Investing in Private Credit

Corporate lending Capital solutions Theme: Emphasis on complex situations with high barriers to entry Investment background . Given the significant capital formation in middle market direct lending we prefer to focus on more idiosyncratic capital solutions Ability to provide solutions for sponsor backed or sponsor-less corporates with bespoke financing needs Opportunity set spans primary and secondary transactions across jurisdiction, currency, sector and company size Target complex situations with barriers to entry, complexity can be due to any of the following: Structure of the deal Sector bias Size of business ● ● ● ● ● Illustrative Terms Issuer size/ PE sponsor owned Capital structure Contractual term Average coupon Fees/Original Issue Discount Upside features Competition PIMCO Capital Solutions in Private Lending ¹ $25-100mm EBITDA/Typically No Typically Senior Secured 4-5 years Typically LIBOR + 600-900 bps cash pay Typically 1-2 points Upfront fees, exit/prepayment fees & typically equity warrants Limited with deals done on a sole lender basis Middle Market Direct Lending² $10-50mm EBITDA / Typically Yes Typically Senior Secured 5-7 years LIBOR + 500-600 bps Typically 1-2 points Upfront fees Modest to numerous with deals often done in a club Investment strategy / illustrative transaction • Opportunity to provide liquidity to counterparties looking to offload private loans in the secondary market ● As an example, we purchased a first lien term loan to the third largest provider of business process outsourcing from a large alternative asset manager's distressed fund The company was recapitalized in late 2020 and is currently undergoing a turnaround • The fund was selling due to cost of capital considerations given strong performance since the loan was originated As of 30 June 2021. Source: PIMCO. For illustrative purposes only. Past performance is not a guarantee or a reliable indicator of future results. 1 "Capital Solutions" refers to a transaction type for PIMCO. Illustrative Terms for Capital Solutions shown above are based on the characteristics (at the time of underwriting) of this transaction type that exist in PIMCO private funds and were not determined based on a formula or mathematical average. Individual Capital Solutions investments have characteristics materially different than those described above 2 Represents illustrative terms of representative middle market direct lending issuers reported by S&P Global at the time of underwriting. Individual issuances had characteristics materially different from those described above at underwriting, & their characteristics also may have changed materially & adversely post-underwriting. The terms set forth above reflect PIMCO's views of the characteristics of a representative referenced middle market direct loan issuance (at the time of underwriting), & were not determined based on a formula or mathematical average. The investment(s) above represents investments made by PIMCO private funds. There can be no guarantee that the investment identified above will achieve positive results. The investment shown above is presented for illustrative purposes only, as a general example of the types of investments that may be acquired by certain PIMCO private funds, as well as PIMCO's capabilities in sourcing, modeling and managing such investments. PIMCO may invest significantly in asset types not referred to in the above. There can be no guarantee that any PIMCO fund will continue to have access to comparable investments, or that PIMCO will continue to utilize similar strategies or techniques in connection with these investments. The information presented herein is as of a specific date, may have changed since such time and is subject to future change. Refer to Appendix for additional investment strategy, outlook, sample investments and risk information. PIMCO 7

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