessor fund, Clearlake Capital Partners II, L.P., of investing in distressed and special situations in small and medium-sized companies with enterprise valuations of $50.0 million to $500.0 million. The Fund targets companies that are undergoing complex financial, operational or structural change. These situations include: bankruptcies; restructurings and turnarounds; companies experiencing legal or regulatory difficulties; and other major corporate transitions including transformational acquisitions or divestitures. Clearlake III targets investment in companies that are market leaders in the following sectors: business services; communications/media; energy/power; healthcare, manufacturing, retail and technology.

Fund Name: Cressey & Company Fund IV LP Performing2


Vintage: 2010



Commitment as % of Cressey IV: 1.7%

Fund Strategy:

Cressey & Company Fund IV LP (“Cressey IV” or the "Fund") will invest in U.S. middle-market, control oriented health care companies. The Fund will target companies with strong management, critical mass in the marketplace, scalable infrastructure & model, low cost/high value leader and a reputation for clinical excellence.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



21


Fund Name: Crestview Capital Partners, L.P. Outperforming2


Vintage: 2005



Commitment as % of Crestview: 0.0%

Fund Strategy:

Crestview Capital Partners, L.P. (“Crestview” or the “Fund”) typically makes one-to-two investments per year with an average deal size between $75.0 million and $150.0 million. Crestview focuses on the United States primarily and Europe secondarily as it develops its European investment team. Crestview targets contrarian situations such as difficult or complex deals, out-of-favor industries, companies in operational or financial distress, and sellers that need to offload assets to meet urgent liquidity or other needs.

Fund Name: Crestview Partners II (TE), L.P. Outperforming2


Vintage: 2009



Commitment as % of Crestview II: 0.2%

Fund Strategy:

Crestview Capital Partners II, L.P. (“Crestview II” or the “Fund”) makes equity investments between $100.0 million and $250.0 million in companies with an enterprise value of up to $3.0 billion. Crestview II invests globally with the specific focus on the United States and Western Europe. Crestview II invests in contrarian situations such as difficult or complex deals, out-of-favor industries, companies in operational or financial distress, and sellers that need to offload assets to meet urgent liquidity or other needs.







10 Little or no capital has been funded in respect of this investment, which together with the current market value and distributions, produces an infinite IRR.


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Buyout United States/Europe $5.5 $4.3 78.1% $1.2 $5.4 $0.1 $5.5 1.28x 28.7%


22


Fund Name: Darby Asia Mezzanine Fund II, L.P Outperforming2


Vintage: 2006



Commitment as % of Darby Asia II: 0.4%

Fund Strategy:

Darby Asia Mezzanine Fund II, L.P. – (“Darby Asia II” or the “Fund”) focuses on middle-market companies—typically with annual revenues between $30.0 million and $300.0 million. The Fund also focuses on projects that are in need of long-term risk capital, with overall financing requirements in the range of $25.0 million to $250 million range, for uses including leveraged buyouts, acquisition financing, expansion financing, capital restructuring, recapitalizations and refinancing. Darby Asia II pursues investments in a range of sectors that fall into two broad categories: public infrastructure, and commerce and industry.

Fund Name: Darby Converging Europe Mezzanine Fund, L.P. Outperforming2


Vintage: 2006



Commitment as % of Darby Europe: 0.1%

Fund Strategy:

Darby Converging Europe Mezzanine Fund, L.P. – (“Darby Europe” or the “Fund”) invests in infrastructure sector primarily in U.S. region. The Fund seeks to focus on public transportation, telecommunications, water supply and waste water treatment, environmental services, energy and similar infrastructure facilities, and in public services that have been privatized or are provided under contractual arrangements that involve a partnership between private and public sectors.


according to relevant Cambridge Associates data. Outperforming: Capital has been deployed and returns are approximately upper quartile according to relevant Cambridge Associates data. Underperforming: Fund has deployed capital and returns are approximately third or fourth quarti le according to relevant Cambridge Associates data. For Secondary Fund Investments and Co-Investments: Too Early to Tell: Limited or no capital has been deployed. Performing: Capital has been deployed and valued at or near cost. Outperforming: Investment is valued above cost and / or distributed investment proceeds. Underperforming: Capital has been deployed and investment is valued below cost.







Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Mezzanine Asia $0.8 $0.0 0.0% $0.8 $0.2 $1.7 $1.9 N/M ∞10


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Mezzanine Europe $0.2 $0.0 2.4% $0.2 $0.7 $0.8 $1.5 275.16x ∞10


23


Fund Name: EIV Capital Fund II, LP Outperforming2

Investment Type: Infrastructure – Seasoned Fund

Vintage: 2013



Commitment as % of EIV II: 6.0%

Fund Strategy:

EIV Capital Fund II, L.P. (“EIV II” or the “Fund”) seeks to make privately negotiated equity and selected debt investments in lower middle-market energy infrastructure companies. The Fund seeks to generate long-term capital appreciation by providing growth capital to midstream businesses, related services, and opportunities related to expanded natural gas uses. EIV II targets companies principally in North America. The Fund’s investments generally take the form of asset acquisitions, investments in securities, joint ventures and partnerships. EIV II targets companies with enterprise values ranging from $15.0 million to $200.0 million.

Fund Name: Energy Capital Partners Mezzanine Opportunities Fund A, L.P. Underperforming2

Investment Type: Infrastructure – Primary Fund

Vintage: 2012



Commitment as % of ECP Mezzanine: 1.24%

Fund Strategy:

Energy Capital Partners Mezzanine Opportunities Fund A, L.P. ("ECP Mezzanine" or the "Fund") seeks to make mezzanine investments in existing and new-build energy infrastructure projects. The Fund is focused on investments across the entire energy value chain with a particular focus on fossil and renewable power generation, electric transmission, midstream oil and natural gas, energy efficiency and conservation, environmental, and oil and natural gas exploration and production.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Energy United States/Europe $16.0 $1.8 11.1% $14.8 $1.5 $1.2 $2.7 1.51x 22.8%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Energy United States $10.0 $6.7 66.8% $3.4 $5.0 $1.9 $6.9 1.04x 2.2%


24


Fund Name: Excellere Capital Fund II, L.P. Outperforming2


Vintage: 2012



Commitment as % of Excellere II: 1.8%

Fund Strategy:

Excellere Capital Fund II, L.P. (“Excellere II” or the “Fund”) specializes in partnering with middle-market entrepreneurs and management teams through recapitalizations and management buyouts. The Fund focuses on lower middle-market companies with primary operations in North America with EBITDA from $4.0 million to $20.0 million.

Fund Name: GCM Grosvenor Co-Investment Opportunities Fund, L.P. Too Early to Tell2

Investment Type: Private Equity – Seasoned Primary

Vintage: 2015

Fund Size3: 232.1


Commitment as % of Co-Investment Opps: 19.4%

Fund Strategy:

GCM Grosvenor Co-Investment Opportunity Fund, L.P. has been making buyout co-investments since 2003 and currently manages a seperate accounts that are fully or partily focused on co-investments on behalf of 46 clients, consisting of pension plans, family offices/high net worth individuals, insurance companies, endowments, foundations and sovereign wealth funds.



3 If applicable, fund sizes are as of September 30, 2016, and reflect the aggregate fund sizes which may include additional investment vehicles to which GCM Grosvenor Pacif ic, L.P. may not have commitments. Non-U.S. dollar fund sizes and commitments have been converted to U.S. dollars as of the respective investments’ final close and GCM Grosvenor Pacific, L.P.’s commitments to the investments, respectively.





Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Buyout Global $45.0 $0.0 0.0% $45.0 $0.0 $0.0 $0.0 N/A N/A


25


Fund Name: GCM Grosvenor Secondary Opportunities Fund, L.P. Outperforming2


Vintage: 2015

Fund Size3: N/A


Commitment as % of Secondary Opp Fund: N/A

Fund Strategy:

GCM Grosvenor Secondary Opportunities Fund, L.P. (the “Fund”) is a secondary purchase composed of 12 fund of funds and 1 co-investment fund, which collectively hold a diversified portfolio of private equity and real asset funds and co-investments.

Fund Name: Glendon Opportunities Fund, L.P. Underperforming2


Vintage: 2014



Commitment as % of GOF I: 0.5%

Fund Strategy:

Glendon Opportunities Fund, L.P. (“GOF I” or the “Fund”) seeks to execute credit and equity investments in markets experiencing distress and dislocation. The Fund’s strategy seeks to exploit the cyclicality of credit markets and the assets financed by traditional credit investors. GOF I invests across various regions, industries, capital structures and instruments in fixed income and equity. The Fund expects to make 80 to 100 investments with an investment size of $20.0 million to $30.0 million.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Pooled Global $58.2 $34.3 58.9% $24.0 $33.1 $15.8 $48.9 1.43x 35.5%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Distressed Global $5.0 $3.3 65.5% $1.8 $3.4 $0.0 $3.4 1.04x 2.5%


26


Fund Name: HighStar Capital II, L.P. Outperforming2


Vintage: 2004



Commitment as % of HighStar II: 0.09%

Fund Strategy:

HighStar Capital II, L.P. (“HighStar II” or the “Fund”) makes controlling or influential minority investments in infrastructure-related assets and businesses. The Fund will typically be a lead investor, targeting equity investments of between $75.0 million and $125.0 million. In particular, HighStar II targets investments in assets and businesses that provide essential services and products in the energy, transportation, waste management and water sectors.

Fund Name: HighStar Capital III, L.P. Performing2


Vintage: 2007



Commitment as % of HighStar III: 0.08%

Fund Strategy:

HighStar Capital III, L.P. (“HighStar III” or the "Fund") makes controlling or influential minority investments in infrastructure-related assets and businesses. The Fund will typically be a lead investor, targeting equity investments of between $100 million and $400 million. In particular, the Fund will target investments in assets and businesses that provide essential services and products in the energy, transportation, waste management and water sectors.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



27


Fund Name: HitecVision VII, L.P. Performing↑2


Vintage: 2014



Commitment as % of HV VII: 0.53%

Fund Strategy:

HitecVision VII, L.P. ("HV VII" or the "Fund") seeks to continue HV VII’s strategy of combining operating and investing expertise to pursue attractive middle-market opportunities in the oil and gas industry. The Fund intends to build a diversified portfolio of investments across various segments within the oil and gas value chain, primarily focusing on middle-market opportunities in Norway, U.K. and North America. HV VII typically acts as the sole/lead investor in each transaction, and will focus on making equity investments of $50.0 million to $200.0 million in 10 to 14 companies and target companies with an enterprise value of between $50.0 million and $500.0 million.

Fund Name: IDFC Private Equity (Mauritius) Fund II Outperforming2


Vintage: 2006



Commitment as % of IDFC II: 0.55%

Fund Strategy:

IDFC Private Equity (Mauritius) Fund II (“IDFC II” or the “Fund”) invests in infrastructure projects and infrastructure-related companies primarily in India, including infrastructure facilities or services in the power, oil and gas, transportation, urban services, education, healthcare, and telecom sectors. The Fund may also invest in greenfield or brownfield projects in the private and public sectors. The Fund invests in a variety of forms, including subscription to equity and preference shares, warrants, options and convertible debt instruments of entities engaged in developing, constructing, maintaining or operating infrastructure facilities or services.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Energy Europe $10.0 $3.4 33.9% $6.6 $3.6 $0.0 $3.6 1.05x 5.7%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Infrastructure Asia $1.8 $1.2 65.7% $0.6 $1.4 $3.2 $4.7 3.89x 319.1%


28


Fund Name: Infracapital Partners LP Outperforming2


Vintage: 2006



Commitment as % of Infracapital: 0.19%

Fund Strategy:

Infracapital Partners LP (“Infracapital” or the “Fund”) makes direct investments in infrastructure assets, investing in long-term, sustainable and low volatility cash flows with moderate capital appreciation. The Fund targets investments in businesses or assets operating in core infrastructure sectors, including regulated gas and electricity transmission and distribution, water utilities, transportation, communication infrastructure sectors.

Fund Name: KoFC Macquarie Korea Growth Champ 2010-1 Private Equity Fund Outperforming2


Vintage: 2010



Commitment as % of KMFG: 2.85%

Fund Strategy:

KoFC Macquarie Korea Growth Champ 2010-1 Private Equity Fund ("KMGF" or the "Fund") is targeting to promote the potential growth of portfolio companies and continuously developing related industries. The Fund is seeking to make equity investments in a diversified portfolio of infrastructure and renewable assets located primarily in South Korea. KMGF seeks investments for which it can exercise control or significant influence over key strategic, commercial and financial decisions.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Infrastructure Europe $2.3 $2.1 93.3% $0.1 $1.6 $1.3 $3.0 1.39x 18.2%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Infrastructure Asia $14.3 $13.2 92.9% $0.1 $10.7 $8.3 $19.0 1.43x 21.7%


29


Fund Name: KRG Capital Fund III, L.P Outperforming2


Vintage: 2005



Commitment as % of KRG III: 0.1%

Fund Strategy:

KRG Capital Fund III, L.P. (“KRG III” or the “Fund”) employs the same middle market 'buy and build' investment strategy executed by its predecessor funds. KRG III focuses its efforts on niche manufacturing, distribution or service industry sectors positioned to benefit from global macro-economic and demographic growth trends. The Fund generally avoids investments in 'high-tech' industries that are subject to rapid technological change, but specifically targets contract manufacturers, service providers or distributors to such industries. KRG III typically makes platform acquisitions with transaction values between $35.0 million and $200.0 million.

Fund Name: KRG Capital Fund IV, L.P. Outperforming2


Vintage: 2008



Commitment as % of KRG IV: 0.4%

Fund Strategy:

KRG Capital Fund IV, L.P. (“KRG IV” or the “Fund”) continues the “buy and build” strategy deployed by its predecessor funds and makes investments in well-managed, middle-market platform companies that are profitable, have strong growth prospects and are operating in fragmented industries. The Fund generally focuses on platform acquisitions with EBITDA ranging from $10.0 million to $75.0 million, and transaction values from $50.0 million to $800.0 million. KRG IV targets consolidation opportunities that require a minimum of $50.0 million of equity, or up to 20.0% of commitments, including future add-on acquisitions, and expects to make investments in 10 to 15 portfolio companies across its targeted industry sectors.









Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Buyout North America $1.0 $0.8 79.9% $0.2 $0.0 $1.5 $1.5 1.85x ∞10


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Buyout North America $7.7 $6.6 85.8% $0.6 $6.5 $3.7 $10.2 1.53x 37.9%


30


Fund Name: Macquarie European Infrastructure Fund I, L.P. Outperforming2


Vintage: 2004



Commitment as % of MEIF I: 0.51%

Fund Strategy:

Macquarie European Infrastructure Fund I, L.P. (“MEIF I” or the “Fund”) was established to invest in infrastructure and related businesses in European OECD countries. MEIF I seeks to deliver sustainable cash yield and moderate capital growth from a diversified portfolio of quality infrastructure investments.

Fund Name: Macquarie European Infrastructure Fund 4 LP Outperforming2


Vintage: 2011



Commitment as % of MEIF 4: 0.50%

Fund Strategy:

Macquarie European Infrastructure Fund 4 LP ("MEIF 4" or the "Fund") makes lead control investments in European infrastructure companies. MEIF 4 primarily invests in European Union countries, Norway, Switzerland and Iceland. The Fund targets infrastructure companies operating in the basic utilities, communication and transportation sectors.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



31


Fund Name: Macquarie Infrastructure Partners I, L.P. Outperforming2


Vintage: 2006



Commitment as % of MIP I: 0.05%

Fund Strategy:

Macquarie Infrastructure Partners I (“MIP I” or the “Fund”) makes lead control investments in North American infrastructure companies. MIP I primarily invests in the U.S. The Fund targets infrastructure assets operating in the basic utilities, communication and transportation sectors.

Fund Name: Macquarie Infrastructure Partners I, L.P. (Project Key) Outperforming2


Vintage: 2006



Commitment as % of MIP I (Project Key): 0.07%

Fund Strategy:

Macquarie Infrastructure Partners I (“MIP I” or the “Fund”) makes lead control investments in North American infrastructure companies. MIP I primarily invests in the U.S. The Fund targets infrastructure companies operating in basic utilities, communication and transportation sectors.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



32


Fund Name: Maranon Mezzanine Fund II, L.P. Performing2


Vintage: 2014



Commitment as % of Maranon II: 12.6%

Fund Strategy:

Maranon Mezzanine Fund II, L.P. (“Maranon II” or the “Fund”) seeks to invest in mezzanine and equity securities in middle market companies. Maranon II targets companies that typically have $5.0 million to $50.0 million of EBITDA and enterprise valuations of $30.0 million to $300.0 million. The Fund seeks to invest in U.S.-based companies in the business services, healthcare services, distribution, consumer products and manufacturing sectors. The Fund is targeting to invest in 20 to 25 companies, with investment sizes typically ranging between $5.0 million to $50.0 million each.

Fund Name: Mountaingate Capital Fund I, L.P. (fka KRG Capital Fund V, L.P.)

Too Early to Tell2

Investment Type: Private Equity – Secondary Fund10

Vintage: 2016



Commitment as % of Mountaingate I: 1.7%

Fund Strategy:

Mountaingate Capital Fund I, L.P. (fka KRG Capital Fund V, L.P.) (“Mountaingate I” or the “Fund”) continues the "buy and build" strategy deployed by its predecessor funds and makes investments in well-managed, middle-market platform companies that are profitable, have strong growth prospects and are operating in fragmented industries. The Fund generally focuses on platform acquisitions with EBITDA ranging from $10.0 million to $100.0 million, and transaction values from $50.0 million to $1.0 billion. Mountaingate I targets consolidation opportunities that require a minimum of $50.0 million of equity, or up to 20.0% of commitments, including future add-on acquisitions, and expects to make investments in 12 to 15 portfolio companies across its targeted industry sectors.







10 Investment type is Stapled Secondary – Primary Partnership.


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Mezzanine North America $20.0 $15.8 79.0% $4.2 $16.6 $0.3 $16.9 1.07x 6.7%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Buyout North America $8.4 $2.5 30.4% $0.0 $2.4 $0.0 $2.4 0.94x (6.2%)


33


Fund Name: Revelstoke Capital Partners Fund I, L.P. Outperforming2


Vintage: 2014



Commitment as % of RCP I: 3.3%

Fund Strategy:

Revelstoke Capital Partners Fund I, L.P. (“RCP I” or the “Fund”) seeks to make investments in middle-market companies with EBITDA of $5.0 million to $80.0 million in a wide array of industries, with a focus on healthcare, transportation/logistics, specialty distribution, energy services, financial services and business services.

Fund Name: Rockland Power Partners II, L.P. Outperforming2


Vintage: 2014



Commitment as % of RPP II: 1.76%

Fund Strategy:

Rockland Power Partners II, LP (“RPP II” or the “Fund”) focuses on control investments in power assets, including power plants and power companies. The Fund intends to continue the strategy of investing in middle market segment of the North American electric power generation market. RPP II is targeting to invest between $10.0 million and $100.0 million in mid-sized power investments requiring operational enhancements, contract restructuring and financial optimization to unlock value.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Power Unitied States $7.5 $6.3 83.5% $1.2 $7.7 $1.0 $8.7 1.39x 24.2%


34


Fund Name: Siris Partners II, L.P. Outperforming2


Vintage: 2011



Commitment as % of Siris Fund II: 2.3%

Fund Strategy:

Siris Partners II, L.P. (“Siris Fund II” or the “Fund”) makes control investments of between $50.0 and $75.0 million of equity in companies located primarily in North America, with a focus on complex situations, such as industries undergoing consolidation, difficulty obtaining financing and transactions requiring complex acquisition structures within the technology, telecommunications and healthcare services sectors. The Fund will invest in seven to nine companies, having sales of between $400.0 million and $750.0 million; EBITDA of between $40.0 million and $100.0 million; and an enterprise value of between $250.0 million and $375.0 million.

Fund Name: Siris Partners III, L.P. Underperforming↓2


Vintage: 2014



Commitment as % of Siris III: 1.1%

Fund Strategy:

Siris Partners III, L.P. ("Siris III" or the "Fund") seeks to make primary control-oriented, private equity and similar investments in complex, middle-market technology companies located primarily in North America. The firm will utilize the same investment strategy, implemented in Siris III’s predecessors, integrating both financial and operational expertise. The Fund expects to make six to eight platform investments in technology, telecommunications and technology-enables business services with EBITDA ranging from $75.0 million to $150.0 million and enterprise values ranging from $375.0 million to $750.0 million.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Buyout United States $20.0 $8.6 43.2% $11.4 $8.3 $0.0 $8.3 0.96x (9.7%)


35


Fund Name: Star America Infrastructure Fund, LP Too Early To Tell2

Investment Type: Infrastructure – Seasoned Primary Fund

Vintage: 2013



Commitment as % of SAIF: 3.33%

Fund Strategy:

Star America Infrastructure Fund, LP (“SAIF” or the “Fund”) seeks to invest in greenfield, North American infrastructure assets, focusing on public-private partnerships (“P3”) in transportation, social, water and environmental assets that create long-term, inflation projected, predictable cash flows through availability payment or other contractual arrangement with a public agency. SAIF is targeting to invest in 10 -15 greenfield P3 assets, with investment size of $10-$30 million per deal.

Fund Name: Sycamore Partners II, L.P. Too Early to Tell2


Vintage: 2014



Commitment as % of Sycamore II: 0.6%

Fund Strategy:

Sycamore Partners II, L.P. (“Sycamore II” or the “Fund”) is focused on buying companies at attractive valuations and driving returns through profit improvement. The Fund is targeting to make control investments in the consumer products and service sectors in North America with investment size ranging from $50.0 million to $500.0 million in 8 to 10 platform companies. Sycamore II specifically looks to invest in companies with brand / product recognition, yet have the opportunity to increase market share or better serve a niche market.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Infrastructure Unitied States $10.0 $2.2 22.4% $7.9 $1.7 $0.2 $1.9 0.86x (15.2%)


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



36


Fund Name: Tenaska Power Fund, L.P. Underperforming2


Vintage: 2005



Commitment as % of Tenaska Power Fund: 0.24%

Fund Strategy:

Tenaska Capital Management focuses on investments in energy infrastructure, power generation and midstream sectors in the U.S. and Canada. Tenaska Capital Management is headquartered in Omaha, Nebraska, with additional offices in Dallas, Denver and Calgary.

Fund Name: TPF Genco Co-Investment Fund, L.P. Underperforming2


Vintage: 2005

Fund Size3: $166.4


Commitment as % of TPF Genco: 2.28%

Fund Strategy:









Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Power United States $2.0 $2.0 100.0% $0.0 $0.2 $0.3 $0.4 0.21x (55.3%)


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Power United States $3.8 $3.8 99.6% $0.0 $0.1 $0.6 $0.6 0.17x (60.7%)


37


Fund Name: TPF II, L.P. Performing2


Vintage: 2007



Commitment as % of TPF II: 0.39%

Fund Strategy:


Fund Name: TPG Opportunities Partners II (A), L.P. Outperforming2


Vintage: 2011



Commitment as % of TOP II: 0.7%

Fund Strategy:

TPG Opportunities Partners II (A), L.P. (“TOP II” or the “Fund”) seeks to make special situations and distressed debt investments in companies having an industry orientation in Illiquid credit such as U.S. Residential & Commercial NPL’s, U.S. and European middle-market deals and Healthcare. The Fund primarily seeks to make portfolio investments across three major categories: Asset Special Situations (40.0% - 50.0%); Distressed-for-Control investments (25.0% - 35.0%); and Corporate Dislocations investments (15.0% - 25.0%). TOP II intends to make Corporate Special Situations investments in Europe with approximately 40.0% - 60.0% of investments to be non-U.S. The Fund typically seeks to invest between $25.0 million and $200.0 million per company.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Power United States $6.6 $5.2 79.0% $1.4 $0.5 $5.8 $6.3 1.20x 18.7%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



38


Fund Name: TSG6 L.P. Outperforming2


Vintage: 2012



Commitment as % of TSG6: 0.7%

Fund Strategy:

TSG6, L.P. (“TSG6” or the “Fund”) makes privately-negotiated control and minority equity investments in branded consumer companies. The Fund targets investments typically ranging from $20.0 million to $75.0 million middle-market companies with annual revenues ranging from $20.0 million to $300.0 million. TSG6 is targeting to build a portfolio of 12 to 15 companies located primarily within the U.S

Fund Name: TSG7 A L.P. Too Early to Tell2


Vintage: 2016



Commitment as % of Fund A: 1.0%

Fund Strategy:

TSG7 A L.P. (“TSG7 A” or the “Fund A”) seeks to make private equity investments in middle-market consumer companies located primarily within the United States. TSG7 A intends to make individual investments that range between $60.0 million and $150.0 million and target companies with annual revenues ranging between $50.0 million and $500.0 million. .








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



39


Fund Name: TSG7 B L.P. Too Early to Tell2


Vintage: 2016



Commitment as % of Fund B: 3.9%

Fund Strategy:

TSG7 B L.P. (“TSG7 B” or the “Fund B”) seeks to make private equity investments in middle-market consumer companies located primarily within the United States. TSG7 B intends to make individual investments that range between $15.0 million and $50.0 million and target companies with annual revenues ranging between $10.0 million and $200.0 million.

Fund Name: The Veritas Capital Fund IV, L.P. Outperforming↑2


Vintage: 2010



Commitment as % of Veritas IV: 0.9%

Fund Strategy:

The Veritas Capital Fund IV, L.P. (“Veritas IV”) was launched in 2009 and established to invest in middle-market companies supported largely by a government-related customer base across various sectors: Defense, National Security, Healthcare, Education, Infrastructure and Aerospace. Veritas IV intends to focus on businesses with enterprise values of $100.0 million to $1.5 billion, but will also consider businesses with enterprise values outside this range on an opportunistic basis. Veritas IV expects to complete two to three platform transactions a year, investing between $50 million and $150 million, although it will remain flexible with respect to the size of its investments.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



40


Fund Name: VIP I A L.P. Outperforming2

Investment Type: Private Equity – Secondary

Vintage: 2007



Commitment as % of VIP I A: 0.8%

Fund Strategy:

VIP I A L.P. (“VIP A” or the “Fund”) targets late-stage venture, growth capital and middle-market buyout transactions, focusing on companies with enterprise values between €50.0 million and €500.0 million. The Fund focuses on companies based in the U.K.

Fund Name: Wynnchurch Capital Partners IV, L.P. Too Early to Tell2


Vintage: 2015



Commitment as % of Wynnchurch IV: 0.6%

Fund Strategy:

Wynnchurch Capital Partners IV, L.P. (“Wynnchurch IV” or the “Fund”) seeks to make control private equity, equity-oriented and/or debt investments of $30.0 million to $100.0 million in lower middle-market companies headquartered in the U.S. and Canada. The Fund invests primarily in corporate carve-outs, restructurings, operational turnarounds, bankruptcies, management sponsored buyouts and recapitalizations in the niche manufacturing and business services sectors. Wynnchurch IV seeks to make 15 to 18 platform investments with enterprise values ranging from $50.0 million to $250.0 million.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Buyout Europe $8.7 $8.4 97.2% $0.4 $7.7 $2.2 $9.8 1.17x 18.2%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9



41

Co-Investment Reports1 As of September 30, 2016 ($ in millions)

Investment Name: Project Animal Performing2

Investment Type: Private Equity – Co-Investment

Vintage: 2015

Fund Size3: N/A


Commitment as % of Project Animal: N/A

Business Description:

Project Animal ("Project Animal" or the "Company") is a leading distributor of pet products to independent pet stores, veterinary clinics and other pet product specialty retailers throughout the United States and the Caribbean. Project Animal has a comprehensive product offering with market leadership in dry dog and cat food, driven by deep relationships with leading vendors. The Company’s national distribution platform enables the Company to profitably serve the full spectrum of pet retailers from large emerging chains to small “mom & pop” pet stores.

Fund Name: Project Atlanta Performing2

Investment Type: Infrastructure – Co-Investment

Vintage: 2014

Fund Size3: N/A


Commitment as % of Project Atlanta: N/A

Fund Strategy:

Project Atlanta (the “Portfolio”) is one of the largest operating renewable power generation portfolios in the world. The Portfolio consists of 55 individual assets located in 14 countries, with investments in the U.S., Mexico, Australia, Italy and Portugal accounting for approximately 75.0% of the value of the platform. These assets are relatively new, with average life of approximately five years and average remaining life of approximately 20 years.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9

Co-Investment United States $10.0 $10.0 100.0% $0.0 $12.5 $0.0 $12.5 1.25x 25.0%


Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Power United States $4.9 $4.9 100.0% $0.0 $5.1 $0.4 $5.6 1.14x 7.3%


42

Co-Investment Reports1 As of September 30, 2016 ($ in millions)

Investment Name: Project Bruins Performing2


Vintage: 2016

Fund Size3: N/A


Commitment as % of Project Bruins: N/A


Project Bruins (“Bruins”) is a Massachusetts-based healthcare service provider that leverages data analytics and technology to limit costs and ensure regulatory compliance for various stakeholders in the healthcare industry, including payors, providers, and employers.

Fund Name: Project Bulldog Performing2


Vintage: 2016

Fund Size3: N/A


Commitment as % of Project Bulldog: N/A

Fund Strategy:

Project Bulldog (“Bulldog”) is a holding company formed to acquire and support a portfolio of distinguished regional craft breweries. The Company is focused on acquiring top breweries with deep relevance in their core markets, “must have” brands and strong engagement with channel partners and customers.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9

Co-Investment North America $6.3 $6.3 100.0% $0.0 $6.3 $0.0 $6.3 1.00x 0.0%


Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



43

Co-Investment Reports (cont’d)1 As of September 30, 2016 ($ in millions)

Investment Name: Project California Outperforming2


Vintage: 2013

Fund Size3: N/A


Commitment as % of Project California: N/A


Project California (the "Company") is a mall and web-based specialty retailer. The Company’s products include music and pop culture-licensed and music and pop culture-influenced apparel and accessories, music and gift items for young men and women, lingerie and beauty products.

Investment Name: Project Danube Performing2


Vintage: 2015

Fund Size3: N/A


Commitment as % of Project Danube: N/A


Project Danube (“Danube” or the “Company”) is a provider of global commerce-as-a-service (“CaaS”) solutions. The Company provides commerce, payments and marketing solutions to business-to-business (“B2B”) and business-to-consumer (“B2C”) digital product and cloud service companies as well as branded manufacturers through its multi-tenant technology, platform and service offerings. Danube’s customers range from small and mid-sized companies to multi-national enterprises, including, software, consumer electronics, computer games, publishing, travel, music, video games, electronic toys, housewares, medical equipment, power tools and direct-selling.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



44


Investment Name: Project Denali Outperforming2


Vintage: 2013

Fund Size3: N/A


Commitment as % of Project Denali: N/A


Project Denali (the “Company”) provides integrated technology solutions in the information technology (IT) industry worldwide. The Company designs, develops, manufactures, markets, sells, and supports mobility and desktop products, including notebooks, workstations, tablets, smartphones, and desktop PCs, as well as servers and networking products and storage products to enterprises, public, small and medium businesses, and consumers. Project Denali offers high performance rack, blade, and tower servers for enterprise customers, value tower servers for small organizations, networks, and remote offices, and storage area networks, network-attached storage, direct-attached storage and backup systems.

Investment Name: Project Encore Outperforming2


Vintage: 2015

Fund Size3: N/A


Commitment as % of Project Encore: N/A


Project Encore (“Encore” or the “Company”) is a multi-state provider of outcome-driven rehabilitative therapy services and associated compliance and revenue cycle support services to skilled nursing facilities and assisted living facilities. Encore enables clients to provide the highest quality, on-site rehabilitation therapy programs for patients without the need to hire and retain full-time staff. It also provides complete documentation and claims submission management support to ensure collection for medically necessary services provided, as well as, nursing team education and training to improve quality care and capture and bill processes for clients.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



45


Investment Name: Project Fresh Outperforming2


Vintage: 2015

Fund Size3: N/A


Commitment as % of Project Fresh: N/A


Project Fresh (“Fresh” or the “Company”) is a supermarket chain catering to Hispanic customers. The Company currently operates stores in several Texas markets, including Houston, Dallas and Austin.

Investment Name: Project Heat Performing2


Vintage: 2012

Fund Size3: N/A


Commitment as % of Project Heat: N/A


Project Heat is a Denver, Colorado-based independent provider of integrated energy sustainability services and preventive and predictive maintenance programs in the U.S. technical facility services industry. The Company provides integrated energy efficiency services and contractual maintenance programs for heating, ventilation and air conditioning (“HVAC”) systems, chilled water systems, and building automation and controls.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



46


Investment Name: Project Holdco Performing2


Vintage: 2015

Fund Size3: N/A


Commitment as % of Project Holdco: N/A


Project Holdco was formed as an indirect, wholly-owned subsidiary of an energy company primarily engaged in LNG-related businesses. Project Holdco was created to design, construct and, through an affiliate, operate a liquefaction and export terminal and the associated pipeline. The co-investment is alongside the sponsor in a tranche of HoldCo Notes, which will earn an 11% PIK coupon through the commercial operation date of the LNG liquefaction trains, with a conversion feature to common stock of the parent company.

Investment Name: Project IPM Performing2


Vintage: 2010

Fund Size3: N/A


Commitment as % of Project IPM: N/A


Project IPM (the “Firm”) is a pure-play provider of interventional healthcare solutions. The Firm owns and operates almost 30 clinic locations and a number of single specialty surgical centers.








Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Energy North America $5.1 $5.1 100.0% $0.0 $6.0 $0.0 $6.0 1.18x 11.7%


Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



47


Investment Name: Project Life Performing2


Vintage: 2014

Fund Size3: N/A


Commitment as % of Project Life: N/A


Project Life was founded to capitalize on the dislocation in financial markets, and has grown into one of the largest fixed annuity providers in the U.S. Project Life’s retail products include equity-indexed and fixed rate annuities. It provides individuals and institutions innovative financial solutions to their retirement and investment needs.

Investment Name: Project Mobile Comm Outperforming2


Vintage: 2013

Fund Size3: N/A


Commitment as % of Project Mobile Comm: N/A


Project Mobile Comm (the “Company”) is a provider of machine-to-machine (“M2M”) communications in the wireless alarm monitoring, asset tracking and industrial tank monitoring end markets. The Company develops systems which provide integrated event monitoring, tracking and reporting services for M2M applications.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



48


Investment Name: Project Pangea Performing2


Vintage: 2015

Fund Size3: N/A


Commitment as % of Project Pangea: N/A


Project Pangea (“Project Pangea” or the “Company”) founded in 1991 and based in Georgia, is a provider of audio conferencing and web and video collaboration solutions for large global enterprises, mid-market and SMB customers. The Company’s solutions enable business users to connect, collaborate and share ideas and information using traditional phones, desktops, laptops, tablets, smartphones and other devices. Project Pangea’s core business consists of audio conferencing and the resale of third-party conferencing products while the growth business consists of SaaS products and other web-based collaboration offerings through recent acquisitions of high-growth companies.

Investment Name: Project Pulse Underperforming2


Vintage: 2014

Fund Size3: N/A


Commitment as % of Project Pulse: N/A


Project Pulse (the “Company”) is a California-based provider of dynamic SSL VPN connectivity, network access control, mobile security, and collaboration solutions. The Company delivers services through an integrated user interface for mobile and non-mobile devices where administrators control network access for end users.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9

Co-Investment United States $7.1 $7.1 100.0% $0.0 $3.7 $0.0 $3.7 0.53x (26.3%)


49


Investment Name: Project Spruce Performing2


Vintage: 2015

Fund Size3: N/A


Commitment as % of Project Spruce: N/A


Project Spruce ("Spruce") is a leading provider of maintenance, repair and overhaul aviation services for the commercial and military markets. Spruce operates through four main business divisions: Airlines & Fleets; Business Aviation; Military & Components; and Associated Air Center.

Investment Name: Project Statue Performing2


Vintage: 2015

Fund Size3: N/A


Commitment as % of Project Statue: N/A


Project Statue ("Statue" or the "Company") is an online specialty retailer of products for outdoor activities, such as hiking, camping, rock climbing, backpacking, skiing, fishing, kayaking and running. Through strategic M&A, Statue has grown its platform and is currently comprised of seven websites.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



50


Investment Name: Project Storm Performing2


Vintage: 2014

Fund Size3: N/A


Commitment as % of Project Storm: N/A


Project Storm provides fault tolerant high availability technology solutions that prevent downtime of mission-critical applications where downtime typically results in a loss of revenue or loss of property/life. It sells its high availability server access via hardware or software/Cloud-based products.

Investment Name: Project Summit Underperforming↓2


Vintage: 2011

Fund Size3: N/A


Commitment as % of Project Summit: N/A


Project Summit, formed in 2009, is a Dallas, Texas-based company formed to acquire and develop a portfolio of midstream energy infrastructure assets. The assets are located in traditional and emerging North American production basins and import centers.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



Funded

Amount4 % Funded

Remaining

Commitment

Market


Total

Value7 TVM8 IRR9

Energy United States $4.1 $4.0 99.0% $0.0 $3.0 $1.3 $4.4 1.08x 2.3%


51


Fund Name: Project Suzy Outperforming2


Vintage: 2015

Fund Size3: N/A


Commitment as % of Project Suzy: N/A

Fund Strategy:

Project Suzy (“Suzy” or the “Company”), is a manufacturer of onshore and offshore wind turbines. The Company is developing, constructing and distributing wind turbines globally, and its core markets are Germany, the U.K., France and Canada. Suzy also provides engineering, service and maintenance, transport, and installation to its clients.

Investment Name: Project Sync Performing2


Vintage: 2011

Fund Size3: N/A


Commitment as % of Project Sync: N/A


Project Sync is a global contract logistics and supply chain management company that uses its asset-light business model to provide specialized transportation, inbound, outbound and fulfillment logistics services. These services are fully integrated into its customers’ supply chain and final end-client delivery.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



52


Investment Name: Project Therapy Too Early to Tell2


Vintage: 2016

Fund Size3: N/A


Commitment as % of Project Therapy: N/A


Project Therapy (or “Company”) is a leading provider of comprehensive outpatient rehabilitation services for the treatment of acute and chronic orthopedic injuries. The Company combines best practices from the disciplines of physical therapy, exercise physiology and athletic training. Project Therapy’s full suite of comprehensive services include: physical therapy; work conditioning; hand therapy; aquatic therapy; functional capacity assessments; sports medicine; women’s health; employer services; and fitness programs. The Company operates nearly 200 clinics throughout Illinois, Wisconsin, Indiana, Ohio, Delaware, Maryland and Pennsylvania.

Fund Name: Project Torrid Outperforming↑2


Vintage: 2015

Fund Size3: N/A


Commitment as % of Project Torrid: N/A

Fund Strategy:

Project Torrid (“Torrid”) is a plus-size apparel retailer that provides head-to-toe and day-to-night wardrobe options (80% apparel, 10% accessories, 10% intimates) to the underserved 18-30 year old plus-sized female customer base. Torrid currently operates stores that sell fashionable, casual, and dressy apparel and accessories to plus-size (sizes 12-26) young women, a severely underpenetrated market that is also rapidly growing.








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



53


Fund Name: Project Trident Outperforming2


Vintage: 2013

Fund Size3: N/A


Commitment as % of Project Trident: N/A

Fund Strategy:

Project Trident is a global provider of data communications and interoperability solutions. The Company’s global secure network and value-added services enable transactions and the exchange of information between many of the world’s leading retailers, banks, payment processors, financial institutions and telecommunications firms. Project Trident generates revenue through three business divisions: Telecommunications Services (“TSD”), Payment Services (“PSD”) and Financial Services (“FSD”).








Funded

Amount4

% Funded

Remaining

Commitment

Market

Value5

Distributions6

Total

Value7

TVM8

IRR9



54

Notes & Disclosures This report is being provided by Grosvenor Capital Management, L.P. (“GCM Grosvenor Public Markets”) and/or GCM Customized Fund Investment Group, L.P. (“GCM Grosvenor Private Markets,” and together with GCM Grosvenor Public Markets and their affiliates, “GCM Grosvenor”). GCM Grosvenor Public Markets and its predecessors have been managing hedge fund investment portfolios on behalf of clients since 1971. GCM Grosvenor Private Markets, whose predecessors have been managing private equity, real estate, and infrastructure investment portfolios since 1999, 2002, and 2003, respectively, is the successor entity to the Customized Fund Investment Group that was previously a business unit within the asset management division of Credit Suisse Group AG (“Credit Suisse”). On January 2, 2014, GCM Grosvenor Private Markets acquired certain clients and assets, and hired certain employees previously associated with the Customized Fund Investment Group from affiliates of Credit Suisse. Data and other information related to GCM Grosvenor Private Markets for periods prior to January 2, 2014 relate to predecessors of GCM Grosvenor Private Markets. While GCM Grosvenor Public Markets and GCM Grosvenor Private Markets share certain operational infrastructure, each has its own investment team and investment process. GCM Grosvenor has implemented information barriers between the investment teams of GCM Grosvenor Public Markets and GCM Grosvenor Private Markets that prevent the sharing of certain investment information between the two business units. Additionally, neither GCM Grosvenor Public Markets nor GCM Grosvenor Private Markets is under any obligation to share with the other business unit (or the clients of the other business unit) any investment opportunities it identifies.

The information contained in this report (“GCM Information”) relates to GCM Grosvenor Private Markets, to one or more investment vehicles/accounts managed or advised GCM Grosvenor Private Markets (“GCM Private Markets Funds”) and/or to one or more investment vehicles/accounts (“Underlying Funds”) managed or advised by third-party investment management firms (“Investment Managers”). GCM Information is general in nature and does not take into account any investor’s particular circumstances. GCM Information is neither an offer to sell, nor a solicitation of an offer to buy, an interest in any GCM Private Markets Fund. Any offer to sell or solicitation of an offer to buy an interest in a GCM Private Markets Fund must be accompanied by such GCM Private Markets Fund’s current confidential offering or risk disclosure document (“Fund Document”). Except as specifically agreed, neither GCM Grosvenor nor any of its affiliates act as agent/broker for prospective investors. An investor must rely on its own examination in identifying and assessing the merits and risks of investing in a GCM Private Markets Fund or Underlying Fund (together, “Investment Products”). Each GCM Private Markets Fund invests in Underlying Funds and/or in securities or other assets that may be sponsored or identified by Investment Managers.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS, AND THE PERFORMANCE OF EACH INVESTMENT PRODUCT COULD BE VOLATILE. AN INVESTMENT IN AN INVESTMENT PRODUCT IS SPECULATIVE AND INVOLVES SUBSTANTIAL RISK (INCLUDING THE POSSIBLE LOSS OF THE ENTIRE INVESTMENT). NO ASSURANCE CAN BE GIVEN THAT ANY INVESTMENT PRODUCT WILL ACHIEVE ITS OBJECTIVES OR AVOID SIGNIFICANT LOSSES.

By your acceptance of GCM Information, you understand, acknowledge, and agree that GCM Information is confidential and proprietary, and you may not copy, transmit or distribute GCM Information, or any data or other information contained therein, or authorize such actions by others, without GCM Grosvenor’s express prior written consent, except that you may share GCM Information with your professional advisors. If you are a professional financial adviser, you may share GCM Information with those of your clients that you reasonably determine to be eligible to invest in the relevant Investment Product (GCM Grosvenor assumes no responsibility with respect to GCM Information shared that is presented in a format different from this report). Any violation of the above may constitute a breach of contract and applicable copyright laws. In addition you (i) acknowledge that you may receive material nonpublic information relating to particular securities or other financial instruments and/or the issuers thereof; (ii) acknowledge that you are aware that applicable securities laws prohibit any person who has received material, nonpublic information regarding particular securities and/or an the issuer thereof from (a) purchasing or selling such securities or other securities of such issuer or (b) communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities or other securities of such issuer; and (iii) agree to comply in all material respects with such securities laws. You also agree that GCM Information may have specific restrictions attached to it (e.g. standstill, non-circumvent or non-solicitation restrictions) and agrees to abide by any such restrictions of which it is informed. GCM Grosvenor and its affiliates have not independently verified third-party information included in GCM Information and makes no representation or warranty as to its accuracy or completeness. The information and opinions expressed are as of the date set forth therein.

GCM Information may not include the most recent month of performance data of Investment Products; such performance, if omitted, is available upon request. Interpretation of the performance statistics (including statistical methods), if used, is subject to certain inherent limitations. Assets under management include all subscriptions to, and are reduced by all redemptions from, a GCM Private Markets Fund effected in conjunction with the close of business as of the date indicated. GCM Grosvenor Private Markets classifies Underlying Funds as pursuing particular “strategies” or “sub-strategies” (collectively, “strategies”) using its reasonable discretion; GCM Grosvenor Private Markets may classify an Underlying Fund in a certain strategy even though it may not invest all of its assets in such strategy. If returns of a particular strategy or Underlying Fund are presented, such returns are presented net of any fees and expenses charged by the relevant Underlying Fund(s), but do not reflect the fees and expenses charged by the relevant GCM Private Markets Fund to its investors/participants.

GCM Grosvenor employs certain conventions and methodologies in providing GCM Information that may differ from those used by other investment managers. GCM Information does not make any recommendations regarding specific securities, investment strategies, industries or sectors. Risk management, diversification and due diligence processes seek to mitigate, but cannot eliminate risk, nor do they imply low risk. To the extent GCM Information contains “forward-looking” statements, such statements represent GCM Grosvenor Private Market’s good-faith expectations concerning future actions, events or conditions, and can never be viewed as indications of whether particular actions, events or conditions will occur. Additional information is available upon request. ©2017 GCM Customized Fund Investment Group, L.P. All rights reserved. GRV Securities LLC (“GSLLC”), an affiliate of GCM Grosvenor and a member of the U.S. Financial Industry Regulatory Authority, Inc., acts as a placement agent on behalf of certain GCM Private Markets Funds. GSLLC does not offer any investment products other than interests in certain funds managed by GCM Grosvenor or its affiliates. Neither GCM Grosvenor nor any of its affiliates acts as agent/broker for any Underlying Fund.

THE NOTES AND DISCLOSURES FOLLOWING THIS REPORT ARE AN INTEGRAL PART OF THIS REPORT AND MUST BE READ IN CONNECTION WITH YOUR REVIEW

OF THIS REPORT. THIS REPORT HAS BEEN PREPARED BY THE GCM CUSTOMIZED FUND INVESTMENT GROUP, L.P. (REFERRED TO HEREIN AS “GCM GROSVENOR

PRIVATE MARKETS”) AND GRV SECURITIES LLC. © 2017 GCM CUSTOMIZED FUND INVESTMENT GROUP, L.P. ALL RIGHTS RESERVED

Appendix 3Q 2016 Market Overview

2

Fundraising3Q 2016 – Private Equity

Source: Thomson ONE, November 2016.

Private Equity

GLOBAL

Private Equity Fundraising Investment Leverage Exits M&A IPOs

Global PE fundraising by region$ billions

Global PE fundraising by strategy$ billions

Trends

Global PE fundraising decreased in 3Q 2016 from 2Q 2016 levels

› $108bn total | 14% vs. 2Q 2016 | 41% vs. 3Q 2015

U.S. PE fundraising decreased in 3Q 2016 from 2Q 2016

› $61bn total (57% of global) | 5% vs. 2Q 2016 | 52% vs. 3Q 2015

Europe PE fundraising decreased in 3Q 2016 from 2Q 2016


Asia PE fundraising increased in 3Q 2016 from 2Q 2016

› $20bn total (19% of global) | 1,445% vs. 2Q 2016 | 215% vs. 3Q 2015

Observations and select drivers

2016 YTD global fundraising of $316bn represents an increase of 16% compared with $271bn raised in 1Q-3Q 2015

3Q 2016 private equity fundraising was the second highest quarterly total since 2Q 2008

Buyouts represented 52% of all capital raised in 3Q 2016, while venture capital accounted for 26% of fundraising

Last 8 quartersLast 10 years


$0

$100

$200

$300

$400

$500U.S. Europe Asia RoW

$0

$100

$200

$300

$400

$500Buyout Venture Energy Fund of Funds Secondaries Distressed Debt Other

3

Investment3Q 2016 – Private Equity

1 Source: Thomson ONE, November 2016.

2 Source: Mergermarket, Global and Regional M&A: Q1-Q3 2016.

GLOBAL


Global equity invested by region1

$ billions

$0

$50

$100

$150

$200

$250U.S. Europe Asia RoW

1Q-3Q 2016 Top global M&A Deals2

Trends

Global PE investment decreased in 3Q 2016 from 2Q 2016 levels

› $46bn total | 19% vs. 2Q 2016 | 29% vs. 3Q 2015

U.S. PE investment decreased in 3Q 2016 from 2Q 2016 levels


Europe PE investment decreased in 3Q 2016 from 2Q 2016 levels


Asia PE investment decreased in 3Q 2016 from 2Q 2016



YTD 2016 global investment of $178bn represents an increase of 6% compared with $168bn invested in 1Q-3Q 2015

U.S., Europe and Asia investment all decreased in 3Q 2016

Global private equity investment was $221bn for the trailing 12-month period ending 3Q 2016, representing an 8% decrease compared to the 12 months ending 2Q 2016

Buyouts represent 13% of all capital invested in 2016 while venture capital has accounted for 22% of YTD investment

Target Acquirer Deal value

Monsanto Company Bayer AG $65.3bn

Syngenta AG China National Chemical Corporation $45.9bn

Spectra Energy Corp Enbridge Inc $40.7bn

Baxalta Inc Shire Plc $35.2bn

ARM Holdings Plc SoftBank Group Corp $30.2bn


4

Leverage3Q 2016 – Private Equity

1 Source: S&P Leveraged Buyout Review, 3Q 2016.

2 Source: S&P LCD European Buyout Review, 3Q 2016.

GLOBAL


U.S. average LgBO leverage1

Debt/EBITDA, EBITDA >$50mm

Europe average LgBO leverage2

Debt/EBITDA, Deal size €500mm or more6.5

5.44.3

5.0 4.9 4.9 5.2 5.7 5.1 5.2

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q-3Q2016

U.S. average MMBO leverage1

Debt/EBITDA, EBITDA <$50mm

Europe average MMBO leverage2

Debt/EBITDA, Deal size €350mm or less

5.84.9

3.8 4.1 4.1 4.0 4.3 4.1 4.3 4.6

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q-3Q2016

5.64.5

3.34.2 4.3 4.5 4.8 5.3 5.3 4.9

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q-3Q2016

6.24.9

4.04.7 5.2 5.3 5.4 5.8 5.7 5.4

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q-3Q2016

Trends and observations

Middle-market deals continue to be structured with less leverage than larger deals in the U.S. and Europe

In the U.S. during 1Q-3Q 2016, the average leverage multiple for MMBOs was 4.9x whereas LgBOs averaged 5.4x

On average, large U.S. deals tended to be structured with more leverage than larger European deals in 1Q-3Q 2016

Select drivers

Low interest rate environment and search for yield have facilitated favorable lending terms

Select investment environment for highest quality assets

5

Private Equity-Backed Exits3Q 2016 – Private Equity

Source: Preqin Quarterly Update: Private Equity, Q3 2016.

GLOBAL


Global PE-backed exits by typeNumber of exits

4881276559

1108378711047693 5

13

4511

1061016

13146

148138

111

149123

139122145156120

112133

207225

239

233269211

209257242248

202

257

0

100

200

300

400

500

3Q2016

2Q2016

1Q2016

4Q2015

3Q2015

2Q2015

1Q2015

4Q2014

3Q2014

2Q2014

1Q2014

4Q2013

IPO & Follow-on Restructuring Sale to GP Trade Sale

Global PE-backed exitsAggregate deal value, $ billions

8192

6976

12212110397

113

153

10193

3Q2016

2Q2016

1Q2016

4Q2015

3Q2015

2Q2015

1Q2015

4Q2014

3Q2014

2Q2014

1Q2014

4Q2013

$0

$50

$100

$150

$200

Trends

Global aggregate deal value for PE-backed exits decreased in 3Q 2016 from 2Q 2016

› $81bn total | 12% vs. 2Q 2016 | 34% vs. 3Q 2015

Global number of PE-backed exits decreased in 3Q 2016 from 2Q 2016 levels

› 408 exits | 11% vs. 2Q 2016 | 12% vs. 3Q 2015


Trade sales continued to be the most common type of PE-backed exit in 3Q 2016, followed by sales to GPs, representing 51% and 36% of total deals, respectively

The number of IPO & follow-on exits (48) decreased 41% compared to the previous quarter (81)

6

Mergers & Acquisitions3Q 2016 – Private Equity

1 “Other” may include leisure, transport, real estate and construction.

Source: Mergermarket, Global and Regional M&A: Q1-Q3 2016.

GLOBAL


Global M&A by sector1

$ billions

417

322

297

229

223

163

155

395

295

423

274

335

355

135

279

660

Industrials & Chemicals

Energy, Mining & Utilities

Pharma, Medical & Biotech

Technology

Business Services

Financial Services

Consumer

Other

1Q -3Q 2016

1Q-3Q 2015

Global M&A deals$ billions

385328250536543467357342421389

219231

154192183

291174261

164213209310

179159

172164149

296

165234

195219140170

114115

10263

58

83

7578

44958695

5567

$0

$500

$1,000

$1,500

3Q2016

2Q2016

1Q2016

4Q2015

3Q2015

2Q2015

1Q2015

4Q2014

3Q2014

2Q2014

1Q2014

4Q2013

U.S. Europe Asia Pacific (excl. Japan) Rest of World

Trends

Global M&A deal volume increased in 3Q 2016 from 2Q 2016 levels $813bn total | 9% vs. 2Q 2016 | 15% vs. 3Q 2015

M&A activity from 1Q-3Q 2016 decreased 20% from the same period in 2015

M&A deal value has increased each quarter this year

Europe experienced a decline in M&A activity in 3Q 2016, while the U.S. and Asia experienced pickups in activity during the quarter, as compared to 2Q 2016


Political uncertainty, increased regulation and decreased confidence on boards has hampered M&A activity in 2016

The largest M&A deal in 3Q 2016 was Bayer AG’s $65bn acquisition of Monsanto Company

The most targeted sector has been Industrials & Chemicals, with 2,313 deals worth $417bn

The average deal size in the Industrials & Chemicals sector between 1Q-3Q 2016 was $394m, the highest YTD average value on Mergermarket record

Chinese buyers remain a key driver of M&A globally

7

Initial Public Offerings3Q 2016 – Private Equity

Data excludes IPOs with proceeds of less than $100 million, closed-end funds and SPACS.

Source: Renaissance Capital IPO Intelligence, Global IPO Market 3Q 2016 Quarterly Review.

GLOBAL


Global IPO volumeProceeds (LHS), $ billions, Number of IPOs (RHS)

$29 $27 $10

$56

$14

$51 $36

$58

6177

29

72

42

123

75

122

0

50

100

150

$0

$25

$50

$75

3Q2016

2Q2016

1Q2016

4Q2015

3Q2015

2Q2015

1Q2015

4Q2014

Largest 3Q 2016 IPOs

Trends

Global IPO proceeds increased in 3Q 2016 from 2Q 2016 levels

› $29bn total | 9% vs. 2Q 2016 | 115% vs. 3Q 2015

The number of IPOs globally decreased in 3Q 2016 from 2Q 2016 levels

› 61 IPOs | 21% vs. 2Q 2016 | 45% vs. 3Q 2015


The global IPO market continued to make a recovery despite uncertainties surrounding Brexit at the end of 2Q 2016

The financial sector dominated the IPO market in 3Q 2016, accounting for 63% of proceeds raised

IPO proceeds in Asia and Europe accounted for 68% and 13% of total proceeds raised, respectively

Investor sentiment improved despite uncertainties related to monetary policy, the U.S. presidential election and China’s slowing economy

Name Industry Deal value

Postal Savings Bank of China Financial $7,426mm

Nets Holding Financial $2,372mm

China Merchants Securities Financial $1,380mm

LINE Technology $1,149mm

Everbright Securities Financial $1,111mm

8

Fundraising and Investment3Q 2016 – Private Equity

Source: Thomson ONE, November, 2016.

1 Number of funds raised represents number of fund closings. Funds may have multiple closings and be counted more than once in quarterly totals.

U.S.

Private Equity Fundraising & Investment Valuation M&A IPOs

U.S. equity invested$ billions, (# of deals shown on axis)

$0

$50

$100

$150

U.S. PE fundraising1

$ billions, (# of funds shown on axis)

$0

$100

$200

$300

$400

700 603 424 474 554 614 623 706 612 481 232 195 203 169 136 179 181 191

Trends1

U.S. PE fundraising decreased in 3Q 2016 from 2Q 2016 levels


Number of funds raised in the U.S. increased in 3Q 2016 from 2Q 2016

› 191 funds (69% of global) | 6% vs. 2Q 2016 | 13% vs. 3Q 2015

Trends

U.S. PE investment decreased in 3Q 2016 from 2Q 2016 levels


Number of deals in the U.S. decreased in 3Q 2016 from 2Q 2016

› 1,667 deals (55% of global) | 9% vs. 2Q 2016 | 15% vs. 3Q 2015

Trailing 10 years Trailing 8 quarters


9

Valuation3Q 2016 – Private Equity

1 Source: S&P Leveraged Buyout Review, 3Q 2016. Purchase price excludes fees & expenses. LMMBO: TEV <$250mm; MMBO: TEV $250mm-$499mm; LgBO: TEV ≥$500mm.

U.S.


Average entry multiple by deal size1

TEV/EBITDAN

A

NA

NA

NA

NA

9.1 8.910.1 10.4

0

4

8

12

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q-3Q2016

LMMBO MMBO LgBO

Sources of capital1

EBITDA multiple, all buyout

9.7 9.17.7

8.5 8.8 8.7 8.89.7 10.3 10.5

0

4

8

12

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q-3Q2016

Senior Debt/EBITDA Sub Debt/EBITDA Equity/EBITDA Others

Observations

U.S. large buyout purchase price multiples continued to be higher than middle-market buyouts in 1Q-3Q 2016

1Q-3Q 2016 U.S. entry multiples for MMBOs and LgBOs were 8.9x and 10.4x, respectively

Average U.S middle-market purchase price multiples decreased from 9.1x in 2015 to 8.9x in 1Q-3Q 2016

Average U.S. large buyout purchase price multiples increased from 10.1x in 2015 to 10.4x in 1Q-3Q 2016

The average purchase price multiple for all buyouts rose in 1Q-3Q 2016 from year-end 2015, increasing from 10.3x to 10.5x

10

Exit Environment – Mergers & Acquisitions3Q 2016 – Private Equity


U.S.


U.S. M&A dealsTotal deal value, $ billions

385328250

536543467

357342421389

219231

$0

$200

$400

$600

$800

3Q2016

2Q2016

1Q2016

4Q2015

3Q2015

2Q2015

1Q2015

4Q2014

3Q2014

2Q2014

1Q2014

4Q2013

Largest 1Q-3Q 2016 M&A deals

Target Acquirer Target SectorDeal

value

Monsanto Company Bayer AGIndustrials & Chemicals

$65.3bn

Spectra Energy Corp Enbridge IncEnergy, Mining & Utilities

$40.7bn

Baxalta Inc Shire PlcPharma, Medical & Biotech

$35.2bn

St Jude Medical Inc Abbott LaboratoriesPharma, Medical & Biotech

$29.9bn

Trends

U.S. M&A deal volume increased in 3Q 2016 from 2Q 2016 levels


Trailing 12-month U.S. M&A activity decreased from the previous period

› $1,498bn total (44% of global) | 10% vs. 12 months ending 2Q 2016


U.S. M&A activity remained strong in the third quarter despite uncertainty over the presidential election and government action on matters such as antitrust

U.S. M&A deal value reached its fifth-highest value since 2001 for the 1Q-3Q period

The U.S. captured more global market share of M&A activity than any other region due to market uncertainty from Brexit in Europe and a downturn in Asia

Energy, Mining & Utilities was the most targeted sector in the U.S. YTD with $190.6bn in deal value, a 20.4% increase over the same period last year

11

Exit Environment – Initial Public Offerings3Q 2016 – Private Equity

Data excludes IPOs with proceeds of less than $50 million, closed-end funds and SPACs.

Source: Renaissance Capital IPO Intelligence, U.S. IPO Market 3Q 2016 Quarterly Review.

U.S.


U.S. IPO volumeProceeds (LHS), $ billions, Number of IPOs (RHS)

$6 $6 $1 $7 $5

$13

$6

$16

3334

8

3234

70

34

68

0

25

50

75

100

$0

$10

$20

$30

$40

3Q2016

2Q2016

1Q2016

4Q2015

3Q2015

2Q2015

1Q2015

4Q2014

Trends

U.S. IPO issuance increased in 3Q 2016 compared to 2Q 2016

› $6bn total | 11% vs. 1Q 2016 | 20% vs. 3Q 2015

The number of IPOs in the U.S. decreased in 3Q 2016 from 2Q 2016

› 33 IPOs | 3% vs. 2Q 2016 | 3% vs. 3Q 2015

Largest 3Q 2016 IPOs – U.S. Observations and select drivers

U.S. IPO issuance improved in the third quarter, bolstered by modest volatility, a broad market rally following Brexit and strong returns from recent IPOs

The healthcare and tech sectors accounted for two-thirds of IPO activity

Performance of 3Q U.S. IPOs was very strong, with deals generating an average return of 41%

Tech company IPOs raised the most in proceeds, with LINE accounting for $1.1bn of proceeds

Name Industry Deal value

LINE Technology $1,149mm

Valvoline Materials $660mm

Patheon Health Care $625mm

First Hawaiian Financial $485mm

AdvancePierre Foods Holdings Consumer $391mm

12




EUROPE


Europe equity invested$ billions, (# of deals shown on axis)

$0

$10

$20

$30

$40

$50

Europe PE fundraising1


$0

$30

$60

$90

$120

$150

310 316 210 148 154 145 159 186 177 146 55 39 53 51 54 60 51 41

Trends1

Europe PE fundraising decreased in 3Q 2016 from 2Q 2016 levels


Number of funds raised in Europe decreased in 3Q 2016 from 2Q 2016


Trends

Europe PE investment decreased in 3Q 2016 from 2Q 2016 levels


Number of deals in Europe decreased in 3Q 2016 from 2Q 2016

› 579 deals (19% of global) | 23% vs. 2Q 2016 | 18% vs. 3Q 2015



13

Valuation3Q 2016 – Private Equity

1 Source: S&P European Leveraged Buyout Review, 3Q 2016. Purchase price excludes fees & expenses. LMMBO: TEV <€250mm; MMBO: TEV €250mm-€499mm; LgBO: TEV ≥ €500mm.

EUROPE


Average entry multiple by deal size1

TEV/EBITDAN

A

NA

NA

8.4 8.39.8 10.2

0

4

8

12

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q-3Q2016

LMMBO MMBO LgBO

Sources of capitalEBITDA multiple, all buyout

9.7 9.78.9 9.2 8.8 9.3

8.79.7 9.2

9.9

0

4

8

12

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q-3Q2016

Debt/EBITDA Equity/EBITDA Other/EBITDA

Observations

Average European large buyout purchase price multiples increased from 9.8x in 2015 to 10.2x in 1Q-3Q 2016

Average European middle-market buyout purchase price multiples declined from 8.4x in 2015 to 8.3x in 1Q-3Q 2016

The average purchase price multiple for all buyouts rose in 1Q-3Q 2016 from year-end 2015, increasing from 9.2x to 9.9x

The trend of increasing dispersion between purchase price multiples at varying deal sizes since the end of 2013 continued in 1Q-3Q 2016

14

Exit Environment – Mergers & Acquisitions3Q 2016 – Private Equity


EUROPE


Europe M&A deals1

Total deal value, $ billions

154192183

291

174261

164213209

310

179159

$0

$100

$200

$300

$400

$500

3Q2016

2Q2016

1Q2016

4Q2015

3Q2015

2Q2015

1Q2015

4Q2014

3Q2014

2Q2014

1Q2014

4Q2013

Trends

Europe M&A deal volume decreased in 3Q 2016 from 2Q 2016 levels


Trailing 12-month Europe M&A activity declined from the previous period

› $820bn total (24% of global) | 2% vs. 12 months ending 2Q 2016

Observations and select drivers1

Brexit, the upcoming Italian referendum and the upcoming French and German national elections all contributed to dampened M&A activity in 3Q 2016

M&A Deal count in 3Q 2016 (1,323 deals) reached its lowest level since 3Q 2012 (1,274 deals)

The Technology sector reached its highest YTD value on record with 484 deals worth $59bn

Deals in the Industrials and Chemicals sectors led sector activity in 1Q-3Q 2016

Largest 1Q-3Q 2016 M&A deals1

Target Acquirer Target SectorDeal

value

Syngenta AGChina National Chemical Corporation

Industrials & Chemicals

$45.9bn

ARM Holdings Plc SoftBank Group Corp Technology $30.2bn

Credit Agricole –Regional Banks

Sacam Mutualisation Financial Services $20.4bn

WestdeutscheGenossen-schafts-Zentralbank

DZ Bank AG Financial Services $19.4bn

15


EUROPE

Data excludes IPOs with proceeds of less than $100 million.



Europe IPO volumeProceeds (LHS), $ billions, Number of IPOs (RHS)

$4

$11

$4

$21

$4

$14 $17

$7 4

26

10

24

6

35

27

19

0

15

30

45

$0

$10

$20

$30

3Q2016

2Q2016

1Q2016

4Q2015

3Q2015

2Q2015

1Q2015

4Q2014

Trends

Europe IPO issuance decreased in 3Q 2016 from 2Q 2016 levels


The number of IPOs in Europe decreased in 3Q 2016 from 2Q 2016

› 4 IPOs (7% of global) | 85% vs. 2Q 2016 | 33% vs. 3Q 2015

Largest 3Q 2016 IPOs Observations and select drivers

Europe IPO activity was muted following Brexit, but began to pick up in September with the IPO of Nets Holdings (the largest 3Q 2016 European IPO)

Nets Holdings turned out to be one of the worst performing global IPOs in 3Q 2016, returning -3.3% following its listing in September

European IPOs generated quarterly returns of 1.9% among the new issues exceeding $100mm in size

Name Country Industry Deal value

Nets Holding Denmark Financial $2,372mm

ENAV Italy Transportation $837mm

16




ASIA

Private Equity Fundraising & Investment M&A IPOs

Asia equity invested$ billions, (# of deals shown on axis)

$0

$20

$40

$60

$80

$100

Asia fundraising1


$0

$20

$40

$60

$80

$100

242 290 185 260 324 206 109 115 95 50 28 27 25 27 22 15 13 24

Trends1

Asia PE fundraising increased in 3Q 2016 from 2Q 2016 levels

› $20bn total (19% of global) | 1,445% vs. 2Q 2016 | 215% vs. 3Q 2015

Number of funds raised in Asia increased in 3Q 2016 from 2Q 2016


Trends

Asia PE investment decreased in 3Q 2016 from 2Q 2016 levels


Number of deals in Asia increased in 3Q 2016 from 2Q 2016

› 459 deals (15% of global) | 9% vs. 2Q 2016 | 32% vs. 3Q 2015



17

Exit Environment – Mergers and Acquisitions3Q 2016 – Private Equity

ASIA



Asia Pacific (excl. Japan) M&A dealsTotal deal value, $ billions

172164149

296

165234

195219140170

114115

$0

$100

$200

$300

$400

3Q2016

2Q2016

1Q2016

4Q2015

3Q2015

2Q2015

1Q2015

4Q2014

3Q2014

2Q2014

1Q2014

4Q2013

Largest 1Q-3Q 2016 M&A deals – Asia Pacific (excl. Japan)

Target AcquirerTarget Sector

Deal value

China Petroleum Capital Co Ltd

Jinan Diesel Engine Co LtdIndustrials & Chemicals

$11.3bn

Asciano LimitedConsortium for Asciano led by CPPIB GIP

Transport $9.4bn

Wuhan Iron and Steel Company Limited

Baoshan Iron & Steel Co LtdIndustrials& Chemicals

$8.7bn

Aditya Birla Nuvo Limited Grasim Industries Limited Telecom $8.0bn

Trends

Asia Pacific (excl. Japan) M&A volume increased in 3Q 2016 from 2Q


Trailing 12-month Asia Pacific (excl. Japan) M&A activity increased modestly from the previous period

› $781bn total (23% of global) | 1% vs. 12 months ending 2Q 2016


Asia Pacific (excl. Japan) M&A deal value in 1Q-3Q 2016 (2,557 deals worth $485bn) has declined 18% compared to 1Q-3Q 2015 (2,717 deals worth $594bn)

Despite the decline, 1Q-3Q 2016 is still the second highest YTD period on record

Chinese outbound M&A activity (201 deals worth $141.2bn) accounted for 85% of Asia’s outbound deal value and 46% of deal count

The Technology sector led M&A activity in 1Q-3Q 2016

18


Data excludes IPOs with proceeds of less than $100 million.


ASIA


Asia Pacific IPO volumeProceeds (LHS), $ billions, Number of IPOs (RHS)

$20

$11 $5

$28

$5

$24

$14

$27

42

31

14

35

13

41

29

41

0

15

30

45

$0

$10

$20

$30

3Q2016

2Q2016

1Q2016

4Q2015

3Q2015

2Q2015

1Q2015

4Q2014

Trends

Asia Pacific IPO issuance increased in 3Q 2016 from 2Q 2016 levels


The number of IPOs in Asia increased in 3Q 2016 from 2Q 2016 levels

› 42 IPOs (69% of global) | 35% vs. 2Q 2016 | 223% vs. 3Q 2015

Largest 3Q 2016 IPOs – Asia Pacific Observations and select drivers

Asia Pacific dominated the IPO market in 3Q 2016

Asian IPO proceeds were supported by several large financial IPOs

Asia Pacific IPOs generated average returns of 4.7% in 3Q 2016 (excluding China A-shares)

All of the top ten best performing global IPOs in 3Q 2016 were China A-share listings

Outside of China A-shares, the Asia Pacific region accounted for 7 out of the 10 worst performing IPOs in 3Q 2016

Name Country Industry Deal value

Postal Savings Bank of China China Financial $7,426mm

China Merchants Securities China Financial $1,380mm

Everbright Securities China Financial $1,111mm

ICICI Prudential Life India Financial $908mm

Triangle Tyre China Capital Goods $661mm

2

Infrastructure Fundraising Environment

16 unlisted infrastructure funds reached a final close in Q3 2016, securing $25.4 billion of investor capital

› 10 Europe-focused infrastructure funds raised an aggregate of $7.2 billion

› 5 North America-focused infrastructure funds raised an aggregate of $16.7 billion

› Average fund size continues to increase

Unlisted infrastructure dry powder has increased by 3% over Q2 2016 to reach a record $146 billion in September 2016

› Represents fifth consecutive annual increase since 2012

› Notable funds to hold closes recently include:

− Global Infrastructure Partners III: second closing at $11 billion in May 2016

− Brookfield Infrastructure Fund III: final close in July 2016 at $14 billion

− Macquarie European Infrastructure Fund V: final close in September 2016 at €4 billion

− InfraVia III: final close in October 2016 at €1 billion

3Q 2016 – Infrastructure

Source: Preqin, data as of 3Q 2016.

Global unlisted infrastructure fundraising 2010 - YTD 2016

Infrastructure fundraising by primary geographic focus2015 - YTD 2016

$32.7

$26.0 $29.3

$47.4

$39.9

$45.3 $45.5

0

20

40

60

80

100

$-

$10

$20

$30

$40

$50

2010 2011 2012 2013 2014 2015 YTD 2016

Year of Final Close

Aggregate Capital Raised ($bn) No. of Funds Closed

$39.6

$28.9

$13.2$9.1

0

10

20

30

40

$0

$10

$20

$30

$40

$50

North America Europe Asia Rest of World

Aggregate Capital Raised ($bn) No. of Funds Closed

3

Infrastructure Investment Environment

Q3 2016 Statistics

› 289 infrastructure deals were completed in Q3 2016, with an estimated aggregate deal value of $75.1 billion

› Represents a decrease of 24.4% from Q2 2016, when $99.3 billion of infrastructure deals were completed

YTD Q3 2016 Statistics

› YTD Q3 2016 saw a total of 1,044 infrastructure deals completed, representing a 13.0% increase from 924 infrastructure deals completed in the same period last year

› This represented an estimated aggregate deal value of $277.1 billion, or a 31.4% increase from $210.9 billion of infrastructure deals completed in the same period last year

› Average deal size increased 11.4% from $396 million in 2015 to $441 million in YTD 2016

› 15% of deals completed in YTD 2016 were valued at $1bn or more, a record high


Source: Preqin, data as of 3Q 2016.

Infrastructure deals by region Nov 2016 YTD

Global quarterly infrastructure deals Q1 2013 - Q3 2016

Number of infrastructure deals by industry 2013 - H1 2016

348

468 475

180

$88.6 $75.7$118.4

$77.2

0

100

200

300

400

500

North America Europe Asia Rest of World

Number of Deals

Aggregate Deal Value ($bn)

40% 44% 44%35%

17% 17% 22%25%

13%15% 12%

14%13% 8% 10% 14%12% 14% 9% 7%3% 2% 2% 2%2% 2% 2% 3%

2013 2014 2015 H1 2016

Other

Telecoms

Utilities

Energy

Social

Transport

Renewable Energy

0

50

100

150

0

100

200

300

400

500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2013 2014 2015 2016

Aggregate D

eal Valu

e ($b

n)

No

. of

Dea

lsNo. of Deals Aggregate Deal Value ($bn)

Sample power generation transactions EBITDA multiple

Sample PPP/PFI transactions Discount rate

Sample transportation transactions EBITDA multiple

Sample natural gas utility transactions EBITDA multiple

4

Infrastructure Dealmaking Environment

Source: Preqin, S&P Capital IQ (EV/EBITDA Multiples represent global utilities, power producers, midstream infrastructure, transportation infrastructure and communications towers transactions).


Average quarterly infrastructure deal size Q1 2012 - Q3 2016

Global infrastructure transaction multiplesEV/EBITDA (number of transactions), as of Dec. 2015

9.0x10.6x

9.3x

13.0x11.7x

13.1x

0x

4x

8x

12x

16x

2010(89)

2011(77)

2012(104)

2013(107)

2014(136)

2015(137)

7.8x11.6x

1,244 MW natural-gas fired facility in NewEngland, U.S., 2010

200 MW CCGT in the Southern U.S.2016

10.1%6.2%

Availability-based hospitals in the U.K.,2011

Portfolio of availability-based projects in theU.K. and Eurozone, 2016

7.0x

14.8x

Natural gas utility in the U.S.,2010

Natural gas utility in the U.S.,2015

16.6x

33.7x

Large international airport in the U.K.2009

International airport in the U.K.2016

403

359

391 396

441

300

340

380

420

460

2012 2013 2014 2015 YTD 2016

Ave

rage

Dea

l Siz

e ($

mn

)

5

Clean Energy Private Equity Market Overview3Q 2016 – Infrastructure

Source: Bloomberg New Energy Finance, Global Trends in Clean Energy Investment, October 2016.

Global clean energy corporate M&A transactionsDeal value, $ billions

$0

$10

$20

$30

$40

$50

Global VC/PE new investment in clean energy$ billions

$0

$5

$10

$15

Trends VC/PE clean energy investment increased in 3Q 2016 from 2Q 2016

› $3.2bn total | 129% vs. 2Q 2016 | 78% vs. 3Q 2015

Clean energy M&A transaction volume increased in 3Q 2016 from 2Q 2016 levels

› $5.8bn total | 9% vs. 2Q 2016 | 115% vs. 3Q 2015

The largest clean energy PE deal in 3Q 2016 was the $1.08bn expansion capital transaction involving Le Holdings, a company that develops, licenses and sells technology solutions through its subsidiaries

The largest clean energy VC deal in 3Q 2016 was $1bn of early stage financing for WM Motor Technology, a China-based electric car startup

Top 3Q 2016 VC/PE transactions

Target Sector Transaction type Deal value

Le Holdings Electrified Transport

PE – expansion capital $1,080mm

WM Motor Technology

ElectrifiedTransport

VC – early stage $1,000mm

Solar Mosaic Solar VC – early stage $220mm

Protean Electric ElectrifiedTransport

VC – late stage $70mm

Heliatek Solar VC – late stage $62mm



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