INVESTOR GUIDE

Altegris KKR Commitments Fund OPENING THE DOOR TO A NEW ERA IN ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 3

RETHINKING PRIVATE EQUITY

Altegris invites accredited investors to gain broad exposure to private equity managed by & Co. OPENING THE DOOR TO A NEW ERA IN PRIVATE EQUITY (KKR) via the Altegris KKR Commitments Fund, a continuously off ered closed-end fund.

* References herein to the “Fund” or “Altegris KKR Commitments Fund” in each instance refer to the Altegris KKR Commitments Master Fund, unless specifi ed otherwise. The Fund previously used a master/ feeder structure. Effective May 2, 2016, the Fund offers two separate classes of shares—Class A and Class I. Investments made as of the June 1, 2016 subscription date and on a continuous basis thereafter, will be issued the new classes of shares. Also effective June 1, 2016: (i) existing shareholders of the Altegris KKR Commitments Fund (the “feeder fund” in the master/feeder structure) are converted into Class A shareholders of the Fund; (ii) existing shareholders of the Altegris KKR Commitments Master Fund (the “Master fund” in the master/feeder structure) are re-classifi ed as Class I shareholders; and (iii) in each case in identical proportion to their respective prior share holdings, and at the Fund's net asset value as of June 1, 2016, without change to the rights and privileges of any such converted or re-classifi ed shares, as applicable; and (iv) the Expense Limitation and Reimbursement Agreement between the Adviser and the Fund limits Class A expenses to 0.65% per annum on specifi ed expenses (instead of 0.80% previously for the feeder fund). The investment objectives, principal investment strategies and risks of the Fund, have not materially changed. KKR is neither a sponsor, promoter, adviser nor affi liate of the Fund. There is no agreement or understanding between KKR and Altegris or StepStone regarding the management of the investment program of the Fund. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 4

At KKR, culture a ects results A private equity pioneer associated with the successful execution of many of the largest and most complex private equity transactions worldwide

One investment team, one investment culture

Founded in 1976 by Henry Kravis and George Roberts, Kohlberg Kravis Roberts & Co. LP (KKR) has evolved through four decades of global economic cycles and changes and grown into a leading global investment fi rm.

INDUSTRY EXPERTISE KKR has completed over 360 transactions 1 with approximately $520 billion of total .

DISCIPLINED INVESTMENT PROCESS Each investment decision is predicated on a clear thesis, utilizing KKR’s resources and knowledge, which includes working with portfolio company senior managers to help identify and implement operational improvements.

PROPRIETARY SOURCING Experienced and dedicated sourcing professionals utilize the full network comprised of long-standing relationships to fi nd opportunities.

VALUE ENHANCEMENT KKR invests only when it believes a competitive advantage exists in sourcing, analysis or diligence fi ndings.

There is no guarantee that any investment will achieve its objectives, generate profi ts or avoid losses. 1 Transactions include over 270 investments in portfolio companies and 80 follow-on investments in these companies. KKR information is provided by KKR or derived from materials approved for use by KKR and is believed to be accurate and reliable. Altegris Advisors cannot guarantee the accuracy of, or be responsible for the timeliness, completeness or suitability for use of such information. Information is as of June 30, 2016 unless otherwise noted. KKR is neither a sponsor, promoter, adviser nor affi liate of the Altegris KKR Commitments Fund. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 5

Private equity strategies with strong global presence across the Americas, Europe and Asia

»

» Special situations

» Infrastructure

» Real estate

» Direct lending/ mezzanine 22 5 CITIES 16 CONTINENTS COUNTRIES

An investment process with the potential to create multiple investment opportunities and economic growth Structured diligence and investment review processes allow KKR’s Investment Committees to be highly selective in identifying what KKR believes to be attractive private equity opportunities.

3,760 496 76 Global investment Discrete global Global PE opportunities that KKR opportunities discussed investments deal teams spent signifi cant with KKR’s investment closed 3 time evaluating since committee 2 January 1, 2012

2 Most investments are presented to the Investment Committee numerous times throughout the diligence process, however this count includes each individual investment opportunity once and does not include subsequent presentations. Investment committees monitor all due diligence practices, and the applicable investment committee must approve an investment before it may be made. 3 Includes transactions/commitments closed for the period 1/1/12 to 6/30/16. Excludes follow-on transactions and confi dential investments. As of June 30, 2016 unless otherwise noted; private equity detail includes a small number of opportunities related to existing KKR portfolio companies. All investments contain risks and private equity is subject to a set of unique risks. Of course, due diligence does not guarantee against investment failures or even against fraud. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 6

KKR’s fi rm history An extensive heritage 2002 in private equity KKR CAPSTONE ENTITY IS OFFICIALLY DEVELOPED4 Consists of operations professionals with knowledge across KKR portfolios; KKR Capstone is an integral part of value creation through operational efficiencies and cross- 1976 1982 portfolio programs KKR FOUNDED FIRST STATE PUBLIC 2004 Henry Kravis and George PENSION FUNDS KKR’S CREDIT Roberts make this decision INVEST IN KKR'S INVESTING PLATFORM over dinner at Joe and PRIVATE EQUITY FUNDS IS LAUNCHED Rose Restaurant The states involved in 1998 this maiden allocation are Utilizing the firm’s KKR EXPANDS ITS Oregon, Washington State, differentiated strengths EUROPEAN FOOTPRINT and Michigan with a range of products With the opening of the such as leveraged and London office, the European alternative credit, KKR 1984 investment platform is Credit gives clients a broad further developed range of active investment KKR RAISES ITS strategies FIRST $1.0 BILLION INSTITUTIONAL FUND

4 References to “KKR Capstone” or “Capstone” are to all or any of KKR Capstone Americas LLC, KKR Capstone EMEA LLP, KKR Capstone EMEA (International) LLP, KKR Capstone Asia Limited, and their affi liates, which are owned and controlled by their senior management. KKR Capstone is not a subsidiary or affi liate of Kohlberg Kravis Roberts & Co. L.P. or its affi liates (together, “KKR”). KKR Capstone operates under several consulting agreements with KKR and uses the “KKR” name under license from KKR. References to operating executives, operating experts, or operating consultants are to employees of KKR Capstone and not to employees of KKR. In this presentation, the impact of initiatives in which KKR Capstone has been involved is based on KKR Capstone’s internal analysis and information provided by the applicable portfolio company. Impacts of such initiatives are estimates that have not been verifi ed by a third party and are not based on any established standards or protocols. They may also refl ect the infl uence of external factors, such as macroeconomic or industry trends, that are unrelated to the initiative presented. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 7

2013 DEEPER COMMITMENT TO LATIN AMERICA KKR opens São Paulo offi ce 2008 THE KKR GLOBAL INSTITUTE IS CREATED THE ENVIRONMENTAL, To provide insights on SOCIAL AND geopolitical and global GOVERNANCE (ESG) trends PLATFORM IS CREATED The KKR Green Portfolio LAUNCH OF MERCHANT 2006 Program, in partnership with 2011 CAPITAL SOLUTIONS the Environmental Defense A capital markets platform KKR CAPITAL MARKETS AND Fund, launches with a focus focused on mid-market IS LAUNCHED ASSET ALLOCATION on creating shared value companies; in partnership TEAM IS FORMED TO Providing innovative financial with Canada Pension Plan PROVIDE INSIGHTS solutions, KKR Capital Investment Board (CPPIB) ON THE ECONOMY Markets supports the firm, and Stone Point Capital portfolio companies Works with deal teams and clients across KKR on macro considerations, manages 2014 2007 balance sheet capital, KKR EXPANDS ITS advises clients on asset EUROPEAN CREDIT KKR EXPANDS ITS allocation decisions, and BUSINESS ASIA FOOTPRINT provides macro commentary With the acquisition The Hong Kong and Tokyo DEDICATED REAL of Avoca Capital offices open, expanding ESTATE PLATFORM KKR’s Asia investment IS CREATED KKR EXTENDS REACH platform IN THE AMERICAS 2009 2012 AND EUROPE KKR opens offices in KKR EXPANDS TO KKR EXPANDS Calgary and Madrid THE MIDDLE EAST FUND CAPABILITIES AND INDIA KKR ACQUIRES With the acquisition KKR FINANCIAL Office openings in of KKR Prisma HOLDINGS, LLC Dubai and Mumbai KKR INVESTS IN Adding scale, diversification DEDICATED NEPHILA CAPITAL and greater balance sheet liquidity and yield INFRASTRUCTURE AND The largest investor in ENERGY PLATFORMS reinsurance risk ARE CREATED KKR INVESTS IN BLACKGOLD CAPITAL MANAGEMENT A credit-oriented specializing in energy and hard asset investments ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 8

Opportunity in private equity Signifi cant market depth creates multiple opportunities through investments in private companies

EXCHANGE LISTED COMPANIES versus PRIVATE COMPANIES 5 AS OF MARCH 2015

Percentage of listed domestic companies on US exchanges VERSUS Total number of US private sector firms with 500+ employees

LISTED COMPANIES PRIVATE COMPANIES

18.9% Percentage of listed domestic companies on US exchanges versus total number of US private sector fi rms with 500+ employees

5 Depicts the percentage of listed domestic companies on US exchanges versus the total number of US private sector fi rms, not Percentageseasonally adjusted. of Listed listed companies domestic on US exchanges is derived from the number of domestic companies on the NASDAQ OMX and NYSE; excludes foreign companies listed on these exchanges. Date range based on common date of data availability companiesfrom sources. on US exchanges Source: US Bureau of Labor Statistics; World Federation of Exchanges. NASDAQ stands for NationalVERSUS Association of Securities Dealers Automated Quotations. OMX is the brand name of the company, which was established in 2004 as the result of the merger between the Swedish futures and exchange (OM AB) and Helsinki Stock Exchange (HEX). In February 2008, TotalNASDAQ and number OMX merged to formof the US NASDAQ private OMX Group Inc., which is a leading provider of trading, exchange technology, listing, information and public company services. NYSE stands for New York Stock Exchange, and is one of the world's leading equities markets. sector firms with 500+ employees

LISTED COMPANIES PRIVATE COMPANIES ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 9

Three ways to participate in private equity

Primary investments This investment type is comprised of new funds, with the majority of capital not yet invested. Each vintage is typically focused on one strategy and/or geography.

Secondary investments Secondary investments offer access to more mature funds that were once primaries. Capital is largely invested with greater knowledge of existing holdings. The secondary market can potentially mitigate negative returns associated with the early part of the J-curve. Grouped together, secondary investments also provide diversifi cation across vintages, geographies, sectors and strategies.

Co-investments An investment into a portfolio company or operating company alongside the private equity managers.

There is no guarantee that any investment will achieve its objectives, generate profi ts or avoid losses. Vintage is the year of a fi rst drawdown of capital. J-curve is the concept that the curve depicted by plotting the returns generated by a private equity fund against time (from inception to termination) will resemble the letter "J." ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 10

The case for private equity

Ungrouped charts w/background knockout

Potential benefi ts

HISTORICAL OUTPERFORMANCE With lower volatility to publicly-traded equities. 6

DIVERSIFICATION Including private equity in a balanced portfolio can improve its overall diversifi cation.

FOCUS ON VALUE CREATION Active private equity fi rms partner with companies’ 21% management team with the goal of achieving growth and improving productivity. Institutional investors have invested in private SEEKING TO CREATE SUSTAINABLE VALUE equity for decades; May incorporate environmental, social and endowments allocated governance factors into decision-making processes. 21 percent of assets to private equity 7

6 Over the common time period of April 1986 through March 2016, private equity, as represented by the Cambridge US Private Equity Index, exhibited historical annualized standard deviation of 10.8%, whereas public equities, as represented by the S&P 500 Total Return Index, exhibited historical annualized standard deviation of 15.2%. 7 Source: 2015 NACUBO-Commonfund Study of Endowments. Includes private equity (LBOs, mezzanine, M&A funds and international private equity), , and private equity real estate (non-campus). Everyone cannot invest like an institution. Institutions are professional money managers who have unique access and the ability to perform extensive due diligence on managers. Many investors’ experience, fi nancial means, objectives, risk tolerance, and time frame will differ from that of institutions, and they may not be able to access the same investment opportunities as institutions. These factors should be taken into consideration when creating an allocation to alternatives. The above should not be construed as investment advice. Diversifi cation does not ensure profi t nor protect against loss. Volatility can be measured by standard deviation, which is a statistical measure of how consistent returns are over time; a lower standard deviation indicates historically less volatility. Correlation is a statistical measure of how two securities move in relation to each other. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 11

Demonstrated historical outperformance of private equity versus public equities

VALUE of an INITIAL $1,000 INVESTMENT LOGARITHMIC SCALE | APRIL 1986 – MARCH 2016

$64,000

$42,708 $32,000 CAMBRIDGE US PRIVATE EQUITY INDEX $16,000 $17,170 S&P 500 TOTAL RETURN INDEX $8,000

$4,000

$2,000

$1,000

$500 198819861990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Past performance is no guarantee of future results. There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses. There are signific ant differences between public and private equities, which include but are not limited to, the fact that public equities have a lower barrier to entry than private equities. There is also greater access to information about public companies. Private equities typically have a longer time horizon than public equities before profits, if any, are realized. Additionally, public equities provide greater liquidity whereas private equities are considered highly illiquid. Cambridge US Private Equity Index data based on quarterly returns. S&P 500 Total Return Index data based on monthly returns. Date range based on common period of data availability. The referenced indices are shown for general market comparisons and are not meant to represent any particular investment. There are significant differences in the risks and potential for volatility of the Fund relative to an index. An investor cannot invest directly in an index. Moreover, indices do not reflect commissions or fees that may be charged to an investment product based on the index, which may materially affect the performance data presented. Source: Cambridge Associates, Bloomberg. A logarithmic scale plots prices as an equal percent change between two price points, whereas a linear scale plots prices as an absolute change in price. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 12

Why should private equity be a part of your portfolio? Adding private equity can potentially enhance a portfolio’s risk/return profi le

TRADITIONAL PORTFOLIO TRADITIONAL PORTFOLIO plus PRIVATE EQUITY

TRADITIONAL PORTFOLIO TRADITIONAL PORTFOLIO plus PRIVATE EQUITY TRADITIONAL PORTFOLIO TRADITIONAL PORTFOLIO plus PRIVATE EQUITY

PRIVATE EQUITY 10% 60% US US STOCKS 50% PRIVATE EQUITY 10% 40% BONDS PRIVATE EQUITYBONDS 10%40% 60% US STOCKS US STOCKS 50% 60% US STOCKS US STOCKS 50% 40% BONDS BONDS 40% PORTFOLIO 40% BONDS BONDS 40% IMPACT 1,219% TOTAL RETURN 1,352% PORTFOLIO+133% PORTFOLIOIMPACT 9.0% ANNUALIZED RETURN 9.3% IMPACT+0.3% 1,219% TOTAL RETURN 1,352% +133% 1,219%9.4% ANNUALIZEDTOTAL STANDARD RETURN DEVIATION 1,352%8.2% +133%-1.2% 9.0% ANNUALIZED RETURN 9.3% +0.3% -30.8%9.0% ANNUALIZEDWORST DRAWDOWN RETURN -27.4%9.3% +0.3%+3.4% 9.4% ANNUALIZED STANDARD DEVIATION 8.2% -1.2% 9.4%0.69 ANNUALIZEDSHARPE STANDARD RATIO DEVIATION 8.2%0.84 -1.2%+0.15 -30.8% WORST DRAWDOWN -27.4% +3.4% -30.8% WORST DRAWDOWN -27.4% +3.4% 0.69 SHARPE RATIO 0.84 +0.15 0.69 SHARPE RATIO 0.84 +0.15

Time period: April 1986–March 2016; date range based on common period of data availability. This is a hypothetical illustration. Past performance is not indicative of future results. There is no guarantee that any investment will achieve its objectives, generate profi ts or avoid losses. The above is not intended, and should not be construed as asset allocation advice. Private equities may not be suitable for everyone. These allocations are based on Altegris' views about what historically constitutes a traditional portfolio and how it can be further diversifi ed by adding an allocation to private equities. Differences may not equal due to rounding. Returns are represented by benchmark indices for general market comparisons and are not meant to represent any particular investment. An investor cannot invest directly in an index. Moreover, indices do not refl ect commissions or fees that may be charged to an investment product based on the index, which may materially affect the performance data presented. Indices: US Stocks: S&P 500 TR Index; Bonds: Barclays US Aggregate Index; Private Equity: Cambridge US Private Equity Index. Cambridge US Private Equity Index data based on quarterly returns; current fi gures are estimated. All other index data based on monthly returns. Source: Altegris, Barclays, Cambridge Associates, Bloomberg. Standard deviation is a statistical measure of how consistent returns are over time; a lower standard deviation indicates historically less volatility. Drawdown measures the peak to valley loss relative to the peak for a stated time period. Sharpe Ratio measures return in excess of the risk-free rate, per unit of risk, as measured by standard deviation; assumed risk-free rate is 2.5%. Altegris KKR Commitments Fund Features Potential diversifi cation across strategies, investment types, vintage years and geographies

» Investments will be diversifi ed across » Investments will be across multiple geographic strategies, with a bias toward regions, including North America, Europe and special situation opportunities and Asia

» Seeks to allocate assets to primary and » Investing across a range of vintage years in secondary investments, as well as primary and secondary offerings diversifi es co-investment opportunities the return stream and puts cash to work more quickly, thus helping to reduce the cash drag » Expects to place heavy emphasis on often experienced with investments solely in secondaries and co-investments early primary offerings in the Fund's life

OBTAIN LOWER MINIMUM 1099 TAX DIVERSIFIED INVESTMENT REPORTING EXPOSURE to KKR than and PRIVATE EQUITY TRADITIONAL NO CAPITAL PRIVATE EQUITY CALLS

Diversifi cation does not ensure profi t nor protect against loss in a positive or declining market. There is no guarantee that any investment will achieve its objectives, generate profi ts or avoid losses. The Fund’s strategy may be adjusted based on the Investment Advisers’ analysis of the private equity market, the Fund’s existing portfolio at the relevant time, and other pertinent factors. There can be no assurance that the Fund’s strategy assumptions will be implemented as described above. There can be no assurance that all investment types will be available, will be consistent with the Fund’s investment objective, will satisfy the Investment Adviser’s due diligence considerations or will be selected for the Fund. Primary investments are investments in newly offered private equity investment funds. Secondary investments represent existing private equity fund interests acquired from third parties in a secondary market transaction. Co-investment is an investment in an operating company made alongside a private equity fund manager. Cash drag in regards to a primary offering refers to the fact that a primary investment is typically required to initially fund only a small percentage of its total capital commitment. This initial funding may be followed by subsequent drawdowns (the timing and size of which will vary and often come with notice) as needed to make new investments. The investor may hold cash uninvested in order to have it on hand to satisfy later drawdowns, which can result in a drag on performance. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 14

Altegris KKR Commitments Fund Combining the talent of a premier provider and proven private equity expert

Investment Adviser Sub-adviser

ALTEGRIS ADVISORS, LLC STEPSTONE GROUP LP

As the Fund's investment adviser, As the Fund's sub-adviser, StepStone Altegris Advisors determines the final Group recommends primary, investment selection and portfolio secondary, and co-investment construction opportunities, and advises on portfolio construction » Veteran alternative investment expert and an industry leader » Information and sourcing in 1940 Act alternatives advantages provided by diverse investment activities » Institutional caliber research team focused solely on alternative » Oversees more than $81 billion investments in private capital allocations, including approximately $14 billion » Extensive experience in portfolio of 8 construction and allocation » Over 190 professionals on fi ve continents 8

8 Source: StepStone Group as of August 2016. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 15

INVESTMENT TERMS and CONDITIONS Investment Objective: The Fund seeks long-term capital appreciation

Fund Terms and Conditions

Investment Minimum $25,000

Investment Qualifi cations Accredited investor eligibility as defi ned by Rule 501(a) of Regulation D under the Securities Act of 1933, as amended; generally, individuals with net worth of $1 million (excluding primary residence); entities with $5 million in total assets

Share Repurchases Will not commence for at least two full calendar years following commencement of Fund operations; beginning in the third year, (i.e., Potential Liquidity) the Investment Adviser will recommend to the Fund’s Board of Trustees (“Board”) that the Fund offers to repurchase Shares from Shareholders on a quarterly basis, in an amount not to exceed 5% of the Fund’s net asset value (“NAV”), subject to the discretion of the Board to make such each quarter

Early Repurchase Fee Upon commencement of the program in the third year of Fund operations, any repurchase of Shares from a Shareholder which were held for less than one year will be subject to a 2% of NAV fee on shares repurchased

Subscriptions Monthly

Distributions Reinvested, with option to receive in cash at least annually

Fees and Expenses Class A Class I

Management Fee 1.2% of NAV annual 1.2% of NAV annual management fee

Distribution Fee 0.60% of NAV annually N/A

Up to a maximum of 3.5% of the investment amount Sales Load when shares are purchased No load or distribution fee

Annual Fund Expenses: Gross: 4.28% Gross: 3.21% % of net assets on Net: 3.75% Net: 3.05% specifi ed expenses A Cap: 0.65% Cap: 0.55%

Tax Reporting 1099

Independent Auditor Deloitte & Touche LLP

Custodians SEI Private Trust Company and JP Morgan Chase Bank, N.A.

Administrator Gemini Fund Services, LLC

A The Adviser has agreed to an expense limitation and reimbursement for at least the fi rst two years of operation. Specifi ed expenses are defi ned to include certain operating expenses incurred in the business of the Fund. See the prospectus for more information. There will be no direct or indirect payments from KKR to Altegris or to any third party, pursuant to any agreement or understanding, that are used to offset any expenses of the Fund. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 16

INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUND. THIS AND OTHER IMPORTANT INFORMATION ABOUT THE FUND IS CONTAINED IN THE FUND’S PROSPECTUS, WHICH CAN BE OBTAINED BY CALLING ALTEGRIS AT (888) 524-9441. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING.

RISKS ASSOCIATED with an INVESTMENT in the FUND

The discussion of the various risks is not intended to be a complete enumeration or explanation of the risks involved in an investment in the Fund. The Fund should be considered a speculative investment and involves a high degree of risk and may involve loss of capital, up to the entire amount of a shareholder’s investment.

The nature of private equity can result in a lack of invested in a limited number of securities, or a focus transparency due to limited information, and the risk on particular sectors and geographical regions. of loss is increased due to speculative strategies Assets invested in foreign securities exposes the employed by the Fund, including investing assets in Fund to various geopolitical risks and currency fluc- early-stage venture investments which may not per- tuations typically not applicable in the U.S., and this form as expected. More importantly, Fund shares will risk is magnified for emerging markets. The poten- not be listed on any national securities exchange and tial for adverse changes in business and tax laws are subject to restrictions on transferability, thereby involves tax risk and heightened regulatory scrutiny. making them illiquid. The lack of a secondary market for trading private Other risks include, but are not limited to, market equity subjects the Fund to liquidity risks and may risk, concentration risk, and potentially less diversi- result in greater price risk and potential for inaccura- fication due to the substantial portion of Fund assets cies in determining fair market value of investments invested in manager-specific private equity. The held in the portfolio. Investments acquired in reli- Fund is also subject to the risks of , higher ance on imperfect information increases counter- fees and additional layers of expenses, as well as party risk and liabilities, and anticipated value may the potential for greater volatility due to Fund assets not be realized. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 17

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GLOSSARY

ACCREDITED INVESTOR. As defi ned in Rule 501(a) of Regulation CORRELATION. A statistical measure of how two securities move in D promulgated under the 1933 Act. An “accredited investor” includes relation to each other. Correlation is computed into what is known as a natural person with a net worth (or a joint net worth with that the correlation coeffi cient, which ranges between -1 and +1. Perfect person’s spouse), excluding the value of such natural person’s primary positive correlation (a correlation co-effi cient of +1) implies that as residence, in excess of $1 million, or income in excess of $200,000 one moves, either up or down, the other security will move (or joint income with the investor’s spouse in excess of $300,000) in in lockstep, in the same direction. Alternatively, perfect negative each of the two preceding years and has a reasonable expectation of correlation means that if one security moves in either direction the reaching the same income level in the current year; and certain legal security that is perfectly negatively correlated will move by an equal entities with total assets exceeding $5 million. amount in the opposite direction. If the correlation is 0, the movements of the securities are said to have no correlation; they are completely BUYOUT. Buyout funds seek to acquire private and public companies, random. as well as divisions of larger companies, and reposition them for sale at a multiple of invested equity by enhancing the value of the portfolio DRAWDOWN. Measures the peak to valley loss relative to the peak company. for a stated time period.

CAPITAL CALL. Private equity funds issue capital calls to investors J-CURVE EFFECT. A concept that during the fi rst few years of (limited partners) when a portion of their committed capital is needed a private equity fund, cash fl ow or returns are negative due to to fund investments. investments, losses, and start-up costs; but as investments produce results, the cash fl ow or returns will move upward so that a graph of CASH DRAG. Cash drag in regards to a primary offering refers to the cash fl ow or returns versus time would resemble the letter “J.” fact that a primary investment is typically required to initially fund only a small percentage of its total capital commitment. This initial funding PRIMARY INVESTMENT. Primary investments are investments in may be followed by subsequent drawdowns (the timing and size of newly offered private equity investment funds. which will vary and often come with short notice) as needed to make SECURITIES ACT OF 1933. Often referred to as the “truth in new investments. The investor may hold cash uninvested in order to securities” law, the Securities Act has two main objectives: 1) have it on hand to satisfy later drawdowns, which can result in a drag require that issuers selling securities to the public disclose material on performance. information to investors; and 2) establish laws to prohibit deceit, CO-INVESTMENT. An investment by a limited partner alongside a misrepresentations, and other fraudulent activities in the sale of general partner in a portfolio company. securities. The full text of this act is available at: http://www.sec.gov/ about/laws/sa33.pdf. ALTEGRIS KKR COMMITMENTS FUND Investor Guide | 19

INDEX DESCRIPTIONS and RISKS

SHARES AND SHAREHOLDERS. Shares of benefi cial interest of BARCLAYS US AGGREGATE BOND INDEX. Represents securities the Fund (“Shares”) will be sold in comparatively large minimum that are SEC-registered, taxable, and dollar denominated. The index denominations to eligible high net worth individual and institutional covers the US investment grade fi xed rate , with index investors (“Shareholders”). components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major SPECIAL SITUATION. Funds that focus on special situations sectors are subdivided into more specifi c indices that are calculated investments typically make mezzanine or other debt investments that and reported on a regular basis. These specifi c indices include the provide a middle level fi nancing below the level of the Government/Credit Index, Government Index, Treasury Index, Agency and above the equity level. A typical special situation Index, and Credit Index. KEY RISKS: interest rate risk–bond prices investment may include a loan to a borrower, together with equity in will decline if interest rates rise; credit risk–bond issuer may not pay; the form of warrants, common stock, or some other income risk–income may decline. form of equity investment. In addition, special situations investments may include other forms of investment, such as distressed debt, energy CAMBRIDGE ASSOCIATES LLC US PRIVATE EQUITY INDEX.® or utility investments and turnaround investments. The Cambridge Associates US Private Equity Index is based on data compiled from more than 1,200 institutional-quality buyout, growth STANDARD DEVIATION. A statistical measure of how consistent equity, private equity energy and mezzanine funds formed between returns are over time; a lower standard deviation indicates historically 1986 and 2015. KEY RISKS: liquidity risk–inability to sell asset quickly; less volatility. market risk–value may decline; country/regional risk–world events may . The fi rst drawdown of capital which is the fi rst year adversely affect values. the private equity fund begins investing. S&P 500 TOTAL RETURN INDEX. The total return version of S&P 500 index. The S&P 500 index is unmanaged and is generally representative of certain portions of the US equity markets. For the S&P 500 Total Return Index, dividends are reinvested. All regular cash dividends are assumed reinvested in the S&P 500 index on the ex-date. Special cash dividends trigger a price adjustment in the price return index. KEY RISKS: risk–stocks prices may decline; country/regional risk–world events may adversely affect values. Altegris mission.

Driven by a culture of deep research and innovation, with clients’ goals foremost, we identify superior investment capabilities and deliver effective, sustainable portfolio solutions.

For more information about the Altegris family of alternative strategies, visit altegris.com or call 888.524.9441.

ALTEGRIS ADVISORS | www.altegris.com/KKR Distributed by Altegris Investments. Altegris Advisors is an affi liate of Altegris Investments, and serves as the investment adviser to the Altegris KKR Commitments Fund. 1076283_090616