#1CLIFFWATERLIC Los Angeles • New York Cliffwater Alternative Investment Consulting Services Rhode Island State Investment Commission April 25, 2018#2Cliffwater Presenters Thomas K. Lynch - Senior Managing Director Tom is a Senior Managing Director of Cliffwater LLC in our New York office and a member of our portfolio advisory team. Prior to joining Cliffwater in 2008, Tom was a Senior Managing Director and principal of Wilshire Associates where he managed the firm's private equity business for 17 years. Previous experience includes working for the New York Life Insurance Company. He has served on the advisory boards of numerous private equity partnerships. He earned a BS in Finance from Boston College, his JD from Duquesne University School of Law and holds the Chartered Financial Analyst designation. Gabrielle Zadra - Senior Managing Director Gabrielle is a Senior Managing Director of Cliffwater LLC and leads our private assets research team. Prior to joining Cliffwater in 2004, Gabrielle was an Associate with Pathway Capital Management, LLC where she led due diligence on private equity investments including venture capital, buyout, debt-related and special situation partnerships. Previous experience includes working in investment banking with the Banc of America Securities Technology Group. She also worked for the Service Employees International Union / AFL-CIO. She earned a BA in History and Women's Studies with high honors from Oberlin College, and an MBA from The Anderson School at the University of California, Los Angeles. Mark Williams - Senior Managing Director Mark is a Managing Director of Cliffwater LLC and a member of our private assets research team. Prior to joining Cliffwater in 2008, Mark was a Managing Director and principal of Wilshire Associates where he performed real estate research and consulting services and managed the development of the Compass institutional investment software and the RetirePath discretionary managed accounts system. Previous experience includes real estate research with The Meyers Group, and CJ Bonner Corporation. He earned a BS in Finance from the University of Utah. CLIFFWATERLC | 2#3CLIFFWATERLIC Firm Background#4Cliffwater LLC Founded in 2004 100% employee owned SEC registered, accept fiduciary responsibility Offices in Los Angeles and New York Experienced professional staff 42 employees Focused on institutional clients 46 total clients Assets under advisement¹ - $43 billion in alternative assets 1 Includes discretionary and non-discretionary assets under advisement of current clients. Total assets include approximately $1 billion in discretionary assets under management. Private assets as of September 30, 2017; all other assets as of December 31, 2017. (Private asset valuations generally lag by a quarter.) CLIFFWATERLIC 14#5Cliffwater Senior Leadership Team Stephen Nesbitt CEO/CIO 40 years of investment experience Kathleen Barchick, CFA Senior Managing Director 24 years of investment experience Gabrielle Zadra Senior Managing Director, Head of Private Assets Research 17 years of investment experience Daniel Stern Senior Managing Director, Head of Absolute Return Research 26 years of investment experience Thomas Lynch, CFA Senior Managing Director James Feidler Senior Managing Director Jonathan Rogal General Counsel, Chief Compliance Officer Lance Johnson Chief Operations Officer 37 years of investment experience 26 years of investment experience 18 years of investment experience 22 years of investment experience Pete Keliuotis, CFA Senior Managing Director Mark Johnson Senior Managing Director David Wippel Managing Director, Head of Risk Reporting Thomas Brown Chief Technology Officer 29 years of investment experience 19 years of investment experience 19 years of investment experience 19 years of investment experience CLIFFWATERLIC | 5#6The Cliffwater Team Portfolio Advisory Private Assets Absolute Return Operations Due Diligence Stephen Nesbitt CEO / CIO Gabrielle Zadra Sr. Managing Director Daniel Stern Sr. Managing Director Legal & Compliance Lance Johnson Chief Operations Officer Jonathan Rogal General Counsel / CCO Monitoring & Reporting Technology Corporate David Wippel Managing Director Thomas Brown Chief Technology Officer Reboot Networks Joshua Belvedere Vice President Backstop Solutions Paulo Jeronymo Vice President Payoda Carol Komesu Treasurer / Controller Fiona Roses Office Manager Yvonne Mignon Admin Assistant Kathleen Barchick Sr. Managing Director James Feidler Sr. Managing Director Mark Johnson Sr. Managing Director Pete Keliuotis Sr. Managing Director Thomas Lynch Sr. Managing Director Eric Abelson Managing Director Bernard Gehlmann Managing Director Chris Rice-Shepherd Managing Director Mark Williams Managing Director Jeffrey Topor Vice President William Dornbrook Sr. Associate Kyle Barber Sr. Associate Aaron Dalrymple Managing Director Andrew Rudolph Managing Director Eli Sokolov Managing Director Chris Solarz Managing Director Susanne Wei Vice President Tori Irons Sr. Associate Jonathan Tabak Managing Director Kevin McCann Director Nelson McNeil Vice President Linda Baker Director Stanley Liu Director Jeffrey Loeb Vice President Steve Thomas Vice President Thidar Maw Sr. Associate Nico Chavez Associate Christina Nolan Associate Jordan Kelly Analyst D'Ann Patterson Analyst CLIFFWATERLIC#7Cliffwater Alternative Asset Class Coverage Absolute Return Private Equity Private Debt Real Assets Real Estate Direct Lending Midstream Energy Buyout Private BDCs Venture Capital Market Neutral Credit/Distressed Event Driven Equity Long/Short Discretionary Macro CTA Multi-strategy Fund of Funds Distressed Non-U.S. Opportunistic Secondaries Direct Investments Mezzanine Structured Debt Upstream Energy Agriculture Infrastructure Commodities Timber Core Value Add Opportunistic RE Debt Sector Funds REITS CLIFFWATERLIC 7#8Cliffwater Team for ERSRI Cliffwater Investment Research Cliffwater Absolute Return Research Team Daniel Stern, SMD Cliffwater Private Asset Research Team Gabrielle Zadra, SMD Daniel Stern, SMD Chris Solarz, MD Susanne Wei, VP Jeff Topor, VP Mark Wiliams, MD Gabrielle Zadra, SMD ERSRI Portfolio Absolute Return Crisis Risk Protection Private Credit Opportunistic Credit Infrastructure Private Equity Cliffwater Support Cliffwater Operations Due Diligence Team Jon Tabak, MD Cliffwater Legal Due Diligence Team Jon Rogal, SMD Risk Management and Reporting David Wippel, MD Client Service Tom Lynch, SMD Kathy Barchick, SMD CLIFFWATERLIC | 8#9Representative Alternative Investment Advisory Clients Representative List of Private Assets Clients Endowment/Foundation American University Greater Miami Jewish Federation, Inc. Oberlin College Reed College The Principia Corporation University of Nebraska Foundation University of Ottawa VMI Investment Holdings, LLC West Point Corporate Duke Energy Huntington Ingalls Public Pension Houston Municipal EPS Maine PERS Merced County ERS National Pension Service of Korea Nova Scotia Teachers/Super Ohio STRS Sacramento County ERS Texas County & District Retirement RIA/Family Office New Market Wealth Management Omnia Family Wealth Medstar Health Mercy Health This is a representative list of current Cliffwater private assets clients; however, Cliffwater is contractually precluded from disclosing the names of certain clients, including all of its high net worth clients. Inclusion in the list does not represent an endorsement or approval of Cliffwater or the advisory services provided. CLIFFWATERLIC#10CLIFFWATER UC Investment Philosophy and Process#11Cliffwater Investment Philosophy Our broad asset allocation perspective enables us to better execute alternative investment programs How We Think... Asset Allocation (Beta) Understand the role of alternatives within the client's asset allocation Manager Selection (Alpha) Invest with a limited number of our top- tier managers; selection skill is critical Inefficient Markets Thoughtful implementation is key to successful programs Risk Management Diversification and thorough manager monitoring best ways to control risk Terms & Costs Alignment of interest and fee management matter How We Execute... Consistent Process Disciplined and standardized due diligence and investment process Collective Decision-Making Research specialization supported by cross-team resources and firm wide investment committee process Documentation Meetings, analyses, recommendations in writing to track decision process Transparency Offer clients direct access to Cliffwater research and monitoring Client Driven Customized and collaborative approach with each client CLIFFWATER IC | 11#12Cliffwater Alternative Investment Selection Process All Funds "Focus List" comprised of A- and B-rated Funds. We archive C-rated Funds. A-rated Funds Research Group Investment Due Diligence Manager, Partnership Sourcing Preliminary Due Diligence & Rating Research Group Vote Investment Committee Approval Client Recommendation (A, B, or C) Operations and Legal Due Diligence Our approval process is transparent and documented Profile Report F De Pryde Locat the Loca Dwvers ABO Eauty Longthor-H ASA 1/12010 noo Ind 100% John Doe approximately 100 maior in Asian securities within XYZ's main fund, M. Doe lett X12 along with three analysts to busch ABC in 2009. Prior to X2, Mr. Doe was a portfolio manager and senior analyst at XXY where he rana portfolio of fundamental and event driven ideas. The team totali 20 including 3 investment professionals. The team has had some recent turnover with 2 departures ng analyst am Eve. The fund launched with internal tal and quickly grew assets to over $3 billion, and current assets are $2.5 billion. The fund is closed and will only look to replace outlows from its considenble wait list as three-year class capital comes out of lockup in 2013 70-75% of the capital is in the three-year hard lock-up share class, which is where the fem targets replacement capital. The find has a 3% fund level gate. The investor bhality and cludes 20% family offs, 20% fund of funds, 50% instrusonal (pensons/founddions & Assets Under Magent Portolo Ag Exposes 1.000 100 6000% 45000% 130.000% AgNet Expo48000% Sace Packar 2,000 90.000% 1.000% The fund employs a botom-up, fundamental research process to identity Asian focused compares that stand to best from the long term secular growth trends in the region. The fund manages a concentrated portfolio of 30-35 catalyst drives investments of 3-9 months. Positions typically fit within the folowing categories Quality Dusnesses (og estateshed and attractive busness ranchises with defendatée margins, med competion, strong cash for predictability, experienced management ble pricings (ingsshort) deep value ideas, corporate liquidity The Fund-Due Diligence Summary Review Date Stringy Rating Recommendation Organization Hatory Ownership Lacaton Assets Key Person (g) Organizational Rak Investment Strategy, Description Putlo Tendencies Decision-maker Competitive Edge Portfolio Liquidity Risk Manag Strategy Rek Governance OP Alamet LP Alignment Transparency Fees Expenses Fund Ly Operational Risks Govenance Rek Performance Tabletk Arbution Peer Comparison 2014 OC January 2014 by A Global longshort oedt fund with an active trading comp thehaponnes A-rated, recommended for clent intent The Fund Asset Management, LP (The Fund or the October 2011 Mrunched with 100 m Trading Group at Men Lichiorevinly the H 100% employee owned M owns 64% of The owns 17% The remaining 19% is owned by other emplo All s located in New York $35 ass in one strategy (9 Intal investment) No tumover on the investment ources IT functions and utilizes HedgeServ as the Above Average - Small tund with a concentrated inves prayed by kay man provision and more Execution, & Risk Venture Cat Private Investments V.L.F Manager Find PRIVATE EQUITY INVESTMENT DUE DILIGENCE REPORT Venture Capital Advisors Date: Venture Cajita Private investments Strategy? August 2014 Venture Capital None S one Speclied Preliminary Fund Size Preliminary Fund Size Limit: Reviewer Abelsor, Choi Recommendation Vorture Capital Private Investments Vis recommended as a private equity investment Fund Overview Venture Capita Private Investments V.L.P. (Fund Vor the "Fund") will be comprised of venture capital and growth equity investmons in healthcare companies. Within the heathcare industry, Venture Capital will focus on drug discovery and development medical devices, and medical diagnostics and bols. The hund will primarily target privately-held companies at all stages of development, from seed Placemates soe, and may pakipate in pive lives I be actively involved in the crategie deckon Long/short oedt strategy that combines bottom-up portfolio companiet each invochnert and witUATHEM down macro analysis to ideraty dulocations with instruments in US and Europe. Ms macroPoogle and Organizaion The platform that ultimately become Venture Capital Advisors LLC (the "Fi") exposures of the tund, as well as individual position size was founded in 1985 as the asset management division of Investment Bank, a healthcare-focused Pimary focus on liquid corporate and sovereign 250%) and a feable approach to managing net aspon the top 10 poetions 50-35% of NAV investment bark and research firm. The Fim became a standalone enity in 1998 and is currently comprised of dedicated tearme pursuing hedge fund. mutual tunc, private equity and drug royalty strategies. Within private equity, separate dedicated teame manage the Firm's flagship North America and Europe venture c us capital funds (the "VC Team), its Isras fund, and its Asia funds. The Fund will be lad The fund's smaller size and active trading component who serve as bed by the equity parts st smaller, less followed credits, and to tactically adjust expure porno, ane executive in residence, ore vice president two associates and two analysts. The Primarly Level 1 (9%) and Level 2 (91%) VC Tear's live partners have an average tenure of more than 12 years with the Firm The firm's CIO is responsible for manag cd hedge fans, risk management starts with funda level and then aggregated and mood at the port Above Average active exposure management Perkamance dependent on CO making the right ma Age-goodly and Pigment Above age Instadional investor bus with only 15% of ass from bid Above Average The Fund releases a comprehensive days after month end. The firm also provides more col manly 100% portion level transparency provided a Average-1.75/17.5ut year sot lock 2% feel Fund ex (offshon) Expense to higher due to sealer assot base Average-1 year soft lock (2% feel th quarterly padity Average-valuation is a normal concem with credit portfol Average-good reparency and LP algement Bred en 861329k to since inception (2.43 Shape 4.52% two year alpha and 1.54 information ratio with a 0.25 Ranks 50th by information to out of 106 A-and B-rated Investment Bhalogy and Process: The Fund will primarily pursue equity investments in private bophamacautical medical device, and diagnostics companies at all stages of development, from pre- clinical to commercial stages. The Fund may also make PIPE investments in smallcap public companies on an opportunistic basis. The Fim wit seek to build a pottolo comprised of 20 to 30 investments America and Fame The Emily phat The Fund will loose primarily on opportunties in Noth pincpaly active involvement in portfolio companies and the Firm's strong reputation and multi-strategy patform in the teathcare sector Performance: Since 2000 the Fim has rased four life sciences focused private equity funds representing $1.6 billion in committed captal. As of March 31,2014, the Fim has drawn $1.2 bilion from Limited Panera, dalibued $030 nitun, and has generated a total value of 1.40 tres ped-in caphal The prior funds have gererated a combined net IRR el 13.6% sutperforming the Russell 2000 Growth Indes by 5.6% Fund I and Fund II are ranked in the first quartile or better on r on both a rat (RR and not TVP basis and Find Ill and Fund are ranked in the second quante on a net IFR basis and in the first quale and second quartile respectively on a net TVPI basis relative to Venture Economor private Investment Terme Offwater finds the terms outlined in the Limited Partnership Agreement, taken as a whole, to be in accordance with industry standards. The management fee is 225% of commitments during the six-year investment period, theater, the management lee will be equal to 2.25% of receive 20% of the Fund's protits unless the Fund has generated aggregate distibutions totaling 250% or more of paid-in capital, in which case the General Partner will receive 25% of the Fund's profits. The General Partner's share of protts in Pune IV was the 20% The Genera Partner wat comme at least 20% of aggregate commbments to the Fund Pit Easy met incep 2014 Ciwer LLC. A go and Page 3 of 28 Cliffwater LLC Investment Committee Date of Meeting: Friday, January 23, 2015 Attendees: See attached list for attendees. Hedge Fund Name Approved: CONFIDENTIAL-FOR INTERNAL USE ONLY Fund A Capital Management LLC: Fund A Distressed Opportunities Fund LP: Fund ALong-Term Distressed Opportunities International LP- Distressed This fund will pursue a long-only, non-control distressed credit strategy targeting a mid-teens net IRR. This fund will focus on investments in the less liquid segments of the corporate, real estate, and asset-backed debt and equity markets. The Committee discussed the firm's history, the fund's strategy and the prior fu or funds' p performance. Certain risk factors were also discussed, including the lack of distributions by the prior fund. In addition, the Committee discussed the firm's back office operations and the fund's legal terms, including the increase in the management fees compared to the prior fund. The fund was approved for the hedge fund approved list, subject to completion of the due diligence binder. The fund is oversubscribed. Fund A has identified Client A, Client B and Client C as those clients which are eligible to commit to the fund. Client allocations were reviewed; see allocation sheet below... Real Assets Name Approved: Corporation; U.S. L.P. - Agriculture This fund will make equity investments in upstream and midstream farming assets located in the United States. The Committee discussed the fund's strategy and investor base, the firm's history, the team's experience and the prior funds' performance. Certain risk factors were also discussed, including the firm's unresponsiveness to due diligence inquiries and the lack of realizations. In addition, the Committee discussed the firm's back office operations, including the lack of regulatory oversight or a comprehensive compliance program and the consolidation of the fund's M financial statements, and the fund's legal terms, including the change in management fee structure, the low GP commitment and the significant increase in the fund's size. The fund was approved for the real assets approved list, subject to completion of the due diligence binder and acceptable legal documentation. Further, Cliffwater's recommendation of the fund to a client is contingent on the client receiving an advisory committee seat. There is no capacity limitation for Gliftwater clients. Client allocations were reviewed; see allocation sheet below. Preliminary Rating Full Investment & Operations Due Diligence Investment Committee Minutes CLIFFWATERLC | 12#13Investment Due Diligence Investment due diligence is led by senior research team members - Research responsibilities organized by strategy - In-depth diligence typically ― completed over several months Onsite meetings and reference calls conducted - Multiple senior Cliffwater Distributions Length and Depth of Track Record Public and Private Benchmarks Performance Organizational Growth Team & Organization Succession Team Depth Governance Fees & Expenses Investment Process Origination professionals involved in the due diligence process Cliffwater utilizes a consistent and thorough diligence process for private asset fund recommendations GP $ Commitment Transparency Financing Portfolio Strategy CLIFFWATERLC | 13#14Operations Due Diligence Dedicated, experienced operations due diligence team Independent review Evaluate primary areas of business risk Compare to industry best Accounting Legal & Regulatory Advisory Board Review Process Valuation Sources - practices Monitor operational capabilities of recommended funds, re- underwrite operations with successive fundraise diligence Background checks as needed Full operations due diligence conducted on private asset fund recommendations Valuation Policy & Procedures Valuation Governance Ongoing Information to Investors Transparency & Disclosures Processes Infrastructure Portfolio Financing Technology & Systems Compliance Business Risk Management Personnel & Infrastructure Segregation of Duties & Internal Controls Service Providers CLIFFWATERIC | 14#15Legal Due Diligence Legal team reviews fund documents and negotiates business terms across multiple dimensions - Investor protections - Fees - - Alignment of interests Amendments & Consents Valuation Methodology Transparency Cliffwater seeks to improve terms in fund documents and through side letters on behalf of all clients When desired, Cliffwater's team will work together with client's internal and/or outside counsel Investment Limitations No Fault Advisory Boards Management Fees Carried Interest GP Commitment Monitoring & Reporting Alignment of Interests Offsets Governance Other Financial Distributions Preferred Return Key Person Fund Expenses Conflicts of Interest Clawback CLIFFWATER LIC | 15#16Monitoring - What we do after an investment is made Process oriented approach to private asset fund monitoring/risk management ― - Market commentary Performance reporting Due Diligence Re- Underwriting Annual Meeting Attendance Activity (outer circle) - Portfolio characteristics & Fund / Portfolio Characteristics Annual Frequency (inner) circle partnership highlights - Watch List reports - Annual meeting reports - Advisory boards, where applicable Ongoing Quarterly - Partnership development reports Performance Analysis - Partnership amendments & consent recommendations Cliffwater promotes transparency across the industry AltExchange member Monitoring Calls Manager Meetings / Notes Weekly Analyst Meeting Partnership Development Report Industry Watch List Development Report Report CLIFFWATER LIC 16#17CLIFFWATER LC Private Asset Consulting#18Cliffwater Private Assets Experience Cliffwater Cumulative Client Commitments Strategy Commitments ($000s) Buyout 9,515,646 Venture 2,700,000 Real Estate 15% Distressed 2,754,474 Infrastructure, Agriculture & Buyout 34% Timber, & Mining Energy 3,070,248 11% Private Debt 2,392,851 Private Debt 9% Infrastructure 1,753,833 Agriculture & Timber 991,600 Energy 11% Venture 10% Distressed 10% Mining 245,000 Real Estate Total 4,197,397 27,621,049 Notes on the above information: Private Debt includes Mezzanine, Opportunistic Credit, Direct Lending, and Bank Loan strategies Real Estate includes Real Estate Debt, Opportunistic, and Value-Add strategies "Commitments" are based on the cumulative amount of capital committed by Cliffwater private assets clients, both discretionary and non-discretionary, to funds or accounts recommended by Cliffwater. Amounts are calculated from inception of the relevant strategy through June 30, 2017. The inception dates for the strategies are as follows: Buyout, August 1, 2005; Venture, January 1, 2006; Distressed, August 30, 2005; Energy, October 14, 2005; Private Debt, March 23, 2006; Infrastructure, September 28, 2012; Agriculture & Timber, October 24, 2014; Mining, March 25, 2010; and Real Estate, January 24, 2006. CLIFFWATER LIC 18#19Cliffwater Private Assets Investment Strategy Cliffwater valuation models start at the top Formulate Market Outlook Diversification targets are developed during the strategic planning process... 20% Portfolio Construction Client Objectives Strategy Industry sector Region Vintage Implementation Alternatives Primary Secondary Via Cliffwater experience, network, and creativity Co- investment ...targets guide the deployment of capital by sector, strategy, and geography Identify & Access to Direct Our Top Tier GPs 80% Through Cliffwater relationships and sourcing CLIFFWATER LIC | 19#20Cliffwater Quarterly Outlook Guides Research & Selection U.S. Large Buyout U.S. Mid/Small Buyout Distressed Private Debt Venture Europe Asia Latin America Energy Infrastructure Natural Resources Real Estate - Equity Real Estate - Debt High valuations, ample amounts of leverage, and heavy competition for deals persist, as managers seek to deploy a significant amount of unfunded capital. On the positive side, distributions and recapitalizations continue. Competition and pricing pressure in the middle market has increased, as firms raise more capital and large cap funds seek value in smaller deals. Greater opportunities for outperformance exist for investors with competitive advantages in value creation and focused strategies. High issuance of lower-rated credit, looser underwriting standards and rising interest rates suggest the potential for large volume of distressed opportunities, but timing is unclear. Large amount of dry powder suggests caution. Private debt continues to generate strong relative value with an attractive spread between public and private yields. "Covenant lite" terms and EBITDA adjustments are becoming more common for larger direct lending deals. Strategic and sovereign wealth investors continue to aggressively invest capital pressuring valuations and holding periods. Innovation across multiple sectors has led to accelerating growth and selected strong exits. A gradual economic recovery has increased buyer and seller confidence. As in the U.S., strong competition and high prices persist, reducing value opportunities. Managers with strong sourcing capabilities, a consistent approach, and multiple levers to improve and grow companies are best positioned. A focus on high-quality growth and financial sector health suggests rational and steady sector-based growth in China; however, the threat of a trade wars with the U.S. is generating uncertainty, particularly for export-oriented businesses. Economic growth and positive market sentiment in Brazil continue to improve private equity deal activity and debt availability. Upcoming presidential elections, particularly in Mexico, are generating uncertainty in the market, limiting new deal activity and realizations. Energy market transaction activity remains low and is dominated by private equity investors. Despite increasing U.S. shale production, crude oil prices are resilient with OPECs adherence to production limits. Several firms have launched super-core funds targeting lower returning assets with very low risk. The substantial amount of dry powder chasing a limited amount of transactions may be driving the new fund strategies allowing the investors to compete for the lower risk assets. Corn and soybean prices continue to be pressured by overproduction; permanent crops offer strong pricing and consumer demand. New precious metal resources continue to decline and offer investment opportunities for new mines. Downward pressure on values may result from recent rapid increases in interest rates despite overall market strength. Rising debt service and decreased NOI of value-add and opportunistic properties may follow, along with more limited refinancing options for stabilized assets. Defensive, core plus opportunities remain attractive. Increases in CRE floating rates have accompanied economic growth, while overall leverage levels remain at moderate and sustainable levels. Underweight Neutral Neutral Overweight Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Overweight 20 20 The information on this page contains Cliffwater's Q2 2018 views, projections regarding future events, and forecasts regarding the strategies described herein. There is no assurance that such events or forecasts will be achieved, and may be significantly different from that shown here. CLIFFWATERLC |#21Cliffwater Private Assets Forward Calendars Private Asset Research Activity Report - Second Quarter 2017 This quarterly report provides a review of private equity, private debt, real asset and real estate funds, which are currently in active due diligence or expected to be reviewed in the coming months. Please contact your client service representative or Gabrielle Zadra [email protected]: (310-448-5018) with any questions. nds that Closed During the First Quarter U.S. Large Buyout Competitive and efficient market. Dependent on capital markets for exits. Underweight US Md/Small Buyout More fragmented acquisition market. Selling opportunites with financial and strategic buyers. Overweight Distressed Low detauts, rising Interest rates, and uncertain political climate. No clear opportunity. Underweight Private Debt Market uncertainty and rising interest rates make senior-focused strategies more attractive. Overweight Venture Exits and valuations are expected to improve in 2017. Europe Uncertainty persists, which should benefit opportunistic Investors. Neutral Neutral Lower long-term macroeconomic growth in China. Favor control deals higher-growth sectors. Underweight Latin America Attractive entry valuations as many traditional sources capital have left the market. Neutral Energy Pockets of opportunity exist but commodity price volatility may continue to disrupt upstream Investing. Neutral Infrastructure A buoyant fundraising market has created a more competitive market. Natural Resources Metal and mineral commodity prices remain subdued though a lack of investment in new production will result in increasing prices. Acquisition activity for row crop acreage should Increase. Neutral Real Estate- Equity Headwinds from rising cap rate risks are offset by the Increased scarcity of transaction debt. Underweight Real Estate- Dedi Rising Interest rates and declining debt proceeds enhance debt opportunities for lenders Overweight Large Buyout New York $12.5 billion onal North Amorica buyout transactions and may pursuo opportunistic invostmonts in roal ostato and KR Il target large companies with over $1 billion in total orto priso value. The fund will invost in at with equity investmonts ranging from $500 million to $1 billion. The Firm has realized 55 investments crating a gross roturn of 26% and 2.3 timos invested capital. Mid-Market Buyout San Francisco $3.0 bilion in middlo market hoalthcaro, softwaro, financial sorvicos, and industrial tochnology companios. Tho nich are headquartered in the United States or Canada and will make oquity investments ranging from 1 companies with antcrprise values between $50 million and $1 billion. Transactions will tako tho form apitalizations, growth oquity financings, and carvo-outs. The firm socks partner strong lize their experianco and resources to accolorato rovonus and camings growth. The firm's matural turns of equal or better than two times paid-in capital with the axcoption of the vintage 2004 fund Mid-Market Buyout $2.0 bilion Hermosa Beach routs through complox transactions, corporato carvo-outs, and distrossod investmonts. The firm will s capital intensivo industrios including softwaro, healthcare IT, business sorvicos, and consumer cally pursuo a buy-and-build strategy and uso oporating rosourcos to strongthon companics. The firm Govern who was proviously the head of M&A and an invostmont committoo mombor at The Goros 0, 2016, Marlin Equity Ill, a 2010 vintage, has generatod a not IRR of 15.7% and Marlin Equity IV has %. As of September 30, 2016, the firm has gonoratod a not IRR of 24.8% across all funds sinco Mid-Market Buyout Los Angeles $6.5 bilion dlo markot invostmonts in undorporforming, valuo-orientod, or operationally complox companios. Thot experiencing operational difficulty with an omphasis on industrial and manufacturing businesses. Tho norated a gross return of 2.3 times invested capital as of June 30, 2016. Fund IV started investing in Mid-Market Buyout New York $3.0 billion rage. Direct Lending London €800 million aan lower middle market comparios. The firm was founded in 2011 and currently has 14 professionals I seek to structure each loan with a contractual return of 1.5 to 2.0 times invested capital and a 14% to iral upside through warrants or other equity like features. Metric Capital Partners I, a 2014 vintage apital and performance has not yet been meaningful. Metric Capital Partners I a 2012 vintage fund. % as of September 30, 2016. Direct Lending Chicago $300 million sponsor backed middle market companies with EBITDA between $7 million and $35 million. The firm obert Radway and a team that worked together previously at Merrill Lynch Capital. NXT has 72 investment professionals, headquartered in Chicago with offices in New York and Atlanta. The firm is 10 million and, with leverage, a total capital raise of $1.0 billion to $1.2 billion. The firm's most recent , has generated a net levered IRR of 8.8% as of September 30, 2016. VIII Direct Lending Santa Monica $1.0 bilion middle market non-sponsor companies and less competitive sponsor-backed transactions. The Fund mpanies with $15 million to $75 million of EBITDA that are less competitive due to some complexity or firm has 34 investment professionals based in Santa Monica with additional offices in San Francisco 0, 2016, Tennenbaum's prior direct lending funds have generated a net IRR of 9.3% since 2012. $1.0 bilion Boston Mezzanine investments in profitable media, communications, information services, and business services ypically structure investments as non-control, preferred equity with warrants, but may also invest in ble securities, or other structures that have meaningful common equity subordinated to the fund's atment professionals, including three dedicated to the senior equity strategy who are all based at the ABRY Senior Equity IV, a 2012 vintage fund, is fully caled and has gonerated a not IRR of 11.9% as Neutral iddlo-market companios that provido sorvicos to government-rolated customers, including those at tho s. The fund will targot a portfolio of sovon to ton companios with total ontorpriso valuos botwoon $100 oquity investments batwoan $50 million and $500 million. As of Septembar 30, 2016, the Firm has across all funds since inception. Mid-Market Buyout Boston $3.0 bilion plated invostmonts in comparios with a total orto priso valuo botwoon $250 million and $1.3 billion. no the first institutional invostor in privato, profitable growth companios. Targot invostmonts will bo uro, ranging from minority investments to establishing control of companies through recapitalizations fund will typically deploy an averago aquity investment of $60 million to $120 million por transaction. Small Buyout Hermosa Beach $500 million westments in complex situations where the business is undergoing operational, financial, or situational on smaler businesses in less capital intensive industries including software, healthcare IT, business ducts. The fund will typically omploy a buy-and-build strategy with smallor initial oquity invostmonts corativo acquisitions aro complotod. As of Soptombor 2016, Marlin Horitago 1, a 2014 vintago, has 3 timos invostod capital and a not IRR of 25.8%. The firm has gonoratod a not IRR of 24.8% across all European Buyout Paris €1.0 bilion in middlo market companios primarily located in Franco, Gormany and Italy. Choquors has a long- • goographic markot of Franco and has built a broador notwork of rolationships across Europo. Tho ct loading companios with ontorpriso valuos of €80 million to €350 million. Targot companios aro nagomont toams and stablo cash flows. Sinco 1003. Choquors has gonoratod a roturn of 3.0 timos nvestments Direct Lending Chicago $1.0 bilion middle market sponsor-backed companies with an average EBITDA of $10 million to $30 million. The Angelo Gordon in 2014 from Madison Capital and operates under the name Twin Brook with 21 sed in Chicago. The fund will offer both levered and unlevered vehicles with a total capital raise target ©2017 Cliffwater LLC. All rights reserved. Page 2 of 18 Energy New York $350 million oral or royalty intorosts specifically located in the Dolawaro Basin within Toxas. The firm has not usod minoral intorost fund but has successfully Icased and oporated Dolawaro Basin acroago. inoral intorosts in the Dolaware Basin with acroago that has not roachod a moaningful stage of 1 its prior experianco of operating oil and gas wolls in the same aroa to oneuro futuro production will 0, 2016, prior Kimmoridge funds woro gonorating a not IRR of 64% and a not roturn of 2.5 timos old a final close with $350 million of commitments on March 30, 2017. e Opportunistic Roal Estate Chicago $850 million ely in the education, healthcare and storage property sectors through both its opportunistic and core inception, the firm has invested $15 billion across strategies, a total of 647 assets. Fund VI wil seek senior housing, medical office and storage properties with a focus on cash yields and opportunistic tember 30, 2016, Fund II, a 2010-vintage fund, has generated a net IRR of 20.7% and a return of 1.7 ulatively, the irm's funds have generated a 24% gross IRR and a gross multiple of 1.8 times invested $782 million in commitments as of April 2017 and will hold a final close during the second quarter. Value Added Real Estate San Francisco $250 million ati-tenant, small bay, light industrial proporally. The vertically-integrated platform has 65 employees. in urban locations nationally. The firm was founded in 34.5 million square feet of property s in asset management, lease administration, legal, property management and investment functions. he firm has invested $163 million of equity in 63 transactions across its previous four funds within the intage partnership which represents 89% of capital invested to date, has generated a net IRR of 16% vested capital. Fund III's 12 realized investments have generated a gross IRR of 39% and a return of dato. Value-Added Real Estate Chicago $1.3 billion 2009 and invests exclusively in double and triple net lease commercial properties. The fund will target setment grade tenants with an average of 15 years of remaining lease term in recession-resistant es and consumer staples. Since the firm's establishment, the GP has distributed income at an monthly basis without interruption and will seek to continue high cash distributions in Fund IV. Oak Page 3 of 18 ©2017 Ciftwater LLC. All rights reserved. ©2017 Cliffwater LLC. All rights reserved. Page 1 of 18 The information on this page contains Cliffwater's current views, projections regarding future events, and forecasts regarding the strategies described herein. There is no assurance that such events or forecasts will be achieved, and may be significantly different from that shown here. Cliffwater produces quarterly private asset "pipeline" reports for clients... ...used as the basis for investment planning over the next several quarters CLIFFWATERLC | 21#22Fund Selection Process – Transparent and Forward Looking Sector Research - - - - Manager list by sector: Buyouts Venture/Growth Private Debt Energy Nat Resources Infrastructure Real Estate Approximate annual activity: - – 1,200 manager meetings calls - 500 fund reviews - 200 annual meetings - Portfolio Construction Analytic tool organizes sourcing pipeline by sub- strategy & expected vintage year 3-4 year forward plan to build relationships and improve access ~180 Managers on Our Private Assets Top Tier List Ongoing Analysis Quarterly private assets activity report Regular webinar with market review & sector outlook Focus List of managers available to clients Fund selection driven by manager quality and client portfolio fit 22 22 CLIFFWATER LIC |#23CLIFFWATERLC Absolute Return Consulting#24Absolute Return Coverage Absolute Return Universe 7,000+ Funds¹ 2,200 Unique Firms¹ Research Group Preliminary Due Diligence and Rating (A, B or C) Strategy Coverage: Market Neutral Credit/Distressed Event Driven Equity Long/Short Macro - Discretionary Macro-Systematic Multi-Strategy Focus List Funds² Approved Funds² 218 A-Rated 132 Funds 331 B-Rated Focus List Funds² Absolute Return Strategies Focus List Funds² Firm Headquarters Multi- Strategy 7% Macro- Systematic 9% Market Neutral 18% Europe 19% Annual Activity by Research Group³ 360 175 936 104 2,462 Funds sourced and reviewed Initial Fund meetings Investment due diligence meetings Operations due diligence meetings Manager calls Macro- Discretionary 13% Equity Long/Short 21% Event Driven 12% Credit/ Distressed 21% Asia/Pacific 7% North America 74% 1 Source: HFRI. 2 As of December 31, 2017. 3 Unless otherwise indicated, approximate annual activity, based on average over past three years (2015, 2016, 2017). 4 Estimated approximate annual activity. CLIFFWATER LLC | 24#25Absolute Return Diligence - Thorough Documentation Cliffwater clients receive multiple research reports, recommendation reports and update notes on their investments and managers. - Timely information and analysis enables clients to stay informed and make relevant decisions Reports provide Cliffwater's views and opinions, as well as a recommended course of action Report Description Profile Report 4-6 page due diligence report with fund rating Frequency Generally updated every Report Meeting / Call Notes Description two years Notes of meetings or calls between Cliffwater analysts and the funds Frequency Ongoing Investment Due Diligence Report Operations Due Diligence Report Partnership Development Report Partnership Approximately 20 page investment due diligence report for approved funds Approximately 20 page operations due diligence report for approved managers Generally Monitoring Notes updated annually Generally updated Performance Reports annually Report outlining material events As needed such as changes to organization, team or investment process Report outlining proposed As needed Amendment and changes to fund documents and Annual Meeting Report Redemption Recommendation Report Summary outlining portfolio positioning and exposures, key drivers of performance and any organizational issues Return and risk analytics including measures of alpha and market risk exposures Recommendation report to redeem from a fund that no longer meets Cliffwater's investment expectations Report covering a fund's annual meeting, if any As needed Monthly Monthly Annually Recommendation Report a recommendation on how to vote Watch List Report Report outlining significant concerns (performance, organizational or other) that As needed Industry Development Report addressing emerging topics in the industry As needed Report merit closer monitoring, followed by regular updates CLIFFWATERLC | 25#26Portfolio Management Process 1) Fund Monitoring Monthly manager calls Performance/risk/positioning ■ Watch List report = 2) Portfolio Monitoring 3) Portfolio Rebalancing Monthly fund review team meeting Performance/risk/positioning Attribution Monthly portfolio review team meeting O Strategy allocation changes Liquidity requirements Fund changes Cliffwater combines a comprehensive monitoring process with tactical asset class views. to adjust strategy and fund exposures over time CLIFFWATER LIC | 26#27Cliffwater is Committed to a Successful Relationship with ERSRI Experienced Staff Broad Network Proactive Sourcing Focus on Client Access Transparent Process Client-driven Approach Experienced Team Access to our Top Tier Funds Disciplined Investment Process, Opportunistic Implementation Client Portfolio Customized Approach CLIFFWATERLC | 27#28CLIFFWATER UC Appendix#29Comprehensive, Customized Advisory Services Objective Strategic Review Tasks Review strategic objectives Assessment of current program Capital markets assumptions Recommend investment plan Frequency Deliverables / Tasks Annual Annual strategic plan Investment Policy revisions Manager Sourcing and Due Diligence Sourcing qualified managers/funds Ongoing Profile report Investment due diligence Operations & Legal due diligence Investment due diligence report Operations due diligence report Legal review of fund documents Investment Capital markets updates Program Monitoring Asset class commentary Quarterly/ Ongoing Performance report Fund and portfolio analytics Alternative investment strategy outlook Portfolio assessments and outlook Manager Monitoring Manager monitoring meetings/calls Review of financials Monthly/ Quarterly/ AGMS & LPAC meetings Ongoing Meeting notes Operations Review transactions Monthly or Support Review account statements Quarterly/ Assistance with annual audit if needed Ongoing Staff and Board calls/meetings Calls to update on activity and issues Review new investments in process Ongoing Education Board education Staff training Ongoing Research activity reports and webinars Partnership development reports Watch List reports Partnership amendment reports Record and reconcile cash flow activity Record and reconcile fund valuations Audit documentation as requested by client Regularly scheduled and ad hoc calls Client web access to fund reports Board/IC/Staff meetings Educational presentations Special board/staff session attendance Cliffwater client conference CLIFFWATERIC | 29#30Cliffwater Client Website Cliffwater's website provides clients easy access to research, analytics, and reports The library of client reports and research materials includes: - Client performance reports Client portfolio reports Cliffwater's manager research reports and monitoring notes - Market commentary - Cliffwater's industry research reports - Cliffwater webinars Clients can access portfolio analytics for their specific portfolios Performance analyses Portfolio allocations Portfolio holdings Cliffwater also includes analytical tools that clients can download from the website - Total portfolio asset allocation Portfolio construction Readily accessible reports and analytics can be viewed online or downloaded Highlight updated and newly issued research and reports - Searchable manager universe CLIFFWATER LIC | 30#31Alternative Investment Research and Education Research Papers CLIFFWATER Webinars CLIFFWATERIC CLIFFWATER.IC Summary Regulatory Attention Fees and Expenses in Private Equity has a Increased regulation within the private equity industry has r private with the Securities and Exchange Commission (SEC) as Registered Investment Adveers. In late 2012, the SEC hanan a two vaar Peasance Exam initiative in order to cain an understanding of the private equity industry and its o management, conficts of interest, ed towards newly-registered advisers. ce Inspections and Examinations has SAVE THE DATE Cliffwater's Asset Allocation Outlook Q2 2017 WebEx Presentation Thursday April 20th 2017 11:00 AM PST/ 2:00 PM EST A Comparison of Long Dated Funds to Traditional Fund Structures CliffwaterDirectLendingindex.com SPONSORED BY CLIFFWATER U.S. Mezzanine Debt And Its Relationship to Other Credit Driven Asset Classes February 23, 2017 Mezzanine debt encompasses a set of junior securities that sit in priority just above equity and below senior and other secured debt. These securities are generally non-traded and can be attractive to investors that seek both current yield and potential capital gains through equity warrants, conversion features, and corporate control in distressed situations. It is not uncommon for mezzanine debt to be underwritten to offer a 15-20% gross return. On the other hand, mezzanine debt can present greater risks compared to more senior securities, Including weaker covenants and higher losses (lower recovenes) given default. This report looks at past performance to gauge the attractiveness of mezzanine debt, both absolute and relative to other corporate securities. We find that investment funds focused on mezzanine debt produced realized retums and rick levels consistent with their capital structure ranking and absolute returns averaging 10% over the 20 year history examined. More generaly, we also find significant return premiums for private debt compared equivalent public debt during the study period. Research Results Exhibit 1 reports mezzanine debt fund "Vintage year returns from 1995 through 2014. Performance is measured through June 30, 2016. More recent 2015 and 2016 vintage funds are omitted, following industry convention, because they are too early in development to have returns representative of longer term performance. For example, mezzanine funds started in 1995 earned a 10.20% return, while mezzanine funds started in 2005 earned a 4.54% return. 30% Exhibit 1: U.S. Mezzanine Fund Return (IRR) by Vintage Year Performance through June 30, 2016 have created of investors ctures seek to compared to rships have a 5 years. Tho 'um spectrum d funds 7-dated fi ding period of th the current ad resources, roposition. y structures. companies with lower volatility s are gonorally characterizod orago. Long dated funde wil her not multiples on invested times net return traditionally re based on a percentage of rally be lower (10% to 15%) the terms to be generally longer period of time that potential to accrue more in nts within a traditional private oarnings through growth and Long-dated fund strategies nd will primarily target control to compete with their flagship nd lower retum expectation of rovided by General Partners and are o how private equity firms collect lees nsulting, transaction, and monitoring from limited partners to the General ollected from porfolio companies, or our investment, operations, and legal understand a manager's practice and ed in the industry regarding such fees i manager activity. The managers of firms that have vidated the law or ees and expenses should heb in the ach manager works with its portfolio ir consulting, transaction, monitoring. o disclose the various fees that they of foos during due diligence and in fwater will eto systematically crutiny continue progress of in-house teams of operations-focused rforming portfolio company work that for private equity firms to charge its done by third parties but now carried ment is often that its foo is compettiva ed towards the needs of the portiolio Partner's work in detall with portfolio and intermediaries who observe the vestment team works in tandem with ments, the General Partner's reporting mants Since audited fund financial ses paid by portfolio companies to the er, portfolio company executives, and fund's govering documents allow as manager review process begins with hered and are subject to change without nation san Ceata hasnot minded an inamlant iven as to the accuracy or complains of the read for debuton mmmarchiusa or the that condestnent adds, and should not be gs do nd crate an investmont adversant reuthg from the use of to normelon Past Mark Johnson Pate Kaliuotis Sanior Managing Director Senior Managing Director Pete Keliuotis and Mark Johnson will lead a review of Cliffwater's asset allocation outlook for the second quarter of 2017. WebEx To join the program on Thursday, April 20th REMINDER Teleconference To join the teleconference, please: Cliffwater's Private Assets Activity for Q2 2017 WebEx Presentation Wednesday April 19th 2017 11:00 AM PST/ 2:00 PM EST Gabrielle Zadra Eric Abelson Senior Managing Director Managing Director Bernard Gehlmann Managing Director Chris Rice-Shopard Managing Director Mark Wiliams Managing Director 25% 20% 15% 10.30 Average Mezzanine Fund IBR-10.03% 016 loge دوها 2001 1999 2007 2008 2003 2005 Vintage Year Returns through June 30, 2016 Source: Phich Book US Mezzanine Funds ©2017 Clifwater LLC. All rights reserved. 2011 2013 are large private equity firms d party ownership, and invost 1-datod investment strategy is anagore havo bithor utilizod a fund to one or two conior. nel firms have raised smaller Cliffwater's senior private market specialists, will host a review of Q2 2017 private assets research activity. They will discuss the current investment environment, market opportunities, and the most compelling strategies in private equity, real assets, and real estate sectors. WebEx To join the program on Wednesday, April 19th click on the link below: (No pre-registration required) Teleconference To join the teleconference, please: Dial: 1-800-431-2204 (in the U.S.) Cliffwater's Private Assets Activity for 02 2017 Password: cliff If link above does not work, please copy and paste the address below into your web browser: https://cliffwater.webex.com Help (or 1-847-619-6151 if outside the U.S.) Passcode: 9610081 If you require assistance during the presentation, please call: 1-310-448-5000. CLIFFWATERLC | 31#32Sample Projected Private Equity Allocations Annual Capital Budget - Projected Allocations and Pacing Cliffwater models clients' existing portfolios to determine future annual commitment pacing Includes cash flow and strategy composition - Stress testing capabilities - Incorporated into client's strategic annual plan Strive for meaningful commitment sizes per fund while maintaining time, strategy, and geographic diversification 10.0% 9.0% Private Equity Fair Value as % of Total Plan Assets Unfunded Commitments + FV as % of Assets 8.0% % of Total Portfolio Assets Opportunistically scale cyclical strategies such as distressed debt 7.0% 5.0% 4.7% 4.9% 4.9% 5.0% 5.0% 5.0% 5.0% 4.5% 4.2% 3.9% 4.0% 3.0% 3.0% 6.0% 2.0% 1.0% 0.0% $4,000 Year 1 Year 2 Year 3 ■Non-U.S. $3,500 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Sample Projected Private Equity Allocations Natural Resources Distressed Venture Capital $3,000 ■Buyout $2,500 Capital Invested ($ mm) $2,000 $1,500 $1,000 Year 5 Year 6 Year 7 Year 10 Year 8 Year 11 Year 9 $500 $0 Year 1 Year 2 Year 3 Year 4 The charts shown above are provided for illustrative purposes only. The charts are intended to show examples of the capital budget models Cliffwater generates for its clients. Actual allocations will vary depending on the specific client circumstances and will differ. Year 10 Year 11 CLIFFWATER ULC | 32#33Client Private Asset Program Reporting Performance Summary (8 in thousands) Tatal Total [A] Partnership Dom D C June 30 2016 156 5,461,198 3.239,792 1535061 F From Date: 30 June 2016 To Date: 30 September 2016 CLIFFWATER. 2832991 C Tonal W B-A 4267993 1,028,201 10.72% September 30 2016 162 5505435 3374,159 1,756460 2744604 4501,163 1,127,004 1097 Change $134,337 $134.307 $121,407 $111,763 $2303,170 $90,003 li Cumulative Percentage Drawn = ali Cumulative Distributions 2004 2009 2011 2012 13013 2004 201 2018 2001 2008 2013 2014 2018 *parships in the year of liquidation PORTFOLIO Program Summary Since Inception Inception Date January 31, 2006 Total Commitments $5.595 million Total Contributions $3,374 million Total Distributions $1,753 million Fair Values $2,745 million Net IRR 10.90% Net TVPI 1,33x Net DPI 51.95% Dashboard Research & Publications Gabrielle Zadra As of September 30, 2016 Private Equity ANALYTICS QUARTERLY COMMENTARY PORTFOLIO CONSTRUCTION Portfolio Exposure in thousands Capry Вр UHA Exer Meanin in millions) Annual Commitments $700 3000- 1300 2000 2007 2010 2012 2013 2014 2018 Vintage Year BATT 56509 SHETOT STAND 144 1436 Venture Capital 740908 Noniz Pr 3374.959 F M 18:30% 150% 4501-3 關 135 Client private assets portfolio data maintained by Cliffwater Clients can access and export portfolio data via Cliffwater's secure website Cliffwater provides quarterly client reports that include: - Performance by portfolio, strategy, vintage year, and partnership - - Significant partnership events Portfolio characteristics from company level data for funds and for the total portfolio Provided to illustrate client reporting only. CLIFFWATER IC | 33#34Monthly Analysis: Individual Funds Analysis of: - Organizational/firm issues How fund is positioned/where taking risk - Drivers of performance Monthly performance attribution Top holdings/themes and their contribution to performance for each client-invested fund are discussed during monthly analyst calls. Analysts seek to identify signs of style drift or significant changes in portfolio positioning A Watch List Report is prepared for funds when Cliffwater has significant concerns that merit closer monitoring, and may lead to a redemption recommendation Global Macro-Systematic HFRI Macro (Total) Index Information Ratio vs. Beta to MSCI ACWI (5 Years) 1.0 +Global Macro-Systematic Peer droup" + 0.5- -0.5- -10 -0.5 0.0 Beta Rolling 36-Month Standard Deviation May 91 Dec 93. Dec 96 Dec 99 Distribution of Monthly Returns. ++ Jan 1990 - May 2017 ▲ Bmk 1: HFRI Fund Weighted Composite Index ▼Bmk 2: HFRI Fund of Funds Composite Index Monthly Fund Returns vs. MSCI ACWI Returns (5 Years) Best Fit Curve ** 女 Global Macro-Systematic Cumulative & Monthly Returns HFRI Macro (Total) Index ▲ Bmk 1: HFRI Fund Weighted Composite Index Jan 1990 - May 2017 Bmk 2: HFRI Fund of Funds Composite Index Total, Alpha & Beta Returns Fund Bmk 1 Bmk 2 Total Return (%) 14 1 Month 0.49 0.46 -0.17 3 Month 0.17 1.39 0.82 1 Year 1.02 8.31 5.55 3 Years 1.82 2.96 1.75 5 Years 0.94 4.93 3.71 10 Years 2.46 3.04 0.90 Since Inception 10.31 9.93 6.66 Alpha Return (%) vs. MSCI ACWI 3 Years 1.32 0.63 -0.07 5 Years -0.18 0.75 0.44 10 Years 1.10 0.59 -1.20 Since Inception 5.95 483 2.23 Beta Return (%) vs. MSCI ACWI 3 Years 0.02 1.86 1.34 5 Years 0.70 3.76 2.85 10 Years 0.26 1.36 1.00 Since Inception 0.89 1.63 0.95 Jan 90 Dec 93 Dec 96 Dec 99 Dec 02 Dec 05 Dec 08 Dec 11 Dec 14 May 17 Historical Returns (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CY Fund CY Bmk 1 CY Bmk 2 2017 -0.45 0.80 -0.49 Dec 02 2016 1.02 2015 2.51 0.49 1.49 -0.95 -0.08 -0.93 2.22 0.20 0.56 -1.19 -0.05 -2.31 0.14 0.52 3.54 2.78 0.79 -1.47 0.89 -1.61 -0.34 -1.23 -0.31 -0.08 1.39 -1.42 0.90 1.03 5.44 0.51 -1.26 -1.12 -0.27 2014 -0.85 1.44 -0.90 0.06 0.57 2013 1.53 -0.68 0.41 2012 1.27 0.79 -1.32 -0.58 2011 2010 2009 2008 -0.72 1.28 -1.09 2.37 -2.30 -1.95 0.16 1.59 0.82 -1.58 -0.10 -0.12 -0.61 -0.09 3.54 1.08 4.22 -1.22 -0.03 1.20 -1.25 -1.57 0.40 -1.42 -1.74 0.70 -0.40 150 1.08. -0.20 2.25 0.24 -0.06 -1.08 -0.17 0.83 0.52 0.47 2.01 -0.23 -0.03 -1.84 -0.06 1.02 1.66 -0.51 -1.24 -0.92 -0.65 -0.25 -0.12 -0.06 1.69 2.74 2.23 -0.92 3.34 -1.17 0.49 0.37 1.71 -0.52 2.17 -1.30 1.19 -2.62 1.18 -1.21 1.63 0.73 1.11 5.58 2.98 3.37 -0.44 9.13 8.96 -0.06 6.36 4.79 -4.16 -5.25 -5.72 8.06 4.34 10.25 5.70 19.98 4.83 -19.03 -21.37 11.47 Performance Statistics Rolling 36-Month Alphal Fund Benk 1 Bmk2 Standard Deviation (%) 3 Years 3.96 3.85 3.34 5 Years 3.78 3.64 3.27 Since Inception 7.18 6.62 5.51 Information Ratio 3 Years 0.33. 0.40 -0.03 g Monthly Ret 5 Years -0.05 0.46 0.21 Avg Std Since Inception 0.91 1.16 0.51 Ku Return Dev Omega Ratio Fund 0.82 2.07 0.66 3 Years 1.07 1.241 1.03 Bmk 1 0.79 1.91 -0.62 5 Years 1.04 2.03 1.66 Dec 92 Bmk 2 0.54 1.59 -0.63 Since Inception 3.04 2.82 2.38 Dec 96 Cumulative Drawdown Dec 99 Dec 02 Dec 05 Dec 08 Dec 11 Dec 14 May 17 Created with MPI Stylus Beta vs. MSCI ACWI 3 Years 0.01 0.32 0.24 5 Years 0.07 0.32 0.25 Since Inception 0.17 0.33 0.22 Correlation to Fund -10 3 Years 0.18 0.16 5 Years 0.35 0.35 Since Inception 0.63 0.65 Serial Correlation 3 Years -0.16 0.23 0.24 5 Years -0.16 0.11 0.15 Since Inception 0.17 0.30 0.35 May 17 -6 -5 -4 This report is not an advertisement, is being distributed for info or solicitation of an offer for the purchase or sale of any secu which would cause substantial harm to you, Cliffwater LLC, or t Each of Hedge Fund Research, Inc. and MSCI Inc. is the source a Jan 90 Dec 92 Dec 95 Dec 98 Dec 01 Dec 04 Dec 07 Dec 10 Dec 13 Created with MPI Stylus @2017 Cliffwater LLC. All rights reserved. CONFIDENTIAL | Page 3 This report reflects information only through the date hereof. The preparation of this report does not indicate that Cliffwater LLC has conducted full due diligence on the fund or the likelihood that Cliffwater LLC would recommend the fund if such diligence was completed. All third-party information has been obtained from sources believed to be reliable but its accuracy is not guaranteed. We have not conducted an independent verification of this information. Cliffwater LLC shall not be responsible for investment decisions, damages, or other losses resulting from The charts shown above are provided for illustrative purposes only. The charts are intended to show examples of Cliffwater's hedge fund client reporting only and, therefore, in lieu of showing the performance of an individual hedge fund, we have shown the performance of a hedge fund index, the HFRI Macro (Total) Index. CLIFFWATERLC | 34#35Monthly Analysis: Portfolio Attribution Cliffwater conducts attribution analyses of client performance against client benchmarks, the Cliffwater Model Portfolio, and other Cliffwater client portfolios - Total value added/lost; impact of manager selection and strategy allocation We also disaggregate client performance into alpha and beta components - Evaluate Information Ratio, Beta, and Convexity Sample Client Portfolio Convexity Analysis Global Stock Return -8% -6% -4% 8% 6% 4% -2% -4% -6% -8% Monthly Hedge Fund Return 1.50% Sample Client Portfolio Attribution Analysis Sample Client 1-Year Attribution Vs. Cliffwater Model Portfolio -Asset Allocation 1.00% -Manager Selection Total Value Added 0.50% 4% 6% 8% 0.00% Sample Client Hedge Fund Portfolio. -0.50% HFRI Fund of Funds Composite Index -1.00% Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 The charts shown above are provided for illustrative purposes only. The charts are intended to show examples of the types of performance analysis Cliffwater can conduct. CLIFFWATER LIC | 35#36Monthly Analysis: Portfolio Review and Rebalancing Monthly evaluation of client portfolio performance, exposures and positioning Portfolio positioning may inform fund rebalancing decisions Cliffwater tracks each fund's liquidity terms; maintains client portfolio liquidity calendars - Liquidity impacted by lock-ups, gates, redemption windows, and notice periods - Available liquidity may impact redemption/rebalancing decisions Liquidity by Quarter ($ Millions) 300 265 250 200 150 100 63 50 50 0 Jun-17 Sep-17 Dec-17 28 45 19 Mar-18 Jun-18 Sep-18 10 6 Dec-18 Mar-19 Jun-19 Quarter Ending Sep-19 Dec-19 Mar-20 Jun-20 Liquidity Profile as of Current Month 100% 80% 60% 40% 20% 0% 02 468 10 12 14 16 18 20 22 24 26 28 30 32 34 36 + The charts shown above are provided for illustrative purposes only. The charts are intended to show examples of Cliffwater's hedge fund client reporting only. Number of Months CLIFFWATER LIC | 36#37Cliffwater Client Portfolio Reporting Cliffwater provides clients with a detailed monthly report on their absolute return portfolios The report includes information and analysis on the full portfolio and each individual fund Components of the monthly absolute return report include: - Performance analysis (portfolio, funds and benchmarks) Market exposure (beta coefficients) Drawdown analysis Strategy allocations Geographic exposures Leverage and long/short exposure Asset class exposure Liquidity profile and upcoming notice and redemption dates Additionally, Cliffwater is available to conduct monthly calls with the client to discuss the portfolio and individual managers - Review of performance Discussion of recommended changes (rebalancing, manager additions/terminations) Analysts are available to discuss individual funds Clients can also access and export portfolio data via Cliffwater's secure website CLIFFWATERLIC | 37#38General Disclosures This presentation has been provided to you for the purpose of discussing an investment advisory relationship. The material contained herein is confidential and is intended for one-on-one or small group meetings with qualified and sophisticated investors. It may not be copied, transmitted, given, or disclosed to any person other than your authorized representatives. This presentation is not an advertisement and is not intended for public use or distribution. This material is not meant to be, nor shall it be construed as, an offer or solicitation of an offer for the purchase or sale of any security. This presentation was prepared exclusively for information and discussion purposes, and is not meant to be, nor shall it be construed as, an attempt to define all information that may be material to you. All information including opinions or facts expressed herein are current as of the date appearing in this presentation and is subject to change without notice. All information has been obtained from sources believed to be reliable. No representation, warranty, or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in this presentation. The information and opinions in this presentation do not constitute investment advice. The list of clients included in this presentation does not represent an endorsement or approval of Cliffwater or the advisory services provided. All third party information has been obtained from sources believed to be reliable but its accuracy is not guaranteed. The information herein may include inaccuracies or typographical errors. Due to various factors, including the inherent possibility of human or mechanical error, the accuracy, completeness, timeliness and correct sequencing of such information and the results obtained from its use are not guaranteed by Cliffwater. No representation, warranty, or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in this presentation. Cliffwater shall not be responsible for investment decisions, damages, or other losses resulting from the use of the information herein. This presentation may include sample or pro forma performance. Such information is presented for illustrative purposes only and is based on various assumptions, not all of which are described herein. Such assumptions, data, or projections may have a material impact on the returns shown. Nothing contained in this presentation is, or shall be relied upon as, a representation as to past or future performance, and no assurance, promise, or representation can be made as to actual returns. Past performance does not guarantee future performance. There can be no assurance that any expected rate of return, risk, or yield will be achieved. Rate of return, risk, and yield expectations are subjective determinations by Cliffwater based on a variety of factors, including, among other things, investment strategy, prior performance of similar strategies, and market conditions. Expected rate of return, risk, and yield may be based upon assumptions regarding future events and conditions that prove to be inaccurate. Expected rate of return, risk, and yield should not be relied upon as an indication of future performance and should not form the primary basis for an investment decision. No representation or assurance is made that the expected rate of return, risk, or yield will be achieved. Cliffwater is a service mark of Cliffwater LLC. CLIFFWATERLIC | 38