GLDUS138 Ian Slome Section 7: Risk Factors Glendower Capital Secondary Opportunities Fund IV. LP Leverage The leveraged capital structure of some vintage funds and portfolio companies in which the Fred may directly or indirectly invest will increase the exposure of such investments to adverse financial or economic conditions such as significantly rising interest rates, severe economic downturns or deterioration in the condition of tlx: investment or its corresponding market. Under such conditions, the value of the Fund's direct or indirect investment in a portfolio company could be significantly reduced or even eliminated. There may be a substantial amount of indebtedness in connection with such portfolio company investments. Global financial markets have experienced a variety of difficulties and changed economic conditions in recent years. These developments and new developments, if they occur, could have a significant effect upon the availability and terms of financing, as well as the purchase and sale price of assets, and accordingly. could adversely affect the Fund's or an underlying fund's ability to make or dispose of investments. the type of investments that may be made and the returns received with respect to such investments. Investments in troubled and leveraged companies The Fund may invest indirectly, through the underlying funds, in securities of financially troubled companies and securities of highly leveraged companies. While these investments are likely to be particularly risky. they also may offer the potential for correspondingly high returns. Under certain circumstances, payments to the mderlying funds and distributions by the underlying funds to their investors, including to the Fund, may be reclaimed on bankruptcy or insolvency if any such payment is later determined to have been a preferential payment. Venture capital investments The Fund may invest in interests in limited partnerships devoted to early stage venture capital