GLOUS126 Pacific Life Insurance Co Section 4. Glendower Capital Secondary Opportunities Fund IV. LP Glendower Capital Secondary Opportunities Fund IV, LP the NAV represents US$1.8 trillion and unfunded amounts to US$1.0 trillion. The growth of the primary private equity market together with an increased propensity to trade will be the two key drivers of the continued growth of the secondary market as a derivative of the primary market. Exhibit 9: Total PE assets have risen to USS2.8 trillion53 Exhibit 10: Annual Secondary volumes now 1-2% of total PEsO 1 503 1111 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 • unease° *cord* vala cry powder 2 2% - 2 0% - 1a% 16% • 14% 12% - 10% 0e% 06% 04% - 02% . 3207 306 2039 3310 3311 2012 2013 2014 2015 2016 2017 •- M% et MN PE Mal Secondary market pricing — stable and driven by rational participants Pricing in the Secondary market is a key factor that sellers consider when evaluating a decision to potentially transact. In 2017, the average headline high bid across all strategies remained strong at 93% of NAV.55 While pricing increased slightly from the prior year, a closer review of pricing data revealed that younger kinds with available dry powder received stronger pricing. Tail-end funds typically have few remaining unrealized assets with little projected uplift in value. This results in wider discounts than kinds of more recent vintages whose assets still have potential for growth. While overall buyout funds traded at 99% of NAV in 2017 (skewed positively by high demand for more recent vintage hinds), other funds. and one-off transactions (i.e., smaller portfolio deals without structure) traded at significantly larger discounts. There is an even greater price gap for perceived 'out-of-favor funds and lower-quality managers. It is Glendower's opinion that staying focused on bottom-up fund and asset selection, often resulting in acquiring one or only a few funds from a given selle