Funds in the Market & Real Estate and Hard Asset Deskbook

M a r c h 2 0 0 9

2009© Probitas Partners Introduction Probitas Partners is a leading independent knowledge, innovation and solutions provider to private markets clients. It has three integrated global practices that include placement of alternative investment products, portfolio management and liquidity management. These services are offered by a team of employee owners dedicated to leveraging the firm’s vast knowledge and technical resources to provide the best results for its clients.

probity ¯˘ ¯ n. [from Latin probitas: good, proper, honest.] adherence to the highest principles, ideals and character.

On an ongoing basis, Probitas Partners offers research and investment tools on the alternative investment markets as aids to its institutional investor and general partner clients. Probitas Partners compiles data from various trade and other sources and then vets and enhances that data via its team’s broad knowledge of the market. Probitas Partners also surveys institutional investors in order to directly determine their perceptions of various aspects of the market, and the findings from our surveys of infrastructure and real estate investors included as part of this paper is part of that process.

Included within this Real Estate & Real Assets Deskbook is our listing of Real Estate and Hard Asset Funds in or Thought to Be Coming to Market Over the Next 12 Months. A few important user notes on the funds listing:

• The list does not track funds smaller than $100 million or €75 million, as these are not often targeted by institutional investors;

• Information is collected from various data sources, but dynamically and accurately tracking when funds are launched and when they are finally closed is a difficult business. We constantly interact with investors and other industry sources in an effort to keep the data updated, and we appreciate receiving any corrections or updates that keep this listing as up to date as possible;

• Probitas Partners relies upon its knowledge of the investment pace of previous funds, informal discussions with institutional investors and general partners, and its knowledge of emerging managers to assemble our roster of funds in or coming to market. Specifically, we do not seek confirmation of these estimates with general partners in order to avoid SEC public offering prohibitions.

For the same reason, Probitas Partners does not include in this listing information on funds it is currently offering; qualified investors seeking information on Probitas Partners’ placed funds should contact us directly in order to have the most complete picture of all institutional funds currently in the market. C o n t e n t s

Key Trends in 2009 ...... 1

Overview ...... 2

Global Real Estate Fundraising Trends ...... 3

The North American Opportunistic Real Estate Market .... 7

The European Market ...... 11

The Asian Market ...... 13

Emerging Markets Ex-Asia ...... 15

Implications of Weak or Non-Existent Debt Markets ...... 15

The Real Estate Secondary Market ...... 17

Infrastructure ...... 21

Conclusions ...... 25

Funds in or Coming to Market ...... 28

Confidential & Trade Secret. ©2009 Do not circulate or publish. Key Trends in 2009 • Continued erosion in real estate and other real asset fundamentals caused by global recession and past over-leveraging • Continued tightness in debt markets across the board will continue to cause risk of asset loss for owners/borrowers unable to refinance maturing debt — and stymie new transaction volume for the foreseeable future • Acute liquidity constraints will cause fund sponsors to seek additional equity to recapitalize existing assets under threat of loss • Large and growing investment opportunities in distressed assets, first in debt, later in equity • Growing demand for infrastructure investments driven by renewed investor interest in the risk/return profile, inherent demand for new and rehab infrastructure investment, and governmental interest in economic stimulus programs • Many limited partners constrained in making new fund investments by the Denominator Effect on allocations and immediate needs for liquidity • Investors with funds to commit are focused on distressed opportunities and value-added strategies with partners with operational expertise as well as secondary funds • Portfolio management for limited partners will increasingly focus on triaging current fund manager relationships, selling non-core positions and redeploying capital into distressed opportunities • With the recession now global, many investors are refocusing on their home markets

1 Confidential & Trade Secret. ©2009 Do not circulate or publish. Overview was caused by imprudent real estate lending practices as Savings & Loans expanded For the first time since private equity real aggressively while supervision was lax. The estate became an asset class in most current financial meltdown was caused by a institutional portfolios, it faces broad much broader collapse of financial prudence fundamental challenges globally. Beyond the across nearly all areas of lending, led mostly inherent softening of macro fundamentals by fee-hungry investment banks that created that is confronting all real estate assets massive pools of loans that were broadly and operators today, institutions that invest syndicated. These loans were sold with the in private equity real estate are facing help of rating agency stamps of approval unique issues; namely, the impacts of the that dramatically overstated the quality of cash flow dynamics of funds’ contractual the underlying loans. structures, the changing dynamic of fair At the same time, borrowers — many of them value accounting, and the massive buildup of fund sponsors — took advantage of the cheap assets in need of refinancing. These assets in debt to make more aggressive acquisitions need of refinancing, with nearly all requiring over the past three years. Unfortunately, for additional equity injections, face the risk of those borrowers that used shorter-term debt, being lost by fund managers and thus their the current market offers little opportunity limited partners — and resulting in a complete to refinance in the face of drastic asset write-off of the investment. devaluation and the resulting requirement Furthermore, over-allocations in most for new equity to support the refinancing. institutional portfolios, coupled with limited And if the borrower is a fund sponsor with near-term realizations, will continue to strain an asset in a fund whose investment period investors’ ability to commit new capital in has passed, there is small likelihood of 2009. Many investors express concern about finding limited partners ready and willing to their ability to fund upcoming capital calls on voluntarily provide new equity capital. The existing commitments. result: nearly all assets acquired during the past three years are under water; many of The current market can be compared to the them with debt coming due in the next 18 to real estate market collapse of the late 1980s 24 months are likely to be lost to the lenders, that led to the creation of the Resolution absent dramatic improvements in market Trust Corporation (“RTC”) and the transfer conditions. Of course, similar risks exist for of billions of dollars of assets on the cheap older assets that will need refinancing in that to savvy buyers — many of whom went on to same window as well, but they are likely to become some of the most active investors be less impacted by devaluation, and thus of today. Unlike the market meltdown that may require less additional equity. Clearly resulted in the RTC, this market downturn was the condition of the financial markets will not caused by excessive building. But it does provide challenges even for those better- share common factors: imprudent financing positioned assets, directly impacting the and risk management. The RTC meltdown asset’s valuation today.

Confidential & Trade Secret. ©2009 Do not circulate or publish. 2 While all of this paints a bleak picture for Global Real Estate investors with portfolios of mostly funded Fundraising Trends assets acquired over the past two to three years, the opportunity for new capital is as Fundraising in private equity real estate is great as or greater than the downside for often a lagging indicator of primary market existing fund limited partners. The question activity. The fundraising process typically most investors are asking today is: how do takes 12 to 18 months and early momentum I best position my portfolio to survive the usually determines success. This momentum current market downturn and at the same often means that fundraising success reflects time capitalize on what may be one of the the environment in which a fund is first best investment opportunities many of us will launched and not the environment when it see in our lifetimes? finally closes.

Not all hard asset investing is retrenching, Global real estate opportunity fund capital in part because of the financial crisis and raised for 2008 reached $106 billion, a new a resulting push for safer, stable current record that will not be challenged in 2009 income-producing investments and in part as the market deteriorates. That capital because of inertia for capital moving into was raised by 159 funds and surpasses the the hard asset space before the crisis $93 billion raised in 2007, as illustrated in became clear. Consequently, notwithstanding Chart I. The largest real estate fund ever devaluation issues on existing assets and raised, Blackstone Real Estate Partners VI, similar challenges in the debt markets for had a final closing on $11 billion early in such assets, many hard asset sectors — 2008. Morgan Stanley Real Estate Fund VII especially infrastructure and distressed continues to be in market with a similar debt on underlying hard assets — are target, but it was launched much later and actually seeing increased interest from consequently ran into stronger headwinds investors globally. and appears unlikely to exceed Blackstone’s record raise.

This fundraising success of 2008 was in stark contrast to the performance of commercial real estate investors during the same period. Though industry-wide private equity real estate data is not yet available, Chart II shows FTSE and NAREIT’s Real Estate 50 ETF (that tracks the performance of the largest publicly traded real estate entities), indicating plunging values beginning in September 2008 to values by the end of January 2009 at half the value of 2008’s peak. As fund managers provide year-end 2008 reports

120 105.9 100 93.1 90 80 76.5 70 60.4 60 50 40 $ in billions 30 24.3 20 11.7 10 0 2003 2004 2005 2006 2007 2008

Source: Private Equity Intelligence, Probitas Partners

Chart II FTSE NAREIT Real Estate 50 Performance, January 2008 through January 2009

20 Adjusted Close

0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09

Source: FTSE

Confidential & Trade Secret. ©2009 Do not circulate or publish. 4 to their limited partners in compliance with an ongoing strategic evolution over the past FAS 157, we expect to see similar impacts to several years. portfolio valuation. Notwithstanding the drop in real estate Looking back at 2008, North America values around the world and impacted commanded nearly one-third of global legacy positions in nearly all fund managers’ fundraising; large global funds and European portfolios, the record fundraising year of funds each represented approximately 23% 2008 means that there is capital available of the total amount raised, as illustrated in to pursue many of the opportunities that will Chart III. Of note, there were fewer global surface from the current crisis. Of course, this funds raised, but those raised were much assumes that there is sufficient debt capital larger in scale. available, willingness on the part of sellers to accept pricing reflecting the new reality Asia also represented strong fundraising in (likely value declines of an additional 50% 2008, attracting over 20% of global capital during 2009), and sufficient resources to raised. Emerging markets in Latin America, focus on new deals after fund managers have Eastern Europe, and Africa garnered a mere adequately addressed value preservation in 2% of total funds raised. In a material shift their legacy portfolios. from North America’s dominance of capital attraction, nearly half of all funds closed in As of this writing, the debt markets remain 2008 were focused on Asian, European and all but closed for new deals — lenders are emerging markets. While one might assume bracing for the onslaught of properties that such a shift is in reaction to weakening that may need to be taken back when loans fundamentals in the U.S. market and related mature; borrowers have to come to grips with woes associated with the credit crises, the substantially declining values and the need expanding commitment to globally focused for large new equity infusions to support investments, particularly by U.S.-based refinancing the assets. managers and investors, in fact represents

Emerging Markets 2%

Asia 21% Global 23%

Europe 23% North America 31%

Chart IV Global Fundraising by Number of Funds

Emerging Markets 4% Global 5%

Asia 18%

North America 51% Europe 22%

Source: Private Equity Intelligence, Probitas Partners

Confidential & Trade Secret. ©2009 Do not circulate or publish. 6 North American Opportunistic Decreased valuations, constrained debt Real Estate Market markets, and capital markets concerns inevitably led to a dramatic slowing of Capital from U.S. investors will continue to investments across the residential, retail, migrate back to the U.S. for the foreseeable office, and industrial property sectors. future, where intrinsic value at historically Commercial real estate was hit particularly depressed prices has taken priority over hard as the loss of jobs especially in financial the growth play in emerging markets. Part centers, contributed to increasing office of this trend certainly stems from a natural vacancies — a trend that has not yet peaked retrenchment to home markets by limited as economies globally continue to slow. partners globally. Another driver of the trend is a calculated bet that surging growth in Thus far, multifamily housing has shown some markets like India and China will be subdued resilience with investments targeted towards by the economic issues in the U.S. and Europe, renters with few home ownership options so that the upside generated by growth is generating strong performance. However, less attractive than capitalizing on distressed an increasing jobless rate coupled with opportunities — a similar strategy to one that out-migration to more suburban or rural generated great returns in the RTC era. (i.e., lower cost) locations by “city dwellers” losing their jobs is expected to weaken rents With the recent quarter transaction freeze, in major metropolitan areas. Retail and so few deals have transacted that ongoing hospitality sectors also are expected to pricing for assets has become extremely suffer as low consumer confidence difficult. This is in stark contrast to the past and increased personal savings mute three to five years of high velocity and highly discretionary spending. transparent deals that yielded relatively easy comparable pricing of assets. According Distressed investing was a “hot topic” at the to Real Capital Analytics, global commercial close of 2007 and remained so throughout property sales were estimated to total just 2008; there remains a continued focus $513 billion in 2008, down 57% from 2007’s on proven distressed fund sponsors who $1.2 trillion pace. look to take advantage of the market dislocation. In early 2008, most “distressed Public market performance is, of course, real estate funds” were focused on a leading mark-to-market indicator of real debt-oriented strategies (e.g., issuing debt, asset values. The performance of REITs, buying defaulted notes, purchasing deeply which had flourished in prior years, fell discounted securities, etc). Distressed dramatically during 2008. Larger REITS, such funds appeared to be novel and distinct in as those managed by UBS whose value has 2007. Today, any opportunistic real estate mirrored the movement of the S&P 500, have fundraising capital will be de facto focused had substantial value declines resulting in on distressed opportunities; inherently, that a run on the bank, causing UBS to suspend will mean a focus on debt opportunities, redemptions until the end of 2009. since they dominate the landscape and

40 35.8 35 34.8 31.0 30

25 21.2 20 16.0

$ in billions 15

10 8.4

0 2003 2004 2005 2006 2007 2008

Source: Private Equity Intelligence, Probitas Partners

Confidential & Trade Secret. ©2009 Do not circulate or publish. 8 will not likely give rise to equity-oriented cautiously until they feel that we are closer to opportunities for some time to come. the bottom of the cycle.

This trend towards distressed strategies was Also as noted in Chart VI, investor interest in clearly demonstrated in Probitas Partners’ debt and mezzanine strategies has surged. most recent institutional investor real estate Several opportunity funds are becoming survey. (The survey was completed in late competition for mezzanine financing, offering September as the capital markets turmoil loan-to-own financing as a means to address began in earnest.) As detailed in Chart VI, the bid-ask gap in hopes of ultimately as investors looked towards 2009, interest in gaining control of the assets on the upside, distressed strategies was double that of any and generating an attractive overall current other sector in North America. return on the downside. Mezzanine strategies present an attractive option to investors Notwithstanding the growing volume of who seek mid-to-high teens returns with commitments made to “distressed” real an element of current coupon return plus estate funds, the market has generated some upside (in the form of warrants and few opportunities to date compared with prepayment penalties) as they present one of available capital. Being too early in a falling few available alternative debt options in the market has always been one of the pitfalls more constrained debt market. of investing in a market downturn, and experienced distressed investors are moving

Distressed strategies 59.1% Debt/mezzanine 29.5%

Office 28.4%

Industrial 14.8%

Multi-family 13.6%

Other 9.1%

Retail 8.0%

Specific geographic sectors 6.8%

Hotel and leisure 5.7%

I don’t invest in North America 5.7%

Environmentally friendly strategies 4.5%

I only invest in North America through global funds 3.4%

0% 10% 20% 30% 40% 50% 60% 70%

Source: Probitas Partners 2008 Institutional Investor Real Estate Survey

Confidential & Trade Secret. ©2009 Do not circulate or publish. 10 The European Market opportunity funds) and listed retail funds. Both owner groups have been impacted A record-breaking amount of capital was by current market conditions — the former raised in 2007 for funds focused on the taking a direct valuation hit in the credit European private equity real estate market crunch, and the latter subject to decreased as seen in Chart VII. This surge in 2007 valuations and a stagnant sales market. was significantly greater than historic levels for that geography, followed by a decline As far as global limited partner interest in in 2008; however, 2008 fundraising still specific geographies within Europe, Probitas represented the second highest fundraising Partners’ most recent institutional investor level in history. real estate survey reaffirmed many of these trends as seen in Chart VIII. Both Eastern As the five largest economies in Europe — Europe and Central Europe are areas of U.K., Germany, France, Italy, and Spain — strong interest, though the U.K. leads all were in or near recession in 2008, emerging ther sectors — that is due in large part to economies in Central Europe were attracting increasing distressed opportunities. The greater interest. Bulgaria, Czech Republic, large number of respondents who invest only Poland, Romania, and Slovenia are expected through Pan-European funds is dominated by to exhibit moderate but steady growth. non-Europeans who are not as familiar with A number of country- or region-specific the local markets. property funds in Europe are focusing on Central European regions where cheap While substantial capital continues to seek labor costs combined with accession into the European exposure, European investors European Union has made it comparatively continued to invest more in the U.S. (now easy to sell products throughout Europe. more for distressed opportunities) not- But as the economies in even these markets withstanding challenges presented by cool in response to the global slowdown, it U.S. tax requirements that result in diluted is likely that we will see a similar returns. One impact of the current market retrenchment of capital back to meltdown may be to allow foreign domestic markets of the five largest investors a more efficient means to economies in Europe to take advantage of invest in the U.S. real estate market. perceived distressed opportunities. Properly structured U.S.-sponsored, asset- backed debt (i.e., “distressed”) strategies The U.K. and Spain have been the primary can offer attractive non-FIRPTA-impacted areas of focus for European distressed alternatives to global investors seeking investors to date. As with the U.S. market, tax-efficient exposure to the U.S. real the U.K. real estate market is characterized asset market. by highly leveraged private owners (including

20 19.7

15.1 15

10 8.2 € in billions 7.0

5 3.3 1.4

0 2003 2004 2005 2006 2007 2008

Source: Private Equity Intelligence, Probitas Partners

Chart VIII Europe Investment Focus “In the European market, my primary focus is…(Choose no more than three)”

United Kingdom 36.4% I only invest in Europe through pan-European funds 29.5%% Eastern Europe 26.1%

Germany 21.6%

Central Europe 19.3%

Nordic Region 14.8%

France 14.8%

Spain 10.2%

I don’t invest in Europe 8.0%

Other 4.5%

Italy 0.0%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Source: Probitas Partners 2008 Institutional Investor Real Estate Survey

Confidential & Trade Secret. ©2009 Do not circulate or publish. 12 The Asian Market further problems in China’s real estate fundamentals. Note that positive growth Asian real estate fundraising experienced rates of even 5% for China may signal a significant growth during 2008, as shown recession for its economy, and the risk of in Chart IX, topping $21 billion and raising associated social destabilization. China is more than twice as much as what was indeed the fountainhead of growth for the raised in 2007. While some were optimistic region: According to Urban Land Institute/ that Asia would remain insulated from PriceWaterhouse Coopers, the general rule of the U.S.-initiated credit crisis early in 2008, thumb is that for every percentage of Chinese the drops in stock market values across GDP growth, a half percentage point is added Asia reflect the significant impact of the to Asia’s developing economies, and vice global recession. The Asian “market” is also versa. The broader Asian market, especially more heterogeneous than North America South East Asia, which had for a time looked and Western Europe in terms of relative extremely promising, has certainly shown development and internal dynamics — weakness both in terms of declining export important indicators as to how well Asian production and investors withdrawing funds countries will weather the storm. Well- en masse from the stock markets. developed economies such as Japan and Australia have been badly hit by the Of course, China continues to have an downturn; developing economic giants like embedded 20% discount built into its China have slowing but still positive growth; currency, providing it a ready source for smaller emerging markets like Thailand and economic stimulus that nearly no other Vietnam are reacting with volatility. country can boast. That, and the inherent growth prospects of the economy, will While many larger funds raised to invest in ultimately continue to drive interest in China Asia have been pan-Asian, multi-sector funds in the future — but probably with a pull-back targeting broad-based institutional demand in the near-term. for exposure to the region, much of the deployed capital in 2008 went to China. At As far as global limited partner interest in the end of 2008, China’s growth rate stood specific geographies within Asia (Chart X), it at 9%. While a strong growth rate by relative is no surprise that China dominates, followed standards around the globe, it is off the by Pan-Asian funds and funds focused on 13% growth rate posted in 2007. Reflecting Japan. Notably, 13% of survey respondents the continued decline in that economy, did not invest in Asian real estate funds at all, recently released figures peg the 2009 while another 20% only had Asian exposure growth rate at 6.8%, signaling concern for through global funds.

21.6 20

9.9 10 8.1 $ in billions

5 2.9 0.9 0.6 0 2003 2004 2005 2006 2007 2008

Source: Private Equity Intelligence, Probitas Partners

Chart X Asia Investment Focus “In the Asian market, my primary focus is…” (Choose no more than three)

45% 39.1 40% 35.9 35%

30% 29.3

25% 23.9 20.7 20%

15% 13.0 10.9 9.8 10% 7.6 5.4 4.3 5% 1.1 0 China Pan-Asian Japan India I Only I Don’t SE Asia Singapore Australia Korea Vietnam Other Funds Invest Invest in in Asia Asia Through Global Funds

Source: Probitas Partners 2008 Institutional Investors Real Estate Survey

Confidential & Trade Secret. ©2009 Do not circulate or publish. 14 Emerging Markets Ex-Asia counter-party risk and refinancing risk in the face of worsening tenant market and Interest in emerging market real estate the prospect of a long wait for return to funds was scattered globally in 2008, with normalized debt markets. a small but noticeable preference for Brazil. Many of the emerging market economies The true impact on asset valuations and risk have grown quickly over the last three or from the general unavailability of debt has four years on the back of rising commodity yet to be fully reflected in valuations and prices. A number of investors felt in appreciated by existing asset holders. When early 2008 that growth in these markets debt markets do reopen, they will be more would continue, divorced from the expensive; servicing fees for new loans will be building problems in the more developed higher and loan-to-value ratios will inevitably markets. As the year progressed, be lower. Certainly, covenants will have more however, commodity prices collapsed teeth. In instances of refinancing recently as did common stock indices in these acquired properties, equity will decrease countries, demonstrating their clear link or, in many instances, be wiped out. Herein to the developed markets. Chart XI and XII lies the cautionary lesson of the perils of show stock market activity in the Russian investing too early in a quickly-falling market. Trading System and Brazil’s BOVESPA to As many who have experienced previous illustrate the point. distressed cycles in both private equity and real estate know, investors often mistake Besides these trends, limited partners in a rapidly-falling market to be indicative of North America and Europe who had been “cheap” prices, as assets become available increasingly interested in the growth and at significantly reduced prices compared diversification opportunities that these with the high watermarks of recent times. In markets represented are now refocusing on such cases, early investments that appeared distressed opportunities with strong earning to be highly discounted often turned out to potential in their home markets, theoretically have been the leading edge of the downturn with decreased currency risk. and today will incur downward marks in value.

Ultimately, the debt markets will reopen. Implications of Weak or In the interim, we are concerned about the Non-Existent Debt Markets prospect of a “double bounce,” where the avalanche of assets coming to market seeking Fund sponsors who are currently weathering refinancing will finally create transparency the storm are proactively instituting as to the sheer magnitude of the issue. That strategies to conserve cash and re-focusing transparency will likely cause another bottom on preserving and enhancing cash flows to fall out of the market as participants on existing assets rather than selling re-price that updated data in their portfolios, them. In addition, there is new focus on resulting in another round of devaluations

3,000

2,500

2,000

1,500

1,000

500

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09

Chart XII BOVESPA

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09

Source: Yahoo Finance

Confidential & Trade Secret. ©2009 Do not circulate or publish. 16 and a further push-out of asset value recovery endowments) and addressing allocation until well into 2010, or beyond. In the interim, issues as well as ensuring a lower cost of we expect to see overall values decline during future liquidity to meet future capital calls 2009 by another 50% from year-end 2008 for pension funds. numbers as fund sponsors slowly reflect the realities of the current market and catch up to Today, many real estate investors are the “real values” already indicated by REITS struggling to deal with the Denominator and other mark-to-market indicators. Effect, causing them to be over-allocated in real estate, as private market valuations At the very least, the continued upheaval in lag public markets. The pressure has been the debt markets — both the unavailability heightened by a cessation of realizations on of credit and the impending take-back of existing fund investments — the source of underwater assets by lenders — means that self-funding for a material portion of increased velocity of transactions together unfunded commitments over the past three to with uncertainty caused by a lack of clarity five years. In addition, many pundits actually vis-a-vis government intervention via are of the opinion that institutional investors the stimulus package, even distressed are suffering not from a Denominator Effect, transactions, will be delayed until but rather the Numerator Effect caused institutions structurally adjust to the market by fund sponsors failing to mark assets to realities and the reality of retooling for fair value so that they are in sync with the asset takeover and operations. All of that, rest of institutional portfolio assets (i.e., in turn, will cause the return to some level fixed income and public assets that already of normalcy for new asset transactions to reflect fair value given their nature). be further pushed out likely well into 2010 or later. As a result of all of these factors, we expect 2009 to be the first of several record years in terms of buying and selling private equity real estate interests. As one of the leading The Real Estate specialists in the real estate secondary Secondary Market market, we are privy to a substantial and growing cache of portfolios likely to come 2008 saw increased interest in the real estate to market in 2009. The volume of potential secondary market as mature investors — portfolio sales today already dwarfs the mostly U.S. state pension funds, foundations established base of dedicated real estate and endowments — proactively began to secondary fund capital. But we also expect manage their real estate portfolios after a to see that base grow dramatically in the decade or more of continuous building. The coming year in response to the tsunami of credit crisis shifted the motivation during the motivated seller positions coming to market. second half of 2008 from elective portfolio management of positions to one of generating The current state of the real estate near-term liquidity (for foundations and secondaries market is analogous to the

17 Confidential & Trade Secret. ©2009 Do not circulate or publish. evolution of the private equity market. Any in the late 1990s, and the private equity secondary market is heavily dependent secondary sector then expanded significantly upon primary market deal flow and the in the early 2000s, with an increased flow of establishment of a critical mass of available fund positions coming to market following positions in the primary market. The the bursting of the tech bubble. On a steady tremendous expansion of the private equity state basis in private equity, 3% to 5% of real estate market over the last three years positions trade in the market in any one year, (see Chart I for details) has created the though extraordinary opportunities exist in critical mass necessary to attract trained times of market dislocation — such as what professionals to the market who have the we are experiencing now. For real estate skills to price and execute transactions, and secondary funds, 2009 and 2010 could well the capital to back them. As noted in Chart be what 2003 and 2004 were for private XIII below, private equity reached this point equity secondary funds.

Chart XIII Private Equity Markets Fundraising Primary Commitments vs. Secondary Capital Raised

16.0 500 14.0 450 400 12.0

350 10.0 300 8.0 250 6.0

$ in billions 200 150 4.0

100 2.0 50 0.0 0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Primary Fundraising Secondary Fundraising

Note: Secondary total is for dedicated secondary funds and excludes significant capital dedicated to secondary acquisitions by fund-of-funds with secondary allocations and primary investors with secondary buying programs. Source: Venture Economics/Probitas Partners

Confidential & Trade Secret. ©2009 Do not circulate or publish. 18 Given the amount of money committed to high-quality manager positions will come private equity real estate funds over the last to market in 2009. At the same time, new three years and applying the rough metric entrants to the market are likely to be of private equity secondary activity to that attracted by the flow of motivated sellers number, one would expect that $8 billion to seeking liquidity for real estate holdings. All $14 billion in real estate secondary positions of this broadening of the market on the buy to be coming to market. Due to the turmoil side is a healthy and natural development in the capital markets, we are actually similar to what we witnessed in the private seeing more activity than this, while at the equity market, ultimately creating larger, same time the amount of dedicated capital more durable and more predictable available through specialist secondary funds liquidity options for the private equity real is a fraction of this total. A summary of the estate market. current real estate secondary funds in the market is presented in Chart XIV, and if all Beyond the expansion of dedicated these funds successfully close at target in secondary fund players into real estate, we 2009, it would be by far a new fundraising expect to see sophisticated limited partners, high for the sector — but may still be especially newer sovereign wealth funds and significantly less than demand. other relative newcomers, seek to capitalize on the secondary market opportunity. The In addition, we expect that many of the current environment allows such investors secondary funds that have historically several benefits: to build historically diverse focused exclusively in the private equity portfolios, to gain access to specific managers arena will expand their interest to include and potential strategic relationships, and to real assets with the expectation that notable, mitigate the J-curve of new investments.

Fund Manager Size Fund Status ($MM) CS Strategic Partners IV RE CS Strategic Partners 420 First Close

Landmark Real Estate Fund VI Landmark Partners Real Estate 750 Raising

Liquid Realty Partners V Liquid Realty Partners 800 Raising

Partners Group Real Estate Secondary Fund Partners Group 1,000 Coming to Market

Total $2,970

Source: Probitas Partners

Confidential & Trade Secret. ©2009 Do not circulate or publish. 20 Infrastructure especially in the U.S., are in the process of launching formal infrastructure programs or Infrastructure investing has emerged as a are investigating whether they should. Many growing focus among institutional investors of those that have formal programs are globally. Infrastructure fundraising has risen new to the sector, with relatively few legacy dramatically over the last five years, as investments, and infrastructure allocations detailed in Chart XV. Though the turbulent that allow room for new investment, unlike capital markets of 2008 slowed investor real estate and private equity allocations commitments from 2007’s record level of that have been curtailed by virtue of the $34 billion, the $25 billion raised during denominator effect. 2008 was still ten times the capital committed in 2004, when we started Demand for private capital in infrastructure tracking infrastructure fundraising totals. investments remains very strong. Strained As of January 2009, there were 77 funds in public debt markets, an unwillingness to or coming to market in the sector seeking increase taxes to pay for new projects, and a $92 billion in capital. growing urgency to address new and deferred infrastructure needs have increasingly caused Even with this strong growth, infrastructure public entities to seek third-party capital for a as an asset allocation for institutional growing universe of rehabilitated Brownfield investors is still in its nascent stages in and Greenfield infrastructure projects. many markets. Many institutional investors,

Chart XV Global Infrastructure Fundraising

35 34.3

24.7 25

20 17.9

$ in billions 15

10 5.2 5 2.4 0 2004 2005 2006 2007 2008

Source: Private Equity Intelligence, Private Equity Analyst, Probitas Partners

21 Confidential & Trade Secret. ©2009 Do not circulate or publish. In the U.S. in particular, the Obama But this oversimplified the realities of the administration is focusing on increased risks presented by Brownfield investments infrastructure spending to boost the and misstated the reality of risks presented economy and increase employment, and by other investments. Brownfield investing it is encouraging private capital to assist became very crowded and competitive in that process. But the U.S. is not alone in with the advent of several large Brownfield this regard; China has just announced a funds formed by investment banks and major infrastructure program for just the other financial sponsors. The result was same reasons. And though these programs intensely competitive bidding, often based are focused on Greenfield or Rehabilitated on aggressive assumptions and aggressive Brownfield projects, at local levels in financing via cheap and abundant debt. developed markets governments are also This competition drove down returns but increasingly looking to sell established also dramatically increased financial risk. As Brownfield assets in order to generate cash the economy cooled and projects failed to to address budget problems. deliver on the underlying assumptions, the cash flow failed to cover debt service on Growth in the number of infrastructure funds highly leveraged assets. Now many of and differentiated strategies within the space these theoretically “safe” or low risk assets (i.e., Brownfield, Greenfield, Rehabilitated are distressed, and ironically represent Brownfield, geographically focused, sub- investment opportunities for new sector focused, etc.) is creating new options infrastructure funds today. for investors as they define their interest in the sector. Rehabilitative Brownfield The heightened competition in the Brownfield strategies that improve or expand existing space forced yields to single digits. At that infrastructure assets offer an attractive risk/ level, the prospect of global Brownfield funds return profile by reducing the effects of the delivering on their promise of mid-teens J-curve; Greenfield approaches generally take returns is unlikely. Furthermore, investor longer to attain realizations but can generate appetite for a 1.5% management fee significantly greater returns while moderating and 20% carry on such returns will not risk by virtue of proper structuring via likely continue. typically proprietary negotiations. Interestingly, Greenfield investments can Investors are “relearning” infrastructure offer better risk/return attributes than investment fundamentals. For nearly a Brownfield investments, as in the case where decade, Brownfield-oriented fund sponsors in a proprietary transaction (rather than taught investors that Brownfield investing an auction) the development risk is laid was low risk and anything else was high off on strong, experienced counter parties risk, running along a risk continuum and the finished project is subject to an from Brownfield to Rehabilitated Brownfield availability agreement or other concession. It to Greenfield. is impossible to generalize the risk profile of

Confidential & Trade Secret. ©2009 Do not circulate or publish. 22 Greenfield and Brownfield projects, because infrastructure type assets), akin to the core, it is contingent upon the interplay among core-plus and opportunistic strategies seen multiple factors including leverage, in most real estate portfolios today. development, completion, market and revenue risks. Sophisticated investors We also expect to see a growing number will take into account all of these of large independent infrastructure funds factors in assessing different fund arising in response to market demand and strategies and projected returns and opportunities for teams that spin out of carefully select managers with proven risk existing Brownfield funds that are unlikely management, deal structuring and asset to raise future funds. As can be seen in management expertise. Chart XVI, the largest existing infrastructure funds were sponsored by financial A growing number of large institutional institutions, many of which are in stress or investors in Canada, Australia, the Middle have already experienced structural change. East and Europe continue to build large, Probitas Partners’ recent infrastructure capable direct investment teams that investor survey indicates that most compete directly with infrastructure funds institutional investors prefer independent to acquire infrastructure assets. Nearly all platforms that minimize potential conflicts of this competition continues to be focused of interest and enhance team stability to in the Brownfield arena where pricing has match the long-term nature of infrastructure been bid up substantially in the past three assets. The turmoil in the capital markets years. While at its very early stages, we see and the impact on many of these sponsors the evolution of infrastructure investment is likely to result in a continued migration portfolio construction as analogous to toward independent spinoffs over the next real estate portfolio construction, where two years. investor preference will quickly shift from purely “allocator” funds (mostly Brownfield As a consequence of all of these factors, funds) to include operationally-adept and we expect to see infrastructure fundraising geographically-focused funds (mostly rebound and be quite robust in 2009, likely Rehabilitated Brownfield and Greenfield after a hiatus in the earlier part of 2009 as funds) in order to generate more attractive institutions reevaluate capital deployments returns with mitigated risk. generally. One of the interesting new drivers of this renewed interest in infrastructure Ultimately, we see the clear evolution in investing will be the rotation of some most institutional infrastructure portfolios allocations at foundations and endowments to include a diverse array of funds out of private equity investments into and holdings that will represent core more conservative strategies that include (Brownfield), value-added (Rehabilitated current cash generating investments to Brownfield and Greenfield) and opportunistic provide stable cash flow for operations at strategies (private equity-oriented, company their institutions. level investments managing underlying

Rank Fund Name Firm Name Location Year Amount ($MM) 1 GS Infrastructure GS Infrastructure Investment Group New York In Market 7,500 Partners II

2 Macquarie European Macquarie Funds Management Group London; Sydney In Market €5,000 Infrastructure Partners III

3 GS Infrastructure Goldman Sachs Private Equity Group New York 2006 6,500 Partners

4 Macquarie European Macquarie Funds Management Group London; Sydney 2007 €4,600 Infrastructure Partners II

5 Macquarie Infrastructure Macquarie Funds Management Group London; Sydney In Market 6,000 Partners II

6 Global Infrastructure Global Infrastructure Partners New York 2008 5,640 Partners I

7 Macquarie Infrastructure Macquarie Funds Management Group Sydney 2008 4,000 Partners

8 Morgan Stanley Morgan Stanley New York 2008 4,000 Infrastructure

9 aAIM Infrastructure Fund aAIM Infrastructure London In Market £2,000

10 AIG Highstar Capital III AIG Investments — Infrastructure New York 2007 3,500

Source: Probitas Partners Rankings based upon currency valuations in February 2009

Confidential & Trade Secret. ©2009 Do not circulate or publish. 24 C o n c l u s i o n Despite current economic uncertainty and capital market unrest, investors continue to exhibit optimism towards hard asset performance attributes and seek a range of strategies that promote cash generation and appreciation. Infrastructure, with its growing global recognition as an efficient liability-matching asset and its sustainable demand, offers many investors longer-term, stable real asset investment exposure that will approach and may even exceed the scale of real estate allocations over time.

Real estate will have to endure a near complete restructuring before it returns to some semblance of normalcy — likely a multi-year process that will start with proper valuations and recognition of the magnitude of the issues and then grinding through retaking of assets and the gradual process of reselling those assets, lubricated by a slowly-opening credit market. Thus, the first opportunities in the real estate arena will inevitably be in the credit sphere for the foreseeable future. We expect to see most fundraising focused there in 2009, but fundraising will be constrained by allocation and liquidity issues at most institutions. They increasingly will be looking to the rapidly developing secondary market to address those issues.

Thus, the key trends we see for 2009 include:

• Legacy portfolio valuations: Valuations on legacy investments already in portfolio will be negatively impacted both by the global economic downturn and constrained debt markets. At this point, credit markets are effectively shut, and assets that must be refinanced in the near-term will be hurt both by the availability (or lack of availability) of credit and its pricing. We anticipate many assets will be taken back by lenders as the value to debt ratios go negative and investors will be loathe to step in to protect such assets in the face of other demands on their scarce liquidity.

• Likelihood of a follow-on financing crisis: When debt markets do reopen, the expected avalanche of refinancing demand will make transparent the magnitude of problems that need to be worked through. That may spook lenders and the broader market, and result in the financing window closing again, causing another round of devaluations in response and further push out recovery until well into 2010, or beyond.

25 Confidential & Trade Secret. ©2009 Do not circulate or publish. • Real estate opportunities in 2009: Even in this environment, there will be opportunities in 2009 driven by stress and dislocation. Fund managers best positioned to capitalize on this situation will be those who:

• Have experience investing in down cycles. Given that the global economy is in recession, there is no safe haven to run to; fund managers with proven expertise surviving and thriving in down markets will be sought after.

• Know not to invest too early. One of the important benefits of experience is having a feel for when a market is near the bottom and the discipline to act accordingly. Too many inexperienced investors buy assets that look cheap, only to find that prices had much farther to fall.

• Possess operating as opposed to pure financial skills. In markets like these, operating skills are at a premium and leverage no longer drives returns.

• Developed markets are likely to benefit over emerging markets: In 2006 and 2007, strong economic growth in emerging markets attracted investment capital as the return potential outweighed currency, structural and political risk. With developed markets fully priced, these emerging markets looked relatively much more attractive. In 2008 it became evident that these economies were not immune from developed market economic downturn and opportunities for strong returns in distressed investing in developed markets refocused investors’ attention domestically on such opportunities in 2009.

• Infrastructure will continue to be a sector of investor focus: Infrastructure allocations are in general newer and less burdened, while at the same time many governments are pushing private investments in the sector to help with their budget needs, to address acute and pressing need for infrastructure investment in failing assets, and to stimulate job creation.

• Real estate secondaries: The current economic crisis has shifted the focus of real estate secondaries from elective portfolio management to necessary allocation and liquidity relief for institutions experiencing stress in their portfolios. As a consequence, the flow of for sale fund positions is set to expand dramatically in 2009, and we expect to see dedicated capital in the form of real estate secondary funds to grow in response. Already today, dedicated real estate secondary funds are in market seeking over $3 billion in capital.

Global Funds ...... 29

North American Funds ...... 30

European Funds ...... 36

Asian Funds ...... 39

Latin American Funds ...... 42

Middle Eastern/North African Funds ...... 43

Other Emerging Markets ...... 43

Mezzanine & Debt Funds ...... 44

Secondary Funds ...... 46

Infrastructure Funds ...... 47

Probitas Partners does not include information on funds it is currently offering in this listing; qualified investors seeking information on Probitas Partners’ placed funds should contact Probitas Partners directly in order to have the most complete picture of all institutional funds currently in the market.

Investors interested in information on Private Equity funds may request a copy of Probitas Partners Private Equity Deskbook by emailing [email protected].

Fund Size (MM) in $U.S. Unless Marked Note: Does not include funds currently being placed by Probitas Partners

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Global Funds

Beacon Capital Strategic Partners VI/ U.S./Europe 6,000 4,000 In Market www.beaconcapital.com 1998 Boston Beacon Capital Partners Diversified

New York; DLJ Real Estate Capital Partners IV/ Global 2,500 1,150 In Market www.credit-suisse.com 1996 London; DLJ Real Estate Partners Diversified Zurich; Tokyo

Dune Real Estate Fund II/ U.S./ Europe 1,250 727 In Market N/A 2004 New York Dune Capital Management Diversified

Fortress Investment Fund VI/ U.S./ Europe 6,000 5,000 In Market www.fortressinv.com 1998 New York Fortress Investment Group Diversified

HDG Mansur International Property Fund/ Europe/ U.S. 200 N/A In Market www.hdgmansur.com 1982 London HDG Mansur Diversified

ING Real Estate Global Opportunistic Fund/ Global 1,500 N/A In Market www.ingrealestate.com N/A London ING Real Estate Investment Management Diversified

Dallas; New York; Lone Star Real Estate Fund II/ Coming to Global 10,000 2,500 www.lonestarfunds.com 1995 London; Paris; Lone Star Funds Market Diversified Frankfurt; Tokyo

Morgan Stanley Real Estate Fund VII Global/ Global 10,000 8,000 In Market www.morganstanley.com/realestate 1969 New York Morgan Stanley Diversified

OCM Real Estate Opportunities Fund IV/ Global 1,000 692 In Market www.oaktreecapital.com N/A Los Angeles Oak Capital Management Diversified

RREEF Global Opportunities Fund III/ Global 3,000 1,600 In Market www.rreef.com N/A New York RREEF Real Estate Diversified

Westport, CT; WCP Real Estate Fund 2/ Global El Segundo, 500 500 In Market www.westportcp.com 2006 Westport Capital Partners Distressed CA; Mumbai

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

North American Funds

Abacus Mutli-Family Partners II/ 350 N/A In Market U.S. Multifamily www.abacuscapitalgroup.com N/A New York Abacus Capital partners

AEW Partners VI/ U.S. Special 750 686 In Market www.aew.com 1981 Boston AEW Capital Management Situations

AEW Senior Housing Investors/ U.S. Senior 500 N/A In Market www.aew.com 1981 Boston AEW Capital Management Housing

AG Net Lease Realty Fund II/ 300 N/A In Market U.S. Net Lease www.angelogordon.com 1988 New York Angelo, Gordon & Co.

Amstar Partners Office Opportunity Fund/ 300 N/A In Market U.S. Office www.amstargroup.com 1987 Denver Amstar Group

APCA Property Fund II/ 150 52 In Market U.S. Diversified www.ashforthparadigm.com 1896 Boston Ashforth Paradigm Capital Advisors

AREA Investment Fund VI/ 1,000 700 In Market U.S. Diversified www.apollorealestate.com 1993 New York AREA

North America Arden Real Estate I/ 125 N/A In Market Distressed www.ardengroup.com 1989 Philadelphia Arden Group Hospitality

AREA Real Estate Opportunity Fund VI/ North America 1,000 700 In Market www.areapropertypartners.com 1993 New York AREA Property Partners Distressed

Aslan Realty Partners IV/ 800 N/A In Market U.S. Commercial www.transinvestco.com 1996 Chicago Transwestern Investment Company

Avanath Affordable Capital/ U.S. Affordable Irving, TX; 300 N/A In Market www.avananth.com 1989 Avanath Capital Partners Housing Carlsbad, CA

Baypoint Canada Income Fund/ Canadian Office Marblehead, 250 N/A In Market www.baypointadvisors.com N/A Baypoint Advisors and Industrial MA; Toronto

BCOM Ullico Southern Fund/ U.S. Sunbelt Washington, 350 N/A In Market www.ullico.com 1925 Union Labor Life Diversified D.C.

Beacon Capital Strategic Partners VI/ 6,000 4,000 In Market U.S. Office www.beaconcapital.com 1998 Boston Beacon Capital Partners

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

N.Y.C/ Berman Enterprises Opportunity Fund/ 500 N/A In Market Washington, www.giulianipartners.com 2004 New York Giuliani Partners & Berman Enterprises D.C. Diversified

Bond Companies Sustainability Fund/ 350 N/A In Market U.S. Sustainable www.bondcompanies.com 1987 Los Angeles Bond Companies

U.S. Multifamily Buckingham Real Estate Opportunity Fund/ Indianopolis, 250 N/A In Market Value-add/ N/A 1984 Buckingham Real Estate IN Distressed Debt

Brandywine Opportunities Fund/ Chadds Ford, 500 N/A In Market U.S. Diversified www.brandywine-financial.com 1972 Brandywine Financial Services PA

Bruin Fund/Thompson NationalProperties 250 N/A In Market U.S. Diversified www.tnpre.com 2007 Irvine, CA

Bryanston Real Estate Opportunity Fund II/ 250 150 In Market U.S. Distressed www.bryanstonrp.com 2004 Chicago Bryanston Realty Partners

BSEP Sponsor Equity Fund II/ U.S. Philadelphia; 200 N/A In Market www.bluestonecap.com 1998 BlueStone Real Estate Capital Opportunistic Palm Beach

Buckingham Real Estate Opportunity Fund/ U.S Indianopolis, 250 N/A In Market www.buckingham-co.com 1984 Buckingham Real Estate Opportunistic IN

CAM Industrial Value Fund II/ Beverly Hills, 300 N/A In Market U.S. Industrial www.cohenasset.com 2007 Cohen Asset Management CA

Cantor Real Estate Fund/Cantor Fitzgerald 325 N/A In Market U.S. Diversified www.cantor.com 2008 New York

Canyon Johnson Urban Communities Fund/ Beverly Hills, 1,250 600 In Market U.S. Diversified www.cjuf.com 2002 Canyon-Johnson Urban Funds CA

Cerberus Institutional Real Estate Partners II/ New York; 3,000 890 In Market U.S. Distressed www.cerberuscapital.com 1994 Cerberus Real Estate Capital Management Los Angeles

Ceres Urban Realty Fund/ 250 100 In Market U.S. Diversified www.blakelystern.com 2003 New York BlakelyStern Investment Advisors

Chesapeake Real Estate Value Investors II/ 250 60 In Market U.S. Diversified www.lmrei.com N/A Los Angeles Legg Mason Real Estate Investors

CityView LA Urban Land Fund I/ California San Antonio; 100 N/A In Market www.americancityvista.com N/A American CityVista & Saybrook Capital Diversified Santa Monica

Mid-Atlantic Washington, Consortium 4/Bernstein Companies 100 N/A In Market www.thebernsteincompanies.com 1933 Office D.C.

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Debartolo Community Retail Fund/ 400 N/A In Market U.S. Retail www.debartolodevelopment.com N/A Tampa, FL Debartolo Development

E2M Value-added Fund II/ 600 N/A In Market U.S. Diversified www.e2mpartners.com 2004 Dallas E2M Partners

ECM Income & Growth Fund III/ 250 100 In Market U.S. Diversified www.ecm-funds.com 1989 Chicago Equity Capital Management

Eurotrade NPL Fund I/Eurotrade Capital 100 N/A In Market U.S. Distressed www.eurotradecapital.com 1951 Boca Raton, FL

Fides Real Estate Direct Lending and Distressed Opportunity Fund/ 300 N/A In Market U.S. Distressed www.fidescapitalmanagement.com N/A Pasadena, CA Fides Capital Management

Glenmont Real Estate Partners III/ 300 N/A In Market U.S. Distressed www.glenmontcapital.com N/A New York Glenmont Capital Management

Guardian Realty Fund III/ Washington, 500 114 In Market www.guardian-realty.com 1966 Bethesda, MD Guardian Realty Investors D.C. Office

H/2 Special Opportunities/ U.S. Special 500 N/A In Market N/A 2008 Stamford, CT H/2 Capital Partners Opportunities

Haveland Property Investors/ U.S. Office & 200 N/A In Market www.havelandprop.com 2005 Stamford, CT Haveland Estates Multifamily

Hawaii Real Estate Opportunity and Hawaii 300 N/A In Market N/A 2008 N/A Development Fund/Hawaii Fund Managers Hospitality

HDG Mansur Opportunity Fund I/ SE & SW U.S. 350 N/A In Market www.hdgmansur.com 1982 London HDG Mansur Diversified

Heitman Strategic Finance Partners/ 300 N/A In Market U.S. Diversified www.heitman.com 1966 Chicago Heitman Real Estate Investment Management

Highland Capital Real Estate Opportunity New York; 500 N/A In Market U.S. Diversified www.hcmlp.com 1998 Fund/ Highland Capital Management Dallas

High Performance Green Fund/ 275 N/A In Market U.S. Diversified www.tpgre.com 1996 Los Angeles Thomas Properties Group

High Street Real Estate Fund III/ 350 400 In Market U.S. Diversified www.hsequity.com 2002 Boston High Street Equity Advisors

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

New York; Hudson Realty Capital V/ 500 350 In Market U.S. Diversified www.hudsonrealtycapital.com 2003 Portland, ME; Hudson Realty Capital Miami

Hunter Chase Real Estate Opportunity Fund/ Irving, TX; 250 N/A In Market U.S. Diversified www.hunterchase.com 2001 Hunter Chase & Co. Carlsbad, CA

Hutensky Capital Partners II/ U.S. Shopping 150 N/A In Market www.hutenskygroup.com 1979 Hartford Hutensky Group Center

Integrated Capital Hospitality Fund/ N. America 200 N/A In Market www.integrated-capital.com 2003 Buffalo, NY Integrated Capital Diversified

JP Morgan Urban Renaissance Property Fund/ 500 N/A In Market U.S. Urban www.jpmorgan.com N/A New York JP Morgan Asset Management

Kelton Real Estate/Kelton Companies 100 N/A In Market U.S. Diversified www.keltoncompanies.com 2008 Phoenix, AZ

KMF Senior Generation Fund/ U.S. Senior 300 N/A In Market www.kmfseniorhousing.com N/A Chicago KMF Senior Housing Investors Housing

Latus Real Estate Partners Parallel Fund I/ 100 N/A In Market U.S. Debt www.latuspartners.com N/A New York Latus Partners

Los Angeles; Denver; Irvine; Phoenix; Lowe Hospitality Investment Partners II/ 350 266 In Market U.S. Hospitality www.loweenterprises.com 1972 San Francisco; Lowe Enterprise Investors Sacramento; Washington, D.C.

Los Angeles; Denver; Irvine; Phoenix; Lowe Real Estate Income and Growth 350 N/A In Market U.S. Distressed www.loweenterprises.com 1972 San Francisco; Partners II/Lowe Enterprises Investors Sacramento; Washington, D.C.

Lubert-Adler Real Estate Fund VI/ N. America 2,600 1,700 In Market www.lubertadler.com 1997 Philadelphia Lubert-Adler Diversified

Macfarlan Special Situations Fund I/ 300 N/A In Market U.S. Distressed www.macfarlan.com 1984 Dallas Macfarlan Capital Partners

Macfarlane Urban Real Estate Fund III/ 1,500 1,000 In Market U.S. Urban www.macfarlanepartners.com 1987 San Francisco Macfarlane Partners

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Mesirow Financial Real Estate Value Fund/ 250 N/A In Market U.S. Diversified www.mesirowfinancial.com 1937 Chicago Mesirow Financial Institutional Real Estate

Metzler U.S. Real Estate Fund II/ 300 N/A In Market U.S. Diversified www.metzlerna.com 1976 Seattle Metzler Realty Advisors

Next Block Medical Fund II/ 500 N/A In Market U.S. Diversified www.valenciacm.com 2004 Dallas Valencia Capital Management

U.S. Office & NL Ventures VIII/AIC Ventures 100 N/A In Market www.aicventures.com N/A Austin Industrial

Omega Opportunity Fund I/ 1,000 N/A In Market U.S. Distressed www.omegafinancial.com N/A Miami Omega Commercial Finance Corporation

Onex Real Estate Partners II/ 600 230 In Market U.S. Diversified www.onex.com 2005 New York Onex Real Estate Partners

Pacifica Senior Housing Fund/ U.S. Senior 300 N/A In Market www.pacificaequitypartners.com 1980 San Diego, CA Pacifica Equity Partners Housing

Page Mill Properties 3/ 500 N/A In Market U.S. Diversified www.pagemill.com 1993 Palo Alto Page Mill Properties

Parmenter Realty Fund IV/ Southern U.S. 500 245 In Market www.parmco.com 1989 Miami Parmenter Realty Partners Office

Perseus Realty Partners II/ Washington, 200 210 In Market U.S. Diversified www.perseusrealtypartners.com 2005 Perseus Realty Partners D.C.

PLA Retail Fund I/ 425 N/A In Market U.S. Retail www.pramericarei.com N/A Parsippany, NJ Prameria Real Estate Investors

PRECO IV/Pramerica Real Estate Investors 500 N/A In Market U.S. Retail www.pramericarei.com N/A Parsippany, NJ

Prescott GNLP Corporate Partners/ 200 N/A In Market U.S. Office www.prescott-gnlp.com 2007 New York Prescott GNLP Capital

PRG National Value Added Fund/ New York; 200 N/A In Market U.S. Diversified www.phoenixrg.com N/A Phoenix Realty Group Los Angeles

Prudential Senior Housing Partners IV/ U.S. Senior 500 300 In Market www.prudential.com/prei N/A Parsippany, NJ Prudential Real Estate Investors Housing

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Residential Income and Value-Added II/ 200 150 In Market U.S. Income www.thetuckermangroup.com 1998 Rye Brook, NY Tuckerman Group

RockBridge Hospitality Fund V/ 200 N/A In Market U.S. Hospitality www.rockbridgecapital.com 1999 Columbus, OH RockBridge Capital

RXR RexCorp Real Estate Opportunity Fund II/ New York Area 800 N/A In Market www.rexcorprealty.com N/A Uniondale, NY RXR Rexcorp Realty Diversified

Schuster Realty Partners I/Schuster Group 100 N/A In Market U.S. Diversified www.theschustergroup.com 1989 Seattle

Sentinel Multifamily Value-Added Fund/ Southern U.S. 350 N/A In Market www.sentinelcorp.com 1969 New York Sentinel Real Estate Corporation Multifamily

SW U.S. Southwest Next Fund I/ 500 N/A In Market Distressed www.southwestnext.com 2008 Phoenix, AZ Southwest Next Capital Management Residential

Square Mile Partners III/ 850 561 In Market U.S. Distressed www.squaremilecapital.com 2006 Greenwich, CT Square Mile Partners

STAG Investments V/STAG Capital Partners 400 50 In Market U.S. Diversified www.stagcapital.com 2003 Boston

Sterling American Property VI/ U.S. Multifamily 700 610 In Market www.sterlingamerican.com 1981 New York Sterling American Property and Office

Stockbridge Real Estate Fund III/ 2,500 1,000 In Market U.S. Diversified www.sbfund.com 2003 San Francisco Stockbridge Capital Partners

Stockbridge Value Fund/ 700 N/A In Market U.S. Diversified www.sbfund.com 2003 San Francisco Stockbridge Capital Partners

Stoltz Real Estate Fund III/ Bala Cynwyd, 375 145 In Market U.S. Diversified www.stoltzusa.com 2003 Stoltz Real Estate Partners PA

Strategic Partners Value Enhancement Fund II/ 500 250 In Market U.S. Diversified www.strategiccapitalpartners.net 2005 Chicago Strategic Capital Partners

Sunbelt Residential Distress Fund/ 250 N/A In Market U.S. Distressed www.aaventures.com 1991 Boca Raton, FL Askenazy & Agus Ventures

TA Associates Realty Fund IX/ 1,750 1,500 In Market U.S. Diversified www.tarealty.com N/A Boston TA Associates Realty

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

TIAA-CREF U.S. Real Estate Fund I/ 300 N/A In Market U.S. Diversified www.tcasset.com 2004 New York TIAA-CREF

TriGate Property Partners/TriGate Capital 350 N/A In Market U.S. Diversified www.trigatecapital.com N/A Dallas

U.S. Trinity Restoration Fund/ 300 N/A In Market Environmentally www.trinity-ip.com 2007 Stockton, CA Trinity Investment Partners Responsible

Tucker Development and Acquisition Fund/ 300 N/A In Market U.S. Diversified www.tuckerdevelopment.com 1996 Chicago Tucker Development Corporation

U.S. Residential Opportunity Fund I/ U.S. Sunbelt 250 N/A In Market www.pacificaequitypartners.com N/A San Diego, CA Pacifica Equity Partners Distressed

Western National Realty Fund II/ 300 50 In Market U.S. Diversified www.wng.com 1981 Irvine, CA Western National Realty Advisors

European Funds

Aerium Fairfield Special Opportunities Fund/ Europe € 500 N/A In Market www.aerium.com 2003 London Aerium & Fairfield Greenwich Group Diversified

Blackstone RE Partners Europe III/ Europe € 3,000 € 1,550 In Market www.blackstone.com 1992 London; Paris Blackstone Group Diversified

Germany BPT Hansa Lux/Baltic Property Trust € 300 € 300 In Market www.balticpropertytrust.com 2001 Copenhagen Commercial

Brockton Capital II/Brockton Capital £300 £150 In Market U.K. Distressed www.brocktoncapital.com 2006 London

Cadena Student Housing Growth Fund/ Spain Student € 150 N/A In Market www.cadena.co.uk 2005 London Cadena Holdings Housing

CA Immo New Europe/ C. & E. Europe € 400 N/A In Market www.caimmointernational.com 1999 Vienna CA Immo International Commercial

CapMan Hotels RE/ Scandinavia € 400 N/A In Market www.capman.fi 2005 Helsinki CapMan Real Estate Hospitality

CB Richard Ellis Strategic Europe Fund IV/ Europe € 1,500 754 In Market www.cbreinvestors.com 1972 Los Angeles CB Richard Ellis Diversified

CEE Residential Fund/ C. & E. Europe € 200 N/A In Market www.realkapital.no N/A Oslo Realkapital Partners Residential

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

City Parking/ € 125 N/A In Market German Parking www.quantum.ag 1998 Hamburg Quantum Immobilien

Cordea Savills German Retail Fund/ € 1,000 N/A In Market German Retail www.cordeasavills.com 2005 London Cordea Savills

CorEstate German Commercial/ German € 500 N/A In Market www.corEstate-capital.ch 2006 Zurich CorEstate Capital Commercial

Domani Sereno Real Estate Fund/ Italy Senior € 150 N/A In Market www.fondamentasgr.com 1998 Milan Fondamenta Housing

ECM International Real Estate Fund/ Europe 250 N/A In Market www.ecm-funds.com 1989 Chicago; Bern Equity Capital Management Diversified

Endurance Logistics and Light Industrial/ C. & E. Europe Luxembourg; € 200 N/A In Market www.endurancefund.com 2005 Orco Property Group Industrial Prague; Paris

Evans Randall Opportunity Fund/ £1,000 N/A In Market U.K. Commercial www.evansrandall.com 1993 London Evans Randall

German Shopping Centre Fund/ London; € 1,200 N/A In Market German Retail www.henderson.com/property 1934 Henderson Global Investors Frankfurt

Global Emerging Property Fund II/ S. Europe € 350 € 150 In Market www.globalfinance.gr 1991 Athens Global Finance Diversified

Heitman European Property Partners VI/ C. & E. Europe € 600 N/A In Market www.heitman.com 1966 Chicago Heitman Diversified

Hexagone/ Europe € 210 N/A In Market www.avivainvestors.co.uk 1968 London Aviva Morley Property Funds Management Diversified

Iberia/Norfin € 200 N/A In Market Iberia Diversified www.norfin.eu 1999 Lisbon

IMO Pan-Iberian Retail/Imorendimento € 200 N/A In Market Iberia Diversified www.imorendimento.com 1992 Porto, Portugal

JP Morgan Greater Europe Opportunistic Europe € 500 N/A In Market www.jpmorgan.com 1895 London Fund/JP Morgan Asset Management Diversified

LaSalle European Ventures III/ Europe € 1,250 € 335 In Market www.lasalle.com 1978 Chicago; Paris LaSalle Investment Management Diversified

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

LaSalle UK Ventures II/ £400 £240 In Market U.K. Diversified www.lasalle.com 1978 Chicago; Paris LaSalle Investment Management

Logistis III/AEW Europe € 350 € 218 In Market Europe Logistics www.aeweurope.com N/A Paris; London

Meyer Bergman Eastern Europe Retail Fund/ Europe London; Paris; € 600 N/A In Market www.meyerbergman.com 1970 Meyer Bergman Diversified Berlin

London; Moor Park Real Estate Fund III/ W. Europe € 1,500 N/A In Market www.moorparkcapital.com 2005 Oststeinbek, Moor Park Capital Diversified Germany

Mosaic Central and Eastern European II/ C. & E. Europe London; € 200 € 100 In Market www.mosaicpropertyllp.com 2005 Mosaic Property Diversified Budapest

Neptunia/ Aedes Real Estate € 375 N/A In Market Italy Diversified www.aedes-immobilaire.com N/A Milan; Rome

Den Haag, W. Europe NIBC Land Value Fund I/NIBC € 125 N/A In Market www.nibcapital.com N/A the Diversified Netherlands

Orion European Real Estate Fund III/ Europe € 650 € 476 In Market www.orioncapman.com 1999 London Orion Capital Managers Diversified

Parc d'Activites/ Valad Property Group € 500 N/A In Market France Industrial www.valad.com.au 1995 London; Paris

Eastern/ Poteza Real Estate Fund/ Lubljana, € 150 N/A In Market Central Europe www.poteza.si N/A Poteza Equity Management Slovenia Diversified

Realkapital European Opportunity II/ Europe € 250 N/A In Market www.realkapital.no N/A Oslo Realkapital Partners Diversified

Realstar European Capital I/ Europe € 300 N/A In Market www.realstargroup.com 1974 Toronto Realstar Group Diversified

Rockspring UK Value Fund/ £350 N/A In Market U.K. Diversified www.rockspringim.com 1984 London Rockspring Property Investment Partners

Rynda en Primeur II/ Coming to France TBA € 140 www.ryndaproperty.com 2005 Paris Rynda Property Investors Market Diversified

Schroder Italian Property Fund II/ € 250 N/A In Market Italy Diversified www.schrodersproperty.com 1971 London Schroder Property Investment Management

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

U.K. Tellesma Fund/Tellesma £1,000 N/A In Market N/A 2008 London Sustainability

Valartis Residential Healthcare Fund/ Europe € 125 N/A In Market www.valartis.ch 2006 Zurich Valartis Group Healthcare

Valad UK Opportunity Fund/ £350 N/A In Market U.K. Commercial www.valad.com.au 2007 London Valad Property Group

Valartis Residential Healthcare Fund/ € 125 N/A In Market Europe Medical www.valartis.ch 2006 Zurich Valartis Group

Weinberg Real Estate Partners I / France € 150 N/A In Market www.weinbergcapital.com 2005 Paris Weinberg Capital Partners Diversified

Asian Funds

New York; Aetos Capital Asia III/ 2,500 2,200 In Market Asia Diversified www.aetoscapital.com 1999 Tokyo; Aetos Capital Hong Kong

AG Asia Realty Fund II/ Hong Kong; 1,000 526 In Market Asia Diversified www.angelogordon.com 1993 Angelo, Gordon & Co. Seoul

Ashington Development Fund III/ Australia 200 AUD 80 AUD In Market www.ashingtongroup.com.au 1999 Sydney Ashington Capital Diversified

Carlyle Asia Real Estate Fund II/ Washington, 1,000 410 In Market Asia Diversified www.carlyle.com 1987 The Carlyle Group D.C.; Beijing

CholaLand Fund I/ Malaysia 100 N/A In Market N/A 2008 Malaysia CholaLand Advisers Diversified

CPI Capital Partners Asia Pacific II/ 1,500 1,291 In Market Asia Diversified www.citigrouppropertyinvestors.com N/A New York Citi Property Investors daVinci Australia Real Estate Opportunity Australia 300 AUD N/A In Market www.davinci-advisors.com 1998 Tokyo Partners/KK DaVinci Advisors Diversified daVinci Real Estate Opportunity Partners V/ 76,000 320,000 Coming to Japan Diversified www.davinci-advisors.com 1998 Tokyo KK DaVinci Advisors JPY JPY Market

DHFL Venture Capital Fund/ 250 N/A In Market India Residential www.dhfl.com 1984 Mumbai Dewan Housing Finance

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Duet India Hotels/Duet Private Equity 200 N/A In Market India Hospitality www.duetgroup.com 2005 London

Duet Japan Special Situations Fund/ 300 N/A In Market Japan Diversified www.duetgroup.net 2002 London Duet Private Equity

Enterprise Fund/Pacific Star Group 1,000 N/A In Market Asia Diversified www.pacificstargrp.com 2000 Singapore

Hong Kong; Fortress Asia Realty Fund/ Shanghai; 1,000 N/A In Market Asia Diversified www.fortressinv.com 1998 Fortress Investment Group Tokyo; New York

Forum Asia Realty Income Fund III/ Coming to 1,000 792 Asia Diversified www.forumpartners.com 2002 Beijing Forum Partners Market

Fudo Capital II/ 750 430 In Market Asia Diversified www.clsacapital.com/fudo 2004 Hong Kong CLSA Capital Partners - Fudo Capital

Gateway Capital Real Estate Fund III/ 1,000 N/A In Market Asia Diversified www.gawcapital.com 2005 Hong Kong Gaw Capital

Harvest China Real Estate Fund II/ 750 N/A In Market China Diversified www.harvestcapital.com.hk 2007 Hong Kong Harvest Capital Partners

Asia/Australia Holdfast Capital I/Holdfast Capital 500 N/A In Market www.holdfastcapital.com 2008 Hong Kong Diversified

HSH Asian Real Estate Fund No. 1/ € 500 N/A In Market Asia Diversified www.pacificstargrp.com 2000 Singapore Pacific Star Fund Management

Indiareit Offshore Fund II/ 600 200 In Market India Diversified www.indiareit.com 2006 Mumbai Indiareit Fund Advisors

Ho Chi Minh Indochina Land Holdings 3/ Vietnam 500 265 In Market www.indochinacapital.com 1999 City; Hanoi; Indochina Capital Diversified Danang

Hong Kong; Beijing; Seoul; ING Real Estate China Opportunity Fund II/ Coming to 700 600 China Diversified www.ingrealestate.com 1996 Singapore; ING Real Estate Investment Management Market Shanghai; Tokyo; Taipei

Hong Kong; Beijing; Seoul; ING Real Estate China Residential Fund II/ Coming to China 700 350 www.ingrealestate.com 1996 Singapore; ING Real Estate Investment Management Market Residential Shanghai; Tokyo; Taipei

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

ISG China Real Estate Fund/ Shanghai; 100 N/A In Market China Diversified www.isgfn.com 2002 ISG Capital Management New York

Japan Value Added Fund III/ 30,000 New York; N/A In Market Japan Diversified www.rreef.com N/A RREEF Real Estate JPY Tokyo

Dublin; KBC Japan Property Fund/ € 350 N/A In Market Japan Diversified www.kbcam.com 2000 London; New KBC Asset Management York Singapore; Mapletree India-China Fund/ Shanghai; 1,500 N/A In Market Asia Diversified www.mapletree.com.sg N/A Mapletree Investments Beijing; Hong Kong; Tokyo

Milestone Domestic Scheme II/ 5,000 N/A In Market India Diversified www.milestonecapital.in 2007 Mumbai Milestone Capital INR

Hong Kong; China Shopping Ostara China Fund/Ajia Partners 400 N/A In Market www.ajiapartners.com 2002 Tokyo; Seoul; Centers Beijing

Pacific Star Arrow Vietnam Fund/ Vietnam 340 N/A In Market www.pacificstargrp.com 2000 Singapore Pacific Star Holdings Diversified

Peninsula Realty Fund/Peninsula Investment 350 N/A In Market India Diversified www.peninsula.co.in 1997 Mumbai Management Company

Phoenix Asia Real Estate Investments IV/ 650 350 In Market Asia Diversified N/A 2008 Hong Kong Phoenix Advisors

London; Athens; Pradera China Retail Fund/Pradera AM 250 N/A In Market China Retail www.pradera.com 1999 Istanbul; Milan; Prague

Real Estate Capital Partners Asia II/ 400 221 In Market Asia Diversified N/A 2008 Singapore Real Estate Capital Partners Asia

Saffron Real Estate India Fund/ 500 N/A In Market India Diversified www.saffronadvisors.com 2005 Mumbai Saffron Asset Advisors

SGAM AI Japan Property Fund/ € 200 N/A In Market Japan Diversified www.sgam-ai.com N/A Paris SGAM Alternative Investments Real Estate

Triangle Real Estate India Fund/Old Mutual 500 N/A In Market India Retail www.omigpi.com 1845 Cape Town Investment Group Property Investments

Delhi; Trikona India Real Estate Fund/ 500 N/A In Market India Diversified www.trikonacapital.com 2006 Mumbai; New Trikona Capital York

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Triseas Korea Property Fund II/ 600 210 In Market Korea Diversified www.dorancapital.com 2002 Seoul Doran Capital Partners

Trump Organization India Fund/ 1,000 N/A In Market India Luxury www.trump.com 1980 New York Trump Organization

Beijing; UBS Gemdale China Real Estate Fund/ 300 N/A In Market China Diversified www.ubs.com/realEstate N/A Guangzhou; UBS Realty Investors Shanghai

UBS K Rajeha Corp. India Real Estate Fund/ 500 N/A In Market India Diversified www.ubs.com/realEstate N/A Mumbai UBS Realty Investors

Unitech International Realty/Unitech Realty 500 N/A In Market India Diversified www.unitechgroup.com 1974 Haryana, India

Vietnam Vietnam Property Fund/PRUPIM 500 N/A In Market www.prupim.com N/A London Diversified

Latin American Funds

Americas Real Estate Opportunity Fund/ Latin America 500 N/A In Market www.falconreal.com 1991 New York Falcon Real Estate Diversified

Washington, Carlyle Latin America Real Estate Partners/ Latin America D.C.; Mexico 425 N/A In Market www.carlyle.com 1987 The Carlyle Group Diversified City; Sao Paolo

GoldenTree Insite Brazil Real Estate Fund/ Latin America 800 N/A In Market www.goldentreeinsite.com 2005 New York GoldenTree InSite Partners Diversified

JER Latin America I/ Latin America Maclean, VA; 750 N/A In Market www.jer.com 1980 JER Partners Diversified Sao Paolo

LaSalle Mexico Fund/ Mexico Chicago; 500 N/A In Market www.lasalle.com 1978 LaSalle Investment Management Diversified Mexico City

Paladin Realty Latin America Investors III/ Latin America 500 200 In Market www.paladinreit.com 1995 Los Angeles Paladin Realty Diversified

Patria Brazil Real Estate Fund II/ 400 140 In Market Brazil Diversified ww.patriainvestimentos.com.br 1988 Sao Paolo Patria Investimentos

Vision Brazil Real Estate Opportunities I/ Brazil Real Estate Opportunities Manager 250 N/A In Market Brazil Diversified www.visionbrazil.com 2007 Sao Paolo and Moore Capital Management

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Middle East/North Africa Funds

Easy Property Investment Fund/ Middle East 100 N/A In Market www.easypropertygroup.com N/A Dubai Easy Property Group Region

Geni GCC Commercial Real Estate 100 N/A In Market GCC Diversified www.genicapital.com 2006 London Opportunities Fund/Geni Capital

Global GCC Real Estate Fund II/ 500 100 In Market GCC Diversified www.globalinv.net N/A Safat, Kuwait Global Investment House

Hospitality Development Fund/ Abu Dhabi Investment House, Ithmaar 300 N/A In Market GCC Hospitality www.adih.ae 2005 Abu Dhabi Bank & Gulf Finance House

Lewis Charles Abu Dhabi Property Fund/ Abu Dhabi/ 100 N/A In Market www.lewischarles.com N/A London Lewis Charles Dubai Diversified

Nauerz & Noell Advanced Property Fund/ Abu Dhabi/ € 2,000 N/A In Market www.nauerz-noell.de 2000 Frankfurt Nauerz & Noell Dubai Diversified

Ostara China Real Estate Fund/ 500 N/A In Market China Diversified www.ajiapartners.com 2002 Hong Kong Ajia Partners

SHUAA Hospitality Fund I/ 2,000 Saudi Arabia N/A In Market www.shuaacapital.com 1979 Dubai Shuaa Capital SAR Hospitality

Siraj Hospitality & Tourism Fund/ 1,000 N/A In Market GCC Diversified www.sirajcapital.com 2006 Dubai; Riyadh Siraj Capital SAR

Other Emerging Markets

Emerging Amstar Global Property Fund II/ Hamilton, 350 340 In Market Markets www.amstarglobal.com 2007 Amstar Global Partners Bermuda Diversified

Aberdeen Property Fund Russia/ Russia Copenhagen; € 500 N/A In Market www.aberdeenpropertyinvestors.com 1986 Aberdeen Property Investors Diversified St. Petersburg

Bosphorus Real Estate Fund I/ Turkey New York; € 200 N/A In Market www.gmi.ml.com N/A Merrill Lynch Real Estate Diversified Istanbul

Capital Alliance Property Investment W. Africa 479 N/A In Market www.aca-web.com 1997 Lagos Company/Capital Alliance Real Estate Diversified

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Capitalworks Real Estate Fund/ Benmore, 500 N/A In Market South Africa www.capitalworksip.com 2008 Capitalworks Investment Partners South Africa

East Capital Russian Property Fund/ Stockholm; € 200 N/A In Market Russia Retail www.eastcapital.com N/A East Capital Moscow; Paris

Den Haag, EPG East Euro Asia Property Fund/ E. Europe 300 N/A In Market www.acteeum.com 2006 the ACTEEUM Group Diversified Netherlands

Turkey & European Emerging Economies Fund/ 300 N/A In Market E. Europe www.pramericarei.com N/A Parsippany, NJ Pramerica Real Estate Investors Diversified

Kenmore/Watan Real Estate Fund/ Kenmore Coming to N/A N/A GCC diversifed www.kenmore.co.uk 1986 Dubai; London Property Group & Watan Investments Market

Meyer Bergman Europe Retail Partners/ € 600 N/A In Market E. Europe Retail www.meyerbergman.com 1970 London, UK Meyer Bergman

New Century Holdings New Europe Property E. Europe € 1,000 N/A In Market www.nchcapital.com 1993 New York Fund I/ New Century Holdings Distressed

Paladin Realty Eurasia Investors/ Turkey 300 N/A In Market www.paladinreit.com 1995 Los Angeles Paladin Realty Diversified

Russia PIK Real Estate Fund/ PIK Capital Partners 1,000 N/A In Market www.pik-capital.ru N/A Moscow Diversified

Shariah Russian Property Fund/ Russia Dubai; London; 500 N/A In Market www.fairfaxplc.com 2006 Fairfax Middle East Diversified New York

Mezzanine & Debt Funds

Charlotte, NC; AllBridge CRES Fund/AllBridge Investments 300 N/A In Market U.S. Debt www.allbridgeinv.com N/A Dallas, TX

AREA European Commercial Property 1,000 N/A In Market Europe Debt www.apollorealestate.com 1993 New York Debt Fund/AREA

Babson Mezzanine Realty Investors 2/ 350 N/A In Market U.S. Mezzanine www.babsoncapital.com N/A Boston Babson Capital Management

BlackRock Mortgage Investors Fund/ 2,000 N/A In Market U.S. Debt www.blackrock.com 1998 New York BlackRock Realty

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

New York; Chicago; Blackstone Real Estate Special Situations 1,000 N/A In Market U.S. Mezzanine www.blackstone.com 1992 Los Angeles; Fund/Blackstone Real Estate Advisors London; Tokyo; Hong Kong

Duet European Real Estate Debt Fund/ € 300 N/A In Market Europe Debt www.duetgroup.net 2002 London Duet Private Equity

FSI Credit Opportunity Fund/ New York; 1,000 N/A In Market U.S. Distressed www.fsicapital.com 1995 Capitaline Hill Partners Cincinnati

GEM Realty Fund IV/ U.S. Mezzanine/ 600 360 In Market www.gemrc.com 1994 Chicago GEM Realty Capital Debt

Goldman Sachs Real Estate Mezzanine 2,500 N/A In Market U.S. Debt www.goldmansachs.com 1996 New York Partners/Goldman Sachs

Hillenbrand Global Mortgage Fund/ Chicago; 750 N/A In Market Global Debt www.hillenbrandpartners.com 1995 Hillenbrand Partners Auburn, AL

ING Clarion Debt Opportunity Fund III/ 1,000 500 In Market U.S. Debt www.ingclarion.com N/A New York ING Clarion

Invesco High Yield Debt Fund II/ 100 N/A In Market U.S. Debt www.investcorealEstate.com 1983 Dallas Invesco Real Estate

JER Real Estate Partners V/ 1,500 772 In Market U.S. Debt www.jer.com 1981 McLean, VA JER Partners

Latus Real Estate Partners Parallel Fund I/ 100 N/A In Market U.S. Debt www.latuspartners.com N/A New York Latus Partners

LNR Archetype Real Estate Debt Fund/ Newport 850 N/A In Market U.S. Debt www.lnrcpg.com 1997 LNR Commercial Property Group Beach

LoanCore Capital Fund I/ 3,000 N/A In Market U.S. Debt N/A 2008 Greenwich, CT LoanCore Capital & DivcoWest Properties

Los Angeles; Denver; Irvine; Phoenix; Lowe Real Estate Income and Growth 200 201 In Market U.S. Mezzanine www.loweenterprises.com 1972 San Francisco; Partners II/Lowe Enterprises Investors Sacramento; Washington, D.C.

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Mesa West Real Estate Income II/ 400 150 In Market U.S. Mezzanine www.mesawestcapital.com N/A Los Angeles Mesa West Capital

NYLIM Real Estate Mezzanine III/ 500 N/A In Market U.S. Debt www.nylimrealEstate.com N/A New York NY Life Investment Real Estate

OWS Mortgage Opportunity Master Fund/ 500 N/A In Market U.S. Debt N/A 2008 New York One William Street Capital

Ponte Capital/Infinity Funding Group 1,000 N/A In Market U.S. Debt www.infinityfundsgroup.com 1993 Bohemia, NY

PREI Mezzanine Fund/ 500 N/A In Market U.S. Mezzanine www.pramericarei.com N/A Parsippany, NJ Pramerica Real Estate Investors

Selene Residential Mortgage Opportunity 1,000 N/A In Market U.S. Debt N/A 2008 Uniondale, NY Fund/ Selene Investment Partners

Sopras/Basalt Capital 500 N/A In Market U.S. Debt www.basaltcapital.com N/A Chicago

Sterling American Property VI/ 700 610 In Market U.S. Debt www.sterlingamerican.com 1991 New York Sterling American Property

TCW Credit Opportunities Fund/ 3,000 N/A In Market U.S. Debt www.tcw.com 1971 Los Angeles TCW Real Estate

Terra Capital Partners Mezzanine Fund/ 500 N/A In Market U.S. Mezzanine www.terracapitalpartners.com 2004 New York Terra Capital Partners

Boston; Hartford; New York; Tremont Special Opportunity Debt Fund/ 300 N/A In Market U.S. Debt www.tremontcapital.com 2000 Chicago; Tremont Realty Capital Annapolis; Newport Beach

True North High Yield Investment Fund II/ U.S. Distressed White Plains, 500 110 In Market www.tninvestors.com 2004 True North Management Group and Mezzanine NY

Wilshire Income Fund/ California Los Angeles, 100 N/A In Market www.wilshirefp.com 2008 Wilshire Finance Partners Bridge Loans CA

Secondariy Funds

CS Strategic Partners IV RE/ Real Estate New York; 420 300 In Market www.credit-suisse.com N/A Credit Suisse Secondaries London

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Simsbury, Landmark Real Estate Fund VI/ Real Estate 750 369 In Market www.landmarkpartners.com 1989 CT; Boston; Landmark Partners Secondaries London

Real Estate Liquid Realty V/Liquid Realty 800 572 In Market www.liquidrealty.com 1988 San Francisco Secondaries

Zug; New Partners Group Real Estate Secondary Fund/ Coming to Real Estate York; London; 1,000 N/A www.partnersgroup.com 1996 Partners Group Market Secondaries Singapore; San Francisco

Infrastructure Funds aAIM Infrastructure Fund/ £2,000 N/A In Market United Kingdom www.aaim.com 2004 London aAIM Infrastructure

ABN AMRO Global Infrastructure Fund II/ Global Amsterdam; € 2,000 € 1,100 In Market www.capital.abnamro.com 1994 ABN Amro Diversified London

Actis Infrastructure Fund II/Actis 1,000 N/A In Market Asia and Africa www.act.is 2004 London

ADCB Macquarie Infrastructure Fund/ 1,000 N/A In Market MENA www.macquarie.com.au 2000 Sydney Macquarie Funds Group

ADIC-UBS Infrastructure Fund/ 600 N/A In Market MENA www.ubs.com 2002 Zurich UBS Global Asset Management

Johannesburg; African Energy Infrastructure Fund/ 500 N/A In Market Africa www.fpcq.com 1990 New York; Prescient Fieldstone Investment Management London

Alinda Infrastructure Fund III/ U.S./Europe New York; 3,000 3,000 In Market www.alinda.com 2005 Alinda Capital Partners Diversified London

Alterna Core Capital Asset Fund/ 1,000 N/A In Market U.S. Diversified www.alternacapital.com 2007 Westport, CT Alterna Capital

AmKonzen Water Infrastructure Fund/ 320 N/A In Market Asia Water www.konzengroup.com 2008 Singapore AmKonzen Water Investments Management

W. Europe Ampere Equity Fund/ Evelop € 500 N/A In Market www.evelop.com N/A Utrecht Diversified

Antin Infrastructure Fund/ Europe € 1,000 N/A In Market www.antin-ip.com 2008 Paris Antin Infrastructure Partners Diversified

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Asian Giants Infrastructure Fund/ 750 N/A In Market Asia Diversified www.ampcapital.com.au 1998 Sydney AMP Capital Investors

Aviva European Renewable Energy/ Europe € 500 N/A In Market www.avivainvestors.co.uk 2008 London Aviva Investors Diversified

Axis Infrastructure Fund/Axis Bank 500 N/A In Market India Diversified www.axisbank.com 1994 Mumbai

Baer Capital Infrastructure and Real Estate/ Coming to 500 N/A India Diversified www.baercapital.com 2006 Dubai Baer Capital Partners Market

Bank of Ireland Infrastructure Fund/ Bank of € 300 N/A In Market U.K. Diversified www.biam.ie 2008 Dublin Ireland Asset Management

Barclays Integrated Infrastructure Fund/ Europe £1,000 N/A In Market www.barclays-private-equity.com 1996 London Barclays Private Equity-Infrastructure Diversified

Blackstone Infrastructure Fund/ Coming to 4,000 N/A India www.blackstone.com 1985 New York Blackstone Group Market

Bunyah GCC Infrastructure Fund/ 150 N/A In Market MENA www.instratacapital.com 2007 Manama Instrata Capital

N. America Carlyle Riverstone Renewable Energy 1,200 685 In Market Renewable www.carlyle.com 2006 New York Infrastructure Fund II/Carlyle Group Energy

Central American Mezzanine Infrastructure C. American Washington, 150 N/A In Market www.empglobal.com 2005 Fund/EMP Global Diversified D.C.

Challenger Mitsui Emerging Markets Global Infrastructure Fund/Challenger Financial 1,200 N/A In Market www.challenger.com.au 2008 Sydney; Tokyo Diversified Services & Mitsui & Co.

Citi Infrastructure Investors/ U.S./Europe 4,000 N/A In Market www.citigroupai.com 2007 New York Citigroup Diversified

Singapore; CPG China Toll Road/ 1,000 N/A In Market China Roads www.cpgcapitalpartners.com 2005 Shanghai; CPG Capital Partners Beijing; Sydney

Cube Infrastructure Fund/ Europe € 1,000 N/A In Market cib.natixis.com 2006 Paris Natixis Environment & Infrastructure Diversified

London; Paris; CVC/ Vineburg Infrastructure Fund/ Coming to Europe € 2,000 N/A www.cvc.com 1981 Luxembourg; CVC Capital Partners Market Diversified Brussels; Milan

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Darby Mexico Infrastructure Fund/ Mexico Washington, 200 N/A In Market www.darbyoverseas.com 1994 Darby Overseas Investments Diversified D.C.

Schipol, DIF Infrastructure Fund/ Middle East € 500 N/A In Market www.dif.eu 2005 the Dubai Investment Bank Diversified Netherlands

Emerald Infrastructure Development Fund/ € 750 N/A In Market U.S. and U.K. N/A 1994 Belfast Emerald Development Managers

Eredene Capital India Infrastructure Fund/ 400 N/A In Market India www.eredene.com 2005 London Eredene Capital

European Renewable Energy Fund/ Europe € 250 N/A In Market www.platinafinance.com 2002 London Platina Finance Renewable

EUROFIDEME 2/ Europe € 250 N/A In Market www.natixis.com N/A Paris Natixis Environment & Infrastructure Renewable

Fondi Italiani Per Le Infrastrutture/F2i SGR € 2,000 N/A In Market Italy www.f2isgr.it 2007 Milan

Fortis Clean Energy Capital Fund/ Europe € 400 N/A In Market www.fortisinvestments.com 2008 London Fortis Investments Diversified

GS European Infrastructure Fund/ Europe New York; € 3,000 N/A In Market www.gs.com/pe 2006 Goldman Sachs Diversified London

N. America, GS Infrastructure Partners II/ New York; 7,500 N/A In Market Europe www.gs.com/pe 2006 Goldman Sachs London Diversified

Gulf One Infrastructure Fund I/ 2,000 N/A In Market GCC Diversified www.gulf1bank.com 2006 Bahrain Gulf One Bank

Henderson Infrastructure III/ Europe £800 £584 In Market www.hendersonprivatecapital.com 1985 London Henderson Equity Partners Diversified

Global New York; Highstar Capital IV/Highstar Capital 5,000 3,500 In Market www.highstarcapital.com 2000 Diversified Houston

HSBC Environmental Infrastructure Fund/ Global 500 N/A In Market www.hsbc.com 2008 London HSBC Specialist Investments Environmental

India Infrastructure Advantage Fund/ 1,000 N/A In Market India Diversified www.icicibank.com N/A Mumbai ICICI Bank

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

IDFC Private Equity Fund II/ 1,250 440 In Market India Diversified www.idfc.com 2004 Mumbai IDFC Private Equity

Indochina Infrastructure Holdings/ Ho Chi Minh 500 N/A In Market Asia Diversified www.indochinacapita.com 1999 Indochina Capital Corporation City

ING Atlas European Infrastructure Fund/ Europe €1,000 N/A In Market www.ing.com N/A London ING Real Estate Investment Management Diversified

Hong Kong; JP Morgan Asia Infrastructure Fund/ 1,500 N/A In Market Asia Diversified www.jpmorgan.com/infrastructure 2006 Singapore; JP Morgan Mumbai

Kagiso Infrastructure Empowerment Fund/ Claremont, ZAR 650 N/A In Market South Africa N/A 2008 Kagiso Group South Africa

New York; Coming to Global KKR Infrastructure Fund/KKR 4,000 N/A www.kkr.com 1976 Menlo Park; Market Diversified London; Tokyo

Latin Power & Infrastructure IV/ 800 393 In Market Latin America www.conduitcap.com 1994 New York Conduit Capital Partners

Macquarie European Infrastructure Fund III/ Europe Sydney; € 5,500 € 4,600 In Market www.macquarie.com.au 2000 Macquarie Diversified London

Macquarie Global Infrastructure Fund III/ 490 500 In Market OECD www.macquarie.com.au 2000 Sydney Macquarie AUD

Macquarie India Infrastructure Coming to Sydney; 1,500 N/A India Diversified www.macquarie.com.au 2000 Opportunities Fund/Macquarie Market Mumbai

Macquarie Infrastructure Partners II/ North America New York; 6,000 4,000 In Market www.macquarie.com.au 2000 Macquarie Diversified Sydney

Macquarie Renaissance Infrastructure Fund/ Russia & Sydney; 1,500 N/A In Market www.macquarie.com.au 2000 Macquarie & Renaissance Capital Central Asia Moscow

MENA Infrastructure Fund/ 500 N/A In Market MENA Region www.dubaiic.com 2005 Dubai Dubai International Capital & HSBC Bank

Mubadala Infrastructure Partners/ Mubadala Development Company, N/A N/A In Market MENA Region www.mubadala.com.ae 2007 Abu Dhabi GE & Credit Suisse

Market Year Fund/Parent Current Last Status Strategy Web Site Founded Offices

Pan African Infrastructure Development Fund/South Africa Public Investment 1,000 N/A In Market Africa Diversified N/A 2005 Pretoria Commission

Piramal Healthcare Fund/ 200 N/A In Market India Healthcare www.nicholaspiramal.com 2008 Mumbai India Venture Advisors

Q India Fund/Quantum Equity Advisors 500 N/A In Market India Diversified www.qindiafund.com 1993 Mumbai

Rabo Bouwfunds Communication Hoevelaken, Netherlands Infrastructure Fund/ € 375 N/A In Market www.bouwfunds.com 1946 the Communications Bouwfunds Asset Management Netherlands

Raising Africa Infrastructure Fund/ 500 N/A In Market Africa www.natixis.com 2008 Paris Natixis Environment & Infrastructure

RBS Infrastructure Fund/ € 1,000 N/A In Market Europe www.rbsam.com 2009 London RBS Asset Management

New York; RREEF North American Infrastructure Fund/ N. America 500 N/A In Market www.rreef.com N/A Sydney; Deutsche-RREEF Diversified London

Santander Infrastructure II/ Global € 1,500 € 185 In Market www.santanderprivateequity.com N/A Madrid Capital Grupo Santander Diversified

Saratoga Asia Fund II/ 330 N/A In Market Asia Diversified www.saratoga.co.id 1998 Jakarta Saratoga Investama Sedaya

SC IL&FS Asia Infrastructure Growth Fund/ China & India Singapore; 1,000 N/A In Market www.standardchartered.com 2008 Standard Chartered and IL&FS Diversified Mumbai

Transport Infrastructure Investment North America, Company Fund/Transport Infrastructure €500 N/A In Market South America, N/A 2008 Lisbon Investment Company Europe

Troika Infrastructure Fund/ Russia 1,000 N/A In Market www.troika.ru 2006 Moscow Troika Capital Partners Diversified

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