REGIONAL MULTI ASSET FUND YOUR PARTNER FOR INVESTMENTS IN REAL ASSETS IN CE&SEE INVESTMENT OBJECTIVE AND Management fees 1.0 % p.a. on TIC <= EUR 20 million; 0.7 % p.a. on TIC > EUR SET UP 20 million Carried Interest 20 % of the amount by which the Trigal d.o.o. Ljubljana and KGAL Group are initiators of the IRR exceeds the Hurdle Rate of fund, whereby KGAL owns 50.1 % of Trigal d.o.o, and Zava- 6 % p.a. rovalnica Triglav d.d., the leading Slovenian and Adria region 25 % of the amount by which the insurance company, 49.9 %. IRR exceeds the Hurdle Rate of 7 % p.a. TRIGAL Alternative Investment Fund is structured as Luxem- bourg-based SICAV-RAIF S.C.A and is AIFMD and Solvency Legal form/Structure Luxembourg Reserved Alterna- II compliant. tive Investment Fund with varia- TRIGAL’s Fund investment objective is to achieve regular in- ble capital (SICAV-RAIF S.C.A) come and capital appreciation for Investors through invest- AIFM Regulator Commission de Surveillance du ments into regional: (i) Real Estate, (ii) Infrastructure (Renew- Secteur Financier (“CSSF”), Lux- able Energy) and (iii) Private Equity. embourg Investments are sourced, structured and managed by Trigal Open/close ended Open- ended d.o.o’s experienced investment team, and supported by KGAL. Investment Advisor Trigal Investment Management The fund targets an IRR of 6 - 8 % p.a.1 and Advisory Services Ltd. Auditor Ernst & Young KEY TERMS AIFM Hauck & Aufhäuser Fund Ser- vices S.A. Target equity volume EUR 75 - 150 million General Partner Trigal Alternative Investment Total commitments EUR 29.5 million Fund GP S.à r.l. Initial closing 31.10.2018 Leverage Max. 50 % Fund currency EUR INVESTMENT STRATEGY Investment period 4 years, with one-year extension option Investments in the Fund will be managed with aim to pro- Target IRR1 6 - 8 % p.a. vide institutional investors with a regional investment Target term 10 years + 3 years extension scope and offer a portfolio which goal is to generate a 1.0 % p.a. on TIC <= EUR 20 stable yield and sustainable recurring distribution of cash Transaction fees million; 0.7 % p.a. on TIC > EUR by targeting: 20 million 1 Before income tax at the investor level; target values - may vary due to the occurrence of different parameters. AS OF APRIL 2019 2 Stage focus • Core/Core + well located, cash producing assets with po- - Real Estate max. 15 % in development pro- tential to increase value via active asset management; jects • Resilient retail or mix use properties; - SMEs n/a • Downtown offices that allow “walkability”; • Logistics centers that provide opportunity for regional Concentration limits consolidation; - Real Estate max.10 % NAV single invest- • Selected renewable energy; ment - SMEs private equity portfolio max. • In SME segment “local champions”, with the aim to trans- 40 % NAV form them into “regional European champions”. single largest exposure 15 % of NAV no investment shall be made into THE ASSET CLASSES companies engaged in produc- tion of weapons, pornography or Real Estate related to prostitution • Trigal will pursue a defensive and innovative regional - General investments outside EU max. real estate investment strategy, capitalizing on KGAL 50 % NAV and Triglav Group’s long-standing real estate expertise max.30 % single country expo- • Centrally located assets in Ljubljana, Zagreb, Belgrade sure and other capital SEE cities • Multi-tenant assets where active management that can deliver enhanced returns MARKET ENVIRONMENT • Select assets which can be repositioned to be the assets of tomorrow: new use of spaces, new tenants or users Global growth is expected to continue in 2019, but bond yields in (Millennials) expectations, layouts and functionalities the Western Europe are at historic lows and are expected to re- • Implement intelligent building fit outs main low for some time in the future. BlackRock2 2018 survey of • Intended returns between 6 - 8% p.a. 230 institutional investors with combined USD 7tn under man- agement showed that half of them plan to reduce their exposure SMEs - Mittelstand to equities and bonds and choose real assets. • Focus on SMEs in agribusiness, financial services, infra- structure, IT, fintech, industry with technical know-how KGAL GROUP AND ZAVAROVAL- • Excellence and proven practices of the management team, sustainable cash flows, product/concept that would NICA TRIGLAV D.D. benefit from the access to European market at large (“first” and “second” accelerator concept) . KGAL draws upon 50 years of experience in real asset invest- • Enhanced governance, reporting and strategic share- ments, establishing the company as a respected asset man- holder input – Investment for the Future agement company in Europe • Above 10 % p.a. KGAL’s excellent investment capabilities across its core asset classes have resulted in AuM of EUR 22.0 bn INVESTMENT CRITERIA . The company’s headcount is approx. 340 people . KGAL is signatory of UN Principles for Responsible Investment . Zavarovalnica Triglav d.d. has 120 years of experience in in- Geographic focus surance business - Real Estate min. 50 % EU countries . Leading insurance/financial group in Slovenia and Adria region SCEE (Adriatic Region/former . Ratings: A/stable outlook (S&P Global Ratings, A.M. Best) - SMEs Yugoslavia) 2 FT, January 31, 2019 THIS PRODUCT IS PROPOSED BY TRIGAL d.o.o, A JOINT VENTURE BETWEEN KGAL GMBH & CO. AND ZAVAROVALNICA TRIGLAV D.D. TRIGAL, investment management and advisory services, Ltd., DUNAJSKA CESTA 22, 1000 LJUBLJANA The information contained in this document is not binding and does not claim to be exhaustive. Only the final contractual information is binding for investments. We would like to remind you that this brief information is no substitute for legal or tax advice from the investor's own advisers. The risk of the investment deviating from the specified target figures (e.g. results, distributions and yields) and from the financial targets envisaged by the investor upon conclusion of the investment agreement is borne by the investor alone. Market outlooks represent general information on the asset class and do not purport to present growth forecasts or the expected development of the value of an investment in the asset class. The investment vehicle is being distributed exclusively to professional clients and eligible counterparties. .