HEADLANDS CAPITAL'S DIFFERENTIATED APPROACH TO THE SECONDARY MARKET

The Headlands Capital Secondary program seeks to deliver attractive returns to its investors by being a disciplined investor and acquiring small- and mid-sized portfolios of private equity and hedge fund interests from existing investors through the secondary market. The principals of Headlands Capital have been involved with the secondary market since its early days in the 1990s and have extensive investment experience in the secondary market, closing secondary transactions representing more than $2 billion in aggregate net asset value, as outlined in the Team Biographies.

Headlands Capital believes the secondary market represents a significant and attractive investment opportunity. We are a middle market manager in a marketplace increasingly characterized by the concentration of capital among a handful of "mega firms". Our size provides for a level of flexibility that helps allow us to react efficiently and quickly to specific seller or transaction requirements. Complementing our middle market positioning is our focus on acquiring smaller portfolios of private equity and hedge funds interests where due diligence requirements are often complex and broader secondary market interest limited. Our size and focus work in combination, helping us to be responsive and a preferred transaction partner to a universe of sellers where liquidity options may be less readily available.

Our investment principals have deep secondary and direct private equity experience, creating a multi-faceted capability, from detailed bottoms-up portfolio analysis to the creation of structured transaction alternatives designed to meet a variety of seller requirements.

Supporting our investment focus are positive macro level trends in the private equity landscape that Headlands Capital believes will continue to drive demand for liquidity solutions. Foremost among these is the significant amount of capital that has been raised for the private equity industry. Since 2000, private equity commitments have totaled more than $4.5 trillion. This helped create a robust secondary marketplace as investors seek to adjust their holdings and seek liquidity for any number of reasons.

Through the combination of our strategy, team, and strong industry dynamics, we have created an investment portfolio diversified across a broad spectrum of private investment fund strategies, managers and geographies, with a common theme: underlying investment funds that Headlands Capital believes are well positioned in their respective market sectors.