General disclosures

The views expressed in this presentation are the views of Cliffwater. The material contained herein is confidential. This presentation is not intended for public use or distribution. It may not be copied, transmitted, given, or disclosed to any person other than your authorized representatives. This presentation is not an advertisement, is being distributed for informational and discussion purposes only, should not be considered investment advice, and should not be construed as an offer or solicitation of an offer for the purchase or sale of any security. The information and opinions presented in this presentation should not be construed as any advice from Cliffwater as to any legal, tax, investment or other matter. This presentation is not meant to be, nor shall it be construed as, an attempt to define all information that may be material to an investor. The information herein does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon.
The information in this presentation is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve.
Statements that are nonfactual in nature, including opinions, projections and estimates, assume certain economic conditions and industry developments and constitute only current opinions that are subject to change without notice. Further, all information, including opinions and facts, expressed herein are current as of the date appearing in this presentation and is subject to change without notice.
All third party information has been obtained from sources believed to be reliable but its accuracy is not guaranteed. The information herein may include inaccuracies or typographical errors. Due to various factors, including the inherent possibility of human or mechanical error, the accuracy, completeness, timeliness and correct sequencing of such information and the results obtained from its use are not guaranteed by Cliffwater. No representation, warranty, or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in this presentation. Cliffwater shall not be responsible for investment decisions, damages, or other losses resulting from the use of the information herein.
There can be no assurance that any expected rates of return or risk will be achieved. Expected rates of return and risk are subjective determinations by Cliffwater based on a variety of factors, including, among other things, investment strategy, prior performance of similar strategies, and market conditions. Expected rates of return may be based upon assumptions regarding future events and conditions that prove to be inaccurate. Expected rates of return and risk should not be relied upon as an indication of future performance and should not form the primary basis for an investment decision. No representation or assurance is made that the expected rates of return or risk will be achieved.
This presentation may include sample or pro forma performance. Such information is presented for illustrative purposes only and is based on various assumptions, not all of which are described herein. Such assumptions, data, or projections may have a material impact on the returns shown. Nothing contained in this presentation is, or shall be relied upon as, a representation as to past or future performance, and no assurance, promise, or representation can be made as to actual returns. Past performance is not indicative of future returns, which may vary. Future returns are not guaranteed, and a loss of principal may occur.
Cliffwater is a service mark of Cliffwater LLC.

J-Curve Comparison disclosures

The Cliffwater Direct Lending 2011-2015 Vintage Median IRR reflects the median IRR of a hypothetical model portfolio of primary investments by Cliffwater's clients, both discretionary and non-discretionary, in all 2011 to 2015 vintage year funds or accounts recommended by Cliffwater that use direct lending strategies and that Cliffwater designates as a direct lending investment. The IRR is net of (i) all underlying fund or account expenses, management fees, and performance-based fees and (ii) Cliffwater's actual fees, determined on the basis of allocation of Cliffwater's compensation to assets under advisement and by strategy. Vintage years are determined by Cliffwater generally based on the year in which a fund or account makes its first investment or capital call, including capital calls for fees or expenses. The IRR for each fund or account is calculated using the combined Cliffwater client daily cash flows and residual values for the investments included in the model. The residual values used in the model are the valuations reported by the sponsor and/or administrator of the fund or account. The IRR relies upon the accuracy and completeness of financial information provided to Cliffwater by such sponsors and/or administrators and the custodian banks of Cliffwater's clients and, therefore, Cliffwater has not conducted an independent verification of this information.
The hypothetical performance results of the model portfolio do not represent actual trading, and may not reflect the impact material economic and market factors might have had on Cliffwater's decision-making if it were actually managing client's money. The actual performance of Cliffwater's clients may have been materially different from the results portrayed in the model portfolio. Past performance is not indicative of future returns, which may vary. Future returns are not guaranteed, and a loss of principal may occur.
References to market or composite indices (such as the S&P 500), benchmarks or other measures of relative market performance over a specified period of time (each, an "index") are provided for information only. Reference to an index does not imply that a portfolio will achieve returns, volatility or other results similar to the index. The composition of an index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change over time.
The Cambridge Associates U.S. Buyout benchmark is based on median horizon returns data compiled from U.S. institutional-quality buyout funds, including fully liquidated partnerships (if any), formed between 2011 and 2015.
The Cambridge Associates U.S. Distressed/Mezzanine benchmark is based on median horizon returns data compiled from U.S. institutional-quality distressed and mezzanine funds, including fully liquidated partnerships (if any), formed between 2011 and 2015. In Cliffwater's judgment, this benchmark is the available data set that is the most comparable to the Cliffwater direct lending data set for purposes of conducting a time series analysis.
Benchmark IRRs are net of all fund expenses, management fees and carried interest and are calculated by Cambridge Associates LLC using quarterly cash flows. Benchmark vintage years are determined by Cambridge Associates LLC based on the year a fund had its first cash flow. Thomson Financial Inc. is the owner and/or licensor of the Cambridge Associates LLC data contained or reflected in this material.

Cliffwater Direct Lending Index disclosures

The Cliffwater Direct Lending Index (the "CDLI") is an index comprised of all underlying assets held by public and private Business Development Companies that satisfy certain eligibility requirements. The CDLI is asset-weighted by reported fair value. Cliffwater believes that the CDLI is representative of the direct lending asset class. The CDLI is owned exclusively by Cliffwater, and is protected by law including, but not limited to, United States copyright, trade secret, and trademark law, as well as other state, national, and international laws and regulations. Cliffwater provides this information on an "as is" and "as available" basis, without any warranty of any kind, whether express or implied. Past performance of the CDLI is not indicative of future returns. It is not possible to invest directly in the CDLI. The CDLI returns shown are not based on actual advisory client returns and do not reflect the actual trading of investible assets. The performance of the CDLI has not been reviewed by an independent accounting firm and has been prepared for informational purposes only and should not be considered investment advice. Index returns do not reflect payment of any sales charges or fees a person may pay to purchase the securities underlying the CDLI or a product that is intended to track the performance of the CDLI. The imposition of these fees and charges would cause the actual and back-tested performance of these securities or products to be lower than the CDLI performance shown.
Any information presented prior to the Launch Date (September 30, 2015) of the CDLI is back-tested. Back-tested performance is not actual performance, but is hypothetical. The back-tested calculations are based on the same methodology that was in effect when the CDLI was officially launched. Please refer to the methodology paper for the CDLI (available at www.CliffwaterDirectLendingIndex.com ) for more details about the CDLI, including the Base Date/Value (September 30, 2004 at 1,000) and the Launch Date of the CDLI and the manner in which the CDLI is rebalanced, the timing of such rebalancing and the eligibility criteria for the CDLI. Prospective application of the methodology used to construct the CDLI may not result in performance commensurate with any back-tested returns shown. The back-test period does not necessarily correspond to the entire available history of the CDLI. Another limitation of back-tested hypothetical information is that generally the back-tested calculation is prepared with the benefit of hindsight. Back-tested data reflect the application of the CDLI methodology and selection of CDLI constituents in hindsight. No hypothetical record can completely account for the impact of financial risk in actual trading. For example, there are numerous factors related to the financial markets in general which cannot be, and have not been accounted for, in the preparation of the CDLI information set forth, all of which can affect actual performance. When Cliffwater was unable to determine the nature of a BDC's investments because of limited information included in historical SEC filings, Cliffwater did not apply the portfolio composition criteria (at least 75% of total investments represented by direct loans) to the BDC. All other eligibility criteria were applied to determine whether to include the BDC in the historical CDLI composition and return. All CDLI returns and characteristics are reported with a 2.5 month lag to allow sufficient time for SEC filings.
The CDLI is derived from sources that are considered reliable, but Cliffwater does not guarantee the veracity, currency, completeness or accuracy of the CDLI or other information furnished in connection with the CDLI. No representation, warranty or condition, express or implied, statutory or otherwise, as to condition, satisfactory quality, performance, or fitness for purpose are given or duty or liability assumed by Cliffwater in respect of the CDLI or any data included therein, omissions therefrom or the use of the CDLI in connection with any product, and all those representations, warranties and conditions are excluded save to the extent such exclusion is prohibited by applicable law.
The CDLI may include inaccuracies or typographical errors. Due to various factors, including the inherent possibility of human or mechanical error, the accuracy, completeness, timeliness and correct sequencing of such information and the results obtained from its use are not guaranteed by Cliffwater.

Index disclosures

References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time (each, an "index") are provided for information only. Reference to an index does not imply that a portfolio will achieve returns, volatility or other results similar to the index. The composition of an index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change over time. Investors cannot invest directly in indices and, unlike an account managed by Cliffwater, an index is unmanaged and fully invested. Index returns reflect the reinvestment of dividends but do not reflect the deduction of any fees or expenses, which would reduce returns.
Frank Russell Company ("FRC") is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. The Russell Index data may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited.
Thomson Financial Inc. is the owner and/or licensor of the Cambridge Associates LLC data contained or reflected in this material.
Index Definitions
The Bloomberg Barclays High Yield Loan Index (Bloomberg Barclays HY Loan) provides broad and comprehensive total return metrics of the universe of syndicated term loans. To be included in the index, a bank loan must be dollar denominated, have at least $150 million funded loan, a minimum term of one year, and a minimum initial spread of LIBOR+125.
The Bloomberg Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.
The NCREIF Property Index is a quarterly time series composite total rate of return measure of investment performance of a very large pool of individual commercial real estate properties acquired in the private market for investment purposes only. All properties in the index have been acquired, at least in part, on behalf of tax-exempt institutional investors.
The Cambridge U.S. Buyout Index (Cambridge US Buyouts; CA U.S. Buyout) is based on data compiled from U.S. institutional-quality buyout funds, including fully liquidated partnerships, formed between 1986 and 2016.
The Cambridge Private Equity Index is based on data compiled from global institutional-quality buyout, growth equity, private equity energy, venture capital and mezzanine funds, including fully liquidated partnerships, formed between 1986 and 2016.
The S&P/LSTA U.S. Leveraged Loan Index is a market value-weighted index designed to measure the performance of the institutional leveraged loan market in the United States based upon market weightings, spreads and interest payments, including Term Loan A, Term Loan B and Second Lien tranches.
The Bloomberg Barclays U.S. High Yield Index (Bloomberg Barclays High Yield Bond) covers the universe of fixed rate, non-investment grade debt. Eurobonds and debt issues from countries designated as emerging markets (sovereign rating of Baa1/BBB+/BBB+ and below using the middle of Moody's, S&P, and Fitch) are excluded, but Canadian and global bonds (SEC registered) of issuers in non-EMG countries are included. Original issue zeroes, step-up coupon structures, 144-As and pay-in-kind bonds (PIKs, as of October 1, 2009) are also included.
The Russell 3000 Index is a capitalization-weighted stock market index that seeks to track the entire U.S stock market. It measures the performance of the 3,000 largest publicly held companies incorporated in the United States based on market capitalization.
The Pitchbook U.S. Mezzanine Index is based on data compiled from U.S. institutional-quality mezzanine funds, including fully liquidated partnerships, formed between 1995 and 2014.