EFTA Document EFTA01355021

GLDUS125 Pacific Life Insurance Co Section 4. Glendower Capital Secondary Opportunities Fund IV. LP Glendower Capital Secondary Opportunities Fund IV. LP Secondary market overview The secondary private equity market has expanded and evolved dramatically over the last two decades. The market is large, dynamic and acknowledged by private equity firms and limited partners alike as a liquidity enabler for private equity investors globally. In its early years, the secondary market was typically a much more niche market and limited to the sale and purchase of limited partnership interests in private equity funds. Today, the market has expanded to include bespoke liquidity solutions such as LP tenders. GP recapitalizations and structured and hybrid transactions. At the same time. the global private equity market has increased significantly to US$2.8 trillion.49 The expansion of secondary solutions and a large, growing primary private equity market have propelled the secondary market to record volumes in recent years. Over the previous three years the secondary market has consistently transacted an average of US$40 billion a year and in 2017 showed another significant jump in volume to US$58 billion.5° Glendower believes that the record volumes are being driven primarily by: (i) increases in the number of transactions, and (ii) a greater number of small to medium-sized deals transacted by a diverse set of participants. Glendower expects that many of the critical drivers of volumes over the last few years, such as the growth of GP4ed Secondaries and active portfolio management by investors, will continue to underpin the secondary market and represent mainstay sources of supply in this dynamic market. Glendower believes that the fundamental drivers of supply remain intact and future market activity will be driven by a number of factors, including a stable pricing environment, continued prominence of GP-led Secondaries and healthy buyer demand. Active portfolio management via LP portfolio sales represented the majority of market volumes in 2017 and this trend should continue with sellers actively engaging in the market for a variety of reasons, including: (i) change in strategy, (ii) portfolio diversification, (iii) liquidity issues and (iv) tax planning. GP-led Secondaries now account for a significant amount of volume in the secondary market and contributed US$14 billions, in 2017 (24% of total volume). Glendower expects this once-emerging trend to now be a steady source of supply as transaction structures and market participants continue to evolve and mature. Exhibit 8: PE Secondary Market Volumes 2006 - 201752 uSta co JD 20 13 10 10 0 ■ 16 71 37 3116 2005 2007 2003 X04 2012 20i3 2014 ati5 2017 OP-IM S43:01366/ • Fund $10,366ry The volume of private equity assets has grown significantly as more investors have entered the asset class, eiOsting investors have increased allocations to private equity and larger commitments of capital have been made to increasingly larger investment funds. According to Preqin, the global private equity AUM in 1H17 amounts to US$2.8 trillion of which Source 2018 Prow Global Private EqutyS Venture Captal Report Source. Greenhll Secondary Orion° Trends 8 Analyse, January 2018. Greenhill Secondary Poona Trends 8 Analyse. January 2018 Glendower CaPW analysis based cn Greenhd Secondary Market Trends & Outtaalc January 2018. Greenhil GP Solutions Discussion Matenats. stay 2017, and Dow Jones Private Ecsirty Analyst Gude lo Secondary Market June 2017 Confidential Prnrato Placement Memorandum 18 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0039724 CONFIDENTIAL SDNY GM_00185908 EFTA01355021