2020 Private Equity Strategic Plan

14. Presentation by StepStone Group – 2020 Private Equity Strategic Plan

14 Water and Power Employees’ Retirement Plan (the “Plan”) Strategic and Tactical Plan

February 2020 | Confidential Disclosure

This document is meant only to provide a broad overview for discussion purposes. All information provided here is subject to change. This document is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, or as an offer to provide advisory or other services by StepStone Group LP, StepStone Group Real Assets LP, StepStone Group Real Estate LP, StepStone Conversus LLC, Swiss Capital Invest Holding (Dublin) Ltd, Swiss Capital Alternative Investments AG or their subsidiaries or affiliates (collectively, “StepStone”) in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this document should not be construed as financial or investment advice on any subject matter. StepStone expressly disclaims all liability in respect to actions taken based on any or all of the information in this document.

This document is confidential and solely for the use of StepStone and the existing and potential clients of StepStone to whom it has been delivered, where permitted. By accepting delivery of this presentation, each recipient undertakes not to reproduce or distribute this presentation in whole or in part, nor to disclose any of its contents (except to its professional advisors), without the prior written consent of StepStone. While some information used in the presentation has been obtained from various published and unpublished sources considered to be reliable, StepStone does not guarantee its accuracy or completeness and accepts no liability for any direct or consequential losses arising from its use. Thus, all such information is subject to independent verification by prospective investors.

The presentation is being made based on the understanding that each recipient has sufficient knowledge and experience to evaluate the merits and risks of investing in. private market products. All expressions of opinion are intended solely as general market commentary and do not constitute investment advice or a guarantee of returns. All expressions of opinion are as of the date of this document, are subject to change without notice and may differ from views held by other businesses of StepStone.

All valuations are based on current values calculated in accordance with StepStone’s Valuation Policies and may include both realized and unrealized investments. Due to the inherent uncertainty of valuation, the stated value may differ significantly from the value that would have been used had a ready market existed for all of the portfolio investments, and the difference could be material. The long‐term value of these investments may be lesser or greater than the valuations provided.

StepStone Group LP, its affiliates and employees are not in the business of providing tax, legal or accounting advice. Any tax‐related statements contained in these materials are provided for illustration purposes only and cannot be relied upon for the purpose of avoiding tax penalties. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

Prospective investors should inform themselves and take appropriate advice as to any applicable legal requirements and any applicable taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any investments. Each prospective investor is urged to discuss any prospective investment with its legal, tax and regulatory advisors in order to make an independent determination of the suitability and consequences of such an investment.

An investment involves a number of risks and there are conflicts of interest. Please refer to the risks and conflicts disclosed herein.

Each of StepStone Group LP, StepStone Group Real Assets LP, StepStone Group Real Estate LP and StepStone Conversus LLC is an investment adviser registeredwiththe Securities and Exchange Commission (“SEC”). StepStone Group Europe LLP is authorized and regulated by the Financial Conduct Authority, firm reference number 551580. Swiss Capital Invest Holding (Dublin) Ltd (“SCHIDL”) is an SEC Registered Investment Advisor and Swiss Capital Alternative Investments AG (“SCAI” and together with SCHIDL, “Swiss Cap”) is an SEC Exempt Reporting Adviser. Such registrations do not imply a certain level of skill or training and no inference to the contrary should be made.

All data is as of September 30, 2019 unless otherwise noted.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ACTUAL PERFORMANCE MAY VARY. StepStone Team

Michael Elio – Partner

Mr. Elio is a member of the private equity team, focusing on middle‐market buyouts and secondary funds. He is also involved in various advisory and portfolio management activities. Prior to joining StepStone in 2014, Mr. Elio was a managing director at ILPA, where he led programs around research, standards and industry strategic priorities. Before that he was a partner and managing director at LP Capital Advisors where he led the firm’s Boston office and served as the lead consultant to North American and European institutional investors. Mr. Elio was the primary consultant for many of the firm’s largest clients including public and private pension plans committing more than US$5 billion annually.

John Kettnich – Partner

Mr. Kettnich a member of the private equity team, focusing on secondary investments. He is also involved in various portfolio management activities. Since StepStone’s inception, Mr. Kettnich has helped to build the Firm’s primary diligence and research platform, as well as its secondary investment business. He also spent time living in Beijing and London, where he focused on developing StepStone’s international business. Before joining StepStone in 2007, Mr. Kettnich was with PCG Capital Partners, the direct investment arm of Pacific Corporate Group, where he sourced and evaluated middle‐market buyout and growth equity investments. Mr. Kettnich graduated summa cum laude with a BBA from the University of San Diego and is a CFA charterholder.

Jonathan True – Vice President

Mr. True is a member of the private equity team, focusing on small‐market buyouts and secondary funds. Prior to joining StepStone, Mr. True was an analyst at The Carlyle Group’s AlpInvest Partners where he sourced and performed due diligence on private equity funds focusing on North American GPs. Previously, Mr. True was an investment analyst at Cornell University Investment Office where he assisted in managing the university’s endowment and sourced and conducted due diligence on prospective managers. Mr. True received his BS in financial economics from Binghamton University. He is a CFA charterholder.

Confidential | 2 Executive Summary Strategic Objectives

• The Plan pursues investments in private equity (“PE”) assets as part of its strategic asset allocation in order to

• Increase the diversification of the Plan’s assets,

• Take advantage of the ability to accept illiquidity in exchange for a premium, and

• Reduce the volatility and help increase the risk‐adjusted returns of the overall Plan.

• The Retirement Board seeks to invest with managers who have demonstrated the ability, or the potential, to outperform the public market benchmark plus an illiquidity risk premium, net of fees and expenses.

• The Retirement Board expects that commitments to and investments in private equity assets will establish, maintain, and continually reinforce the presence as an attractive investor, and make both continuous use of and contributions to the best practices of investors in private equity.

• The Retirement Board will seek investments in which the General Partner demonstrates a commitment to standards of good conduct and transparency, including compliance with all Federal, State, local, and international laws, including, but not limited to, labor, anti‐ discrimination, environmental, and health and safety laws, and will reject investments that would pose reputational risk to the Plan or bring public or regulatory scrutiny other than that which is required by law or regulation to consummate an investment transaction.

Confidential | 4 Aggregate Asset Allocation

The Plan has adopted a target allocation to private equity of 8.0% of the market value of the total assets

― The Retirement Fund began committing to the private markets in 2006. As of September 30, 2019, private equity represented approximately 5.5% of the Retirement Fund’s assets, excluding unfunded commitments

― The Health Fund began committing to private markets in 2008. As of September 30, 2019, private equity represented approximately 6.0% of the Health Fund’s assets, excluding unfunded commitments

• Depending on allocations to each private equity sub‐sector, the rate at which the Plan progresses towards its 8.0% private equity exposure target may vary to a degree

• As a relatively young program, it will take a number of years before the full target allocation is reached

Confidential | 5 Strategic and Pacing Plan Overview

• Strategic Plan: a long‐term investment plan designed to achieve the Plan’s investment objectives

– The Plan’s staff has worked with StepStone Group (“StepStone”) to develop a pacing plan to prudently achieve and maintain a targeted asset allocation to the Plan’s private equity investment strategies over the short and medium‐ term (i.e., five year)

– The pacing plan includes portfolio construction objectives created to achieve appropriate diversification by strategy, geography, and manager

• Tactical Plan: tactical recommendations for potential allocation opportunities for calendar year 2020 that facilitate and align with the execution of the Strategic Plan

– The Plan’s staff and StepStone have developed a pipeline of near‐term opportunities that will be leveraged to identify attractive fund investment opportunities for the annual plan

– Tactical Plan executes on the Strategic Plan within the context of the opportunities available, current market environment and any near‐term priorities

Confidential | 6 Strategic Recommendation

• Strategic Plan: – Target US$400 million of annual private equity commitments in 2020 and increasing thereafter in order to smooth deployment pacing and achieve target of 8% exposure by fair market value (“FMV”) to private equity as a percentage of the Plan’s program assets.

• The Retirement Fund: Target US$350 million of annual private equity commitments in 2020. Target four to seven investments annually with an average investment size of US$85 million

• The Health Fund: Target US$50 million of annual private equity commitments in 2020. Target four to seven investments annually with an average investment size of US$10 million

– Increase geographic diversification by targeting commitments to fund managers with a European focus in order to achieve the long term target exposure to Europe, and selectively commit to other international regions, including Asia and Emerging Markets

– Underweight Venture Capital and Fund of Funds exposure through an increase in complementary late stage/growth capital commitments, which can be made directly and at scale

– Develop program to leverage co‐investment opportunities generated from the Plan’s portfolio, providing improved net return potential

• Tactical Plan: – Focus on deploying capital in funds with existing, high‐quality Plan managers – Continue to identify and commit to high‐conviction Buyout funds – Develop new manager relationships through commitments to Growth Equity, Europe‐focused funds and Special Situations funds in order to diversify exposure across multiple Private Equity sectors

Confidential | 7 Retirement Fund Historical Portfolio Review Annual Commitment Analysis

Portfolio Status

• Since inception, the Retirement Fund has committed or approved US$1,927.7 million to 41 partnership investments across 21 managers, representing an average investment size of US$47.0 million per investment

• As the portfolio continues to mature, careful consideration is given to new relationships while evaluating the performance of existing relationships. StepStone seeks to build a long‐term target portfolio of 30to35activemanagers.Beyondthat,thereisariskofover diversification and dilution of outperforming funds resulting in index‐like returns

Performance

• As of September 30, 2019 (latest data available), the Retirement Fund has generated an inception‐to‐date net TVM of 1.3x

Commitments by Vintage Year US$ in millions $700.0 1.8x

1.6x $600.0 1.6x 1.6x 1.5x 1.5x 1.5x 1.4x 1.4x 1.4x 2020: $500.0 1.3x $213.0 1.2x 1.2x 1.1x $400.0 1.0x 2019: $300.0 $289.0 0.8x $262.2 $409.5 $187.0 0.6x $200.0 $149.0 $127.5 0.4x $100.0 $60.0 $70.0 $54.5 $46.0 $25.0 $35.0 0.2x

$0.0 0.0x 2006 2008 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019/2020

Commitments TVM

NOTES: Includes commitments to funds which closed through December 31, 2019. Past performance is not necessarily indicative of future results and Confidential | there can be no assurance that the investment will achieve comparable results or avoid substantial losses. TVM for investment held less than two years are 10 not considered meaningful. PE Portfolio Cash Flow Analysis

• The private equity portfolio has grown since its inception in 2006 – Cumulative contributions reached US$877.7 million by September 2019 – Cumulative distributions reached US$448.1 million by September 2019 – Consistent with the step‐up in commitments in 2013 and 2015, a material increase in capital deployment has occurred over the past two calendar years – Distributions have also increased over prior years as the market has been strong for exits

Retirement Fund Cumulative Cash Flows $800.00

$600.00

$400.00

$200.00

$0.00

($200.00) US$ in millions ($400.00)

($600.00)

($800.00)

($1,000.00) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

Contributed Distributed Adjusted NAV Net Cash Flow

NOTES: Past performance is not necessarily indicative of future results and there can be no assurance that the investment will achieve comparable Confidential | results or avoid substantial losses. 11 Recommended Pacing Plan Overview: Commitment Pacing

(US$ in millions) 2020 Investment Plan ‐ Retirement Fund Projections Commitment Target $350 Commitment Sizing $50‐125 Number of Partnerships 4 ‐ 7 Partnerships

• StepStone recommends the Retirement Fund target US$350 million in commitments for 2020 – Target approximately US$85 million commitment per opportunity – Commitment target may scale up or down depending on opportunity set and availability of allocation

• Target four to seven partnerships during the year – Provides proper diversification across investment opportunities – Controls number of relationships – Opportunistically consider attractive exposures

• Continue to update pacing targets on an annual basis – Incorporate volatility of public markets and overall Plan growth – Update actual private equity cash flows and NAVs

NOTES: The opinions expressed herein reflect the current opinions of StepStone as of the date appearing in this material only. There can be no assurance Confidential | that views and opinions expressed in this document will come to pass. 13 Pacing Analysis

• An annual pacing scenario analysis was conducted to: – Illustrate the projected movement in private equity FMV as a percentage of the Retirement Fund – Present different annual commitment pacing scenarios to vary the pace of private equity FMV exposure • The analysis is based on the Retirement Fund’s financial information as of September 30, 2019. The first new commitment is assumed to be made in 2020 • The pacing plan will be annually reviewed and updated with recommendations and assumptions reassessed based on the Plan’s overall targetsaswellasthegeneralmarketenvironment • At the base case commitment level of US$350 million from 2020‐2021, the Retirement Fund is projected to reach its 8.0% target by 2023

$600 Pacing Plan and FMV Exposure % Projection 14.0%

12.0% $500

$450

10.0% $400 $400 $375 $350 $350 8.0% 7.9% 8.0% 8.0% $300 7.4%

6.5% 6.0% $ in millions

$200

4.0% Value Portfolio Total of %

$100 2.0%

$0 0.0% 2020 2021 2022 2023 2024 Annual Commitments PE FMV % of Total Target PE FMV % NOTES: There can be no assurance that actual scenario will be similar to the model set forth on this slide or that the investment will achieve its investment objectives or avoid substantial losses. Scenario patterns will vary depending on the activities of the underlying investment. This is a simplified example, and Confidential | 14 may not represent the actual scenario of the investment. Please let us know if you want to see a scenario analysis based on assumptions other than those we have used for this analysis. Pacing Plan – FMV Exposure Projection

• StepStone sensitized the Retirement Fund private equity FMV exposure for multiple deployment levels versus the proposed pacing level of US$350 million per year – Increasing commitments from the base case commitment level by US$50 million per year would allow the Retirement Fund to reach the targeted 8% FMV private equity exposure a year earlier (2022) – Increasing commitments from the base case commitment level by US$100 million per year would allow the Retirement Fund to reach the targeted 8% FMV private equity exposure two years earlier (2021) PE FMV as a % of Total Portfolio Assets ($ in millions) 14.0% + $150m/year + $100m/year 12.0% + $50m/year StepStone Recommendation ‐ $50m/year 10.0% ‐ $100m/year ‐ $150m/year

8.0% 7.9% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%

7.4% 6.0% 6.5%

4.0%

2.0% 2020 2021 2022 2023 2024 2025 2026 2027 2028

NOTES: There can be no assurance that actual scenario will be similar to the model set forth on this slide or that the investment will achieve its investment objectives or avoid substantial losses. Scenario patterns will vary depending on the activities of the underlying investment. This is a simplified example, and Confidential | 15 may not represent the actual scenario of the investment. Please let us know if you want to see a scenario analysis based on assumptions other than those we have used for this analysis. Pacing Plan – Cash Flow Projection

• Based on the base case assumptions, StepStone projected the anticipated capital calls (cash outflows), distributions (cash inflows), and net cash flows to the Retirement Fund • As the Retirement Fund made significant recent commitments but limited allocations prior to 2016, capital calls are projected to exceed distributions in the initial projection years as recent vintage funds drawdown capital to make investments • The estimated net cash flow becomes positive in 2024 as distributions from new commitments begin outpacing contributions

Retirement Fund Cash Flow Projection (US$ in millions) $723.3 $750 $750 $654.9 $586.0 $510.5 $500 $435.0 $500 $355.1 $280.1 $224.0 $250 $173.1 $250 $43 $5 $22 $18 $21 ($39) $0 $0 ($115) ($189) ($245) ($250) ($250)

($394.9) ($394.0) ($500) ($418.2) ($412.9) ($430.2) ($500) ($488.8) ($568.3) ($633.6) ($750) ($680.3) ($750) 2020 2021 2022 2023 2024 2025 2026 2027 2028

Distributions Capital Calls Net Cash Flow

NOTES: There can be no assurance that actual cash flows will be similar to the model set forth on this slide or that the investment will achieve its investment objectives or avoid substantial losses. Cash flow patterns will vary depending on the activities of the underlying investment. This is a simplified example, and may not represent the actual performance the investment. Please let us know if you want to see a cash flow analysis based on assumptions Confidential | 16 other than those we have used for this analysis. Health Fund Historical Portfolio Review Annual Commitment Analysis

Portfolio Status

• Since inception, the Health Fund has committed or approved US$339.9 million to 37 partnership investments across 19 managers, representing an average investment size of US$9.2 million per investment

• As the portfolio continues to mature, careful consideration is given to new relationships while evaluating the performance of existing relationships. StepStone seeks to build a long‐term target portfolio of 30 to 35 active managers. Beyond that, there is a risk of over diversification and dilution of outperforming funds resulting in index‐like returns

Performance

• As of September 30, 2019 (latest date available), the Health Fund has generated an inception‐to‐date net TVM of 1.3x

Commitments by Vintage Year US$ in millions $120.0 1.8x

1.6x 1.6x $100.0 1.5x 1.5x 1.5x 1.4x 1.4x 2020: 1.3x 1.3x $80.0 $37.0 1.2x 1.2x 1.1x 1.0x $58.0 $60.0 $52.9 2019: $67.5 0.8x

$40.0 $37.0 0.6x $25.5 $28.0 0.4x $20.0 $10.5 $5.0 $7.5 $5.0 $6.0 0.2x

$0.0 0.0x 2008 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019/2020

Commitments TVM

NOTES: Includes commitments to funds which closed through December 31, 2019. Past performance is not necessarily indicative of future results and Confidential | 19 there can be no assurance that the investment will achieve comparable results or avoid substantial losses. TVM for investment held less than two years are not considered meaningful. PE Portfolio Cash Flow Analysis

• The private equity portfolio has grown since its inception in 2008 – Cumulative contributions reached US$150.0 million by September 30, 2019 – Cumulative distributions reached US$61.9 million by September 30, 2019 – Consistent with the step‐up in commitments in 2013, a material increase in capital deployment has occurred over the past two calendar years – Distributions have also increased over prior years as the market has been strong for exits

Health Fund Cumulative Cash Flows $150.00

$100.00

$50.00

$0.00

($50.00) US$ in millions

($100.00)

($150.00)

($200.00) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

Contributed Distributed Adjusted NAV Net Cash Flow

NOTES: Past performance is not necessarily indicative of future results and there can be no assurance that the investment will achieve comparable Confidential | 20 results or avoid substantial losses. Recommended Pacing Plan Overview: Commitment Pacing

(US$ in millions) 2020 Investment Plan ‐ Health Fund Projections Commitment Target $50 Commitment Sizing $5‐20 Number of Partnerships 4 ‐ 7 Partnerships

• StepStone recommends the Health Fund target US$50 million in commitments for 2020 – Target approximately US$10 million commitment per opportunity – Commitment target may scale up or down depending on opportunity set and availability of allocation

• Continue to update pacing targets on an annual basis – Incorporate volatility of public markets and overall Plan growth – Update actual private equity cash flows and NAVs

• An annual pacing scenario analysis was conducted to: – Illustrate the projected movement in private equity FMV as a percentage of the Health Fund – Present different annual commitment pacing scenarios to vary the pace of private equity FMV exposure • The analysis is based on the Health Fund’s financial information as of September 30, 2019. The first new commitment is made in 2020 • The pacing plan will be annually reviewed and updated with recommendations and assumptions reassessed based on the Plan’s overall targetsaswellasthegeneralmarketenvironment • At the base case commitment level of US$50 million for 2020 and increasing with the overall plan growth, the Health Fund is projected to reach its 8.0% target by 2022

$100 Pacing Plan and FMV Exposure % Projection 20%

$90 18%

$80 $80 16%

14% $65 $60 $60 12%

$50 10%

$ in millions $40 8% 8.0% 8.1% 8.0% 7.7% 7.0%

6% Value Portfolio Total of %

$20 4%

$0 0% 2020 2021 2022 2023 2024 Annual Commitments PE FMV % of Total Target PE FMV %

NOTES: There can be no assurance that actual scenario will be similar to the model set forth on this slide or that the investment will achieve its investment objectives or avoid substantial losses. Scenario patterns will vary depending on the activities of the underlying investment. This is a simplified example, and Confidential | 23 may not represent the actual scenario of the investment. Please let us know if you want to see a scenario analysis based on assumptions other than those we have used for this analysis. Pacing Plan – FMV Exposure Projection

• StepStone sensitized the Health Fund private equity FMV exposure for multiple deployment levels versus the proposed pacing level of US$50 million per year – Increasing commitments from the base case commitment level by US$10 million per year would allow the Health Fund to reach the targeted 8% FMV private equity exposure approximately one year earlier (2021) – Increasing commitments from the base case commitment level by US$20 million per year would allow the Health Fund to consistently exceed the targeted 8% FMV private equity exposure starting in 2021 PE FMV as a % of Total Portfolio Assets ($ in millions)

+ $30m/year 12.0% + $20m/year + $10m/year StepStone Recommendation

10.0% ‐ $10m/year ‐ $20m/year ‐ $30m/year

8.0% 8.0% 8.1% 8.0% 8.0% 8.0% 8.0% 8.0%

7.0% 7.7% 6.0%

4.0%

2.0% 2020 2021 2022 2023 2024 2025 2026 2027 2028

NOTES: There can be no assurance that actual scenario will be similar to the model set forth on this slide or that the investment will achieve its investment objectives or avoid substantial losses. Scenario patterns will vary depending on the activities of the underlying investment. This is a simplified example, and Confidential | 24 may not represent the actual scenario of the investment. Please let us know if you want to see a scenario analysis based on assumptions other than those we have used for this analysis. Pacing Plan – Cash Flow Projection

• Based on the base case assumptions, StepStone projected the anticipated capital calls (cash outflows), distributions (cash inflows), and net cash flows to the Health Fund • As the Health Fund made significant recent commitments but limited allocations prior to 2016, capital calls are projected to exceed distributions in the initial projection years as recent vintage funds drawdown capital to make investments • Net cash flow becomes positive in 2024 as distributions from new commitments begin outpacing contributions

Health Fund Cash Flow Projection (US$ in millions) $150 $150 $125.8 $113.4 $101.8 $100 $89.9 $100 $78.5 $65.8 $53.3 $42.2 $50 $31.9 $50 $10 $3 $3 ($4) $2 $1 $0 ($14) $0 ($28) ($41)

($50) ($50)

($67.0) ($73.1) ($70.0) ($69.7) ($75.5) ($100) ($88.1) ($100) ($100.4) ($110.2) ($116.2) ($150) ($150) 2020 2021 2022 2023 2024 2025 2026 2027 2028

Distributions Capital Calls Net Cash Flow

NOTES: There can be no assurance that actual cash flows will be similar to the model set forth on this slide or that the investment will achieve its investment objectives or avoid substantial losses. Cash flow patterns will vary depending on the activities of the underlying investment. This is a simplified example, and may not represent the actual performance the investment. Please let us know if you want to see a cash flow analysis based on assumptions Confidential | 25 other than those we have used for this analysis. Recommended Long Term Strategic Plan 2020 Planning

• Near term opportunities will target North American Buyout, European opportunities and select Restructuring/Distressed situations.

2020 Tactical Plan

Current Rest./ Co‐ Sector Buyouts Venture Secondaries Return Distressed Investments /Mezzanine

Large/ Global Small Restructuring/ Co‐ Sub‐Sector Medium Early Middle Late/Growth Secondaries Mezzanine $6bn+ <$1bn Distressed Investments $1‐6bn

Americas Americas Americas Americas Americas Americas Americas Americas Americas Americas

Geography Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe

Asia & RoW Asia & RoW Asia & RoW Asia & RoW Asia & RoW Asia & RoW Asia & RoW Asia & RoW Asia & RoW Asia & RoW

High Priority Medium Priority Low Priority

Note: The opinions expressed herein reflect the current opinions of StepStone as of the date appearing in this material only. There can be no assurance that views and opinions expressed in this document will come to pass.

Confidential | 27 Recommended Portfolio Construction

Allocation by sector based on target private equity commitments of US$400 million for 2020:

(US$ in millions) Sector Portfolio Exposure Market CY 2020 Target Actual Long Term Target PE Fundraising Activity Target Commitments Target Funds / Deals Target Size / Fund

Buyout 59% 60‐70% 64% Up to $250 2‐3 Up to $100

Secondaries 8% 5‐15% 7% Up to $75 0‐1 Up to $75

Growth Equity/Venture 15% 10‐20% 16% Up to $75 0‐1 Up to $75

Mezzanine 4% 0‐5% 5% ‐‐‐ Restructuring/Distressed 14% 10‐20% 8% Up to $100 1‐2 Up to $100

Co‐investments 0% 0‐5% N/A Up to $25 0‐1 Up to $25

Total 100% 100% 100% $400 4‐7

• Continue to invest in the Buyout sector as it is the largest sector in the private equity market • StepStone believes an allocation to Restructuring/Distressed can be prudent given strong manager selection and importance of hybrid strategies during economic uncertainty • Co‐Investments can offer additional exposure to a manager on a lower fee basis

NOTE: Private equity fundraising data from 2009‐2019, per Burgiss PrivateiQ. Portfolio Exposure as of September 30, 2019 or latest available. The Confidential | 28 opinions expressed herein reflect the current opinions of StepStone as of the date appearing in this material only. There can be no assurance that views and opinions expressed in this document will come to pass. Recommended Portfolio Construction (cont’d)

Allocation by geography based on target private equity commitments of US$400 million for 2020:

(US$ in millions) Geography Portfolio % by Market Value Market CY 2020 Target

Fund Level Company Level Long Term Target GDP PE Deal Activity PE Fundraising Activity Target Commitments Global 75% ‐ ‐ ‐‐‐ Up to $100 North America 25% 89% 65‐85% 33% 58% 66% Up to $300 Europe ‐ 9% 15‐25% 26% 14% 21% Up to $125 Asia / Rest of World ‐ 2% 0‐10% 40% 27% 13% ‐ Total 100% 100% 100% 100% 100% 100% $400

• The Plan’s private equity geographic exposure is classified on an individual company basis by North America, Europe, and Asia / Rest of World • StepStone proposes that the Plan have a long term target allocation of 65‐85% North America, 15‐25% Europe, and 0‐10% to Asia / Rest of World • The Plan can benefit from further diversification across geographies

NOTE: Private equity fundraising data from 2009‐2019, per Burgiss PrivateiQ. 2019 GDP (est.) as provided by the IMF. PE Deal Activity based on Thomson One deal activity from 2009‐2019. Portfolio Exposure as of September 30, 2019 or latest available. The opinions expressed herein reflect the Confidential | 29 current opinions of StepStone as of the date appearing in this material only. There can be no assurance that views and opinions expressed in this document will come to pass. Industry FMV Exposure

The Plan’s private equity industry exposure is classified under the following categories: Consumer, Energy, Financials, Industrials, Information Technology (IT), Media/Telecom, and Healthcare 100% 4% 3% 9% Portfolio Company Market Value by GICS Sector 90% Telecom 80% 18% 37% 37% 70% IT

60% 15% Industrials/Materials 50% 12% 17% 13%

40% Health Care 12% 11% 16% 30% 7% Financials 8% 9% 20% 8% 16% Energy/Utilities 10% 19% 18% 9% 0% Consumer S&P 1200 PE Deal Activity WPERP

Consumer Energy/Utilities Financials Health Care Industrials/Materials IT Telecom

• Versus market benchmarks such as the S&P 1200 and PE Deal Activity: – The Plan’s private equity portfolio is overweight on Information Technology and Energy – While being underweight on Consumer, Financials, and Healthcare

NOTE: S&P 1200 index as of December 2019. PE Deal Activity based on Thomson One data from 2009‐2019. Secondary Funds and Fund of Funds market values are removed from the industry exposures for WPERP. Portfolio Exposure as of September 30, 2019 or latest available. Confidential | 30 Market Overview Market Overview – Public Markets

• During the third quarter of 2019, global public markets experienced increased volatility as growing uncertainty in the U.S.‐ China trade dispute and slowing global economic growth sent the VIX to its highest level since Q4 2018. • US Markets increased 1.7%, followed by MSCI ACWI at (0.5%), MSCI Europe at (2.2%), and MSCI Asia at (2.2%).

Regional Indices 3 Mo 1 Yr 3 Yr 5 Yr 10 Yr MSCI Asia (2.2%) (6.2%) 4.0% 2.7% 3.2% MSCI Europe (2.2%) (3.8%) 3.5% (0.5%) 1.6% MSCI EM (5.1%) (4.5%) 3.5% (0.1%) 0.9% MSCI ACWI (0.5%) (0.7%) 7.6% 4.5% 6.1% S&P 500 1.2% 2.2% 11.1% 8.6% 10.9% S&P 500 Total Return* 1.7% 4.3% 13.4% 10.8% 13.2% Fo r t he period ended Sept ember 30 , 20 19 *Includes reinvestment of dividends. Source: Capital IQ

Confidential | 32 Market Overview – Sector Overview

• Seven of ten industry sectors increased during the quarter • Utilities and Consumer Staples were the best performing sectors, up 9.7% and 5.6%, respectively, for the quarter • Energy was the worst performing sector, down 6.4% for the quarter

33 Confidential | Market Overview – LBO Activity

• U.S. LBO loan new issuance totaled US$27.6 billion during the quarter, representing a quarter‐over‐quarter increase of 62.5% and a decrease of 40.5% from the third quarter of 2018 • LBO activity slightly increased during the third quarter • Year‐to‐date Dividend/Stock repurchase volume decreased 20.5%, compared to the first nine months of 2018 • Year‐to‐date Public‐to‐Private LBO transaction volume increased 20.7%, compared to the first nine months of 2018 Quarterly U.S. LBO Loan New Issuance Pro Rata Spread of LBOs

Dividend/Stock Repurchase Volume Public‐to‐Private LBO Transaction Volume

34 Source: S&P LBO Review Confidential | Market Overview – LBO Activity

• Purchase price multiples for U.S. LBOs was 12.9x EBITDA, an increase from 11.3x in the prior quarter and above the 10‐ year average of 9.4x • Equity contributions for US LBOs increased from 46.8% to 49.3% quarter‐over‐quarter

Confidential | 35 Market Overview – Private Equity Fundraising

• Private equity fundraising totaled US$176.3 billion in the third quarter, representing an increase of 9.7% quarter‐over‐ quarter and an increase of 30.2% compared to the third quarter of 2018 • Buyout fundraising totaled US$144.2 billion and Venture Capital raised US$22.6 billion in the third quarter • The US represented 75.5% of total funds raised in the year, higher than the 10‐year average of 60.1%

Confidential | 36 Market Overview – Private Equity Investment Activity

• Private equity funds invested US$90.1 billion globally during the third quarter, representing an increase of 0.2% quarter‐ over‐quarter and a decrease of 1.2% compared to the prior year period • The average investment size during the quarter was US$24.6 million, up 10.5% compared to last quarter and 5.5% year‐over‐year

Confidential | 37 Market Overview – IPO Activity

• During the third quarter, Thomson ONE tracked 23 private equity‐backed IPOs raising US$8.2 billion in proceeds, on the New York Stock Exchange and the NASDAQ • The number of private equity‐backed IPOs decreased 45.2%, compared to the prior quarter • The total amount raised decreased 61.5%, compared to the prior quarter • SmileDirectClub LLC (NASDAQ: SDC), an operator of a teledentistry platform that provides members with a customized clear aligner therapy treatment, which raised US$1.3 billion, was the biggest IPO for the quarter

38 Confidential | 38 Market Overview – M&A Activity

• Private equity‐backed M&A volume totaled US$127.0 billion in deals closed during the third quarter, an increase of 25.1% quarter‐over‐quarter and a decrease of 21.9% compared to the prior year • The number of M&A deals increased 22.6%, compared to the prior quarter • The largest deals of the quarter were the US$35.7 billion purchase of Red Hat, Inc. by International Business Machines Corporation (NYSE: IBM) and the US$22.4 billion purchase of Liberty Expedia Holdings, Inc. by Expedia Group, Inc. (NASDAQ: EXPE)

39 Confidential | 39 Appendix Performance by Manager – Retirement Fund

(US$ as of September 30, 2019) Manager/Fund Vintage Year Committed Capital Market Value Unfunded Commitment Total Exposure TVM IRR Adams Street Partners Adams Street Global SMB WPERP Fund LP 2017 125,000,000 47,389,507 78,750,000 126,139,507 1.0x 2.3% Adams Street Partners Total 125,000,000 47,389,507 78,750,000 126,139,507 1.0x 2.3% Apollo Management Apollo Investment Fund VIII, L.P. 2014 34,000,000 31,347,487 5,488,078 36,835,565 1.3x 11.4% Apollo Investment Fund IX, L.P. 2018 54,200,000 4,009,933 49,011,782 53,021,715 NM NM Apollo Management Total 88,200,000 35,357,420 54,499,860 89,857,280 1.2x 10.1% Ares Management Ares Corporate Opportunities Fund IV, L.P. 2012 25,000,000 24,758,117 3,747,967 28,506,084 1.5x 12.2% Ares Special Situations Fund IV, L.P. 2015 50,000,000 44,607,198 2,313,531 46,920,729 0.9x (2.8%) Ares Corporate Opportunities Fund V, L.P. 2017 60,000,000 48,724,901 15,347,274 64,072,175 1.1x 8.8% Ares Management Total 135,000,000 118,090,216 21,408,773 139,498,988 1.1x 5.5% Audax Group, The Audax Mezzanine III, L.P. 2011 17,000,000 2,801,621 743,943 3,545,564 1.3x 9.7% Audax Group, The Total 17,000,000 2,801,621 743,943 3,545,564 1.3x 9.7% Blackstone Tactical Opportunities Blackstone Tactical Opportunities Fund II 2015 50,000,000 31,662,449 29,998,454 61,660,903 1.3x 11.7% Blackstone Tactical Opportunities Total 50,000,000 31,662,449 29,998,454 61,660,903 1.3x 11.7% Capital Dynamics Inc HRJ Special Opportunities II, L.P. 2008 20,000,000 3,878,642 4,750,000 8,628,642 1.5x 6.8% Capital Dynamics Inc Total 20,000,000 3,878,642 4,750,000 8,628,642 1.5x 6.8% Clayton, Dubilier & Rice Clayton, Dubilier & Rice Fund IX, L.P. 2014 25,000,000 25,030,627 3,107,106 28,137,733 1.6x 18.8% Clayton, Dubilier & Rice Fund X, L.P. 2017 54,000,000 24,694,206 33,535,065 58,229,271 NM NM Clayton, Dubilier & Rice Total 79,000,000 49,724,833 36,642,171 86,367,004 1.4x 19.1% Crestview Partners Crestview Partners III, L.P. 2015 50,000,000 37,224,914 22,004,610 59,229,524 1.3x 11.2% Crestview Partners IV, L.P. 2019 63,000,000 (180,601) 63,000,000 62,819,399 NM NM Crestview Partners Total 113,000,000 37,044,313 85,004,610 122,048,923 1.3x 11.1% EnCap Investments EnCap Energy Capital Fund VIII, L.P. 2011 12,500,000 3,384,402 549,359 3,933,761 0.8x (5.6%) EnCap Energy Capital Fund IX, L.P. 2013 17,000,000 9,443,445 1,151,448 10,594,893 1.3x 9.5% EnCap Energy Capital Fund X, L.P. 2015 37,000,000 32,895,803 6,829,450 39,725,252 1.2x 9.3% EnCap Energy Capital Fund XI, L.P. 2017 50,000,000 8,323,654 39,793,174 48,116,828 0.8x (19.0%) EnCap Investments Total 116,500,000 54,047,303 48,323,431 102,370,734 1.1x 4.1% Fisher Lynch Capital Fisher Lynch Venture Partnership II, LP 2008 20,000,000 12,428,438 2,370,000 14,798,438 1.7x 9.0% Fisher Lynch Capital Total 20,000,000 12,428,438 2,370,000 14,798,438 1.7x 9.0% Genstar Capital Partners Genstar Capital Partners IX, L.P. 2019 44,000,000 4,786,126 39,009,042 43,795,168 NM NM Genstar IX Opportunities Fund I, L.P. 2019 22,000,000 3,219,281 18,774,000 21,993,281 NM NM Genstar Capital Partners Total 66,000,000 8,005,407 57,783,042 65,788,450 NM NM Note: Performance for funds less than two years (2016 and 2017 vintage funds) are not meaningful (“NM”) at this point in their term. Past performance is not necessarily indicative of Confidential | 41 future results and there can be no assurance that the investment will achieve comparable results or avoid substantial losses. Performance is net of underlying partnership fees, but not net of StepStone Advisory fees. Performance by Manager – Retirement Fund

(US$ as of September 30, 2019) Manager/Fund Vintage Year Committed Capital Market Value Unfunded Commitment Total Exposure TVM IRR Harvest Partners Harvest Partners VII, L.P. 2016 30,000,000 26,649,982 5,768,121 32,418,103 1.1x 6.6% Harvest Partners VIII, L.P. 2019 85,000,000 ‐ 85,000,000 85,000,000 NM NM Harvest Partners Total 115,000,000 26,649,982 90,768,121 117,418,103 1.1x 6.6% Industry Ventures Industry Ventures Secondary VIII, L.P. 2016 37,500,000 23,400,482 19,875,000 43,275,482 1.6x 53.3% Industry Ventures Special Opportunities Fund III‐A 2019 22,500,000 2,556,470 20,700,000 23,256,470 NM NM Industry Ventures Total 60,000,000 25,956,952 40,575,000 66,531,952 1.6x 57.5% Landmark Partners Landmark Equity Partners XIII, L.P. 2006 30,000,000 6,460,969 1,164,399 7,625,368 1.3x 5.3% Landmark Equity Partners XIV, L.P. 2008 30,000,000 5,006,522 932,888 5,939,410 1.3x 8.3% Landmark Equity Partners XV, L.P. 2014 40,000,000 16,826,882 14,015,895 30,842,777 1.3x 14.4% Landmark Partners Total 100,000,000 28,294,373 16,113,182 44,407,555 1.3x 7.5% Lexington Partners Lexington Capital Partners VI, L.P. 2006 30,000,000 2,512,136 490,410 3,002,546 1.4x 6.9% Lexington Capital Partners VII, L.P. 2009 30,000,000 7,446,788 5,709,009 13,155,797 1.6x 14.0% Lexington Capital Partners IX, L.P. 2018 75,000,000 4,925,402 75,000,000 79,925,402 NM NM Lexington Partners Total 135,000,000 14,884,326 81,199,419 96,083,745 1.6x 10.1% Oaktree Capital Oaktree Principal Fund V, L.P. 2009 16,000,000 6,242,225 1,761,267 8,003,492 1.1x 1.7% Oaktree Capital Total 16,000,000 6,242,225 1,761,267 8,003,492 1.1x 1.7% Platinum Equity Platinum Equity Capital Partners V, L.P. 2019 88,000,000 ‐ 88,000,000 88,000,000 NM NM Platinum Equity Total 88,000,000 ‐ 88,000,000 88,000,000 NM NM Providence Strategic Growth Providence Strategic Growth IV L.P. 2019 85,000,000 (237,356) 85,000,000 84,762,644 NM NM Providence Strategic Growth Total 85,000,000 (237,356) 85,000,000 84,762,644 NM NM Searchlight Capital Partners Searchlight Capital III, L.P. 2020 88,000,000 ‐ 88,000,000 88,000,000 NM NM Searchlight Capital Partners Total 88,000,000 ‐ 88,000,000 88,000,000 NM NM Silver Lake Partners Silver Lake Partners IV, L.P. 2013 18,000,000 23,937,141 941,658 24,878,799 1.8x 25.4% Silver Lake Partners V, L.P. 2018 58,000,000 26,724,262 27,745,416 54,469,678 NM NM Silver Lake Partners Total 76,000,000 50,661,403 28,687,074 79,348,477 1.5x 23.3% Vista Equity Partners Vista Equity Partners Fund IV, L.P. 2011 25,000,000 16,321,675 4,165,868 20,487,543 1.9x 16.8% Vista Equity Partners Fund V, L.P. 2014 50,000,000 63,280,954 14,504,801 77,785,755 1.9x 22.2% Vista Equity Partners Fund VI, L.P. 2016 60,000,000 71,768,465 9,681,529 81,449,994 1.3x 15.9% Vista Equity Partners Fund VII, L.P. 2018 75,000,000 12,772,236 61,730,519 74,502,755 NM NM Vista Equity Partners Total 210,000,000 164,143,330 90,082,717 254,226,047 1.6x 18.7% Grand Total 1,802,700,000 717,025,384 1,030,461,064 1,747,486,448 1.3x 10.6%

Confidential | 42 NOTES: Includes commitments to funds which closed through December 31, 2018. Past performance is not necessarily indicative of future results and there can be no assurance that the investment will achieve comparable results or avoid substantial losses. Performance is net of underlying partnership fees, but not net of StepStone Advisory fees. Performance by Manager – Health Fund

(US$ as of September 30, 2019) Manager/Fund Vintage Year Committed Capital Market Value Unfunded Commitment Total Exposure TVM IRR Adams Street Partners Adams Street Global SMB WPERP Fund LP 2017 25,000,000 9,477,901 15,750,000 25,227,901 1.0x 2.3% Adams Street Global SMB WPERP Fund II, L.P. 2019 NM NM Adams Street Partners Total 25,000,000 9,477,901 15,750,000 25,227,901 1.0x 2.3% Apollo Management Apollo Investment Fund VIII, L.P. 2014 6,000,000 5,531,910 968,483 6,500,393 1.3x 11.4% Apollo Investment Fund IX, L.P. 2018 10,900,000 806,426 9,856,613 10,663,039 NM NM Apollo Management Total 16,900,000 6,338,336 10,825,096 17,163,432 1.2x 9.9% Ares Management Ares Corporate Opportunities Fund IV, L.P. 2012 5,000,000 4,951,659 749,594 5,701,253 1.5x 12.2% Ares Special Situations Fund IV, L.P. 2015 10,000,000 8,921,440 462,706 9,384,146 0.9x (2.8%) Ares Corporate Opportunities Fund V, L.P. 2017 12,000,000 9,744,980 3,069,455 12,814,435 1.1x 8.8% Ares Management Total 27,000,000 23,618,079 4,281,755 27,899,834 1.1x 5.5% Audax Group, The Audax Mezzanine III, L.P. 2011 3,000,000 494,402 131,287 625,689 1.3x 9.7% Audax Group, The Total 3,000,000 494,402 131,287 625,689 1.3x 9.7% Blackstone Tactical Opportunities Blackstone Tactical Opportunities Fund II 2015 10,000,000 6,332,261 5,999,691 12,331,952 1.3x 11.7% Blackstone Tactical Opportunities Total 10,000,000 6,332,261 5,999,691 12,331,952 1.3x 11.7% Clayton, Dubilier & Rice Clayton, Dubilier & Rice Fund IX, L.P. 2014 5,000,000 5,006,107 621,419 5,627,526 1.6x 18.8% Clayton, Dubilier & Rice Fund X, L.P. 2017 11,000,000 5,030,293 6,831,217 11,861,510 NM NM Clayton, Dubilier & Rice Total 16,000,000 10,036,400 7,452,636 17,489,036 1.4x 19.1% Crestview Partners Crestview Partners III, L.P. 2015 10,000,000 7,444,981 4,400,923 11,845,904 1.3x 11.2% Crestview Partners IV, L.P. 2019 12,000,000 (34,400) 12,000,000 11,965,600 NM NM Crestview Partners Total 22,000,000 7,410,581 16,400,923 23,811,504 1.3x 11.1% EnCap Investments EnCap Energy Capital Fund VIII, L.P. 2011 2,500,000 676,880 109,870 786,750 0.8x (5.6%) EnCap Energy Capital Fund IX, L.P. 2013 3,000,000 1,666,490 203,197 1,869,687 1.3x 9.5% EnCap Energy Capital Fund X, L.P. 2015 7,000,000 6,223,530 1,292,058 7,515,588 1.2x 9.3% EnCap Energy Capital Fund XI, L.P. 2017 10,000,000 1,664,731 7,958,635 9,623,366 0.8x (19.0%) EnCap Investments Total 22,500,000 10,231,632 9,563,759 19,795,391 1.1x 3.8% Genstar Capital Partners Genstar Capital Partners IX, L.P. 2019 6,000,000 652,654 5,319,415 5,972,069 NM NM Genstar IX Opportunities Fund I, L.P. 2019 3,000,000 438,993 2,560,091 2,999,084 NM NM Genstar Capital Partners Total 9,000,000 1,091,647 7,879,506 8,971,153 NM NM Harvest Partners Harvest Partners VII, L.P. 2016 6,000,000 5,329,996 1,153,624 6,483,620 1.1x 6.6% Harvest Partners VIII, L.P. 2019 15,000,000 ‐ 15,000,000 15,000,000 NM NM Harvest Partners Total 21,000,000 5,329,996 16,153,624 21,483,620 1.1x 6.6% NOTE: Performance for funds less than two years (2016 and 2017 vintage funds) are not meaningful (“NM”) at this point in their term. Past performance is not necessarily indicative of future results and there can be no assurance that the investment will achieve comparable results or avoid substantial losses. Performance is net of underlying partnership fees, but not net of StepStone Confidential | 43 Advisory fees. Performance by Manager – Health Fund

(US$ as of September 30, 2019) Manager/Fund Vintage Year Committed Capital Market Value Unfunded Commitment Total Exposure TVM IRR Industry Ventures Industry Ventures Secondary VIII, L.P. 2016 7,500,000 4,680,097 3,975,000 8,655,097 1.6x 53.3% Industry Ventures Special Opportunities Fund III‐A 2019 4,500,000 511,294 4,140,000 4,651,294 NM NM Industry Ventures Total 12,000,000 5,191,391 8,115,000 13,306,391 1.6x 57.5% Landmark Partners Landmark Equity Partners XIV, L.P. 2008 5,000,000 834,416 155,472 989,888 1.3x 8.3% Landmark Equity Partners XV, L.P. 2014 7,000,000 2,944,705 2,452,783 5,397,488 1.3x 14.3% Landmark Partners Total 12,000,000 3,779,121 2,608,255 6,387,376 1.3x 10.4% Lexington Partners Lexington Capital Partners VII, L.P. 2009 5,000,000 1,241,176 951,494 2,192,670 1.6x 13.7% Lexington Capital Partners IX, L.P. 2018 15,000,000 985,078 15,000,000 15,985,078 NM NM Lexington Partners Total 20,000,000 2,226,254 15,951,494 18,177,748 1.8x 16.3% Oaktree Capital Oaktree Principal Fund V, L.P. 2009 2,500,000 975,353 275,198 1,250,551 1.1x 1.7% Oaktree Capital Total 2,500,000 975,353 275,198 1,250,551 1.1x 1.7% Platinum Equity Platinum Equity Capital Partners V, L.P. 2019 12,000,000 ‐ 12,000,000 12,000,000 NM NM Platinum Equity Total 12,000,000 ‐ 12,000,000 12,000,000 NM NM Providence Strategic Growth Providence Strategic Growth IV L.P. 2019 15,000,000 (41,885) 15,000,000 14,958,115 NM NM Providence Strategic Growth Total 15,000,000 (41,885) 15,000,000 14,958,115 NM NM Searchlight Capital Partners Searchlight Capital III, L.P. 2020 12,000,000 ‐ 12,000,000 12,000,000 NM NM Searchlight Capital Partners Total 12,000,000 ‐ 12,000,000 12,000,000 NM NM Silver Lake Partners Silver Lake Partners IV, L.P. 2013 3,000,000 3,989,559 156,945 4,146,504 1.8x 25.4% Silver Lake Partners V, L.P. 2018 12,000,000 5,529,152 5,740,432 11,269,584 NM NM Silver Lake Partners Total 15,000,000 9,518,711 5,897,377 15,416,088 1.4x 22.8% Vista Equity Partners Vista Equity Partners Fund IV, L.P. 2011 5,000,000 3,264,330 833,174 4,097,504 2.0x 17.4% Vista Equity Partners Fund V, L.P. 2014 10,000,000 12,656,195 2,900,962 15,557,157 1.9x 22.2% Vista Equity Partners Fund VI, L.P. 2016 12,000,000 14,353,693 1,936,305 16,289,998 1.3x 15.9% Vista Equity Partners Fund VII, L.P. 2018 15,000,000 2,554,444 12,346,104 14,900,548 NM NM Vista Equity Partners Total 42,000,000 32,828,662 18,016,545 50,845,207 1.6x 18.9% Grand Total 314,900,000 134,838,842 184,302,145 319,140,987 1.3x 12.6%

NOTES: Includes commitments to funds which closed through December 31, 2018. Past performance is not necessarily indicative of future results and there can be no assurance that the investment Confidential | 44 will achieve comparable results or avoid substantial losses. Performance is net of underlying partnership fees, but not net of StepStone Advisory fees. Pacing Model Inputs

• As part of the Strategic Plan, StepStone conducts a cash flow pacing analysis using a proprietary cash flow pacing model

• This model provides a guideline for annual commitment amounts by Private Equity Strategy based on the Plan’s objectives, deployment pacing parameters and the model’s projected cash flows

• StepStone’s proprietary cash flow model is based on cash flow profiles across five Private Equity Strategies (i.e., Buyout, Venture Capital, Mezzanine, Restructuring/Distressed, Secondaries), which have been developed through historic cash flow data across 25,000+ funds contained within StepStone’s proprietary SPI Database

• StepStone employs five independent variables as key inputs to project capital calls, distributions and net asset values (“NAV”): – Private Equity Allocation (by Strategy) – Target Net Return – J‐Curve Factor – Expected Drawdown Rates – Partnership Term

• StepStone has inputted the Plan’s program details (e.g., overall program size, growth rate, private equity allocation goal, contributions, distributions, etc.) and details around the existing portfolio (e.g., investments, commitments, exposure, NAV, etc.) into the proprietary cash flow pacing model

– Based on these inputs, the model’s assumptions and StepStone’s proprietary cash flow profiles, the model will output cash flow projections that will determine guidance for annual commitment ranges

Confidential | 45 Risks and Other Considerations

Risks Associated with Investments. Identifying attractive investment opportunities and the right underlying fund managers is difficult and involves a high degree of uncertainty. There is no assurance that the investments will be profitable and there is a substantial risk that losses and expenses will exceed income and gains.

Restrictions on Transfer and Withdrawal; Illiquidity of Interests; Interests Not Registered. The investment is highly illiquid and subject to transfer restrictions and should only be acquired by an investor able to commit its funds for a significant period of time and to bear the risk inherent in such investment, with no certainty of return. Interests in the investment have not been and will not be registered under the laws of any jurisdiction. Investment has not been recommended by any securities commission or regulatory authority. Furthermore, the aforementioned authorities have not confirmed the accuracy or determined the adequacy of this document.

Limited Diversification of Investments. The investment opportunity does not have fixed guidelines for diversification and may make a limited number of investments.

Reliance on Third Parties. StepStone will require, and rely upon, the services of a variety of third parties, including but not limited to attorneys, accountants, brokers, custodians, consultants and other agents and failure by any of these third parties to perform their duties could have a material adverse effect on the investment.

Reliance on Managers. The investment will be highly dependent on the capabilities of the managers.

Risk Associated with Portfolio Companies. The environment in which the investors directly or indirectly invest will sometimes involve a high degree of business and financial risk. StepStone generally will not seek control over the management of the portfolio companies in which investments are made, and the success of each investment generally will depend on the ability and success of the management of the portfolio company.

Taxation. An investment involves numerous tax risks. Please consult with your independent tax advisor.

Conflicts of Interest. Conflicts of interest may arise between StepStone and investors. Certain potential conflicts of interest are described below; however, they are by no means exhaustive. There can be no assurance that any particular conflict of interest will be resolved in favor of an investor.

Allocation of Investment Opportunities. StepStone currently makes investments, and in the future will make investments, for separate accounts having overlapping investment objectives. In making investments for separate accounts, these accounts may be in competition for investment opportunities.

Existing Relationships. StepStone and its principals have long‐term relationships with many private equity managers. StepStone clients may seek to invest in the pooled investment vehicles and/or the portfolio companies managed by those managers.

Carried Interest. In those instances where StepStone and/or the underlying portfolio fund managers receive carried interest over and above their basic management fees, receipt of carried interest could create an incentive for StepStone and the portfolio fund managers to make investments that are riskier or more speculative than would otherwise be the case. StepStone does not receive any carried interest with respect to advice provided to, or investments made on behalf, of its advisory clients.

Other Activities. Employees of StepStone are not required to devote all of their time to the investment and may spend a substantial portion of their time on matters other than the investment.

Material, Non‐Public Information. From time to time, StepStone may come into possession of material, non‐public information that would limit their ability to buy and sell investments.

Confidential | 46