AG Direct Lending SMA

ANGELO AG GORDON Recent Changes in Private Debt Markets Borrower experience during the pandemic has altered lender selection criteria • Lender experience and reliability are key differentiating factors Sub-scale lenders are viewed as introducing transaction risk ● Private Equity Groups are reducing their lender roster Lower mid-market PE groups are saying they want no more than 2 primary lenders PE groups prefer to close transaction with a single lender when possible ● Lead Lenders are more selective of bank group participants Broad syndications are increasingly rare in middle market transactions Hold levels for market leading groups have increased (lowering syndication requirements) ● ● Bank group participants who were unconstructive during pandemic related credit facility amendment discussions are being excluded from new transaction activity Proprietary and Confidential Trade Secret Page 139 15

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