#12 State of Connecticut Use Only FORTRESS LENDING FUND III Prepared for State of Connecticut Office of the Treasurer Investment Advisory Council June 2022 All information contained herein is qualified in its entirety by the disclaimers at the end of this document. Interests in FORTRESS funds managed by affiliates of Fortress Investment Group LLC (together with its subsidiary investment advisory affiliates, "Fortress") are offered through Fortress Capital Formation LLC, a member of FINRA and an affiliate of Fortress. This Presentation was prepared and is being distributed by non-EU affiliates of Fortress.#2Fortress Lending Fund III Fund Fortress has a been a permanent fixture in lending markets for 17+ years across many asset classes and through multiple credit cycles, deploying $75 billion+ of capital in lending since 2006. The investment objective of Fortress Lending Fund III (the "Fund") is to originate and/or purchase attractively priced, primarily senior, secured loans across various differentiated lending sectors Fortress Lending Business | Battle-Tested Experience FLFI FLF II TOTAL FLF I & FLF II Target Return | 12%-15% Gross IRR¹ Target Distribution Yield | At least 7% on invested capital (paid quarterly)² Geographic Focus | North America, Western Europe and other markets on an opportunistic basis Vintage 2018 2020 Broad Based Sourcing Deep lending expertise across corporates, asset based, legal assets, lender finance, brand State of Connecticut Use Only royalties, commercial real estate, etc. investments were non-sponsored investments⁹ ▪ 95%+ of the transactions were privately sourced8 ■ -65% of the transactions were self sourced by Fortress investment team8 ■ ~50% of FORTRESS Total Size $1.9 billion $2.1 billion ³ $4.0 billion + Leverage debt/cost H Structuring Expertise The Fortress Credit team has nearly 2 decades of structuring experience across 1,300+ unique borrowers 32% 47% 40% Deployed $6 billion of equity commitments since 2018 and closed on 185 investments in aggregate ▪ 90%+ of investments made were floating rate8 ▪ ~95% of Fortress Investment Group investments were first lien senior secured8 Gross Called & Committed As of Mar. 31, 2021 130%+ 110%+ + Estimated Gross/Net IRR As of December 31, 20214 16.3% / 11.8% 14.6% / 10.3% 15.7% / 11.2% Intensive Asset Management Since 2006, the Fortress Credit team has worked though $7 billion+ of troubled assets and achieved an average recovery of 103.4%6 + 3 ■ Dedicated 130 person asset management team 10 Every asset is reviewed no less than monthly Experience & flexibility to solve problems and work through troubled assets H Liquidated Gross/Net IRR As of December 31, 20215 14.3% / 10.4% 13.2% / 8.8% 12.9% / 8.7% Financing Capability The Credit Funds are among the largest issuers of CLOs and alternative credit financing vehicles and has been managing CLOS since 20047 Multiple term non- recourse, non mark- to-market financing facilities ▪ Moderate leverage: average Loan LTV of 45.9%11 with an average loan yield of 8.7% 1#3Fortress Lending Fund lil Key Components of the Fortress Lending Strategy 1. ESTABLISHED PLAYER Fortress has a been a permanent fixture in lending markets for 17+ years across many asset classes and through multiple credit cycles, deploying $75 billion+ of capital in lending since 2006, generating a pro forma levered gross IRR of 15.3% (net IRR of 11.6%)*,12 2. EXPERIENCED TEAM The Fund's CIOs have worked together at Fortress for 15+ years, average 25 years of financial experience. The majority of the FLF III Investment Committee Members have invested together at Fortress since the 2008 financial crisis 3. IN-HOUSE ASSET MANAGEMENT 130 person dedicated global asset management team have collectively worked through $7 billion+ of troubled assets and achieved an average recovery of 103.4%*,6 DIRECT CORPORATE Good companies with bad balance sheets of Connecticut Use Only * Please see "FORTRESS LENDING STRATEGY DISCLAIMERS" in the back of this Presentation for more information. Predictable cash flows which reduce basis The Opportunity Set by Fortress Lending Sectors REAL ESTATE Complicated restructurings in which risk is misunderstood Replacement capital provider FORTRESS SECURED LENDING Credit facilities and term loans to non- bank specialty finance asset originators across all consumer and commercial sectors Acquisition financing for specialty finance lenders acquiring other lenders or servicers portfolios Financings for early stage, lesser capitalized or esoteric asset originators 4. MULTI-VERTICAL DISCIPLINE Broad capabilities allow us to pivot between sectors and across private and public transactions - not limited to one vertical - can originate new highly structured loans or buy secondary debt of good companies at significant discounts Utilize strong covenants and performance triggers to de-risk exposure if warranted 5. EXTENSIVE TOOL BOX Flexible solutions to address borrower needs - Fortress has structured thousands of loans for over 1,300 unique borrowers ¹3 across corporates, asset based, lender finance, legal assets, IP and brand royalties, CRE, etc 13 6. INSTITUTIONAL INFRASTRUCTURE The Fortress Lending Team draws upon the combined Credit Group infrastructure, including -525 professionals and 40 servicers utilized by Fortress managed funds 13 Economically resilient markets / asset types Developers focusing on workforce and affordable housing that need construction or bridge financing Buying debt or financing discounted pay offs from banks that need liquidity 44 FORTRESS LITIGATION FINANCE More litigation in recessionary environment Offer companies liquidity by monetizing litigation claims Competitive landscape may ease as hedge funds re- focus on core strategy BROADLY SYNDICATED Focus on high quality businesses Hold a diverse portfolio of issuers Maintain position liquidity Acquire positions at prices that we believe provide significant margin for error 2#4Fortress Lending Fund lil Combined Fortress Lending Fund I & Fortress Lending Fund II Metrics $2,400 $1,800 $1,200 $600 $- 8 Loans Q4 2018 Total Commitment* ($ in millions) 8 Loans Q1 2019 Q1 2021 13 Loans $1,500 $1,200 $900 $600 $300 $- % Directly Sourced 58% Q2 2019 6 Loans Q3 2019 % Direct Corporate Loans 67% Weighted Average All- 8.85% 9.87% 10.52% 8.73% 8.58% in-Rate** Total Commitment* ($ in millions) of Connecticut Use Only 11 Loans Weighted Average All-in-Rate** 8.52% Q4 2019 69% 52% Weighted Average LTV** Q2 2021 75% 47 Loans Q1 2020 9.88% 18 Loans 8.90% 11.14% % Loans with Financial & Performance Covenants** 91% Q2 2020 *Includes BSL secondary purchases. **Excludes BSL secondary purchases. FORTRESS 11 Loans Weighted Average LTV** Q3 2020 15 Loans 9.16% 8.96% Q3 2021 55% Q4 2020 48% 87% 7.48% 15 Loans Q1 2021 8.52% 13 Loans Q2 2021 FORTRESS 9.88% 21 Loans Q3 2021 7.48% 47% 79% Q4 2021 85% 24 Loans 7.86% Q4 2021 7.86% 80% 60% 40% 20% 0% 60% 50% 40% 30% 20% 3#5Fortress Lending Fund lil of Connecticut Use Only FORTRESS Biographies | Chief Investment Officers Drew McKnight is a Managing Partner of the Fortress Credit Funds Business. Mr. McKnight heads the liquid strategies and serves on the investment committee for the Credit Funds and is a member of the Management Committee of Fortress. Mr. McKnight is also the Co-CIO of the Drawbridge Special Opportunities Fund, the Fortress Lending Funds and Fortress Credit Opportunities Funds. Prior to joining Fortress in February 2005, Mr. McKnight was the trader for Fir Tree Partners where he was responsible for analyzing and trading high yield and convertible bonds, bank debt, derivatives and equities for the value-based hedge fund. Prior to Fir Tree, Mr. McKnight worked at Goldman, Sachs & Co. in Leveraged Finance and the Distressed Bank Debt trading group. Mr. McKnight serves on the Board for the Center for Politics at the University of Virginia and on the Board of Advisors for SMU's Cox School of Business Alternative Asset Management Center. In addition, Mr. McKnight is a member of the Council on Foreign Relations. Mr. McKnight received a B.A. in Economics from the University of Virginia. Joshua Pack is a Managing Partner of the Fortress Credit Funds Business. Mr. Pack heads the illiquid strategies and serves on the investment committee for the Credit Funds and is a member of the Management Committee of Fortress. Mr. Pack is also the Co-CIO of the Drawbridge Special Opportunities Fund, the Fortress Lending Funds, the Fortress Credit Opportunities Funds and the Fortress Net Lease Income Fund. Mr. Pack has over 25 years of credit investment and workout experience through multiple credit cycles. Since joining the Credit Funds Business at its inception in 2002, Mr. Pack has analyzed, structured and negotiated hundreds of lending, structured equity and real estate transactions. Prior to joining Fortress, Mr. Pack was a Vice President with Wells Fargo & Co. in the capital markets group. Before that, Mr. Pack was a Vice President with American Commercial Capital, an independent specialty finance company focused on corporate and real estate lending to middle market businesses that was subsequently acquired by Wells Fargo in 2001. Mr. Pack serves as a Director on multiple corporate and philanthropic Boards. Mr. Pack attended the United States Air Force Academy and received a B.A. in Economics from California State University, San Marcos. Dominick Ruggiero is a Managing Director of the Fortress Credit Funds Business and is Co-CIO of the Fortress Lending Funds and co- heads the Specialty Finance Group. Mr. Ruggiero was the Co-CIO of the Fortress Secured Lending Fund, a dedicated specialty finance fund that has successfully concluded. Prior to joining Fortress in 2006, Mr. Ruggiero was a Vice President in the Asset Securitization Group at DZ Bank where he was a senior originator responsible for originating and structuring revolving credit facilities for the bank's asset backed commercial paper conduit. His responsibilities also included managing the bank's syndications as well as the structuring and placing private placement and 144A term securitizations. Prior to DZ Bank, Mr. Ruggiero was a Managing Director and co-founder of the Structured Finance Group at Descap Securities Inc., focusing on the structuring and placing of term securitizations, warehouse lines and subordinated debt. Before Descap, Mr. Ruggiero was with ContiFinancial Services where he was responsible for the structuring and placement of over $2 billion of private placement and 144A securitization transactions in mostly esoteric asset classes for many first time issuers. Mr. Ruggiero started his career at Lehman Brothers, where he was on the mortgage backed securities trading desk. Mr. Ruggiero received a B.A. in Economics from St. Lawrence University. FORTRESS Aaron Blanchette is a Managing Director of the Fortress Credit Funds Business and is Co-CIO of the Fortress Lending Funds. Mr. Blanchette joined the Credit Funds business at Fortress in 2005 as an investment analyst within the Corporate Loan and Corporate Securities groups. Mr. Blanchette has been focused on underwriting and originating middle market loans for the past 16 years for the Fortress Credit Funds. Prior to joining Fortress, Mr. Blanchette was a Portfolio Analyst with Highland Capital Management where he was responsible for covering the technology, healthcare and financial services industries for Highland's distressed hedge fund and CLOS. Before that, Mr. Blanchette was a Director in Ernst & Young's restructuring advisory services group where he advised debtors, senior lenders and unsecured creditor committees in various distressed situations. Mr. Blanchette received his B.B.A and M.B.A from Baylor University. 4#6State of Connecticut Use Only ENDNOTES 1. The target return stated herein is a levered, gross investment return target and does not take into account the promote, management fees or other expenses. Actual net returns to investors will be lower as a result of these expenses. The target returns and target distribution yields are premised on a number of factors, including, without limitation, prior investments made by certain Fortress managed funds and the opportunities that the Fortress Credit and Real Estate Funds team is currently seeing and/or expect to see in the future in the marketplace, which are inherently uncertain and are subject to numerous business, industry, market, regulatory, geo-political, competitive and financial risks that are outside of Fortress's control. There can be no assurance that the assumptions made in connection with the target returns and target distribution yield will prove accurate, and actual results may differ materially, including the possibility that an investor may lose some or all of any invested capital. The inclusion of the target returns or target distribution yields herein should not be regarded as an indication that Fortress or any of its representatives consider the target returns and target distribution yield to be a reliable prediction of future events and the target returns and target distribution yields should not be relied upon as such. Neither Fortress nor any of its representatives have made or make any representation to any person regarding the target returns or target distribution yields and none them intends to update or otherwise revise the target returns or target distribution yields to reflect circumstances existing after the date when made or to reflect the occurrence of future events, even in the event that any or all of the assumptions underlying the target returns or target distribution yields are later shown to be incorrect. 2. FLF III intends, but is not obligated, to make distributions on a quarterly basis. There is no guarantee that FLF III will be able to do so at any given time and on a regular basis. 3. Includes capital committed to a FLF II separately managed account. 4. Estimated returns: Estimated returns are through the life of FLF I or FLF II as applicable and are based on a variety of estimates and assumptions by the fund or Fortress. There can be no assurance that any such estimates and assumptions will prove accurate, and actual results may differ materially, including the possibility that an investor may lose some or all of any invested capital. The estimated gross returns are gross of management fees, incentive fees and fund expenses and interest on manager notes. The estimated net returns are net of management fees, incentive fees and fund expenses and interest on manager notes and assume a 1.5% management fee rate. Estimated returns have been calculated based on aggregate estimated cash flows of underlying investments and do not factor in the actual timing and amount of capital calls from and distributions to investors. Actual returns to individual investors may differ materially due to, among other things, the particular fund they are invested in, the timing of an investor's commitment and fee waivers or discounts, if any, for which a particular investor is eligible. 5. Liquidated Returns: Liquidated returns are calculated based on the actual timing and amount of capital calls from and distributions to Fortress Lending Fund I (A) LP or Fortress Lending Fund II (A) LP as applicable. Fund IRRs do not factor in the specific timing of cash flows of underlying investments and assume FLF I or FLF II is liquidated on the denoted date for an amount equal to its aggregate net market values of unrealized investments, cash and other fund assets. Actual returns to individual investors may differ materially due to, among other things, the particular fund they are invested in, the timing of an investor's commitment and fee waivers or discounts, if any, for which a particular investor is eligible. Current valuation and performance numbers are unaudited and are subject to change. There can be no assurance that any such investment can be liquidated at the current time or at current valuations. Net liquidated returns are for an investor paying the 1.5% management fee rate and are net of expenses, management fees, incentive fees and interest on manager notes. 6. Only includes monetary defaults (payment and maturity defaults) in relation to investments in the Fortress Lending Strategy as further described on the following page. 7. Includes all CLO management entities within the Credit Funds. 8. Based on December 31, 2021 FLF I and FLF II commitments. 9. Based on cumulative FLF I and FLF II investment count through December 31, 2021 and excludes BSL secondary purchases. 10. Not all employees are dedicated solely to the Fortress Lending Funds. 11. Based on cumulative FLF I and FLF II commitments through December 31, 2021 and excludes BSL secondary purchases. 12. Unlevered gross IRR of 9.6% and unlevered net IRR of 6.3%. Please note that the Fortress lending strategy information provided herein is based on December 31, 2021 data. Includes realized investments and assumes liquidation of all unrealized investments at the market values of each such investment as of December 31, 2021. No representation is made that any Fortress managed fund will, or is likely to, achieve a performance record similar to the one shown above. Gross IRRs and multiples are gross of fund level expenses, incentive fees and management fees, and any applicable hedging expenses. Net IRRs and multiples are net of estimated deal level and fund level expenses, incentive fees and management fees, applying the methodology described in Appendix A. Current valuation and performance numbers are unaudited and are subject to change. There can be no assurance that any such investment can be liquidated at the current time or at current valuations. 13. As of December 31, 2021. Certain servicers are owned by affiliates of Fortress-managed funds, including Fortress Private Equity Funds, and operate on a stand-alone basis and are independently capitalized and managed. As a result, these companies are subject to potential divestment and there can be no assurance that any of these servicers will remain a Fortress affiliate or continue to be owned by Fortress managed funds. Includes servicers in which Fortress managed funds hold a minority non-controlling equity interest, warrants or convertible debt interest. FORTRESS 5#7Stat B. Connectic FORTRESS LENDING STRATEGY DISCLAIMERS On A. Investment Experience. The Investment Experience presented includes investments made by various Fortress-managed funds in the Credit business since 2006, during which time Pete Briger and/or Dean Dakolias served as CIOs of the funds in which the investments were made, related to corporate loan originations, loans originated to asset based borrowers including lender finance companies and owners of commercial real estate, and purchases of broadly syndicated loans ("BSL") and high yield bonds strategy, which meet the investment mandate of the FLF I, FLF II and/or FLF III as detailed below. The Investment Experience also includes transactions made by FLF I and FLF II that meet the parameters noted in the following paragraph. Note that Pete Briger and Dean Dakolias are not CIOs of FLF I, FLF II, or FLF III, but do serve on their investment committees. With respect to corporate loan originations, the Investment Experience includes all loan originations in which the initial loan amount or commitment was greater than $40 million. With respect to commercial real estate loans, the Investment Experience includes all commercial real estate loan originations, but excludes unentitled land loans, single family residence development loans, bonds, commercial mortgage backed securities and other securitized products, loans that were purchased as non-performing loans, and loans purchased with the intent to foreclose or otherwise take control of the asset after acquisition. With respect to purchases of broadly syndicated loans and high yield bond purchases, the Investment Experience includes all BSL purchases at a price of 97 or higher and an applicable margin of 3% or greater and all high yield bond purchases at a price of 80 or higher and a coupon of 6% or greater. The Investment Experience includes all asset based loans to lender finance companies. The investments included in the Investment Experience represent a subset of investments made by various Fortress-managed funds in the Credit business, certain of which have investment programs that differ from the Fund's investment program. In addition, please note that FLF I and FLF II have made investments that do not meet the criteria stated above (e.g., BSLS purchased at a price lower than 97), and therefore such transactions are not included in Investment Experience. As a result, the returns shown are not reflective of the actual investment performance of any Fortress fund and is presented as related performance information. Please see slide 1 for FLF I's and FLF II's gross and net performance and the FLF III marketing presentation for a list of each of FLF I's, FLF II's, and FLF III's investments, including those that do not meet the criteria stated above. Please note that past performance is not a reliable indicator of future results and there can be no assurance that the performance of the Fund will be the same or similar to the performance shown for the Investment Experience. Furthermore, there can be no assurance that the performance of any fund with the same strategy of the Fund, had such fund existed during the time period covered by the Investment Experience, would have had the same or similar performance as the performance presented. The differences may be material. Please note that the performance presented herein may have been significantly impacted by non-recurring market or economic conditions which may not exist at the time the Fund makes its investments. The investment experience is presented on an unlevered and levered basis. The levered returns shown were calculated based on the underlying gross cash flows and assuming hypothetical leverage similar to the leverage that is expected to be utilized by the Fund. The levered returns were calculated using a 1:1 leverage ratio, an assumed financing rate of LIBOR +2.50% and using the historical LIBOR rates in effect during the time frame covered. Actual leverage utilized by the Fortress funds that made the investments may differ materially. Note that the investments have been made by various Fortress-managed funds, and the related cash flows have occurred over a period which exceeds the aggregate capital commitments, investment period, or term of any single Fortress managed fund. FORTRESS Gross and Net Performance. The gross returns shown do not reflect the timing and amount of capital called from or distributions to fund investors and are gross of fund expenses, income taxes, management fees and promote. The returns shown reflect actual investment cash flows through the date indicated and assume all the investments are liquidated at the current valuations at the date indicated. There can be no assurance that such investments can be liquidated at current valuations. The pro forma net return is calculated by applying the Fund's fee structure (1.5% management fee and 15% promote, subject to a 6% preferred return) and FLF I's expense load as of December 31, 2021. Actual net returns to investors of any Fortress-managed fund will differ materially due to differences in timing and amount of capital called from and distributions to investors, investment pace, portfolio composition, varying management fee rates, fee waivers or discounts to which a particular investor may be eligible, and income taxes. Actual gross and net returns to investors in the Fund may differ materially from the performance returns shown. The performance depicted does not account for the impact cash drag may have on performance returns, which we expect to be generally immaterial to this Fund since capital will be called on an as needed basis. 6#8State of Connecticut Use Only IMPORTANT DISCLOSURES In general. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation." Fortress Investment Group LLC, taken together with its subsidiary investment advisory affiliates, is referred to herein as "Fortress." Fortress Lending Fund I is referred to herein as the "FLF I", Fortress Lending Fund II is referred to herein as "FLF II", Fortress Lending Fund III is referred to herein as "FLF III", or the "Fund". Investing in the Fund (or any investment product made available through Fortress or any affiliate thereof) involves a high degree of risk. Prior to investing, investors in the Fund must familiarize themselves with the Fund's offering materials (which include the Fund's limited partnership agreement, confidential private placement memorandum and subscription document, and are collectively referred to as the "Offering Documents") and be prepared to absorb the risks associated with any such investment, including a total loss of all invested capital. This Presentation is produced solely for the recipient and may not be transmitted, reproduced or made available to any other person. The complete terms regarding an investment in the Fund, including but not limited to the investment program, fees and charges, tax considerations, risk factors, conflicts of interest and liquidity, are set forth in the Fund's Offering Documents. No offer to purchase or sell securities. The Presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale of any security. Any such offer would only be made by means of formal Offering Documents, the terms of which shall govern in all respects. You are cautioned against using this information as the basis for making a decision to purchase any security. Forward looking statements. Forward looking statements (including estimates, opinions or expectations about any future event) contained in the Presentation are based on a variety of estimates and assumptions by Fortress, including, among others, estimates of future operating results, the value of assets and market conditions at the time of disposition, and the timing and manner of disposition or other realization events. These estimates and assumptions are inherently uncertain and are subject to numerous business, industry, market, regulatory, geo-political, competitive and financial risks that are outside of Fortress's control. There can be no assurance that any such estimates and assumptions will prove accurate, and actual results may differ materially, including the possibility that an investor may lose some or all of any invested capital. The inclusion of any forward looking statements herein should not be regarded as an indication that Fortress considers such forward looking statement to be a reliable prediction of future events and no forward looking statement should be relied upon as such. Neither Fortress nor any of its representatives has made or makes any representation to any person regarding any forward looking statements and none of them intends to update or otherwise revise such statements to reflect circumstances existing after the date when made or to reflect the occurrence of future events, even in the event that any or all of the assumptions underlying such forward looking statements are later shown to be in error. Other Fortress managed funds. Fortress manages a variety of other pools of capital and the senior investment professionals are also responsible for other pools of capital. Returns associated with such other pools of capital are available upon request, although such other pools may have different investment and return profiles than the Fund and may therefore not be relevant. Fortress affiliates invest their own capital in a broad range of investments. In certain cases, the investment objectives and programs of such other Fortress managed investment vehicles are similar to, or overlap with, the investment objectives and proposed investment program of the Fund. The Fund does not have the exclusive right to any investment opportunity. The Fund is subject to conflicts of interest. Internal rates of return and yields. To Fortress's knowledge, there are no established standards for the calculation of internal rates of return or yields ("Returns") for investment portfolios of the sort discussed in this Presentation. The use of a methodology other than the one used herein may result in different and possibly lower Returns. Availability of financing. Certain Estimated Returns or actual performance figures described in the Presentation are based on, among other things, the availability of particular financing arrangements, which may not be available to the Fund in the future. The inability of the Fund to achieve similar financing arrangements in the future could have a material impact on the Fund's performances. The Fund may use substantial leverage. The use of leverage can effect the volatility of investment returns and increase the risk of loss and possibility of gain due to market fluctuations in the value of such investment. Past performance. In all cases where historical performance is presented, please note that past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. Knowledge and experience. You acknowledge that you are knowledgeable and experienced with respect to the financial and business aspects of the Presentation and that you will conduct your own independent investigations with respect to the accuracy and completeness of the Presentation should you choose to use or rely on the Presentation, at your own risk, for any purpose. Retail investors (as defined in Regulation Best Interest) are encouraged to review Fortress Capital Formation LLC's ("FCF") Form CRS which can be found at https://files.brokercheck.finra.org/crs_152385.pdf for important information about FCF. Regulatory. The Fund is not subject to the same regulatory requirements as a registered investment company. In addition, the Fund may be subject to higher fees and expenses than other investment products, including registered investment companies. Certain fund risk factors. The Fund's investment program of originating and acquiring senior secured debt of operating businesses in a wide variety of corporate industries and loans to asset-based borrowers (including lender finance companies and owners of commercial real estate properties) involves significant risks, many of which are uncertain and outside of Fortress's control. These risk factors include, among other things, the Fund's dependence on key individuals, general economic, political and capital market conditions, limited liquidity, increased government intervention and restrictions that could adversely impact the investments made in the Fund, decreased liquidity of such investments, risks related to real estate investments, risks related to borrowers (including, without limitation, borrower fraud and the financial stability of borrowers or the underlying collateral), risks inherent in global investments, including political, social and economic uncertainty, as well as interest rate, credit prepayment, and counterparty risks. Fortress also manages a variety of other pools of capital and the Fund will not have the exclusive right to any investment opportunity and, therefore, Fortress may have a potential conflict of interest with respect to the allocation of a given investment opportunity. Investors should carefully review the Fund's Offering Documents for a more comprehensive description of risk factors related to an investment in the Fund. FORTRESS 7#9State of Connecticut Use Only IMPORTANT DISCLOSURES Risk of loss. An investment in the Fund will be highly speculative, and there can be no assurance that the Fund's investment objectives will be achieved. Investors must be prepared to bear the risk of a total loss of their investment. Target Return; Target Distribution Yield. The target return stated herein for FLF III is a levered, gross investment return target and does not take into account the promote, management fees or other expenses. Actual net returns to investors will be lower as a result of these expenses. The target returns and target distribution yields are premised on a number of factors, including, without limitation, prior investments made by certain Fortress managed funds and the opportunities that the Fortress Credit and Real Estate Funds team is currently seeing and/or expect to see in the future in the marketplace, which are inherently uncertain and are subject to numerous business, industry, market, regulatory, geo-political, competitive and financial risks that are outside of Fortress's control. There can be no assurance that the assumptions made in connection with the target returns and target distribution yield will prove accurate, and actual results may differ materially, including the possibility that an Investor may lose some or all of any invested capital. The inclusion of the target returns or target distribution yields herein should not be regarded as an indication that Fortress or any of its representatives consider the target returns and target distribution yield to be a reliable prediction of future events and the target returns and target distribution yields should not be relied upon as such. Neither Fortress nor any of its representatives have made or make any representation to any person regarding the target returns or target distribution yields and none of them intends to update or otherwise revise the target returns or target distribution yields to reflect circumstances existing after the date when made or to reflect the occurrence of future events, even in the event that any or all of the assumptions underlying the target returns or target distribution yields are later shown to be incorrect. Distribution of the presentation. Fortress expressly prohibits any redistribution of the Presentation without the prior written consent of Fortress. The Presentation is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use is contrary to law, rule or regulation. Estimated returns. Estimated returns are through the life of FLF I or FLF II as applicable and are based on a variety of estimates and assumptions by the fund or Fortress. There can be no assurance that any such estimates and assumptions will prove accurate, and actual results may differ materially, including the possibility that an investor may lose some or all of any invested capital. The Estimated Net returns are net of management fees, incentive fees and fund expenses and interest on manager notes and assume a 1.5% management fee rate. Estimated returns have been calculated based on aggregate estimated cashflows of underlying investments, and do not factor in the actual timing and amount of capital callas from and distributions to investors. Not suitable for all investors. An investment in the Fund may not be suitable for all investors. An investment in the Fund will be suitable only for certain financially sophisticated investors who meet certain eligibility requirements, have no need for immediate liquidity in their investment and can bear the risk of an investment in the Fund for an extended period of time. No reliance, no update and use of information. You may not rely on the Presentation as the basis upon which to make an investment decision. To the extent that you rely on the Presentation in connection with any investment decision, you do so at your own risk. The Presentation does not purport to be complete on any topic addressed. The information in the Presentation is provided to you as of the dates indicated and Fortress does not intend to update the information after its distribution, even in the event that the information becomes materially inaccurate. Certain information contained in the Presentation includes calculations or figures that have been prepared internally and have not been audited or verified by a third party. Use of different methods for preparing, calculating or presenting information may lead to different results and such differences may be material. No tax, legal, accounting or investment advice. The Presentation is not intended to provide, and should not be relied upon for, tax, legal, accounting or investment advice. Any statements of federal tax consequences contained in the Presentation were not intended to be used and cannot be used to avoid penalties under the Internal Revenue Code or to promote, market or recommend to another party any tax related matters addressed herein. Subject to change. Except as provided in the Offering Documents, the internal practices, procedures and processes described herein reflect the current or anticipated practices, procedures and processes of the Fund, which are subject to change at any time without notice to any existing or prospective investor. These practices, procedures and processes are described herein for informational purposes only and neither Fortress nor any of its representatives has made or makes any representation to any person regarding the internal practices, procedures or processes of the Fund and none of them intend to update or otherwise revise the information to reflect any changes to such internal practices, procedures or processes, except as may be required pursuant to the Offering Documents. Limited liquidity. An investment in a Fund will provide limited liquidity as there are significant restrictions on transferability of the Fund's securities and withdrawals from the Fund. It is not expected that a public or secondary market will develop for the Fund's securities. Further, there can be no assurance that a transfer would be approved even in the event a market does develop. FORTRESS 8