Absolute Return Strategies Presentation

Cliffwater Alternative Investment Selection Process All Funds "Focus List" comprised of A- and B-rated Funds. We archive C-rated Funds. A-rated Funds Research Group Investment Due Diligence Manager, Partnership Sourcing Preliminary Due Diligence & Rating Research Group Vote Investment Committee Approval Client Recommendation (A, B, or C) Operations and Legal Due Diligence Our approval process is transparent and documented Profile Report F De Pryde Locat the Loca Dwvers ABO Eauty Longthor-H ASA 1/12010 noo Ind 100% John Doe approximately 100 maior in Asian securities within XYZ's main fund, M. Doe lett X12 along with three analysts to busch ABC in 2009. Prior to X2, Mr. Doe was a portfolio manager and senior analyst at XXY where he rana portfolio of fundamental and event driven ideas. The team totali 20 including 3 investment professionals. The team has had some recent turnover with 2 departures ng analyst am Eve. The fund launched with internal tal and quickly grew assets to over $3 billion, and current assets are $2.5 billion. The fund is closed and will only look to replace outlows from its considenble wait list as three-year class capital comes out of lockup in 2013 70-75% of the capital is in the three-year hard lock-up share class, which is where the fem targets replacement capital. The find has a 3% fund level gate. The investor bhality and cludes 20% family offs, 20% fund of funds, 50% instrusonal (pensons/founddions & Assets Under Magent Portolo Ag Exposes 1.000 100 6000% 45000% 130.000% AgNet Expo48000% Sace Packar 2,000 90.000% 1.000% The fund employs a botom-up, fundamental research process to identity Asian focused compares that stand to best from the long term secular growth trends in the region. The fund manages a concentrated portfolio of 30-35 catalyst drives investments of 3-9 months. Positions typically fit within the folowing categories Quality Dusnesses (og estateshed and attractive busness ranchises with defendatée margins, med competion, strong cash for predictability, experienced management ble pricings (ingsshort) deep value ideas, corporate liquidity The Fund-Due Diligence Summary Review Date Stringy Rating Recommendation Organization Hatory Ownership Lacaton Assets Key Person (g) Organizational Rak Investment Strategy, Description Putlo Tendencies Decision-maker Competitive Edge Portfolio Liquidity Risk Manag Strategy Rek Governance OP Alamet LP Alignment Transparency Fees Expenses Fund Ly Operational Risks Govenance Rek Performance Tabletk Arbution Peer Comparison 2014 OC January 2014 by A Global longshort oedt fund with an active trading comp thehaponnes A-rated, recommended for clent intent The Fund Asset Management, LP (The Fund or the October 2011 Mrunched with 100 m Trading Group at Men Lichiorevinly the H 100% employee owned M owns 64% of The owns 17% The remaining 19% is owned by other emplo All s located in New York $35 ass in one strategy (9 Intal investment) No tumover on the investment ources IT functions and utilizes HedgeServ as the Above Average - Small tund with a concentrated inves prayed by kay man provision and more Execution, & Risk Venture Cat Private Investments V.L.F Manager Find PRIVATE EQUITY INVESTMENT DUE DILIGENCE REPORT Venture Capital Advisors Date: Venture Cajita Private investments Strategy? August 2014 Venture Capital None S one Speclied Preliminary Fund Size Preliminary Fund Size Limit: Reviewer Abelsor, Choi Recommendation Vorture Capital Private Investments Vis recommended as a private equity investment Fund Overview Venture Capita Private Investments V.L.P. (Fund Vor the "Fund") will be comprised of venture capital and growth equity investmons in healthcare companies. Within the heathcare industry, Venture Capital will focus on drug discovery and development medical devices, and medical diagnostics and bols. The hund will primarily target privately-held companies at all stages of development, from seed Placemates soe, and may pakipate in pive lives I be actively involved in the crategie deckon Long/short oedt strategy that combines bottom-up portfolio companiet each invochnert and witUATHEM down macro analysis to ideraty dulocations with instruments in US and Europe. Ms macroPoogle and Organizaion The platform that ultimately become Venture Capital Advisors LLC (the "Fi") exposures of the tund, as well as individual position size was founded in 1985 as the asset management division of Investment Bank, a healthcare-focused Pimary focus on liquid corporate and sovereign 250%) and a feable approach to managing net aspon the top 10 poetions 50-35% of NAV investment bark and research firm. The Fim became a standalone enity in 1998 and is currently comprised of dedicated tearme pursuing hedge fund. mutual tunc, private equity and drug royalty strategies. Within private equity, separate dedicated teame manage the Firm's flagship North America and Europe venture c us capital funds (the "VC Team), its Isras fund, and its Asia funds. The Fund will be lad The fund's smaller size and active trading component who serve as bed by the equity parts st smaller, less followed credits, and to tactically adjust expure porno, ane executive in residence, ore vice president two associates and two analysts. The Primarly Level 1 (9%) and Level 2 (91%) VC Tear's live partners have an average tenure of more than 12 years with the Firm The firm's CIO is responsible for manag cd hedge fans, risk management starts with funda level and then aggregated and mood at the port Above Average active exposure management Perkamance dependent on CO making the right ma Age-goodly and Pigment Above age Instadional investor bus with only 15% of ass from bid Above Average The Fund releases a comprehensive days after month end. The firm also provides more col manly 100% portion level transparency provided a Average-1.75/17.5ut year sot lock 2% feel Fund ex (offshon) Expense to higher due to sealer assot base Average-1 year soft lock (2% feel th quarterly padity Average-valuation is a normal concem with credit portfol Average-good reparency and LP algement Bred en 861329k to since inception (2.43 Shape 4.52% two year alpha and 1.54 information ratio with a 0.25 Ranks 50th by information to out of 106 A-and B-rated Investment Bhalogy and Process: The Fund will primarily pursue equity investments in private bophamacautical medical device, and diagnostics companies at all stages of development, from pre- clinical to commercial stages. The Fund may also make PIPE investments in smallcap public companies on an opportunistic basis. The Fim wit seek to build a pottolo comprised of 20 to 30 investments America and Fame The Emily phat The Fund will loose primarily on opportunties in Noth pincpaly active involvement in portfolio companies and the Firm's strong reputation and multi-strategy patform in the teathcare sector Performance: Since 2000 the Fim has rased four life sciences focused private equity funds representing $1.6 billion in committed captal. As of March 31,2014, the Fim has drawn $1.2 bilion from Limited Panera, dalibued $030 nitun, and has generated a total value of 1.40 tres ped-in caphal The prior funds have gererated a combined net IRR el 13.6% sutperforming the Russell 2000 Growth Indes by 5.6% Fund I and Fund II are ranked in the first quartile or better on r on both a rat (RR and not TVP basis and Find Ill and Fund are ranked in the second quante on a net IFR basis and in the first quale and second quartile respectively on a net TVPI basis relative to Venture Economor private Investment Terme Offwater finds the terms outlined in the Limited Partnership Agreement, taken as a whole, to be in accordance with industry standards. The management fee is 225% of commitments during the six-year investment period, theater, the management lee will be equal to 2.25% of receive 20% of the Fund's protits unless the Fund has generated aggregate distibutions totaling 250% or more of paid-in capital, in which case the General Partner will receive 25% of the Fund's profits. The General Partner's share of protts in Pune IV was the 20% The Genera Partner wat comme at least 20% of aggregate commbments to the Fund Pit Easy met incep 2014 Ciwer LLC. A go and Page 3 of 28 Cliffwater LLC Investment Committee Date of Meeting: Friday, January 23, 2015 Attendees: See attached list for attendees. Hedge Fund Name Approved: CONFIDENTIAL-FOR INTERNAL USE ONLY Fund A Capital Management LLC: Fund A Distressed Opportunities Fund LP: Fund ALong-Term Distressed Opportunities International LP- Distressed This fund will pursue a long-only, non-control distressed credit strategy targeting a mid-teens net IRR. This fund will focus on investments in the less liquid segments of the corporate, real estate, and asset-backed debt and equity markets. The Committee discussed the firm's history, the fund's strategy and the prior fu or funds' p performance. Certain risk factors were also discussed, including the lack of distributions by the prior fund. In addition, the Committee discussed the firm's back office operations and the fund's legal terms, including the increase in the management fees compared to the prior fund. The fund was approved for the hedge fund approved list, subject to completion of the due diligence binder. The fund is oversubscribed. Fund A has identified Client A, Client B and Client C as those clients which are eligible to commit to the fund. Client allocations were reviewed; see allocation sheet below... Real Assets Name Approved: Corporation; U.S. L.P. - Agriculture This fund will make equity investments in upstream and midstream farming assets located in the United States. The Committee discussed the fund's strategy and investor base, the firm's history, the team's experience and the prior funds' performance. Certain risk factors were also discussed, including the firm's unresponsiveness to due diligence inquiries and the lack of realizations. In addition, the Committee discussed the firm's back office operations, including the lack of regulatory oversight or a comprehensive compliance program and the consolidation of the fund's M financial statements, and the fund's legal terms, including the change in management fee structure, the low GP commitment and the significant increase in the fund's size. The fund was approved for the real assets approved list, subject to completion of the due diligence binder and acceptable legal documentation. Further, Cliffwater's recommendation of the fund to a client is contingent on the client receiving an advisory committee seat. There is no capacity limitation for Gliftwater clients. Client allocations were reviewed; see allocation sheet below. Preliminary Rating Full Investment & Operations Due Diligence Investment Committee Minutes CLIFFWATERLC | 12