GLDUSI 39 Third Lake Capital 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 SACO Pricing Milley Re-pace ending funded eSS(4S - Capitalise on pricing ineflotenCieS Mrtgale Sind Pool Risk MIligato ../a urott COninteMent Portfolio Construction Knowedge ot existing underlying COMO:idea Mature assets typically yield more preociatte cash Corn - Shorter euraton of investments - Earlier cash distributions Accelerate deployment of caFFP Provides back-seasoned &Reseed exposure across enter strategy. industry and geCgade 1.200 ttlpda•c deep d NeOMW4 Irnecten Th .\ s 8 7 8 ID 11 vava - —dr Ceatesils wenentigediersies dee ree-bered ••••••^Cufaistne..4.ti (*Ng 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