Connecticut Fund Risk Overview

State 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