[Type text] NEPC Private Markets Investment Due Diligence Research Report Landmark Realty Advisors LLC Landmark Real Estate Fund VIII, LP Report written by NEPC Research as of November, 2016. Landmark Real Estate Fund VIII, LP Real Estate Secondaries Table of Contents Executive Summary ............................................................................................................. 3 Fund Characteristics ............................................................................................................ 6 Firm Description .................................................................................................................. 7 Firm Overview .................................................................................................................. 7 Team Overview ................................................................................................................. 7 Recent Turnover / Key Departures ....................................................................................... 7 Succession Planning .......................................................................................................... 7 Fund Investment Strategy ................................................................................................... 8 Investment Strategy .......................................................................................................... 8 Example of a Prior Investment ............................................................................................ 8 Target Fund Return ........................................................................................................... 8 Target Fund Size ............................................................................................................... 8 Target Investment Types .................................................................................................... 8 Target Geographic Focus .................................................................................................... 8 Target Deal Size ................................................................................................................ 9 Use of Leverage ................................................................................................................ 9 Environmental, Social and Governance (ESG) Consideration .................................................... 9 Recycling of Capital ........................................................................................................... 9 Manager’s View of Current Market Conditions ........................................................................ 9 Expected Fund Investor Base .............................................................................................. 9 Current Fund Investments .................................................................................................. 9 Fund Investment Process .................................................................................................. 10 Deal Sourcing ................................................................................................................. 10 Investment Process ......................................................................................................... 10 Value Creation ................................................................................................................ 11 Risk Mitigation ................................................................................................................ 11 Fund Economics ................................................................................................................ 13 Sponsor’s Investment ...................................................................................................... 13 Management Fee ............................................................................................................. 13 Distribution Waterfall ....................................................................................................... 13 Allocation of Carried Interest ............................................................................................. 13 Fund Administration, Structure and Policies ...................................................................... 14 Fund Structure ................................................................................................................ 14 ERISA Provisions ............................................................................................................. 14 UBTI Considerations ........................................................................................................ 14 Labor Policy .................................................................................................................... 14 Key Person Provision ....................................................................................................... 14 GP Removal Provisions ..................................................................................................... 14 LP Advisory Committee .................................................................................................... 15 Reporting ....................................................................................................................... 15 Valuation Policy............................................................................................................... 15 Litigation, Regulation and Compliance ............................................................................... 16 Current Litigation ............................................................................................................ 16 Compliance Staff and Philosophy ....................................................................................... 16 SEC Oversight ................................................................................................................ 16 Subject to Other Regulators .............................................................................................. 16 Personal Trading Restrictions ............................................................................................ 16 Firm Infrastructure ........................................................................................................... 17 Office Locations .............................................................................................................. 17 Confidential Information – For NEPC Client Use Only © Copyright 2017 NEPC, LLC All Rights Reserved 1 Landmark Real Estate Fund VIII, LP Real Estate Secondaries Technology Resources and Systems ................................................................................... 17 Business Continuity Planning ............................................................................................. 17 Fund Administration / Back-office Resources ....................................................................... 17 Firm Track Record ............................................................................................................. 18 Past Fund Track Record .................................................................................................... 18 Track Record Benchmarking .............................................................................................. 19 Deal-Level Attribution Analysis .......................................................................................... 20 Key Fund Professionals ..................................................................................................... 22 Summary of Key Fund Professionals ................................................................................... 22 Detailed Biographies ........................................................................................................ 23 Disclaimers and Disclosures .............................................................................................. 25 Appendix – Track Record Analysis ..................................................................................... 26 Confidential Information – For NEPC Client Use Only © Copyright 2017 NEPC, LLC All Rights Reserved 2 Landmark Real Estate Fund VIII, LP Real Estate Secondaries Executive Summary Landmark Partners LLC (the “Firm” or “Manager” or “Landmark”), is targeting $2 billion of investor commitments for its eighth closed-end real estate secondary fund, Landmark Real Estate Partners VIII, LP (the “Fund” or “Fund VIII” or “LREF VIII”). Similar to prior Landmark real estate funds, Fund VIII will create a diversified portfolio of value-add and opportunistic real estate interests, primarily through secondary market transactions of limited partnerships or joint ventures. The Manager anticipates distributions early in the Fund’s life through the acquisition of seasoned cash-flow producing interests. Fund VIII has a target net IRR of 15% and net TVPI multiple of 1.5x. Landmark Partners is a private equity and real estate investment company that specializes in secondary market transactions, which provide liquidity for investors in an otherwise opaque and illiquid industry. Founded in 1989, the Firm is a pioneer and leader in the industry, having committed over $15 billion of capital in over 1,850 underlying partnership interests. Specific to real estate, Landmark Partners is widely believed to have transacted on the first secondary deal in the sector in 1996. Since then, the Firm has invested over