GL0US140 Lawrence Hirsch Section 4. Glendower Capital Secondary Opportunities Fund IV. LP Glendower Capital Secondary Opportunities Fund IV. LP Secondary market supply/demand remains balanced Glendower believes that the secondary market supply I demand is balanced with an active set of both buyers and sellers. Greenhill estimates the available dry powder in the Secondary market at ca. US$125 billion. If compared with 2017 annual volume of US$58 billion, this represents a 2.2x ratio: Glendower believes that this represents a reasonable supply/demand balance of approximately two years of deal flow at current market volumes. a more favorable balance than in comparison to traditional private equity. Exhibit 12: Strong Secondary Capita! supply/' Exhibit 13: Dry powder/deal volume remains balanced" USW, 140 • 120 • 100 ea Iso 40 20 • 0 • ObrbowerCeptaissamaSThe 72. wrraion/ man a masb•rodepty Settedanos Sec Dry Parma Panurd De0.164m6 USStn 700 600 • 500 400 • 300 • 200 100 0 Orr now. • Nal +arra • Bvitul Seccntbinef Glendower believes the increase in absolute dry powder in the secondary market over the last few years has led some buyers - in an attempt to keep pace with capital deployment desires - to modify their investment discipline. Glendower emphasizes rigorous asset selection and has historically maintained a very disciplined approach in its opportunity selection, transacting approximately 1W° of total transaction volume by value since inception. Diverse and growing seller universe Seller composition in 2017 was highly diverse, with no institutional category accounting for more than a quarter of total deals by number. According to Greenhill, all types of sellers participated in the secondary market in the first half of the year. This reflects the evolution of the secondary market which now represents an efficient portfolio management tool that is used by market participants to strategically rebalance private equity por