#1cerberus October 2018 Cerberus Global NPL Fund, L.P. Cerberus Global NPL Fund, L.P. - North Dakota State Investment Board Proprietary and Confidential#2Disclaimer This presentation is being furnished to provide preliminary summary information regarding Cerberus Capital Management, L.P. (together with its affiliated management/ general partner entities, operations companies, loan servicing companies and funds and accounts "Cerberus") and a global Non-Performing Loan ("NPL") fund managed by Cerberus (the "Cerberus Global NPL Fund, L.P." or the "Fund"). This presentation and the materials set forth herein may not be reproduced or used for any other purpose. This presentation is confidential and any unauthorized copying, disclosure or distribution of these materials without the express consent of Cerberus is strictly prohibited. The information contained herein is provided for informational purposes only, is not complete, and does not contain certain material information about Cerberus, the Funds and accounts managed by Cerberus (the "Cerberus Funds") or the Fund, including important disclosures and risk factors, and is subject to change without notice. This document is not intended to be, nor should it be construed or used as an offer to sell, or a solicitation of any offer to buy an interest in any entity, which offer may only be made at the time a qualified offeree receives a confidential private offering memorandum describing an offering (a "memorandum"). In the event of any conflict between information contained herein and information contained in a memorandum, the information in the memorandum will control and supersede the information contained herein. The information set forth herein is based upon information reasonably available to Cerberus as of the date of these materials. The delivery of this information shall not, under any circumstances, create any implication that the information contained herein is correct in all respects, including as of any time subsequent to the date hereof, and Cerberus does not undertake any obligation update such information at any time after such date. Further, the information and data presented do not constitute, and is not intended to constitute, "marketing" as defined in the European directive of the alternative investment Fund managers C11/61/EU). Proprietary and Confidential | Not for Further Distribution Cerberus is exempt from the requirement to hold an Australian financial services license under the Corporations Act 2011 (CTH) in respect of financial services. Cerberus is registered with the U.S. Securities and exchange commission under U.S. Law, which differs from Australian laws. Where this document is distributed by Cerberus into the United Kingdom ("UK"), it is intended to be made available only to persons who fall within an exemption specified in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("FPO"), as amended and is exempt from the general restriction in Section 21 of the Financial Services and Markets Act 2000. Exemptions include distribution to investment professionals, high net worth companies, partnerships or unincorporated associations, or other exemption, as defined in the FPO. Where this occurs, this document has not been approved by a Financial Conduct Authority ("FCA") authorized person which, unless these exemptions apply, would be required under Section 21. Where this document is distributed by Cerberus European Capital Advisors, LLP ("CECA"), authorized and regulated by the FCA, or by a Cerberus affiliate on its behalf, or Cerberus is providing the document to a person in the UK not exempt as defined in the FPO, CECA approves the document for distribution to Professional Clients or Eligible Counterparties, as defined by the rules of the FCA. F The representative of Cerberus Global NPL Feeder Fund, L.P. (the "Feeder Fund") in Switzerland is Hugo Fund Services SA, 6 Cours de Rive, 1204 Geneva. Banque Heritage SA, 61 Route de Chêne, CH-1208 Geneva, Switzerland is the Swiss paying agent. The distribution of interests in the Feeder Fund in Switzerland must exclusively be made to qualified investors. The offering documents and annual or semi-annual reports of the Feeder Fund can be obtained free of charge from the representative. The place of performance and jurisdiction for interests in the Feeder Fund distributed in Switzerland are at the registered office of the representative. 2 gard Fecha de inicio de la oferta Financia 23 de Febrero de 2018 (i) La presente oferta se acoge a la Norma de Carácter General N° 336 de la Comisión para el Mercado Financiero de Chile; (ii) La presente oferta versa sobre valores no inscritos en el Registro de Valores o en el Registro de Valores Extranjeros que lleva la Comisión de Valores para el Mercado por lo que los valores sobre los cuales ésta versa, no están sujetos a su fiscalización; (iii) Que por tratarse de valores no inscritos, no existe la obligación por parte del emisor de entregar en Chile información pública respecto de estos valores; y (iv) Estos valores no podrán ser objeto de oferta pública mientras no sean inscritos en el Registro de Valores correspondiente. This presentation contains highly confidential information, which shall not be reproduced or transmitted to any third parties without Cerberus' prior written consent. The presentation shall not be understood as an offer or solicitation to the public to purchase or sell securities in Brazil. Cerberus does not make any representation with respect to the eligibility of any recipient of these materials to acquire the interests in the Partnership under the laws of Brazil. The Partnership has not been registered in Brazil and none of the interests in the Partnership may be offered, sold or delivered, directly or indirectly, in Brazil or to any resident of Brazil except pursuant to the applicable laws and regulations of Brazil. Certain statements contained herein may constitute "forward-looking statements," which can be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "anticipate", "target", "project", "estimate", "intend", "continue" or "believe" or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance may differ materially from those reflected or contemplated in such forward-looking statements. The information herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. cerberus#3Disclaimer - Strategy Returns This presentation includes information regarding the stand- alone performance of investments made pursuant to Cerberus' NPL strategy made by the Cerberus Funds since inception of the strategy. The NPL investments made by the Cerberus Funds constitute a specific investment strategy of Cerberus (the "NPL Strategy"), and generally consist of investments in NPL assets, including but not limited to purchases of portfolios of commercial real estate secured loans and unsecured loans which are suffering from some form of delinquency, as well as foreclosed real estate assets ("REOS"), made by Cerberus' NPL group (the "NPL Group"). Such investments may include NPLs, real estate assets, real estate servicing or asset management companies, and the NPLs may include obligations with varying terms with respect to collateral, relative seniority or subordination, purchase price, convertibility, interest requirements and maturity. Such investments are included because they were made by the NPL Group and would be made by the Fund in similar circumstances. The Cerberus Funds that have made NPL investments are referred to collectively herein as the "Cerberus NPL Funds". The information presented herein reflects the performance of all of the NPL investments made by all of the Cerberus NPL Funds since February 1, 1998. As a result, the information presented herein reflects investments made by many different Cerberus Funds, and does not reflect the investments made by, or the performance of, any particular Cerberus Fund or any small group of Cerberus or the returns with respect to any particular investor inds the Cerberus Funds. The purpose of the information presented herein is to present the performance information of the NPL Strategy and all of the NPL investments made by the Cerberus NPL Funds in the aggregate since February 1, 1998. The investments reflected here are based upon Cerberus' internal determination of the investments that are part of the the emer the ban Proprietary and Confidential | Not for Further Distribution NPL Strategy. While Cerberus believes such determination to be reasonable, Cerberus makes no representation that such determination encompasses every investment that I could possibly be included within the NPL Strategy or that certain investments that Cerberus has included in the NPL Strategy should not be so included. Because investments made by certain of the Cerberus Funds in the NPL Strategy generally were made as part of a more diversified portfolio of investments, and were not made as stand-alone portfolios for the NPL Strategy, investors should consider the limitations inherent in the strategy-level performance information set forth herein. In addition, if all of the investments reflected herein had been included as part of Cerberus Funds with a more diversified portfolio, different Fund terms and different Fund limitations, it may have affected how decisions were made with respect to the NPL Strategy and, therefore, the performance shown herein would have been materially different. While Cerberus manages certain funds that invest only in European NPLs. Cerberus has not included the performance of such funds herein as (i) there is no single Cerberus fund that has an investment mandate as broad as the Fund's, (ii) the Cerberus NPL Funds invested during different time periods, and (iii) the Cerberus NPL Funds each have unique terms, including without limitation, in respect of diversification, investment limits, leverage and fees. Accordingly, Cerberus believes the performance of such funds is not representative of its entire NPL track record. Not all of the Cerberus Funds had or have an interest in the investments within the NPL Strategy. Further, among the Cerberus NPL Funds that have investments in the NPL Strategy, the amounts, percentages, characteristics and returns for such investments have been and are materially different across such Cerberus NPL Funds. Among other things, the NPL investments of the Cerberus NPL Funds may have represented only a small portion of the overall 3 investments of such Cerberus NPL Funds. As a result, the past performance information of each particular Cerberus NPL Fund is mater different from the past performance information set forth herein for the NPL Strategy as a whole. The information presented herein with respect to the NPL Strategy has been prepared and calculated by Cerberus in accordance with the methodology described herein. While Cerberus believes that its methodology results in an appropriate and accurate determination of the performance of the NPL investments in the aggregate, there exists a large number of other methodologies that Cerberus could have used in calculating the performance returns of the NPL investments. Such other methodologies would incorporate one or more assumptions that are different from those described herein and, if one or more of such methodologies were used, the performance shown herein may have been materially different. In addition, the methodology described herein is different from the strategy-level past performance methodology previously employed by Cerberus. These differences reflect Cerberus' ongoing efforts to refine its calculation methodology to be as accurate as possible. If prepared in accordance with the methodology previously employed by Cerberus, the performance shown herein likely would have resulted in lower performance results. No conclusion of any type or kind should be drawn regarding the past, current or future performance of any Cerberus Fund, whether now existing or hereafter created, including but not limited to the Fund, whether or not based upon the information presented herein. It should not be assumed that any of the holdings, transactions or investments made by the Cerberus Funds, including, without limitation, the Cerberus NPL Funds and the Fund, will be profitable, or that the specific investments will be profitable, either individually or in the aggregate. Past performance is not indicative of, and is not a guarantee of, future results. cerberus#4Disclaimer - Strategy Returns & Gross Investment The selected portfolios, transactions, strategies and investments presented herein represent a limited number of investments made by the Cerberus NPL Funds, and do not purport to be representative of (or constitute a material portion of) all investments purchased, sold or recommended for investment by the Cerberus Funds, including, without limitation, the Cerberus NPL Funds, and are not necessarily indicative of investments that the Cerberus Funds, including, without limitation, the Fund, will make in the future. significantly lower than any performance information presented as gross returns. The actual results of any particular investor in the Cerberus NPL Funds likely will materially differ from the net performance figures herein due to a number of factors, including, without limitation, that the NPL investments constitute only a portion of the investment portfolios of such Cerberus NPL Funds, transaction dates of capital activity, individual investment limitations or opt outs, the inclusion of the interest equivalent payments, if any, into the capital contributions, whether the investor invests through a feeder fund and the actual management incentive compensation and other expenses respect of such investor. GROSS INVESTMENT TARGET IRR The information presented herein reflects the performance of the NPL Strategy since February 1, 1998. If different periods of time were selected by Cerberus for the performance results of the NPL Strategy, the performance information would be materially different from the performance information presented herein and could reflect a loss. The information presented herein has been created internally by Cerberus and has not been audited. The valuations of unrealized investments are determined on a fair value basis in accordance with Cerberus' valuation policies and procedures. There can be no assurance that unrealized investments will be realized at the valuations used to calculate the performance information contained herein, as actual realized returns will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions on which the valuations used to calculate the performance information contained herein are based. Certain of the past performance information forth herein is presented on a gross (not net) basis, and does not reflect the actual returns that would have been achieved by any investor in any Cerberus NPL Fund. The actual returns achieved by investors in any Cerberus NPL Fund would be Cerco unde Proprietary and Confidential | Not for Further Distribution et IRR The gross investment IRR information presented herein represents the targeted gross rate of return on an investment before the effects of Fund level fees and expenses. The net return to investors in Fund will almost certainly be less than the gross investment target IRR set forth herein. The gross investment target IRR information presented herein should not be used as a basis for an investor's decision to invest in the Fund. e mat o akofte The gross investment target IRR formation presented herein does not represent a target rate of return for the Fund and is presented solely for the purpose of providing information regarding the Fund's investment objective, the nature and type of investments that the Fund likely will pursue, and the Fund's anticipated risk and reward characteristics on an investment-by-investment basis. The gross investment target IRR information presented herein is not a projection or prediction of the future performance of the Fund or the return to any investor in the Fund. 4 The gross investment target IRR set forth herein is based upon a number of factors and assumptions for each investment as determined by Cerberus in its sole discretion. The assumptions used to establish the gross investment target IRR presented herein are based upon assumptions regarding future events and situations; however, investment conditions are dynamic and may change during the term of the Fund. Neither Cerberus nor any other person or entity makes any representation that any investments of the Fund will achieve the gross investment target IRR presented herein. cerberus#5Table of Contents 1 Proprietary and Confidential | Not for Further Distribution 2 3 4 6 About Cerberus The Cerberus NPL NPL Market Opportunity Characteristics Investment & Workout Process Fund Terms 5 Page 6 Page 10 Page 19 Page 23 Page 29 Cerberus Global NPL FIOLOong on cota State lovestment Board Page 34 cerberus#6Section 1 About Cerberus HABURPLASERM Cerberus Global NPL akota State Investment Board CATALA#7Cerberus Is a Global Leader in Alternative Investing with a 25-Year Track Record of Success Global Footprint 671 employees in 13 offices Total assets under management of c.$36.3 billion (1) 180 investment professionals Note: Employee figures as of September Experienced Alternative Asset Investors Experience investing for over 25 years across numerous economic cycles Consistency and discipline in decision-making Tenured Senior Team Proprietary and Confidential | Not for Further Distribution Senior management have been at the firm for an average of 15 years 80 Managing Directors have been at the firm for 10 years or longer Dedicated investment teams for each investment strategy serberus Global NPL Fund Dakota Stanvestment مج 7 Capabilities Multi-disciplinary investment platforms provide expertise across asset classes, sectors, and geographies Collaboration across platforms enhances sourcing, underwriting, and structuring of investment solutions Investment flexibility across platforms to pursue the most compelling risk-reward opportunities globally Board -ammo Proprietary Operational Approach (3) Cerberus Operations & Advisory Company Team of -110 operating professionals and functional experts to further drive value Cerberus European Servicing NPL servicing and asset management oversight with 50 employees (1) As of June 30, 2018. (2) Non-performing loan. (3) The fees and expenses associated with COAC, CES, FirstKey and other affiliated service providers are borne by the Cerberus Funds in accordance with the applicable Cerberus Funds' organizational documents. Cerberus expects to form additional affiliated servicer entities in the future. cerberus FirstKey Asset Management Loan acquisitions, servicing, asset management, and securitizations#8Evolution and Growth of Cerberus Macro Events Cerberus Response Cerberus Product Evolution >>> Early-Mid 1990's >>> U.S. Savings and Loan Crisis Established franchises: >> Corporate Credit Founded in 1992 during the U.S. Savings and Loan Crisis Direct Lending >>> Late 1990's Proprietary and Confidential | Not for Further Distribution Asian Financial Crisis Leveraged U.S. experience into first-mover advantage in Asia Extended NPL franchise to Asia Migrated into Private Equity as a result of Distressed-for-Control investment strategy Created predecessor to COAC >>> Early 2000's 8 European Unification embers Asian teams to Germany to capitalize on distressed opportunities Extended Corporate Credit & Distressed Debt and Non- Performing Loan franchises to Europe Global Financial Crisis Hired Mortgage Securities teams during financial crisis Established Mortgage Securities and Assets businesses as banks vacated the market 2010+ >>> Post-Financial Crisis Expanded Proprietary Operating Platforms (1) erberus och Lund LP. - North Pota Suresent Board Created proprietary operating platforms in the U.S. (FirstKey) and Europe (CES) to increase competitive advantages (1) The fees and expenses associated with COAC, CES, FirstKey and other affiliated service providers are borne by the Cerberus Funds in accordance with the applicable Cerberus Funds' organizational documents. Cerberus expects to form additional affiliated servicer entities in the future. cerberus#9Cerberus Investment Platform Corporate Credit $1.2bn AUM 34 Investment Professionals Global Credit Direct Lending $13.6bn (1) AUM 30 Investment Professionals 1992 Founded Mortgage Securities & Assets Principal Investment Businesses $8.8bn AUM 21 cerberus $36bn AUM Proprietary and Confidential | Not for Further Distribution GlobNPLY Real Estate Non- Performing Loans (3) $5.3bn AUM 29(2) Investment Professionals 671 Employees Real Estate Assets $2.7bn AUM 46(2) Investment Professionals 13 9 thakota Stars Investment Board Private Equity $4.7bn AUM Proprietary Platforms (4) 39 Investment Professionals Cerberus Operations & Advisory Company Cerberus European Servicing First Key Asset Management -110 Professionals First Key Homes 50 Professionals 60 Professionals Note: AUM figures as of June 30, 2018; for multi-strategy funds currently in their investment period, for example Cerberus Institutional Partners VI, L.P. ("CIP VI"), the expected fund strategy deployment of capital across strategies has been used, however these are subject to change in future (i.e. CIP VI's commitments are expected to be deployed 70% in Global Credit and 30% in Private Equity). Employee figures as of September 1, 2018. 645 Professionals (1) Includes fund-level leverage, as Direct Lending is a leveraged strategy. (2) The Non-Performing Loans investment team is a subset of the Real Estate investment team and included within the 45 investment professionals figure. (3) NPLs may also include unsecured consumer and small/medium-sized enterprise loans. (4) The fees and expenses associated with COAC, CES, First Key Asset Management and First Key Homes are borne by the Cerberus Funds in accordance with the applicable Cerberus funds' organizational documents. cerberus#10Section 2 The Cerberus NPL Edge SEBES Cerberus Global NPL Noth Date Investment Bod Func#11The Cerberus NPL Edge Cerberus has several competitive advantages in NPL investing 1 >> $16.6bn Equity Invested >>> Experienced and tenured investment team >>> Experienced NPL Investor Over $16.6 billion of equity invested in 213 NPL transactions across 18. countries globally Strong track record of generating compelling risk adjusted returns across multiple cycles >>> 2 High Barriers to Entry >>> 213 Global Transactions Cerberus believes only a limited number of buyers have the expertise to invest in NPLs: since 2014, the top 4 buyers accounted for ~50% of volume sold in Europe (2) Cerberus has been the largest buyer of NPLs in Europe since 2014, accounting for 21% of the market (2) A Cerberus Proprietary and Confidential | Not for Further Distribution Highlights 18 Countries Globally und, orth >> whyota vestment Board Cerberus has strong third- party relationships with industry counterparties Transactions with over 40 distinct sellers Repeat transactions with 17 of Europe's largest banks since 2010 >> Cerberus has been able to close a number of large proprietary transactions 4 11 Strategy IRR (1) >>> Servicing Expertise >>> Servicing oversight is key to underwriting and monetizing NPL transactions (2) Source: Cushman & Wakefield (Real Estate Loans Sales - 2014, 2015, 2016); Evercore (European Distressed RE Market Report, 2016, 2017). Cerberus has been adept at establishing relationships with local servicing partners across multiple geographies CES is a platform of 50 employees with offices in London, Amsterdam, Frankfurt, Dublin, Belfast and Madrid 21.1% Net Strategy IRR (1) 5 Network of Senior Advisors >>> Experienced team of senior advisors Deep networks cerberus#121 Experienced NPL Investor: Tenured Investment Team Senior members of the investment team have worked together for over 15 years Investment Professionals: (1) 37 Team Geographies: 19 London 10 Netherlands 4 Madrid 2 Frankfurt 2 United States ** Co-head of CES; not part of the investment team. (1) As of September 1, 2018. Lee Millstein President, Cerberus Global Investments & Head of 10 years with Cerberus 26 years experience Proprietary and Confidential | Not for Further Distribution Daniel Dejanovic Head of European Real Estate 11 years with Cerberus 20 years experience Ron Coggle* Co-Head of CES 5 years with Cerberus experience >>> erberus Global P >> Head of International Real Estate 12 years with Cerberus 32 years experience >> Charles Dunlap (10/12) David Knower (15/32) Jonathan Fadale (18 / 22) >> Emanuele Rosetti Zannoni (11/17) 12 -North State estent Board Robert Falls** Co-Head of CES 5 years with Cerberus 30 years experience Other Managing Directors (Years with Cerberus / Years Experience) Real Estate David Teitelbaum Head of European Advisory Offices 21 years with Cerberus 24 years experience >>> Robert Mast (5/25) >> Stefan Walldorf (12/15) >> Thomas Wiegand (12/26) + 26 other investment professionals cerberus#131 Experienced NPL Investor: Strong Track Record in NPL Concurrent gross strategy IRR and concurrent net strategy IRR of a hypothetical pro forma NPL fund investment vehicle >> The information provided in this presentation is a model of the performance of a managed by Cerberus based on the performance of all of the NPL Investments February 1, 1998 (the "Pro Forma NPL Fund"). in the NPL Strategy since >> This information is being provided to show the experience of the NPL team, and its investments will perform. >> The gross hypothetical performance of the Pro Forma NPL Fund based as the "Concurrent Gross Strategy IRR." Pro Forma NPL Fund Dollars ($) in billions Hypothetical Total Invested Capital Pro Forma NPL Fund Forma Size $16.3 Called Capital Proprietary and Confidential | Not for Further Distribution Fund L.- North Dakota StarmaVesting $0.3 Total Proceeds & Income $27.1 Gross MOIC (1) Cerber Global - 13 1.63x the information provided herein is referred to as an indication of how the Fund or Concurrent Strategy Performance Gross IRR (1) 28.0% Net MOIC (1) 1.47x Net IRR (1) 21.1% cerberus#14ents used to calculate the >> The Gross IRR and Net IRR by strategy by region are based on the cash flows of the Concurrent Gross Strategy IRR of 28.0% and Net IRR of 21.1% on page 13 (categorized region). These performance metrics represent performance of a hypothetical pooled investment vehicle investing particular region. >> The performance on this slide is not representative of the performance of any guarantee of, future results. 1 1 Experienced NPL Investor: Global Invest tries globally 1 Cerberus has invested over $16.6 billion of equity in 213 NPL transactions across 18 2 3 North America $477m Equity Invested Europe $11.9bn 1.45x Gross. Multiple Equity Invested Asia 2.02x Gross Multiple $4.2bn Equity Invested 41.6% Concurrent Gross IRR 23.3% Concurrent 40.8% Concurrent Gross IRR 33.0% Concurrent Net IRR Concurrent Net IRR Proprietary and Confidential | Not for Further Distribution 32.7% Concurrent Net IRR Cerberts Globa NP/Fund, L.P. North Dakota St Cerberus' NPL investments in a Fund, and is not indicative of, or a 2 Note: For additional information on regional Hypothetical Fund Size, Called Capital, Pro Forma Recycling, Total Proceeds and Income and additional performance metrics, please see page 40. 14 3 cerberus#151 Experienced NPL Investor: Cerberus European Since late 2010(1), Cerberus has completed NPL transactions with a total transaction size $128 billion (1) Total Value UPB (3) $64 billion (1) Total Transaction Size $12 billion (1) Total Equity 363 thousand Underlying Real Estate/ Real Estate Acquired (1)(4) >1 million Number of Loans Acquired (¹) >1 million Number of Borrowers (1) European NPL Transactions since 2010 (²) USD billions $10 $9 $8 $7 $6 $5 $4 $2 Transaction Size ■ Equity Proprietary and Confidential | Not for Further Distribution 2010 2011 orus Globe NPL Fund, L.P. North Dakota State Invctivity 2012 2013 15 LLL mul 2014 over $64 billion 2015 2016 2017 (1) Includes estimates for deferred tranches of deals closed, expected financing and all deals closed or in the process of closing as at September 1, 2018. (2) From funding memorandum at deal signing. Chart excludes residential mortgage transactions, as these transactions are typically very highly levered (in excess of 90% LTC), which is not representative of a typical NPL investment. Includes Project Vermeer (equity <10% of transaction size). (3) Purchase price or value where UPB not available or not applicable, such as when real estate is directly acquired. (4) Includes both assets held as security against loans acquired as well as real estate directly acquired in the form of REOS. 2018 cerberus#162 High Barriers to Entry: Leading Investor in Concentrated Cerberus has the extensive infrastructure and experience required to invest in NPLs, and largest buyer of NPLs in Europe since 2013 Market Shares for European NPL and REO Asset Purchases (2013 through YTD 2018) Other 49% 8% 21% Next 3 Buyers Cerberus 12% Proprietary and Confidential | Not for Further Distribution Buyer #3 Evolution of Market (2013 through YTD #1 16 10% 8% 80% 2013 2% ■ Buyer #2 #1 21% 11% 20% 10% 39% 2014 by Year Buyer #3 #1 32% 7% 11% 49% 2015 Next 3 Buyers ■ Other #1 18% 5% 2% 18% 58% been the 2016 #2 15% 40% 43% 2017 (*) 1% #1 21% 1% 19% 8% 51% rberus Good Nirund P. - North Dakota att fortement es YTD 2018 Source: For data through Q1 2016: Cushman & Wakefield (Real Estate Loans Sales - 2013, 2014, 2015, 2016); For data from Q2 2016 to date: Evercore (European Distressed RE Market Report, 2016, 2017, 2018). (*) As per the Q4 2017 Evercore report, the market share numbers pertain only to private investors such as Cerberus, and therefore excludes the Italian government fund Atlante II, which would have been at #2 position in 2017 if it were included. cerberus#173 Strong Relationships: Multiple Repeat and Proprietary Cerberus has maintained strong relationships with leading banks around the world, which repeat transactions with 17 of Europe's largest banks Cerberus Repeat Transactions with Key Sellers, since 2010 Number of portfolios purchased Transactions Purchase Price ($bn) Number of Assets Unpaid Principal Balance ($bn) Santander HSH Note: As of September 1, 2018. Total Proprietary and Confidential | Not for Further Distribution 91 nab $64.0 362,954 Only One Transaction with Seller Bankia UniCredit 40 Repeat Transactions with 17 of Europe's Largest Banks MONTE DEI PASCHI DI SIENA BANCA BAL 1472 17 $30.2 242,550 44.0 State Cerces Global NPL FL.P. - North Dakota State Invouons BBVA FMS Multiple Transactions with Same Seller 51 Sareb $33.8 120,404 83.9 resulted in permanent tsb GRUPO COOPERATIVO CAJAMAR 56% 53% 33% 66% National Asset Management Agency cerberus#184 Servicing Experience Experience of establishing local servicing partners or affiliated entities in many Cerberus with an additional competitive advantage Ex ut Astanothing local servicing partners or affiliated entities in mainides Servicing Platforms with Scale 8 >$74bn Assets Under Management (1) >2.0m Total Loans Serviced (1) >1,500 Full-Time Employees (1) Local Presence berus Global N Fur Proprietary and Confidential | Not for Further Distribution bta Stazerberus-owned Service Providers (²) CERBERUS Cerberus European Servicing Ltd 18 HAYA chl mortgages mihabitans Liberbank Vivienda GESCOBRO...... COLLECTION SERVICES )) DO (1) All Cerberus-owned servicers; includes both Cerberus and third-party managed assets. (2) The fees and expenses associated with CES and other affiliated service providers are borne by the Cerberus Funds in accordance with the applicable Cerberus Funds' organizational documents. In the future, Cerberus expects to form additional affiliated servicer entities, including transaction sourcing entities, cerberus mymoneybank#19Section 3 NPL Investment Characteristics North Cerberus Global NPL Dakota State Investment Board#20Compelling Risk-Adjusted Return Profile Cerberus believes that NPL investments offer significant downside protection and rapid. Strong Downside Protection 96% Of total Cerberus in transactions that I been profitable (1,2) Cerberus invested (1) Please see next slide for additional information on the percentage of profitable transactions. Proprietary and Confidential | Not for Further Distribution 2 Attractive Cash NPL Fund, L.P. - North Dakota Statement ord 20 Profile recovery Rapid cost recovery as evidenced by 2.7 year weighted average life of NPL portfolios (2) cerberus#211 Strong Downside Protection Since inception, profitable investments accounted for 96% of total NPL capital invested, $104 million of capital lost from a total of $17 billion deployed Gross IRR Distribution of NPL Investments (1) Capital Deployed, USD Million Loss-Making Positions Capital Deployed, USD Million Avg Gross MOIC Avg Cost ($m) # Transactions $453 (2) $18 <(5%) (3) 0.0x -0.5x 0.39x 6.2 3 $119 4% of Capital Invested $104m capital lost (70bps of total invested cost) 0.5x -0.75x 0.63x 19.9 6 $508 0.75x-1.0x 0.91x 21.1 24 $637 0 - 5% Proprietary and Confidential | Not for Further Distribution $2,914 5-15% (1) Figure represents the total capital deployed in NPL investments which fall into the Gross IRR range denoted on the axis below (see point (3)). (2) Figure denotes the Gross IRR range within which the NPL investments fall. 21 $4,587 15 - 25% only erberus al NPL Fund, L.P. - North Dakota State Investment with $7,183 25% + cerberus#222 Attractive Cash Flow Profile: Rapid Cost Recovery Cerberus believes that there is potential for outsized reward, with NPL investing, for as evidenced by speed of cost recovery for European NPLs Equity Invested in NPL Transactions, by Investment Vintage (¹) All European transactions since 2010 % of Equity recovered to date % of Equity not yet recovered €!! Projected WAL (2) $225m 137% 2010 $569m 98% 5.2y Proprietary and Confidential | Not for Further Distribution 2012 2013 1.8y 22 82% 2014 2.4y 21% 79% 2015 2.7y $697m 37% 63% 2016 3.9y risk $975m 80% 20% 2017 Global Nound 2.- No Dakot, tate in sestment feraxd 2.6y (1) Data for all European NPL investments since 2010, as of June 30, 2018. Equity invested is the capital deployed by Cerberus Funds and "Equity recovered" is the proceeds and income received by Cerberus Funds. (2) The Projected WAL is the projected Weighted Average Life of the investments in a given vintage. This is only provided for NPL investments, and excludes residential mortgages, REOs and platform transactions. This is calculated as a weighted average, by invested cost, of the projected life of investments within a given vintage. For realized investments this equates to the investment's hold period, whereas for unrealized investments this is a projection, at March 30, 2018, of the likely life of the investment as per the current business plan. The actual life of a given investment may vary significantly relative to the projection and projections may therefore not materialize as projected. Performance shown herein is gross and therefore does not represent the return of any Cerberus Fund as it does not take into account the reduction in performance resulting from fund-level expenses, management fees and performance compensation and therefore the net return to investors would be materially lower than such gross returns. Past performance is not indicative, or a guarantee, of future results. cerberus#23Section 4 Market Opportunity R 0 TLA E Cerberus Global NPL und, L.- Dakby State Inves me Board#24Main Target Geographies While Cerberus adopts an opportunistic approach to geographic focus, we believe the opportunities are currently in Europe, China and Brazil 1 European Opportunity Market Size (1) €800 billion+ Key Drivers of Transaction Volume >> Regulatory pressure (2) >> Banks improving profitability (3) >> Changes to foreclosure processes(4) 2 China Opportunity Market Size (5) $1.0 to $2.0 Proprietary and Confidential | Not for Further Distribution Key Drivers of Transaction Volume » Government Reforms and pressure (6) >> bal NPL FOwing NPL stock (7) of Norimakota State Investment alling ad (5) Source: China Banking Regulatory Commission (CBRC) dataset, 2017; Citi Research, "China Banks," February 23, 2017. (6) Source: Bank of America Merrill Lynch, "No deleveraging, no new cycle," September 22, 2017. (7) Source: China Banking Regulatory Commission (CBRC) dataset, 2017. (8) Source: Deloitte Analysis, Banco Central do Brasil and BNDES. February 2017. (9) Source: World Bank WEO Dataset, December 22, 2017; Source: Federal Reserve Bank of St. Louis, April, 2017. 3 Brazil Opportunity 24 Market Size (8) $160 to $200 billion (1) Source: PWC, "European Portfolio Advisory Group Market Update," April 2017. (2) Source: European Commission, "Progress in the Reduction of Non-Performing Loans in Europe," January 18, 2018.; Citi Research, "ECB Reinforces NPL Guidance," October 6, 2017; European Central Bank, "Addendum to the ECB Guidance to banks on non-performing loans," October 4, 2017. (3) Source: European Banking Authority, "Risk Assessment of the European Banking System," November 2017. (4) Source: PWC research, "The Italian NPL Market," December 2017. Key Drivers of Transaction Volume (⁹) >> Regulatory pressure >>> >> Strong banks » Improving economic/political outlook Fast foreclosure process cerberus#251 European Opportunity: Market Size Despite the increasing pace of NPL sales, European banks have approximately € 800 remaining on their balance sheets (2) Sales of European NPLs and REO Assets (1) Face Value, EUR billion 25 2012 31 2013 82 2014 88 51 2016 (1) Source: Evercore (formerly (2) Source: European Banking Authority, Risk Dashboard, Q4 2017. Proprietary and Confidential | Not for Further Distribution 101 2017 2018E 95+ 77 YTD 2018 Cushman & Wakefield) European Real Estate Loan Sales Market Q3 2018. Estimated Quantum of 25 EUR million Germany UK 米 38 50 60 23 Greece 112 € 813bn 100 NPLs in 2017, (²) 106 of NPLs Spain 187 Cerberus Cobal Not Furd L.P.-North * State of Summentillon Italy 136 France cerberus#261 European Opportunity: Key Drivers of Transaction Volume Regulatory Pressure European regulators have continued to tighten regulations and are urging banks to NPL disposals >> The ECB continues to monitor the progress of NPL reduction, to present further plans to address the stock of NPLs (2) >> The European Commission has again stated in a press release on January 18, 2018 that "the total volume of NPLs remains high and is a source of concern which should be addressed - further reductions are imperative"(1) - No value assigned to collateral after 7 All new NPLs as of January 1, 2018 would have to be 100% provisioned at a minimum within 2 years (unsecured portion) and 7 years (secured portion) Globend, L berus Boa thavestro increase the pace of » Cerberus believes that banks and Asset Ma Management Companies (AMCs) will likely speed up the reduction of NPLs as a result of this increased pressure, as well as the uncertainty around further future changes to regulation equirements in October 2017 (³): (1) Source: European Commission, "Progress in the Reduction of Non-Performing Loans in Europe", January 18, 2018. (2) Source: Citi Research, "ECB Reinforces NPL Guidance", October 6, 2017. (3) Source: European Central Bank, "Addendum to the ECB Guidance to banks on non-performing loans", October 4, 2017. Proprietary and Confidential | Not for Further Distribution strategies and by early 2018, the ECB plans alone Find, L.Foning State vest 26 cerberus#271 European Opportunity: Key Drivers of Transaction Volume Improving Bank Profitability European banks have been strengthening profitability and capital ratios, facilitating NPL disposals European Banks: Average Return on Equity (¹) In Percent 8.0% 6.0% 4.0% 2.0% 3.5% 0.0% Dec-14 Jun-15 Jun-16 7.0% Dec-16 Proprietary and Confidential | Not for Further Distribution Jun-17 (1) Source: European Banking Authority, "Risk Assessment of the European Banking System," November 2017. Evolution of Cerberus Global NPL Fnd, L.P. - North Dakota vesti faster potential pace of 27 In Percent 14.0% 13.0% 12.0% 11.0% 11.5% 10.0% Dec-14 Jun-15 Boa Loaded CET1 Ratios (1) Dec-15 Jun-16 14.0% Dec-16 Jun-17 cerberus#281 European Opportunity: Key Drivers of Transaction Volume Changes to Foreclosure Processes Foreclosure processes have been shortened in some countries, such as Italy Measures introduced in Italy aiming at reducing the length of judicial Measure Implemented Court Auction Minimum Prices: Judicial enforcement proceedings have previously multiple auctions before collateral could be sold. Courts are now able to fix a minimum sale price the collateral to be sold, up to 75% of the auction base price. Court Valuation (CTU): The Court appraiser will be now be paid in half ond the valuation is released, and will receive the other half of his compensation once the asset is sold in auction. Out-of-Court Enforcement: Lenders and borro under which, on a payment default, the assets transferred to it automatically Liquidation Proceedings: Where a debtor is subject to a bankruptcy procedure, there is now a 2 year deadline by which the asset liquidation must be complete, unless the insolvency administrator seeks court approval to extend. The insolvency administrator is also to prepare the liquidation plan within 6 months of the insolvency declaration. P 2016 (1) Source: PWC research, "The Italian NPL Market", December 2017. Proprietary and Confidential | Not for Further Distribution rrowers can make a repossession arrangement in advance will be able to exercise a right to have title to real estate Marciano"). Technological Enforcement Filing: An on-line database has been set up, linking national insolvency registers, containing relevant information on all court-ordered real estate enforcement sales and insolvency and Ce insolvency filings. nk DC State Pestment Boa cesses: 28 Effect on Process Reduces the number of auctions needed to liquidate assets Incentivizes court appraisers to assess values in line with market levels Enables a lender to gain faster access to the value of the collateral Reduces the costs and time associated with a foreclosure Increases transparency cerberus#29Section 5 Investment & Workout Process Cerberus Global NPL L.P. North Dakota State Investment#30The NPL Process The process of acquiring portfolios of NPLs requires an infrastructure that can source, screen, finance, migrate and ultimately monetize thousands of borrowers, loans and assets across Timing and Stages Purpose # FTES Deal Targeting & Pipeline 1-12 months Pre-Sale » Internal teams identify, source and filter transactions based on geography, asset type, risk profile of underlying collateral Phase I Due Diligence Proprietary and Confidential | Not for Further Distribution 4-6 weeks Pre-Sale >> Due diligence is asset focused >> Underwriting team develop an initial business plan >> Submission Non Date Statetiple geographies af investmess und indicative bid >> Internal: 15-20 >> External: 10-30 Cerberus CNPX Fu Phase II Due Diligence Team No Date 30 8-12 Confirmatory due diligence phase >> Underwriting team. develops a detailed business plan >> Submission of a binding bid Post-Closing >> Internal: 15-35 >> External: 100-150 Process 1-12 months Post-Sale >> Migrating of the loan portfolio to external servicing partners , underwrite, >> Internal: 10-25 >> External: 100-150 Monetization 1-36+ months Post-Sale >> Borrower meetings, business plan updates, continual monitoring, asset management (depending on country) >> Internal: 10-25 >> External: 100-150 cerberus#31Due Diligence - Overview of Work Streams 09 Data Remediation Check internal data consistency Verify consistency with source documents Source missing and additional data Assets Investment and occupational market assessment Site visits Technical/ Structural review. Environmental DD Planning Asset valuation. Improvement / value add opportunities Corporate Credit Complete review of tenants' underlying businesses Market position Viability of the business strategy is assessed Benchmarked against peers Full review of BS / P&L / cash flows COAC and Corporate Credit teams used for specialized tenants — Proprietary and Confidential | Not for Further Distribution Borrower Background Public record search Mission critical assets Other borrower relationships Liquidity Asset management skillset AML / KYC Work Out Strategy Highly dependent on borrower 31 dynamics and framework ON Learnings and relationships from the workout of portfolios are fed into underwriting assumptions for future transactions ots KD Validity of claim Cross Enforceability of security la lote nestmom Board collateralisation Guarantees Facility review Priority of payments Lease review Litigation review Servicing Strategy SPA & ancillary documentation CES oversight Business Plan Evolution - Asset by Asset / Loan by Loan / Borrower by Borrower Geography/asset type / loan type dependent Financing Collateral type and geography Loan type Granularity of the portfolio cerberus#32CES Supervisory Assets Cerberus European Servicing currently has approximately $9.4 billion of supervisory 10 countries Supervisory Assets - By Geography USD Billions 2.8 1.7 1.6 Ireland Germany England & Note: As of January 1, 2018. 1.3 0.3 0.3 Proprietary and Confidential | Not for Further Distribution 0.2 Scotland Spain Other Nordics Northern France Ireland 0.0 32 Supervisory Mixed Use Land Hospitality Office REO Industrial Other 0.7 0.8 0.9 - By Type 0.40.40.3 in over 2.7 3.2 Residential Retail 3.4 O 6 Cerber lobe PL Fund, L.P. - North Dakota State Indment d NPL cerberus#33CES Loan Servicing Methodology Cerberus European Servicing adopts a hybrid supervisory approach to loan servicing Develop Business Plan » CES meets with servicers to provide guidance for borrower meetings >> CES sets business plan CES Identify Servicing Partners >> Identify capable servicing counterparty >> Identify capable servicing counterparty employees >> Develop "no de-minimis" servicing structure monitors progress against the business plan Proprietary and Confidential | Not for Further Distribution Execute Plan 33 e Investment Board » Servicer is tasked with execution of the approved plan CES provides guidelines to servicers and discusses the negotiation process » Advisory notes used by servicers and CES to ensure full oversight Cheat Global NPL Fund, L.P. North Continual Monitoring >> Monthly progress reporting and benchmarking of servicing activities against business plan CES remains closely involved 8with execution of the business plan cerberus#34Section 6 Fund Terms W Cerberus Global NPL Pap MAMMA North Dakota Sarderboard merk#35Summary of Terms Fund Name Target Fund Size Minimum Commitment Investment Period Liquidation Period GP Commitment Management Fee Distributions Preferred Return Carried Interest » Cerberus Global NPL Fund, L.P. Expected First Close >> $3.5 billion >> $10 million; lesser amounts accepted at the >> 4 years from initial close >> 3 years from the end of the at the GP's discretion Period 1.5% of Commitments alterberus Gh Ost Investment Period - 1.5% of Cost of Investments of the GP >> Lesser of $30 million and 1.5% (includes amounts from the GP, its affiliates and senior executives of >> During In rus) >> Q2 2018 Period; subject to a one-year extension Te Invest Dako decreto Investment Board 8% >> 80% to LPs / 20% to GP (after a 100% catch up to the GP) Proprietary and Confidential | Not for Further Distribution This summary of principal terms is provided for discussion purposes only and does not purport to summarize all the terms, conditions and other provisions with respect to the Fund. All terms, conditions and provisions described herein are subject to continued review and modification. cerberus 35#36Cerberus Global NPL Fund, L.P. - North Dakota State Investment Board