Investor Presentaiton

42 Footnotes and Definitions. Projected Net Multiple to Limited Partners - The ratio of the total aggregate distributions, net of deduction for management fees, fund-level expenses and net carried interest, based on actual contributions and distributions since inception of the applicable fund through the reporting date and projected contributions and distributions until the applicable fund is fully liquidated. For Funds I and II, Projected Net Multiple to Limited Partners ignores management fee rebates paid to limited partners. For Fund III, Projected Net Multiple incorporates management fee rebates paid to limited partners. GP and employee contributions and distributions are included in the calculation of Projected Net Multiple for Funds I and II but are disregarded for the Fund III calculation. The projected limited partners' contributions and distributions are based on the applicable general partner's estimate of future net cash flow generated from the applicable fund's investments. Projected Investment-Level Equity Multiple and Projected Aggregate Investment-Level Equity Multiple - The sum of projected distributions to the applicable fund divided by projected total contributions to the investment (or investments, as applicable). Property Level Cash Flow to the Fund - Cash distributions to the respective fund from the operations of all fund properties as of the reporting date. Property Value Increase - The difference between (a) the initial purchase price or aggregate purchase prices and (b) the current property valuation or aggregate current property valuation, expressed as a percentage change. Realized Investment-Level IRR- The internal rate of return on a Fund investment without deduction of management fees, carried interest, or fund-level expenses, calculated based on the sum of actual investment-level contributions and investment-level distributions since inception including proceeds actually realized upon a sale or liquidation of the investment. Realized Investment-Level Equity Multiple - The sum of actual distributions to the Fund received from a Fund investment divided by the total actual contributions to the investment. Realized Net IRR to Limited Partners - The realized internal rate of return on invested capital since inception, net of management fees, fund-level expenses, and net carried interest, based on actual contributions and distributions since inception of the applicable fund through the fund liquidation. For Funds I and II, Projected Net IRR to Limited Partners ignores management fee rebates paid to limited partners. For Fund III, Realized Net IRR to Limited Partners incorporates management fee rebates paid to limited partners. GP and employee contributions and distributions are included in the calculation of Realized Net IRR for Funds I and II but are disregarded for the Fund III calculation. Realized Net Multiple to Limited Partners - The ratio of the total aggregate distributions, net of deduction for management fees, fund-level expenses and net carried interest, based on actual contributions and distributions since inception of the applicable fund through the fund liquidation. For Funds I and II, Realized Net Multiple to Limited Partners ignores management fee rebates paid to limited partners. For Fund III, Realized Net Multiple incorporates management fee rebates paid to limited partners. GP and employee contributions and distributions are included in the calculation of Realized Net Multiple for Funds I and II but are disregarded for the Fund III calculation. Revenue Increase - The difference between (a) the monthly average of trailing 3-month revenue as of the reporting date and (b) the monthly average of trailing 3-month revenue as of the origination date for each investment, expressed as a percentage change. Realized Net Profit to the Fund - The difference between (a) total contributions and (b) total distributions over the course of the hold period of the investment based on realized profits to the Fund.. Since Inception Net IRR to Limited Partners - The internal rate of return on invested capital since inception, net of management fees, fund-level expenses, and carried interest, based on actual contributions and distributions since inception of the Fund and net asset value as of June 30, 2020. Since Inception Net IRR to Limited Partners incorporates management fee rebates paid to limited partners; therefore, the stated Since Inception Net IRR to Limited Partners in the letter differs from the actual Since Inception Net IRR to Limited Partners that each limited partner receives due to the use of a blended management fee rate. Target Net IRR to Limited Partners - The current targeted internal rate of return on a limited partner's capital, net of management fees, fund-level expenses and carried interest, calculated using quarterly cash flows based on actual limited partner contributions and distributions since the Fund's inception through the reporting date, and targeted limited partners' contributions and distributions thereafter until the Fund is fully liquidated. The targeted limited partners' contributions and distributions are based on the applicable general partner's estimate of future net cash flow generated from the applicable fund's investments. Total Cost Basis - The sum of the original equity investment plus original property-level leverage. Underwritten Net Profit to the Fund - The difference between (a) total contributions and (b) total distributions over the course of the hold period of the investment based on LEM's internal underwriting as of acquisition. The extent of the impact of any public health emergency, including COVID-19, on equity investments and on a portfolio company's operational and financial performance will depend on many factors, including the duration and scope of such public health emergency, the extent of any related travel advisories and restrictions implemented, the impact of such public health emergency on overall supply and demand, goods and services, investor liquidity, consumer confidence and levels of economic activity and the extent of its disruption to important global, regional and local supply chains and economic markets, all of which are highly uncertain and cannot be predicted. The effects of a public health emergency, including COVID-19, may materially and adversely impact the value and performance of an LEM Fund, LEM's ability to manage and divest investments and its ability to achieve its investment objectives, all of which could result in significant losses. In addition, LEM, its Fund investments and underlying properties may be significantly impacted, or even temporarily or permanently halted, as a result of government quarantine measures, voluntary and precautionary restrictions on travel or meetings and other factors related to a public health emergency, including its potential adverse impact on the health of any such entity's personnel. L.E.M CAPITAL