GLDUS238 SOUTHERN FINANCIAL LLC Section 4. Glendower Capital Secondary Opportunities Fund IV. LP Glendower Capital Secondary Opportunities Fund IV. LP Attractiveness of Secondary Opportunities for Investors The Manager believes that secondary investments can form an important element of a diversified private equity portfolio: • Secondaries complement investment portfolio construction: a secondary investment program can be designed to complement a primary investment program by filling the gaps in an investors investment portfolio and providing exposure to older vintages or different strategies or geographies. • Secondaries provide the opportunity to pursue an attractive risk-reward profile. Exhibit 7: Attractiveness of Secondary Opportunities for Investors1B 000 1,a00 Pricing ILO tullty Re-plCe touSteS2 ?undid aSSOIS - Capitalise on pnong inefficiencies Nitwit. Blind Pool Risk Mitigate ..t-Curott COltspieMent Portfolio Construction Knowledge oe existing unaertying companies Mature assets typically yield MCA predicted., cash Com - Shorter duraton of invastrnents - Earlier cash ChStnbutiOnS Accelerate deployment of capital Prosedes back-seasoned thersrfirml exposure across voter strategy industry and 0eCchadly 1.200 4 5 8 7 8 t' ID 11 viva .. ... ... ... - - Ceassallsawreesgensheles Ces-beeei •••••••Cunxist-/e...t, More specifically, the Manager believes that secondary investments offer the potential for an attractive risk-reward profile due to: • Pricing flexibility: capacity to re-price existing assets to reflect current performance and economic environment and to opportunistically target price inefficiencies resulting from market dislocation and supply-demand imbalances in the private equity market. • Mitigation of blind pool risk: a secondary manager is typically able to analyze existing assets and will therefore have greater visibility on cash-flows. • Mitigation of J-curve effect: typically secondary inves