Nepc Private Markets Investment Due Diligence Report

Penwood Select Industrial Partners VII Non-Core Real Estate FUND INVESTMENT STRATEGY Investment Strategy Consistent with the Manager's prior funds, Penwood Select Industrial Partners VII will invest solely in industrial real estate properties in select markets across the United States. Penwood's market focus remains in Southern California, Las Vegas, New Jersey, and Pennsylvania. The Manager has experience investing in ground-up development projects, rehabilitation or value-add transactions, as well as acquiring income-producing assets, and anticipates that Fund VII will have a blend of these same strategies. The Manager seeks to source investments off-market through preferred deal flow access with local operating partners. Penwood will also acquire assets directly, without the use of a joint venture operating partner. The Fund aims to acquire properties at or below replacement costs and will create value through rehabilitation, re- leasing, redevelopment, and ground-up development. Additionally, Penwood seeks to manage incremental risk in all stages of the investment process. The Manager will assess risks such as zoning, entitlement, construction, and market risk in order to effectively execute the value creation process. Upon completion, the Fund will produce an attractive stabilized asset in a supply constrained environment. Target Investment Types Penwood plans to make approximately 20 to 30 investments in industrial real estate properties, with equity checks around $25 million. The Fund targets properties with total square footage between two hundred and three hundred thousand, which allows the Manager to have a larger selection of potential tenants. The Manager assesses building characteristics such as ceiling heights, column width, floor conditions, and power supply. The Fund will invest a majority of the capital in existing assets (including rehabilitation or renovation projects) but has the ability to invest up to 40% in ground-up development. No more than 10% of the Fund may be invested outside of the target markets (defined by the Manager as Southern California, Metro Las Vegas, and the region comprising New Jersey, port-centric New York, and Central and Eastern Pennsylvania), and no more than 15% of the Fund may be invested in the Las Vegas market. Use of Leverage The Fund has a fund level leverage target of 55%, measur loan to cost. Development and value-add projects will be levered up to 50% of cost, while income-producing assets will be levered up to 60% of stabilized value. Expected Fund Investor Base The Manager anticipates Fund VII to reflect a similar composition of institutional capital as the prior Funds, with the majority to come from public pension plan investors. NE PC CONFIDENTIAL INFORMATION - FOR NEPC CLIENT USE ONLY 7

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