Connecticut Fund Risk Overview slide image

Connecticut Fund Risk Overview

State 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
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