1. Next Generation Alternative Strategies May 2014 Private and Confidential Investing in novel, innovative and unconventional strategies

2. Private & Confidential 2 Orthogonal Partners LLP 2 Diversification is the closest thing to a “free lunch” DIVERSIFICATION + Returns = “VALUE” Why do we diversify? – to manage risk The world is risky - we don’t put all your eggs in one basket Or do we? Why seek Next Generation Alternative Strategies? Confidential

3. Private & Confidential 3 Orthogonal Partners LLP 3 Over time our allocations are becoming MORE correlated – they are riskier! Err……… Confidential

4. Private & Confidential 4 Orthogonal Partners LLP 4 Unexpected Financial Shocks Confidential 1987 Stock Market Crash 1990 Nikkei Crash 1990 High Yield Tumbles 1992 European Currency Crisis 1994 US Interest Rate Hike 1994-96 Mexican Peso Crisis 1996 Latin American Crisis 1997 Asian Crisis 1998 Russian Crisis 1998 LTCM 1999 Brazil Crisis 2000 Tech Meltdown 2001 Tech Meltdown 9/11 Terrorist Attacks 2002 Bubble Bursts 2003 Fannie Mae Fannie Mac Blackout of 2003 2008 Global Financial Crisis 2014 Ukraine? 1987 1990 1992 1994 1996 1997 1998 1999 2000 2001 2002 2003 2008 2014 Next Bubble?

5. Private & Confidential 5 Orthogonal Partners LLP 5 Declining attractiveness of traditional PE/HF strategies No surprise -$3 Trillion in HF /$3 Trillion in PE Issues around access, alignment of interest, fees, succession in established brands You better hope things work out well But as we know “hope is not a good strategy” What should we do? Houston we have a problem Confidential

6. Private & Confidential 6 Orthogonal Partners LLP 6 Invest in misunderstood, under-researched, niche strategies Inefficiencies due to scarcity of institutional capital Return drivers independent of traditional financial markets The “brand names” of today were the “next generation” of yesterday Go where others can’t or won’t go (Yet) Confidential

7. Private & Confidential 7 Orthogonal Partners LLP 7 Novel, innovative and unconventional Misunderstood, under-researched, niche strategies Inefficiencies due to scarcity of capital Returns which behave differently in times of stress to anything else in your portfolio Return drivers independent of traditional financial markets Entrepreneurial solutions to market problems Next generation alternatives – example characteristics Confidential

8. Private & Confidential 8 Orthogonal Partners LLP 8 New sources of return are undercapitalised and inefficient New ways of creating assets and adding value Low correlation with existing investments Often targeting generating absolute return Opportunity for enhanced economics - significant influence on terms, structure, transparency Attractions of investing in next generation alternatives Confidential

9. Private & Confidential 9 Orthogonal Partners LLP 9 Examples of next generation alternatives Confidential Weather Electricity Intellectual property rights / music / film / video games / photography Aircraft part-out Litigation strategies Niche direct lending and trade finance obligations

10. Private & Confidential 10 Orthogonal Partners LLP 10 Where to find the ideas? Not in databases, unknown to consultants, may not have track records Next generation strategies may have:  Sophisticated strategies  Complexity  Start up and operational risk  Need active support with structuring and governance  Never have managed third party money Due diligence requires dedicated resources, experience and expertise Very limited pool of experience May need to outsource this activity Confidential Barriers to entry - Investing in next generation alternatives

11. Private & Confidential DIVERSIFICATION + Returns = “VALUE” Investors need new sources of return Adding “next generation” strategies can reduce risk and increase returns Difficult to successfully execute strategy without help May be cost effective to outsource such an activity 11 Confidential Summary – Benefit from Orthogonal returns Orthogonal Partners LLP 11

12. Private & Confidential Orthogonal Partners LLP 12 Confidential Any Questions?

13. Private & Confidential THIS DOCUMENT IS ISSUED BY ORTHOGONAL PARTNERS LLP (“ORTHOGONAL”) WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY IN THE UK (“FCA”) AND IS PREPARED IN CONNECTION WITH THE MARKETING OF INTERESTS IN ORTHOGONAL PARTNERS II (THE “FUND”). THE PROMOTION OF THE FUND EITHER WITHIN THE UK OR FROM THE UK IS SEVERELY RESTRICTED BY STATUTE. CONSEQUENTLY, THIS DOCUMENT IS ONLY MADE AVAILABLE AND MAY ONLY BE DISTRIBUTED TO PERSONS WHO ARE “INVESTMENT PROFESSIONALS” (BEING PERSONS HAVING PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS) WITHIN THE MEANING OF ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE “FINANCIAL PROMOTION ORDER”) OR WHO ARE PERSONS TO WHOM ANY OF PARAGRAPHS (2)(A) TO (D) OF ARTICLE 49 (HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS ETC.) OF THE FINANCIAL PROMOTION ORDER APPLY OR WHO ARE PERSONS TO WHOM DISTRIBUTION MAY OTHERWISE LAWFULLY BE MADE. ANY INVESTMENT, AND INVESTMENT ACTIVITY OR CONTROLLED ACTIVITY, TO WHICH THESE MATERIALS RELATES IS AVAILABLE ONLY TO SUCH PERSONS AND WILL BE ENGAGED IN ONLY WITH SUCH PERSONS. PERSONS THAT DO NOT HAVE PROFESSIONAL EXPERIENCE SHOULD NOT RELY OR ACT UPON THESE MATERIALS UNLESS THEY ARE PERSONS TO WHOM ANY OF PARAGRAPHS (2)(A) TO (D) OF ARTICLE 49 APPLY OR ARE PERSONS TO WHOM DISTRIBUTION OF THIS OFFERING CIRCULAR MAY OTHERWISE LAWFULLY BE MADE. THIS DOCUMENT AND THE INFORMATION IN IT DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR SOLICITATION OF ANY OFFER TO BUY OR SUBSCRIBE FOR ANY INTEREST IN OR OTHER PARTICIPATION IN THE PROPOSED FUND NOR SHALL THIS DOCUMENT NOR THE FACT OF ITS DISTRIBUTION FOR THE BASIS OF OR BE RELIED ON IN CONNECTION WITH, OR ACT AS ANY INDUCEMENT TO ENTER INTO, ANY CONTRACT OR COMMITMENT WHATSOEVER. RECIPIENTS OF THIS DOCUMENT WHO MIGHT CONSIDER ACQUIRING ANY SUCH INTEREST OF PARTICIPATION FOLLOWING THE PUBLICATION OF A FINAL FUND DOCUMENT MUST MAKE ANY SUCH PURCHASE ONLY ON THE BASIS OF THE INFORMATION CONTAINED IN A DEFINITIVE CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM OR PROSPECTUS AND THE FINAL FUND DOCUMENTS IN THEIR FINAL FORM, WHICH MAY BE DIFFERENT FROM THE INFORMATION CONTAINED IN THIS DOCUMENT. NO RELIANCE MAY BE PLACED FOR ANY PURPOSE WHATSOEVER ON THE INFORMATION OR OPINIONS CONTAINED IN THIS DOCUMENT OR ANY PRESENTATION OR ON THE COMPLETENESS, ACCURACY OR FAIRNESS OF SUCH INFORMATION OR OPINIONS OR ANY PART OF THEM. NO UNDERTAKING, REPRESENTATION, WARRANTY OR OTHER ASSURANCE, EXPRESS OR IMPLIED, IS MADE OR GIVEN BY OR ON BEHALF OF ORTHOGONAL, ITS PARTNERS OR ANY OTHER PERSON AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION OR OPINIONS CONTAINED IN THIS DOCUMENT OR ANY PRESENTATION OF IT AND NO RESPONSIBILITY OR LIABILITY IS ACCEPTED BY ANY OF THEM FOR THE ACCURACY OF SUCH INFORMATION OR OPINIONS OR FOR ANY ERRORS, OMISSIONS, MISSTATEMENTS, NEGLIGENCE OR OTHERWISE FOR ANY OTHER COMMUNICATION WRITTEN OR OTHERWISE. THIS DOCUMENT IS CONFIDENTIAL AND IS BEING SUPPLIED TO YOU SOLELY FOR YOUR INFORMATION FOR THE PURPOSE STATED ABOVE AND MAY NOT BE REPRODUCED, RE- DISTRIBUTED OR PASSED TO ANY OTHER PERSON OR PUBLISHED IN WHOLE OR IN PART FOR ANY PURPOSE. IT IS IN SUMMARY FORM AND DOES NOT COVER ALL MATTERS THAT MAY BE RELEVANT FOR PROSPECTIVE INVESTMENT IN THE FUND. THIS DOCUMENT CONTAINS PROJECTIONS, FORECASTS, TARGETED RETURNS, ILLUSTRATIVE RETURNS, ESTIMATES, BELIEFS AND SIMILAR INFORMATION (“FORWARD LOOKING INFORMATION”). FORWARD LOOKING INFORMATION IS SUBJECT TO INHERENT UNCERTAINTIES AND QUALIFICATIONS AND IS BASED ON NUMEROUS ASSUMPTIONS, IN EACH CASE WHETHER OR NOT IDENTIFIED HEREIN. FORWARD LOOKING INFORMATION IS PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY AND IS NOT INTENDED TO SERVE AS, AND MUST NOT BE RELIED UPON BY ANY PROSPECTIVE INVESTOR AS, A GUARANTY, AN ASSURANCE, A PREDICTION OR A DEFINITIVE STATEMENT OF FACT OR PROBABILITY. THERE CAN BE NO ASSURANCE THAT THESE OR COMPARABLE INVESTMENT RESULTS OR RETURNS WILL BE ACHIEVED BY THE FUND OR THAT THE FUND WILL BE ABLE TO AVOID LOSSES. Orthogonal Partners LLP 13 Confidential 13 Disclaimer

14. Private & Confidential 14 Orthogonal Partners LLP 14 Orthogonal Partners LLP 9 Queen Anne Street London W1G 9HW Tel: +44 (0)20 7436 9462 Fax:+44 (0)20 7436 9428 info@orthogonalpartners.com Contact information Confidential