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HOUSE_OVERSIGHT_024078

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previously drawn down by the Fund (plus an additional amount thereon), there can be no assurance that such payment will reflect the fair value of the Fund’s existing investments at the time such additional Limited Partners subscribe for such interests. Difficulty in Valuing Portfolio Investments and Distribution in Kind Generally, there will be no readily available market for a substantial number of the Fund’s investments and hence, most of the Fund’s investments will be difficult to value. The securities in which the Fund will invest may be among the most junior in a portfolio company’s capital structure, and thus subject to the greatest risk of loss. It is highly speculative as to the whether and when a portfolio company will be able to register its securities so that the securities become eligible for trading in public markets. Certain investments may be distributed in kind to the Partners of the Fund. An investor that receives assets other than cash from the Fund may incur costs and delays in converting those assets to cash. Non-Controlling Investments The Fund generally expects to make non-controlling investments in portfolio companies where the Fund may not be able to control or effectively influence the business or affairs of such entities. Portfolio companies in which the Fund’s investments are made may have economic or business interests or goals which are inconsistent with those of the Fund, and the Fund may not be in a position to influence those interests or goals or otherwise protect the value of the Fund’s investments in such entities. In addition, although the Fund may seek board representation in connection with its investments, there is no assurance that such representation, if sought, will be obtained. Service on Board of Directors The Fund typically will seek to have observation or visitation rights or the right to designate directors to serve on the boards of directors of the Fund’s portfolio companies. In addition, affiliates of the General Part

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