PCCP EQUITY VII, LP

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PCCP EQUITY VII, LPA U.S. Middle‐Market Real Estate Investment Fund

Presentation to The City of Fresno Retirement SystemsApril 26, 2016

pattiel

Text Box

Timed Item: 11:00 am Joint Meeting of the Retirement Boards Meeting Date: 4/26/2016

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DISCLAIMER AND CAUTIONARY STATEMENTS

This presentation contains selected information about PCCP, LLC (“PCCP” or the “Sponsor”) and its affiliates,and about the assets that PCCP manages. This presentation has been prepared and is being furnished solelyfor informational purposes and solely for use by you in preliminary discussions with PCCP. In particular, thispresentation is not, and is not intended to be, an offer to sell, or a solicitation of an offer to purchase, anysecurities or any other interest in PCCP or in any fund, account or other investment product or assetsmanaged by PCCP or to offer any services. Any such offering and sale would be made only on the basis ofcertain transaction documents and, as the case may be, a final private placement memorandum and relatedgoverning and subscription documents (together, “Transaction Documents”) pertaining to such offering andsale and is qualified in all respects and in its entirety by any such final Transaction Documents.

The views and statements expressed herein are those solely of PCCP. This presentation contains preliminaryinformation only, is subject to change at any time and is not, and should not be assumed to be, complete orto constitute all the information necessary to adequately make an investment decision. No representation ismade as to the accuracy or completeness of the information set forth herein.

The information contained in this presentation is based in part on past performance and certainassumptions, particularly about future growth. These assumptions have certain inherent limitations, and willbe affected by any changes in the structure, criteria or assets involved in particular transactions. Theassumptions identified in this presentation do not represent all of the assumptions used to try to determinefuture growth. Actual performance may differ, and may differ substantially, from that set forth in thispresentation. No representation is made that the scenarios described herein are accurate or complete or donot contain errors, or that alternative assumptions would not be more appropriate or produce significantlydifferent results. The terms and characteristics of any investment with PCCP or in any fund, account or otherinvestment product or assets managed by PCCP may change based on economic and market conditions.Past performance is no guarantee of future results. PCCP assumes no obligation to update or otherwiserevise any projections, forecasts or estimates contained in this presentation, including any revisions toreflect changes in economic or market conditions or other circumstances arising after the date of thispresentation or to reflect the occurrence of unanticipated events.

This presentation is provided to you on the understanding that, as a sophisticated investor, you willunderstand and accept its inherent limitations, will not rely on it in making any decision to invest with PCCPor in any fund, account or other investment product or assets managed by PCCP and will use it only for thepurpose of preliminary discussions with PCCP. In making any investment decision, you should conduct, andmust rely on, your own investigation and analysis of the data and descriptions set forth in this presentation,including the merits and risks involved.

As will be provided in any applicable Transaction Documents, any investment in PCCP or in any fund,account or other investment product or assets managed by PCCP, is suitable only as an investment for, andwill be offered only to, persons who have, directly or through qualified representatives, the ability toevaluate the merits and risks of any such investment and the ability to assume the economic risks involvedin any such investment. Certain information contained herein constitutes “forward‐looking statements,”which can be identified by use of forward‐looking terminology such as “may,” “will,” “should,” “expect,”“attempt,” “anticipate,” “project,” “estimate,” “intend,” “seek,” “target,” “continue,” or “believe,” or thenegatives thereof or other variations thereon or comparable terminology. Due to the various risks anduncertainties, actual events or results in the actual performance of investments may differ materially fromthose reflected or contemplated in such forward‐looking statements.

The contents of this presentation are not to be construed as legal, regulatory, business, accounting or tax advice.You should consult your own attorney, business advisor, accountant and tax advisor as to legal, regulatory,business, accounting and tax advice.

This presentation is confidential. Any reproduction or distribution of this presentation, in whole or in part, or thedisclosure of the contents hereof, without the prior written consent of PCCP, is prohibited.

By receiving the presentation, you acknowledge and represent to PCCP that you have read, understood andaccept the terms of this presentation and acknowledge and agree that the presentation is confidential, non‐public and/or proprietary information. You hereby agree to return this presentation to PCCP promptly uponrequest.

The distribution of this presentation in certain jurisdictions may be restricted by law. You should inform yourselfas to the legal requirements and tax consequences of an investment within the countries of your citizenship,residence, domicile and place of business.

IMPORTANT NOTE CONCERNING TARGETED AND ESTIMATED RETURNSTarget and estimated equity returns are derived by the Sponsor from analyses based upon market experience,including data related to leasing and operating expenses, market expectations and historical averages related tothe risk/return profile and generally accepted criteria for making investments in the type of anticipatedinvestments. The Sponsor’s targets are based on the expected cumulative returns generated by a series of realestate investments across a multi‐year investment period. Estimated IRR and multiples do not include the effectsof management fees, carry, or expenses which in the aggregate may be substantial and reduce net returns toinvestors. Therefore, gross estimates may not be meaningful. The Sponsor’s estimates are based on theexpected cumulative returns generated across a multi‐year investment period. Target and estimated returns arealso based on certain assumptions including, but not limited to, anticipated hold period, market conditions,default rates, tenant credit stability and turnover, exit strategies and availability and cost of financing. Targets,estimates or other forecasts contained herein are based upon subjective estimates and assumptions aboutcircumstances and events that may not yet have taken place and may never take place. If any of the assumptionsused do not prove to be true, results may vary substantially from the target return. Target and estimate returnsshown are pre‐tax and represent possible returns that may be achieved only for the period of time expresslyidentified.

The Sponsor makes no guarantee that targeted or estimated returns will be achieved. Targets and estimates areobjectives and should not be construed as providing any assurance as to the results that may be realized in thefuture from investments. Many factors affect performance including changes in market conditions and interestrates and changes in response to other economic, political or financial developments. Any targets and estimatesare being shown for information purposes only and should not be relied upon to make predictions of actualfuture performances. The information underlying any forecasts has been obtained from or is based upon sourcesbelieved to be reliable, but the Sponsor assumes no responsibility for, and makes no representation or warranty,express or implied as to the adequacy, accuracy or completeness of, any such information.

DISCLAIMER AND CAUTIONARY STATEMENTSI10178

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IMPORTANT NOTE CONCERNING INVESTMENT TRACK RECORD ANDPCCP OPPORTUNISTIC EQUITY PLATFORMPCCP’s equity platform set forth herein represents certain opportunistic equity investments made by PCCPsince inception across seven equity investment vehicles (“PCCP’s Opportunistic Equity Platform”): PCCPEquity I – VII. Please note, however, PCCP’s Equity Platform excludes certain investments made by PCCPEquity I – VII with objectives and strategies PCCP believes are materially different than those of theFund. Specifically, from 1998 to 2005, Lehman Brothers Holdings Inc. (“LBHI”) was PCCP’s exclusive partnerin PCCP Equity I, PCCP Equity II and PCCP Equity III to execute direct, opportunistic real estate transactions.PCCP’s Equity Platform excludes 39 resolved assets (the “LBHI Excluded Assets”) affected by the bankruptcyfiling of LBHI in September 2008. LBHI has investment discretion over the LBHI Excluded Assets and PCCPbelieves that the LBHI bankruptcy estate has and will continue to make investment decisions for the LBHIExcluded Assets based upon bankruptcy considerations (such as liquidity) that an investor who is notencumbered by bankruptcy would not otherwise make. In addition, PCCP’s Equity Platform excludes aseries of funds dedicated to “double bottom line” investing, and certain social impact investments in PCCPEquity IV (the “Social Impact Excluded Assets” and together with the LBHI Excluded Assets, the “ExcludedAssets”), which initially had an investment mandate focused on social impact community reinvestment, butwas later broadened to include general opportunistic equity investments. Accordingly, PCCP’s EquityPlatform discussed herein does not represent the complete portfolio and actual returns of PCCP Equity I –VII. Please see page 13 for information regarding the actual returns of PCCP Equity I – VII including theExcluded Assets.

DISCLAIMER AND CAUTIONARY STATEMENTS (Continued)


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TABLE OF CONTENTS

SECTION PAGE

01 Overview 4

02 The Opportunity 15

APPENDICES:

- Key Fund Terms 28

- Team Information 30

TABLE OF CONTENTSI10178

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WATER TERRACE: SUNRISE, FLORIDA

The property appearing on this page is an actual investment in PCCP Equity VII. This transaction is provided for informational purposes only, and represents only a portion of the Fund’s anticipated portfolio. There can be no assurance that the Fund will invest in similar transactions. See note 16 in Notes on Performance on page 14.

OVERVIEW

OVERVIEWI10178

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PRESENTER BIOGRAPHIES

William R. LindsayPartner

Los Angeles

BRYAN THORNTONPartner

San Francisco

• Founder of PCCP, LLC• Head of PCCP Equity Business• Credit Committee Member• Former Co‐Head of Gibson, Dunn & Crutcher’s Real Estate Group• 28 Years of Real Estate Experience / 17+ Years with PCCP• Dartmouth College, B.A.; University of California, Berkeley, J.D.

• First Employee at PCCP, LLC• Fund Manager of PCCP Equity VII, LP• Former Head of Asset Management at PCCP• 19 Years of Real Estate Experience / 17+ Years with PCCP• Wharton School at University of Pennsylvania, B.S.

Greg EberhardtPartner

Los Angeles

• Joined PCCP in 2000• Head of Fundraising and Investor Relations• Previously Served as Chief Financial Officer of PCCP• 26 Years of Real Estate Experience / 16+ years with PCCP• California State University Northridge, B.S.; University of Southern California, M.B.A.

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1 There can be no assurance that PCCP Equity VII (the “Fund”) will achieve such a rate of return or its investment objectives. Fund returns are based on numerous factors, including the pace and duration of investment, fund expenses andmanagement fees. Management fees may vary among Limited Partners for a number of reasons, including first closing incentives. PCCP calculates net returns based on numerous assumptions about all of these factors, including assetlevel returns, investment pacing and average effective management fees. PCCP’s fund model is available upon request. For information on the calculation of target returns, gross and net numbers, and other important information, seeNotes on Performance on pages 13-14. This presentation of key terms of PCCP Equity VII is qualified in its entirety by the final Transaction Documents.

2 Reflects 2016 projected cash-on-cash return for PCCP Equity VII’s current portfolio of 10 transactions.3 Includes Alameda Center, which is operated by PCCP.

THE FUND

• $500 million, closed-end real estate equity fund ($750 million cap)

• Acquire high-quality transitional real estate assets in the top-25 U.S. markets, add value, sell to core buyers

• Leveraged return target of 18%-20% gross IRR, 14%-16% net IRR; 65% leverage limit1

FUNDRAISING STATUS

• $334 million closed as of April 20, 2016

− Final closing expected in Summer 2016

EXISTING PORTFOLIO

• 10 investments closed to date

• $188.3 million of equity committed

− 8% current gross cash-on-cash fund-level returns2

− 6 of 10 transactions sourced off market

− 9 of 10 deals are operated by existing PCCP partners3

ABOUT PCCP EQUITY VII

OVERVIEW

Pineapple Cove, Port St. Lucie, FloridaThe property appearing on this page is an actual investment in PCCP Equity VII. This transaction is provided for informational purposes only, and represents only a portion of the Fund’s anticipated portfolio. There can be no assurance that the Fund will invest in similar transactions. See note 16 in Notes on Performance on page 14.

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ABOUT PCCP: ESTABLISHED IN 1998, OVER $12.2 BILLION INVESTED

YEAR

• TRACK RECORD OF SUCCESS: Founded in 1998, SEC-registered investment adviser1, $6.4 billion AUM2

• LEADING PROVIDER OF DEBT AND EQUITY TO THE MIDDLE MARKET: Over $15 billion of investment opportunities considered in 2015; $1.1 billion in loans originated and $325 million of equity invested

• STRONG, LONGSTANDING RELATIONSHIPS: Established network of 285 operating partners and borrowers; over 40% of our deal flow comes from existing relationships3

• CONSISTENT TEAM: Founding partners have worked together for over 29 years

• NATIONAL PLATFORM: Offices in New York, Los Angeles, and San Francisco

1 SEC registration does not imply a level of skill or training.2 Assets under management as of December 31, 2015. Please refer to note 14 in Notes on Performance on page 14.3 From inception of PCCP in 1998 through December 31, 2015.

OVERVIEW

• DEEP BENCH: Integrated team of 35 investment professionals led by 10 partners

• INSTITUTIONAL INVESTOR BASE: Investors include 5 of the 10 largest U.S. public pension plans, 5 of the 10 largest U.S. commercial banks, and institutional investors from Canada, Korea, Japan, EU, and the Middle East

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

$ INMILLIONS TOTAL FIRM AUM3

Debt Equity

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CREDIT IS OUR DNA

THE PCCP APPROACH

• Single, consistent strategy to penetrate the inefficient U.S. middle market

• Complementary debt and equity businesses provide unique sourcing channels and ability to invest up and down the capital stack

• Use our national footprint to create transaction flow

− Presence in top-25 U.S. markets

− Target office, industrial, multifamily and retail

• Integrated team of investment professionals is trained to identify middle market opportunities

• Align ourselves with highest quality operating partners

− Over 40% of our deal flow comes from existing relationships1

• Add value and create core opportunities for the next buyer

1 From inception of PCCP in 1998 through December 31, 2015.

OVERVIEW

Rivergate Tower, Tampa, FloridaThe property appearing on this page is an actual investment in PCCP Equity VII. This transaction is provided for informational purposes only, and represents only a portion of the Fund’s anticipated portfolio. There can be no assurance that the Fund will invest in similar transactions. See note 16 in Notes on Performance on page 14.

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THE PCCP APPROACH: CREDIT IS OUR DNA

Higher Alpha/Beta

EQUITYLower Alpha/Beta

DEBT

RISK-ADJUST

• Identify and underwrite risks• Identify loss of capital scenarios

• Structure to mitigate loss of capital

• Define the upside opportunity

$900 millionequity quotes$4 billion

debt quotes

INVESTMENT COMMITTEE

$200 ‐ $400 million in equity joint venture investments per year

35 CRE Professionals

PCCP reviews about $15 billion of transitionalopportunities annually

NATIONAL FOOTPRINT FOCUSED ON MIDDLE-MARKET

APPLY FILTERS

RealEstate Quality

MarketStrength

Counter‐Party

* The figures set forth in this chart are approximations.

OVERVIEW

$900 million ‐ $1.2 billion in debt originations

per year

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SENIOR PROFESSIONALS: AVERAGE OVER 19 YEARS INDUSTRY EXPERIENCE, AVERAGE 10 YEARS AT PCCP.1

PCCP TEAM: EXPERIENCED, DEEP, AND STABLE

RELATIONSHIP‐FOCUSED ORIGINATIONS TEAM

INTEGRATED INVESTMENT COMMITTEE

OVERVIEW

Bill Lindsay, Partner LAManaging Partner

Equity29 years real estate industry experience

Don Kuemmeler, Partner SFManaging Partner

Debt30 years real estate industry experience

Investment CommitteeBill Lindsay, Don Kuemmeler, Aaron Giovara, Yon Cho, Jed Lassere

Bryan Thornton, Partner NYPortfolio Management

Equity20 years real estate industry experience

Brian Heafey, Partner SFPortfolio Management

Debt26 years real estate industry experience

Originations Asset Management Investor Relations Finance, Accounting & Compliance

Yon Cho, Partner NYHead of Originations

23 years real estate industry experience

NY SF LA

John RandallKevin ChinRob StoferRyan DodgeSuraj Ravi

Eeshan Talwar

Jim Galovan2Erik Flynn

Dorian FarhangBrendan Shanahan

Matt Cochran

Jed Lassere2Ron BonneauMichael Hoyt

Michael JohnsonTina Ramos

Aaron Giovara, Partner SFHead of Asset Management


Equity

Lauren YoungHead of Equity AMG

Phil RussickJennifer Diaz

Melanie GangelShadi SwoishBryan CebulaMelissa ClintonConnor Price

Greg Eberhardt, Partner LAHead of Investor Relations


Steve ChaseK.C. Boback KriegelKathryn GorschHenry HwangLyndon DysimRicky HanDonny Yeh

Karen Delano

Karen RuizSam Gold

Angelo DeguzmanGabriel WilleyAlan NovickTony NguyenLynda NgoPinki ShahAnnie SalamNami ParkJess PepitoAllen Zaki

Anthony LuceVeronica Orozco

Steve Towle, Partner LAChief Financial Officer


Debt

Adam ZogerHead of Debt AMG

James NearonCarolyn Powell

Betty KaoNickie Diggs

Alyssa Freeman

Loan Servicing

Norma CabreraSharon StriblingRobin EdisonBeth Cody

Birlus WordlawJustine AikensLori Johnson

1 The above averages are based on a total of 28 senior professionals: 18 investment professionals with titles of Vice President and above and 10 Partners. Source data is provided in the Appendix attached hereto.2 Jed Lassere and Jim Galovan were promoted to Partner in 2015.

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OUR FOOTPRINT

Deal Volume

1 Deals

2 – 4 Deals

5 – 10 Deals

11 + Deals

PCCP Market Coverage

PrimarySecondaryNo TargetCurrent Office Location

CA

WA

OR

NV

AK

HI

ID

MT

WY

UT

AZ

CO

NM

TX

ND

SD

NE

KS

OK

MN

IA

MO

AR

LA

MSAL GA

FL

WI

IL IN

MI

TN

KY

OH

W VVA

NC

SC

PA

NY

VTNH

ME

MA

NJDE

MD

DC

CT

1 The above map is a representation of PCCP equity and debt transactions from 2008 to December 31, 2015. The “top 25 domestic markets” represent the top 25 U.S. Metropolitan Statistical Areas.

RI

PCCP TARGETS THE TOP 25 MARKETS.1

OVERVIEWI10178

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PCCP PERFORMANCE

Over 86% of PCCP’s prior opportunistic equity vehicles achieved first or second quartile performance.1

NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, AND THERE CAN BE NO ASSURANCE THAT AN INVESTMENT OFFERED WILL ACHIEVE COMPARABLE RESULTS TO ANY OF THE PRIORPERFORMANCE INFORMATION CONTAINED HEREIN OR THAT TARGETED RETURNS OR OTHER MEASUREMENT STANDARDS, WHICH PCCP BELIEVES TO BE SOUND AND REASONABLE UNDER THECIRCUMSTANCES, WILL BE MET. PLEASE SEE ENDNOTES ON PAGE 13 REGARDING METHODOLOGY.

1 As of September 30, 2015. See note 15 in Notes on Performance on page 14 and page 2 for information regarding PCCP’s equity platform. 2 See notes 8 and 13 in Notes on Performance on pages 13-14 and page 2 for information regarding PCCP’s equity platform.3 See note 6 in Notes on Performance on page 13. 4 Represents actual returns as PCCP Equity I and II are fully realized.5 The current investments in PCCP Equity VII represent only a portion of the Fund’s anticipated portfolio and as a result, the gross and net IRR of the Fund are not meaningful at this time. There can be no assurance that the Fund will

achieve such a rate of return or its investment objectives. For more information on the calculation of target returns, gross and net numbers, and other important information, please see Notes on Performance on pages 13-14 herein. For information regarding the calculation of estimated IRR and estimated multiples of PCCP Equity VII, please see note 11 in Notes on Performance on page 14 herein.

6 See note 12 in Notes on Performance on page 14.7 See note 9 in Notes on Performance on page 13.

OVERVIEW

PCCP OPPORTUNISTIC EQUITY INVESTMENT PERFORMANCE2 – AS OF DECEMBER 31, 2015 ($ IN MILLIONS)

Total Equity No. of Estimated IRR Estimated Multiple

Investment Strategy Committed Investments Gross Net Gross Net % Realized3

PCCP Equity I1998-2000 US Opportunistic $166.6 16 30.0%4 25.2%4 1.95x4 1.75x4 100.0%

PCCP Equity II2000-2002 US Opportunistic $190.2 15 10.6%4 7.0%4 1.22x4 1.15x4 100.0%

PCCP Equity III2003-2006 US Opportunistic $229.8 27 34.2% 25.1% 1.62x 1.45x 89.1%

PCCP Equity IV2009-2010

US Opportunisticpost-2009

$105.5 10 43.5% 35.7% 2.23x 1.75x 89.6%

PCCP Equity V2011-2015 US Opportunistic $474.7 34 33.0% 27.5% 2.16x 1.92x 41.9%

PCCP Equity VI 2012-2015 US Opportunistic $296.4 16 19.6% 15.5% 1.83x 1.62x 0.0%

PCCP Equity VII 2015 US Opportunistic $188.3 10 20.1%5 16.6%5 1.96x5 1.71x5 0.0%

Subset - Total Opportunistic Equity6 US Opportunistic $1,651.4 128 25.4% 20.2% 1.88x 1.66x 51.8%

Plus: PCCP Equity IV Social Impact Investments

7

2006-2008

Western US -Social Impact

$569.0 37 2.2% 0.1% 1.16x 1.01x 37.3%

Total Opportunistic Investments/Social Impact6

US Opportunistic/Social Impact

$2,220.4 165 17.2% 11.9% 1.69x 1.50x 48.1%

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NOTES ON PERFORMANCE

INVESTMENT PERFORMANCE – OPPORTUNISTIC EQUITY PLATFORM(1) The estimated equity return calculations are based on historical and future estimated cash flows from inceptionthrough the applicable dates of estimated resolution. The estimated IRRs reflected are derived using an annuallycompounded IRR formula. These estimates, and the other estimates herein, including estimates of future marketconditions were made as of December 31, 2015 and are made by PCCP in good faith pursuant to its valuation policies andprocedures. The Gross returns do not reflect the payment of other expenses, management fees or incentive compensationto PCCP and its affiliates. Net returns include the deduction of management fees, incentive compensation and otherexpenses. While Gross and Net returns for unrealized transactions use estimated cash flows, cash flows are based onassumptions believed to be sound and reasonable by PCCP, including, but not limited to, anticipated hold period, marketconditions, default rates, tenant credit stability and turnover, exit strategies and availability and cost of financing, andgenerally accepted criteria for making investments in the type of anticipated investments. Such assumptions may not berealized, causing actual returns to be materially lower than those estimated. PCCP Equity IV, PCCP Equity VI and PCCPEquity VII have all utilized, or expect to utilize, as applicable, a subscription secured credit facility in connection with theirinvestment activities. Subscription secured credit facility borrowings are primarily utilized to make investments and to payfees and expenses at both the fund and investment level. Since subscription secured credit facility borrowings aregenerally not repaid until investor capital is called, the use of a subscription secured credit facility by a fund defers thedeployment of investor capital and, consequently, the accrual of any preferred return on such capital. In certain instancesthe use of a subscription secured credit facility may increase the net IRR shown for a fund. Actual returns will depend on,among other factors, future operating results, the value of the assets and the market conditions at the time of repaymentor other disposition, any related transaction costs and the timing and manner of disposition, all of which are inherentlyuncertain and may differ materially from the assumptions and circumstances on which the valuations used in the priorperformance data contained herein are based.

(2) PCCP’s equity performance set forth herein represents certain opportunistic equity investments made by PCCP sinceinception across seven equity investment vehicles (“PCCP’s Opportunistic Equity Platform”): PCCP Equity I – VII. Pleasenote, however, PCCP’s Opportunistic Equity Platform excludes certain investments made by PCCP Equity I – III as detailedin note 8 and PCCP Equity IV with objectives and strategies PCCP believes are materially different than those of the Fund asdetailed in note 9. Accordingly, PCCP’s Opportunistic Equity Platform discussed herein does not represent the completeportfolio and actual returns of PCCP Equity I – VII.

(3) The performance of PCCP’s investments through its prior investment vehicles is no guarantee of the returns that willultimately be realized by the Fund. There can be no assurance that the Fund will be able to make investments similar tothose made by PCCP’s prior investment vehicles, including in terms of size, scope and location. The investments of theFund will be made under different market conditions and may be made for different holding periods than those for PCCP’sinvestments through its prior investment vehicles. While the targeted returns are based on assumptions believed to bereasonable by PCCP, such assumptions may not be realized, causing returns to be materially lower than those targeted. Theactual returns realized by the Fund will depend on numerous factors, including, without limitation, future operating results,interest rates, the value of the assets, any related transaction costs and the timing and manner of any such disposition, allof which are subject to uncertainty. Actual returns may differ from the assumptions and circumstances on which thevaluations used in the prior performance data contained herein are based.

(4) PCCP refers to its first seven commercial real estate opportunistic equity vehicles as PCCP Equity I, PCCP Equity II, PCCPEquity III, PCCP Equity IV (inclusive of the Excluded Assets), PCCP Equity V, PCCP Equity VI and PCCP Equity VII (“PCCPEquity I‐VII”), although PCCP Equity I‐V were not actually called or legally organized as PCCP Equity I‐V.

(5) The equity returns included herein consist of realized and unrealized investments. The unrealized returns are based oncash flow estimates and assumptions based on PCCP’s business judgment, including, but not limited to, anticipated holdperiod, market conditions, default rates, tenant credit stability and turnover, exit strategies and availability and cost offinancing, which PCCP believes to be reasonable, but there can be no assurances that such returns will actually be realized.

(6) % Realized represents the percentage of investments by equity committed that have been realized within eachrespective investment vehicle. Realized transactions are transactions that have been completely resolved with noexpectation of additional distributions and transactions which have had a significant resolution event for which PCCPbelieves all but an insignificant amount of cash distributions have been received. In the event that additional cash is

estimated by PCCP to be received, the performance of these investments includes the receipt of anticipated proceeds at adate as underwritten by PCCP.

(7) PCCP Equity I, PCCP Equity II, and PCCP Equity III were each an aggregation of PCCP‐originated joint venture investmentswith Lehman Brothers Holdings Inc. (“LBHI”) that were pooled for losses. LBHI maintained investment discretion over thesejoint ventures. Because actual net cash flows were commingled in a PCCP operating subsidiary during a portion of the lifeof these vehicles, net investment performance for each vehicle is hypothetical and based on the terms between PCCP andLBHI, assuming distributions to each member as if joint venture distributions were not commingled in an operatingsubsidiary. The terms between PCCP and LBHI changed over the life of these investment vehicles. The terms used tocalculate net investment performance reflect the actual management fees paid to PCCP and the greatest carried interestterms paid to PCCP as if they were the terms over the entire life of the investment vehicles. The terms assume a carriedinterest of 24.5% after a preferred return of 10% with no catch‐up. The carried interest is assumed distributed on a deal bydeal basis and pooled within each vehicle to account for losses, with no claw‐back for carried interest distributions thatoccurred prior to any loss. PCCP believes this to be the most accurate calculation of the gross/net spread based on thestructure of those terms.

(8) From 1998 to 2005, LBHI was PCCP’s exclusive partner in PCCP Equity I, PCCP Equity II and PCCP Equity III to executedirect, opportunistic real estate transactions. PCCP’s Opportunistic Equity Platform excludes 39 resolved assets (5 for PCCPEquity I, 4 for PCCP Equity II and 30 for PCCP Equity III) (the “LBHI Excluded Assets”) with equity commitments totalingapproximately $506.9 million affected by the bankruptcy filing of LBHI in September 2008. LBHI has investment discretionover the LBHI Excluded Assets. PCCP believes that the LBHI bankruptcy estate has and will continue to make investmentdecisions for the LBHI Excluded Assets based upon bankruptcy considerations (such as liquidity) that an investor who is notencumbered by bankruptcy would not otherwise make. Accordingly, PCCP has not included them in its investmentperformance. The aggregate estimated Gross / Net IRR of the LBHI Excluded Assets as of December 31, 2015 is ‐4.3% / ‐6.1%, respectively. Note that if the performance of the LBHI Excluded Assets were combined with the Total GeneralOpportunistic Equity Assets, PCCP estimates that the estimated Gross / Net IRR and the estimated Gross / Net Multiple as ofDecember 31, 2015 would be 15.3% / 11.3% and 1.6x / 1.4x, respectively.

(9) PCCP Equity IV was initially focused on social impact community reinvestment/smart growth investing but theinvestment mandate was broadened to pursue general opportunistic equity investments from 2009‐2010. In addition tothis vehicle, PCCP managed a series of funds dedicated to “double bottom line” investing, some of which targetedopportunistic returns along with requirements for social impact. The portion of social impact investments and “doublebottom line” investments have been eliminated to provide a general opportunistic equity track record consistent with thestrategy of the Fund (the “Social Impact Excluded Assets” and together with the LBHI Excluded Assets, the “ExcludedAssets”). Specifically, the Social Impact Excluded Assets include Bay Area Smart Growth Fund I, Nehemiah SacramentoValley Fund I, Southern California Smart Growth Fund I, California Smart Growth Fund 2006‐2008 investments and one co‐investment made with Southern California Smart Growth Fund I. Although PCCP did not earn a promote when factoring inthe Social Impact Excluded Assets, for purposes of presenting this track record a hypothetical promote was calculated andfactored into the estimated net IRR for the PCCP Equity IV 2009‐2010 transactions. Some cash flows generated by the PCCPEquity IV 2009‐2010 transactions were retained by PCCP Equity IV as reserves for investment in the Social Impact ExcludedAssets. The estimated net IRR for the PCCP Equity IV 2009‐2010 transactions assumes the proceeds retained as reserves byPCCP Equity IV were instead distributed to investors. The estimated net IRR for the Social Impact Excluded Assets assumesthese cash flows retained by PCCP Equity IV were additional contributions by investors.

(10) PCCP Equity V is an aggregation of individual investments with institutional capital partners and is not a singleinvestment vehicle. PCCP was either not investing a fund during the time these investments were made, or PCCP wasinvesting a fund during the time these investments were made but fund investment restrictions did not permit theseinvestments to be included in the fund. PCCP drew upon available sources of equity capital to fund investments. Thisincludes capital from PCCP’s balance sheet, third‐party co‐investment capital, and investments funded by a non‐discretionary separate account with an institutional capital partner targeting opportunistic investments.

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NOTES ON PERFORMANCE (CONTINUED)

INVESTMENT PERFORMANCE – OPPORTUNISTIC EQUITY PLATFORM (11) PCCP Equity VII was not fully invested as of December 31, 2015. The gross estimated IRR and multiple providedherein are based on the aggregate cash flows for the investments closed as of December 31, 2015. The net estimatedIRR and multiple represent net performance calculated on a pro‐forma basis using the Fund’s distribution waterfall anda hypothetical portfolio of investments and management fee and general expenses. To calculate the net estimated IRRand multiple that PCCP estimates may be representative of a fully invested fund, the net estimated IRR and multiplecalculations are based on (i) actual cash flows and (ii) additional pro‐forma cash flows to gross‐up the Fund to anassumed level equal to the target Fund size of $500 million. A gross IRR target of 20% was applied to the additionalpro‐forma investment cash flows. The gross and net estimated IRRs have been calculated solely for purposes of thispresentation and do not reflect the performance that will ultimately be realized by investors. Consequently, actualreturns will differ. In addition, changes in one or more assumed variables in such hypothetical return projection maymaterially alter the projected results. PCCP is available to model alternative hypotheticals upon request.

(12) The “Subtotal” and “Total” net estimated IRRs of PCCP’s Opportunistic Equity Investment Performance, includesonly a pro‐rata share of PCCP Equity VII’s net cash flows (based on the total equity committed and the Fund’s targetequity size of $500 million). Consequently, actual returns will differ.

(13) PCCP has also made or managed investments outside of the investments set forth in the PCCP Equity Platform,including for example in value‐add investments, particular regions and/or those dedicated to “double bottom line”investing where a particular social or other criteria were employed along with the return focus. Except as expresslynoted herein, such other prior experience and performance is not included as PCCP does not deem it relevant to theinvestment returns and strategy of the Fund. Such additional experience and returns are, however, available uponrequest. The Excluded Assets are included in PCCP’s calculations for AUM, total deals, and committed capital.

(14) AUM included on page 7 is presented as of December 31, 2015 and represents the aggregation of equity and debtinvestments across multiple PCCP‐managed investment vehicles, including debt and equity. AUM for equityinvestments represents the sum of the fair market value or cost basis of real estate at 100% ownership (inclusive ofany JV partner’s pro‐rata share), cash and cash equivalents. PCCP historically accounted for investments on either afair value or historical cost basis. The AUM calculation is a mix of fair value and historical cost. Four investmentvehicles were accounted for on a historical cost basis without tracking debt balances. For these investment vehicles,PCCP estimated total capitalization using estimated debt capitalization based on loan to value ratios estimated at initialunderwriting. Beginning in December 2011, AUM is calculated exclusively on a fair value basis. AUM for debtinvestments represents the fair market value of the current debt balances plus cash and cash equivalents.

(15) PCCP investment performance data, weighted by equity committed, was compared to “Opportunistic Real Estate”fund data from Cambridge Associates LLC (“Cambridge”), as of September 30, 2015 to benchmark PCCP’s investmentperformance. Five out of six PCCP’s prior equity funds (excluding the Excluded Assets (as defined herein)) achieved firstor second quartile performance. Past Performance is no guarantee of future results, and there can be no assurancethat an investment offered by the Fund will achieve comparable results to any of the prior performance informationcontained herein. The Net IRR for each PCCP Fund was compared to the respective fund vintage year benchmark. NetIRRs provided by Cambridge Returns are net to Limited Partners since inception and include non‐liquidatedinvestments at current fair value as determined by the applicable fund managers. The Cambridge definition of vintageyear is the legal inception date as noted in a fund financial statement. Benchmark is based on Cambridge datacompiled from 462 opportunistic real estate funds formed between 1988 and 2013. The opportunistic real estatebenchmark also includes 13 distressed real estate and 28 development real estate funds that would be statisticallyinsignificant as a stand‐alone benchmark.

(16) The transaction examples provided on pages 4, 6, 8, 15, 20, 21, 22, 23, 24, 25, 28 and 30 are actual assets includedin PCCP Equity VII. They represent only a portion of the Fund’s anticipated portfolio, and are shown for illustrativepurposes only. Below is a list of all assets included in PCCP Equity VII as of December 31, 2015 with the transactionexamples highlighted in blue. Refer to page 12 for fund level returns.*

PCCP Equity VII

(17) For a complete list of all opportunistic equity transactions please refer to Appendix B of the PCCP Equity VII PPM.

*Past performance is no guarantee of future results and there can be no assurance that an investment offered will achieve comparable results to any of the prior performance information set forth below. Gross IRRs do not reflect the payment of other expenses, management fees or incentive compensation to PCCP and its affiliates. Accordingly actual net IRRs will be materially lower than those projected.

OVERVIEW

PCCP Equity VIIAcquisition

DateEquity

CommittedProjected Gross IRR

Projected Gross Multiple

Water Terrace Multifamily Sunrise, Florida 6/1/2015 $17,506,733 17.7% 1.92Pacific Center Office Santa Ana, California 6/9/2015 $21,891,077 20.8% 1.86Alameda Center Office Alameda, California 7/2/2015 $8,695,000 19.0% 2.04715 Peachtree Office Atlanta, Georgia 7/16/2015 $30,952,971 17.3% 1.75Alcatel Lucent BTS Office Plano, Texas 7/28/2015 $15,696,600 27.6% 1.57Gateway East 717 Industrial Edwardsville, Illinois 8/4/2015 $10,655,417 17.4% 1.47Rivergate Tower Office Tampa, Florida 8/6/2015 $26,235,000 20.9% 2.31Pavilions at Talking Stick Retail Scottsdale, Arizona 8/6/2015 $34,083,996 21.0% 2.36Pineapple Cove Multifamily Jensen Beach, Florida 10/9/2015 $12,353,853 17.7% 1.93Irvington Centre IV Office Rockville, Maryland 12/21/2015 $10,203,756 27.7% 1.62Total PCCP Equity VII $188,274,402 20.1% 1.96

I10178

15

THE OPPORTUNITY

THE OPPORTUNITY

PINEAPPLE COVE: JENSEN BEACH, FLORIDA


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16

THE OPPORTUNITY IN THE U.S. IS ATTRACTIVE

FUNDAMENTALS REMAIN POSITIVE

• Solid but unremarkable GDP growth: 1.5% (2013), 2.4% (2014), 2.5% (2015)1

• Unemployment rate now below 5%2

• Rent growth in most markets3

• Supply generally remains in check4

• Pricing, however, on average exceeds prior peak5

TECHNICALS ARE IN FLUX

• Volatility in public equities markets may slow down capital flows into real estate (positive)

• High-yield and CMBS markets are choppy (positive)

• Users of real estate may slow take up of space in an uncertain environment (negative)

• Rates seem likely to remain low (positive)

• Unwinding of QE2 likely to slow given uncertainty in economy (positive)

THE GREAT 10-YEAR ROTATION OF CAPITAL WILL BRING RECORD VALUE-ADD DEAL FLOW

• Record 10-year loan maturities in 2016-17 present significant recapitalization and value-add opportunities− Assets purchased in 2005-07 were acquired with aggressive financing. By 2008, these assets were worth less than

the debt. They received no capital expenditures through the recession.

• 2005-2007 vintage funds are liquidating, selling assets with incomplete business plans− In 2016, these assets are once again worth their acquisition cost, and investors are selling, leaving the value-add to

the next buyer.

THE OPPORTUNITY

1 Bureau of Economic Analysis.2 Bureau of Labor Statistics.3 Real Capital Analytics. U.S. Commercial Institutional Effective Rent Revenue as of December 31, 2015.4 CoStar Portfolio Strategy. Annual Supply Growth, U.S. office, warehouse, retail and apartment as of March 31, 2015.5 Real Capital Analytics / Moody’s CPPI as of December 31, 2015.

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17

PCCP EQUITY VII IS WELL POSITIONED TO TAKE ADVANTAGE OF THE OPPORTUNITY

Middle market assets trade 50 bps wider than large cap assets1

Longstanding presence in top‐25 U.S. markets

Provide solutionsto our partners

THE OPPORTUNITY

NATIONAL FOOTPRINT AND FLEXIBLE CAPITAL YIELDS OPPORTUNITIES THROUGHOUT CYCLES

Deep Credit Footprint FragmentedMiddle Market Relationship Driven

OUR CREDIT ORIENTATION PROVIDES A STRATEGIC EDGE IN UNCERTAIN TIMES

• Use our credit skills to control and mitigate risk

• Focus on income and cash. Strong cash flows in existing portfolio

• Execute asset level business plans promptly

• Look for stress turning into distress

• Keep powder dry. Patience is a virtue in a volatile market.

I10178

1 CoStar Portfolio Strategy as of Q1 2015.

18

10-YEAR ROTATION OF CAPITAL: RECAPITALIZATIONS

• Nearly $1 trillion in loans maturing between 2016 and 2017, forcing more owners into financing decisions

• Most of these maturing loans were originated near the peak of the CRE market in 2005-08

• Many of these loans fail to qualify for new financing under current underwriting standards

• Over 30% of CMBS loans maturing in 2017 will need more than 20% additional equity to refinance1

• This data assumes current interest rate environment - rising interest rates would lead to more stress

1 Source: Trepp, CoStar Risk Analytics. As of Q3 2015.

THE OPPORTUNITY

% OF CMBS MATURITIES NEEDING > 20% NEW EQUITY TO REFI

Source: Trepp; CoStar Risk Analytics As of Q3 2015

0%

10%

20%

30%

2016 2017 2018

MATURING LOANS ($B)

Source: CoStar; Federal Reserve; Trepp; ACLI As of Q3 2015

0

100

200

300

400

500

600

2016 2017 2018

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19

2005 to 2007 U.S. CLOSED-END REAL ESTATE FUNDS ($B)

A WAVE OF FUND LIQUIDATIONS IS UPON US

Source: Data for chart and text, Preqin Q3 2015

• Using Preqin performance data for 204 U.S.-focused closed-end funds raised between 2005and 2007, total capital raised wasapproximately $140 billion1

• These vehicles are coming to the end of theirfund lives, and investors want their capital back

• 43% of the funds tracked (88) have returnedless than 50% of investor capital

• Only 63% of the capital raised has beenreturned as of Q2 2015

• Median fund size during this period was $445million2, meaning that these funds hold asubstantial number of middle market assets

$-

$25

$50

$75

$100

$125

$150

$140 billion raised

$52 billion unreturned as of Q2 2015

• Investors are anxious to close out 2005 to 2007 vintages, and should be receptive to liquidation proposals. Many of these funds have value-add projects with incomplete business plans, due to lack of capital.

1 The real estate private fund data set was provided by Preqin, Inc. as of October 2015 considering vintage, country, strategy and other factors. The data set includes only a portion of the real estate private investment fund universe where performance information was available. Preqin reports the total universe of U.S. funds raised between 2005 and 2007 to include 480 funds that total $213.1 billion of capital commitments. Also, the data set excludes five funds with less than $25 million of capital commitments where performance information was available, and 13 fund of funds and secondary vehicles.

2 This is the median of the 204-fund sample set. The average of this sample set is $688.6 million.

THE OPPORTUNITYI10178

2020

EXISTING FUND TRANSACTION: PAVILIONS AT TALKING STICK

THE OPPORTUNITY

OPPORTUNITY:• The Great Rotation of Capital: maturing loan requiring

recapitalization

PCCP EDGE: • Debt deal converted to equity transaction

• PCCP provided a capital solution to an existing operating partner

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21

PAVILIONS AT TALKING STICK (PHOENIX, AZ)

EXISTING FUND TRANSACTION: PAVILIONS AT TALKING STICK1

Property Type RetailSize 1.1 million sfYear Built 1989Location Scottsdale, AZDate Acquired August 2015Equity Commitment $34.1 millionTotal Capitalization $96.5 millionLeverage 70%3

PCCP/SPONSOR LONG‐TERM RELATIONSHIP

UNDERWROTE DEBT FOR REFINANCE DISTRESSED SITUATION OPPORTUNITY

THE OPPORTUNITY

1 The investment examples included herein were chosen to show recent, demonstrative transactions in PCCP’s portfolio with the following characteristics consistent with the strategy of the Fund: (i) physical repositioning,rehabilitation and redevelopment and (ii) recapitalizing impaired financial structures. It is shown for illustrative purposes only and there can be no assurances that similar deals will be in the Fund’s portfolio. Past performance isno guarantee of future results, and there can be no assurance that an investment offered by the Fund will achieve comparable results to any of the prior performance information contained herein or that targeted returns or othermeasuring standards will be met. Please see important disclosures regarding estimated returns and assumptions regarding leverage in disclaimers and cautionary statements on page 1.

2 See note 1 in Notes on Performance on page 13.3 The Fund’s leverage limitation is tested on a portfolio-wide basis and therefore, leverage on a particular asset may exceed 65% so long as the portfolio-wide leverage of the Fund is less than 65%.

StatusPCCP and sponsor closed on the loan purchase on August 6th. The leasing and pad development business plan to add value is underway.

Estimated IRR2

21.0% Gross

Estimated Multiple2

2.4x Gross

REAL ESTATE● The property is a 1.1 million sf power retail center located in Scottsdale, AZ.● The property was constructed in 1989 and is currently 91% occupied with major

tenants including Target, Home Depot, Toys R Us, Ross and PetCo.● The property is located along the 101 freeway at the Indian Bend off‐ramp. The

property is adjacent to the Salt River Fields (Spring Training and event facility—500,000+ attendees per year) and is close to the Talking Stick resort and casino.

OPPORTUNITY● PCCP originally underwrote the debt when the sponsor and their previous equity

partner looked to refinance the high leverage existing loan via a DPO. Thesponsor’s previous equity partner sought a heavily discounted loan purchase price,which the lender refused, leading the prior equity partner to seek an exit.

● Equity VII leveraged its existing relationship with the sponsor and stepped in astheir equity partner.

● Equity VII purchased the existing $106 million loan for $90 million all cash, boughtout the previous equity partner and procured a new market‐rate senior loan.

OUTCOME● The business plan is to recapitalize the asset, lease the current vacancy, lease and

build out 14 new pad sites, and renew or re‐lease occupied space at market rentalrates increasing the return on cost from 5.7% in‐place to 9.0% over five years.

● PCCP views this as an opportunity to take advantage of an off‐market opportunityinvolving a defunct lender, broken note recapitalization process, and distressedequity partners to recapitalize the asset with the existing sponsor who is a localretail expert and existing PCCP sponsor.

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22

EXISTING FUND TRANSACTION: WATER TERRACE

OPPORTUNITY:• The Great Rotation of Capital: institutional manager

liquidating fund

• Proven business plan, but prior owner exhausted the life of their fund and was unable to execute the value-add

PCCP EDGE: • Executed same business plan with same partner in prior

fund, PCCP Equity VI

• Utilize credit skills to mitigate risk in the deal

22THE OPPORTUNITYI10178

23

UNDER‐PERFORMING MULTIFAMILY ASSET

RECAPITALIZEFINANCIAL STRUCTURE

REPOSITIONIN THE MARKET

OPPORTUNITY

WATER TERRACE (FORT LAUDERDALE, FL)

Property Type MultifamilySize 438 unitsYear Built 1986‐1988Location Sunrise, FLDate Acquired June 2015Equity Commitment $17.5 millionTotal Capitalization $71.8 millionLeverage 69%3

EXISTING FUND TRANSACTION: WATER TERRACE1

THE OPPORTUNITY

1 The investment examples included herein were chosen to show recent, demonstrative transactions in PCCP’s portfolio with the following characteristics consistent with the strategy of the Fund: (i) physical repositioning,rehabilitation and redevelopment and (ii) recapitalizing impaired financial structures. It is shown for illustrative purposes only and there can be no assurances that similar deals will be in the Fund’s portfolio. Past performance isno guarantee of future results, and there can be no assurance that an investment offered by the Fund will achieve comparable results to any of the prior performance information contained herein or that targeted returns or othermeasuring standards will be met. Please see important disclosures regarding estimated returns and assumptions regarding leverage in disclaimers and cautionary statements on page 1.


REAL ESTATE● A 98% leased Class B, garden style multifamily community containing 438 units

located in the Sunrise submarket of Ft. Lauderdale, Florida.● At acquisition, rents at the property were 10% lower than rents at comparable

properties in the submarket due to inferior unit finishes.

OPPORTUNITY● PCCP’s operating partner developed the property between 1986 and 1988 and has

owned and operated the property since completion.● The operating partner’s previous equity partner provided capital to renovate 14

units, all of which were immediately leased at market rents, but was unwilling toinvest the capital required to renovate the remaining units and increase the rentsto market, due to fund life issues.

● PCCP is implementing a strategic capital improvement plan to renovate theremaining units, which will raise rents 10% to market level.

OUTCOME● PCCP purchased an ownership stake in the existing property.● The joint venture has begun the capital improvement plan.● PCCP’s operating partner has managed the property since 1986 and has a

sophisticated knowledge of the market and renter profile. As a result, the operatingpartner knows the achievable rents relative to the competitive set and will allowthe joint venture to price rents accurately within the market.

● PCCP’s operating partner subordinated its equity co‐invest (20%) to PCCP’s equityand preferred return.

StatusValue‐addexecution under way

Estimated IRR2

17.7% Gross

Estimated Multiple21.9x Gross

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24

EXISTING FUND TRANSACTION: ALCATEL LUCENT

24THE OPPORTUNITY

OPPORTUNITY:• Off-market build to suit opportunity for credit tenant

PCCP EDGE: • Existing, deep relationship with a PCCP borrower

• Utilize credit skills to mitigate risk in the deal

I10178

25

ALCATEL LUCENT BUILD‐TO‐SUIT (DALLAS, TX)

EXISTING FUND TRANSACTION: ALCATEL LUCENT 1

Property Type OfficeSize 251,347 sfYear Built 2016Location Plano, TXDate Acquired July 2015Equity Commitment $15.7 millionTotal Capitalization $54.1 millionLeverage 70%3

SPONSOR/TENANT LONG‐TERM RELATIONSHIP

OFF‐MARKET LAND ACQUISITION

12‐YEAR LEASEBACK TO CREDIT TENANT OPPORTUNITY

THE OPPORTUNITY

1 The investment examples included herein were chosen to show recent, demonstrative transactions in PCCP’s portfolio. With the following characteristics consistent with the strategy of the Fund: (i) physical repositioning,rehabilitation and redevelopment and (ii) recapitalizing impaired financial structures. It is shown for illustrative purposes only and there can be no assurances that similar deals will be in the Fund’s portfolio. Past performance isno guarantee of future results, and there can be no assurance that an investment offered by the Fund will achieve comparable results to any of the prior performance information contained herein or that targeted returns or othermeasuring standards will be met. Please see important disclosures regarding estimated returns and assumptions regarding leverage in disclaimers and cautionary statements on page 1.


REAL ESTATE● The project will be a four‐story, 251,347 sf Class A office building located in Plano,

TX within the Dallas MSA that will be 100% occupied by Alcatel Lucent as its U.S.headquarters.

● The 18‐acre site is located directly adjacent to Alcatel Lucent’s current office space,which it is vacating and selling in order to consolidate into the project.

OPPORTUNITY● The project came to PCCP off‐market direct from PCCP’s Dallas‐based operating

partner who has a long‐standing relationship with Alcatel Lucent.● Alcatel Lucent has signed a 12‐year lease for the entirety of the project.

Construction on the project commenced in July 2015 immediately after closing onthe land and is expected to be completed in 12 months.

OUTCOME● The project is expected to be built to a 9.0% unlevered return on cost, which is

320bps above the long dated corporate equivalent bond yield. Exit capitalizationrate is underwritten to 7.0%.

● PCCP’s operating partner is also in talks to purchase from Alcatel Lucent its currentoffice space adjacent to the property, which the company will vacate upon takingoccupancy of the new building. PCCP is considering this acquisition, but is notobligated to participate.

StatusPCCP and sponsor closed on the site on July 28th. Construction commenced immediately after closing.

Estimated IRR2

27.6% Gross

Estimated Multiple2

1.6x Gross

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26

PCCP EQUITY VII EXISTING PORTFOLIO

• Focus on balancing income with execution risk in portfolio construction − Execute business plans promptly− Implement credit skills to control and mitigate risk

• 10 transactions closed to date

• $188.3 million deployed− 6 transactions are cash flowing− 8% current gross cash on cash return1

− 6 off-market transactions− 9 transactions with existing PCCP customers2

THE OPPORTUNITY

EQUITY VII REGION BYCLOSED COMMITMENTS

EQUITY VII ASSET TYPE BYCLOSED COMMITMENTS

EQUITY VII RISK MATRIX BYCLOSED COMMITMENTS

Development/Lease Up

6%

Pre-Leased Development

8%

Lease Up

28%

Cash-Flowing

58%

California16%

Mountain17%

Midwest6%

Mideast6%

Southeast47%

Texas8%Multifamily

16%

Office61%

Industrial6%

Retail17%

1 Reflects 2016 projected cash-on-cash return for PCCP Equity VII’s current portfolio of 10 transactions.2 Includes Alameda Center, which is operated by PCCP.

I10178

27

THE PCCP DIFFERENCE

Experienced:

• Established player in the U.S. middle-market for 18 years

Cohesive Team:

• Senior professionals average over 19 years of industry experience and 10 years at PCCP

Credit Focused:

• We see virtually all deals within our target market segment

• Ability to invest across the capital stack, be highly selective on where we place our capital and structure out risk

Relationship Driven:

• Invest with trusted and experienced operating partners

• Serve as a trusted, transparent fiduciary to our global investor base

27CONCLUSIONI10178

28APPENDIX – KEY FUND TERMS

APPENDIX – KEY FUND TERMS

IRVINGTON CENTRE IV: ROCKVILLE, MARYLAND


I10178

29

PCCP EQUITY VII KEY FUND TERMS

1 There can be no assurance that the Fund will achieve such a rate of return or its investment objectives. Fund returns are based on numerous factors, including the pace and duration of investment, fund expenses and management fees. Management fees may vary among Limited Partners for a number of reasons, including first closing incentives. PCCP calculates net returns based on numerous assumptions about all of these factors, including asset level returns, investment pacing and average effective management fees. PCCP’s fund model is available upon request. For information on the calculation of target returns, gross and net numbers, and other important information, see Notes on Performance on pages 13-14. This presentation of key terms of PCCP Equity VII is qualified in its entirety by the final Transaction Documents.

Fund PCCP Equity VII, LP (the “Fund”), a Delaware limited partnership to be organized byPCCP, LLC (“PCCP”), to invest in transitional, middle-market real estate investments in the United States

Fund Structure Closed-end commingled fund

Fund Size $500 million target, $750 million maximum

PCCP Commitment $10 million

Target Returns Leveraged return target of 18%-20% gross IRR / 14%-16% net IRR1

Fund Leverage Maximum 65%

Management Fee 1.5% (fee discounts may be offered at certain commitment levels)Calculated (a) during the Investment Period, on committed capital; and (b) after the Investment Period, on invested capital. Limited partners participating in the Fund’s initial closing will receive a waiver of the Management Fee for the first 6 months following the initial closing.

Carried Interest 20% after a 9% preferred return and return of capital to the limited partners and a 50% general partner catch-up. Fully back-ended

Investment Period 3 years from final closing

Partnership Term 8 years from the initial closing, with two 1-year extensions which may be exercised by the general partner with the consent of the advisory committee

Minimum Capital $5 million per limited partner or such lesser amount as the general partner may acceptin its sole discretion

APPENDIX – KEY FUND TERMSI10178

30

TEAM INFORMATION

APPENDIX – TEAM INFORMATION

THE PAVILIONS AT TALKING STICK: SCOTTSDALE, ARIZONA


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31

TEAM EXPERIENCE

Senior investment professionals (including partners) average over 19 years of industry experience and average 10 years at PCCP.1

APPENDIX – TEAM INFORMATION

1 The above averages are based on a total of 28 senior professionals: 18 investment professionals with titles of Vice President and above and 10 Partners.

PARTNERSExperience

Name Responsibility Industry PCCPBill Lindsay Equity Platform Manager 29 18Bryan Thornton Equity Portfolio Manager 20 17Don Kuemmeler Debt Platform Manager 30 18Brian Heafey Debt Portfolio Manager 26 16Greg Eberhardt Head of Investor Relations 26 16Aaron Giovara Head of Asset Management 24 18Steve Towle Chief Financial Officer 23 10Yon Cho Head of Originations 23 7Jed Lassere Originations 17 14Jim Galovan Originations 13 8

INVESTMENT AND ASSET MANAGEMENT PROFESSIONALSExperience

Name Responsibility Industry PCCPSharon Stribling Vice President - Servicing 32 17Adam Zoger Principal - Debt Asset Management 31 15Phil Russick Principal - Equity Asset Management 30 13Norma Cabrera Vice President - Servicing 30 11Robin Edison Vice President - Servicing 24 1John Randall Managing Director - Originations 23 7Jennifer Diaz Senior Vice President - Equity Asset Management 19 16Carolyn Powell Senior Vice President - Debt Asset Management 17 11Erik Flynn Managing Director - Originations 14 12Kevin Chin Senior Vice President - Originations 14 7Lauren Young Senior Vice President - Equity Asset Management 13 13Shadi Swoish Vice President - Equity Asset Management 13 2James Nearon Senior Vice President - Debt Asset Management 12 12Melanie Gangel Vice President - Equity Asset Management 12 3Ronald Bonneau Senior Vice President - Originations 11 7Bryan Cebula Vice President - Equity Asset Management 11 <1Robert Stofer Vice President - Originations 9 2Michael Hoyt Vice President - Originations 8 8

Average 23 years real estate experience

Average 14 years PCCP experience

Average 17 years real estate experience

Average 8 years PCCP experience

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32

PARTNER BIOGRAPHIES

WILLIAM R. LINDSAYPartner

Los Angeles

DONALD H. KUEMMELERPartner

San Francisco

Mr. Lindsay is a founding partner of PCCP. Mr. Lindsay is responsible for theinvestment and operation of PCCP’s equity investment vehicles. Prior to formingPCCP, Mr. Lindsay was Co‐Head of the real estate department at Gibson, Dunn &Crutcher LLP. From 1986 to 1987, Mr. Lindsay served as a law clerk to Chief JusticeWilliam H. Rehnquist on the U.S. Supreme Court. Mr. Lindsay received his bachelor’sdegree from Dartmouth College. Mr. Lindsay received his J.D. from the Boalt HallSchool of Law at the University of California, Berkeley and is a member of the Boardof Directors of the Center Theatre Group in Los Angeles, California. He is a memberof the Pension Real Estate Association and National Association of Real EstateInvestment Managers. Mr. Lindsay is a member of the editorial board of InstitutionalReal Estate.

Mr. Kuemmeler is a founding partner of PCCP. Mr. Kuemmeler is co‐managingpartner of PCCP as well as its Chief Investment Officer. Mr. Kuemmeler has presidedover the firm’s growth in assets to over $6.5 billion including the absorption of theLehman Brothers Real Estate Mezzanine Partners business in 2008. Prior to formingPCCP in 1998, Mr. Kuemmeler held senior management positions at Wells Fargo Bankin the Real Estate Merchant Banking and Workout Groups. During his 13‐year tenure,Mr. Kuemmeler managed and restructured shared national credits across the U.S. onbehalf of Wells Fargo. Mr. Kuemmeler earned his bachelor’s degree in BusinessAdministration from the University of California, Berkeley and his master’s degree inFinance and Real Estate from the University of California, Berkeley’s Haas School ofBusiness. Mr. Kuemmeler is a member of the Urban Land Institute and InternationalCouncil of Shopping Centers. Mr. Kuemmeler also is a frequent speaker and panelistat professional real estate conferences and investment venues across the country.

APPENDIX – TEAM INFORMATIONI10178

33

PARTNER BIOGRAPHIES

GREG EBERHARDTPartner

Los Angeles

BRYAN THORNTONPartner

San Francisco

Mr. Eberhardt joined PCCP as Partner in 2000. Mr. Eberhardt is responsible foroverseeing investor services, including raising investment capital for PCCP’s debt andequity platforms, and oversight of investor relations. Mr. Eberhardt has oversight ofproject level finance and assists in the development of investment strategy. Prior tojoining PCCP, Mr. Eberhardt was Vice President at Maguire Partners in Los Angeleswhere he was responsible for oversight of project finance for an institutional realestate portfolio comprising 15 million square feet of existing and developmentinvestments. Prior to that, Mr. Eberhardt worked as a Portfolio Manager for MetLifeReal Estate Investments in Los Angeles. Mr. Eberhardt received his bachelor’s degreein Engineering from California State University, Northridge. Mr. Eberhardt received amaster’s degree from the Marshall School of Business at University of SouthernCalifornia.

Mr. Thornton joined PCCP in 1999 and oversees the management of PCCP’s equitybusiness, including the implementation of fund and individual client strategies andportfolio management. Prior to joining PCCP, Mr. Thornton was a Real Estate FinanceOfficer at Nomura, where he was responsible for construction loan origination andbalance sheet asset dispositions. His experience also includes work as an Associatewith Capital Trust, where he underwrote and closed mezzanine investmentopportunities as well as managed distressed loan workout pools including therestructuring of the firm’s equity and mezzanine holdings. Mr. Thornton earned hisbachelor’s degree in Economics from the Wharton School at the University ofPennsylvania. He is a member of the Urban Land Institute, the University ofPennsylvania Swim Team Board and Lambda Alpha International. In connection withUrban Land Institute, Mr. Thornton is the current chairman of the national curriculumfor ULI’s UrbanPlan program which works with high school seniors on the challengesof communities and developing a built environment.


34

PARTNER BIOGRAPHIES

AARON GIOVARAPartner

San Francisco

YON CHOPartner

New York

Mr. Giovara is a founding partner of PCCP and is in charge of the firm’s investmentand portfolio management function. Mr. Giovara focuses on maximizing performanceof the firm’s investment portfolio. Additionally, Mr. Giovara is responsible foroverseeing the day‐to‐day investment and portfolio management of the underlyingassets that comprise Lehman Brothers Real Estate Mezzanine Partners I & II ($1.7billion in assets including senior loans, mezzanine loans, preferred equity positionsand REO assets,) which PCCP acquired in 2009. Since co‐founding the firm in 1998,Mr. Giovara has been a member of the Credit Committee and since 2010 has servedas Chair. Mr. Giovara has led all aspects of underwriting, due diligence, structuringand investment and portfolio management of loans or equity investments inresidential developments, retail centers, hotels, industrial and office buildings. Priorto forming PCCP, Mr. Giovara was a Vice President at Wells Fargo Bank and aPrincipal in the Real Estate Capital Markets Group (formerly called the MerchantBanking Group,) where he was responsible for originating more than $600 million ofhighly leveraged real estate investments. Mr. Giovara received his bachelor’s degreein Real Estate and Finance from the University of California, Berkeley. Mr. Giovara is asenior member of the Guardsmen of San Francisco, which helps at‐risk youth in theSan Francisco Bay area.

Mr. Cho joined PCCP as Partner in December 2009 after serving five years as head ofLehman Brothers Real Estate Mezzanine Partners, Lehman’s real estate private equitymezzanine platform. During the course of a 16‐year career at Lehman, Mr. Cho alsoserved as the Chief Operating Officer for the Global Commercial Real Estate FinanceGroup and was responsible for investment and portfolio management, credit, andreal estate investments, including Asian operations. Mr. Cho has originated in excessof $8 billion of principal investments in commercial real estate in a variety ofdebt/equity structures and distressed debt acquisitions. Mr. Cho has overseen theinvestment and portfolio management of more than $10 billion of real estate debtand equity investments. Prior to joining Lehman Brothers, Mr. Cho was in the RealEstate Consulting Group at Coopers & Lybrand. Mr. Cho received his bachelor’sdegree from the Wharton School at the University of Pennsylvania. Mr. Cho receivedhis master’s degree from New York University Stern School of Business.


35

PARTNER BIOGRAPHIES

BRIAN HEAFEYPartner

San Francisco

STEVE TOWLEPartner

Los Angeles

Mr. Heafey joined PCCP in 2000. Mr. Heafey is responsible for PCCP’s debtorigination platform and serves as the fund manager for its various debt investmentvehicles. Previously, Mr. Heafey was head of investment and portfolio managementfor both PCCP’s equity and debt portfolios and managed PCCP’s joint venture thatoriginated over $3.5 billion of commercial real estate loans. Prior to joining PCCP,Mr. Heafey was a Consulting Manager for E&Y Kenneth Leventhal Real Estate Groupthroughout Asia and the United States. During that time, Mr. Heafey oversaw theacquisition of more than $800 million in secured loans in Japan, served as aconsultant in connection with sales of financial assets for the Financial SectorRestructuring Authority of Thailand, and managed sales of over $1 billion in loans andother financial assets for the Bank of Tokyo, Mitsubishi, and Mitsui Trust. Mr.Heafey’s experience also includes RTC asset dispositions, underwriting CMBSissuances and loan workouts. Mr. Heafey received his bachelor’s degree fromStanford University.

Mr. Towle joined PCCP in 2006. Mr. Towle is Chief Financial Officer and ChiefCompliance Officer and is responsible for corporate finance and strategy, taxstructuring, operations and compliance. Prior to joining PCCP, Mr. Towle was VicePresident of Finance at Lowe Enterprises Investors overseeing the finance andaccounting team and was responsible for corporate and investor reporting for severalequity commingled funds and separate accounts. Prior to that, Mr. Towle was asenior manager in the audit practice of Ernst & Young specializing in real estate andfocused on real estate investment advisors, private equity funds and homebuilding.Mr. Towle received his bachelor’s degree in accounting from the University ofSouthern California.


36

PARTNER BIOGRAPHIES

JED LASSEREPartner

Los Angeles

JIM GALOVANPartner

San Francisco

Mr. Lassere joined PCCP in June 2002 and is a member of the Investment Committee.Mr. Lassere is responsible for the deal origination and asset management in theSouthwestern United States and Hawaii, and has closed more than 89 separatetransactions totaling in excess of $1.7 billion. Prior to joining PCCP, Mr. Lassere was aSenior Consultant in the Real Estate Advisory Practice of Ernst & Young (“E&Y”).While at E&Y, Mr. Lassere specialized in strategy and capital markets engagementswhile working for a wide variety of clients from public REITs to Fortune 500corporations. Mr. Lassere received a B.A. in Business Economics from the Universityof California, Los Angeles.

Mr. Galovan joined PCCP in February of 2008. Mr. Galovan’s primary responsibility isoriginations, with a focus on the Western United States. He has originated over $700million of multi‐family, office, retail, industrial and other investments for PCCP since2008. Mr. Galovan oversees all aspects of sourcing, underwriting, negotiating andconducting due diligence for new investments. Prior to joining PCCP, Mr. Galovanwas a Vice President at Woodside Group, Inc., a national developer of residential realestate. Mr. Galovan was at Woodside for nearly five years, overseeing the landacquisition and entitlement activities for the company in Northern and CentralCalifornia. Mr. Galovan received a B.A. in both History and Business Managementfrom Brigham Young University and an M.B.A. from Harvard Business School.


37

PCCP Contacts

Mr. Gregory EberhardtPartner10100 Santa Monica Boulevard, Suite 1000Los Angeles, CA 90067+1 310 414 [email protected]

Ms. K.C. Boback KriegelVice President444 Madison Avenue, 27th FloorNew York, NY 10022+1 646 308 [email protected]

0

PCCP EQUITY VII PORTFOLIOApril 2016

1

DISCLAIMER AND CAUTIONARY STATEMENTS

This presentation (“Presentation”) contains selected information about PCCP, LLC (“PCCP” or the “Sponsor”)and its affiliates, closed transactions (each as defined herein), and PCCP Equity VII (the “Fund”). Thispresentation has been prepared and is being furnished solely for informational purposes and solely for useby you in preliminary discussions with PCCP. In particular, this presentation is not, and is not intended to be,an offer to sell, or a solicitation of an offer to purchase, any securities or any other interest in PCCP or in anyfund, account or other investment product or assets managed by PCCP or to offer any services. Any suchoffering and sale would be made only on the basis of certain transaction documents and, as the case maybe, a final private placement memorandum and related governing and subscription documents (together,“Transaction Documents”) pertaining to such offering and sale and is qualified in all respects and in itsentirety by any such final Transaction Documents.

The views and statements expressed herein are those solely of PCCP. This presentation contains preliminaryinformation only, is subject to change at any time and is not, and should not be assumed to be, complete orto constitute all the information necessary to adequately make an investment decision. No representation ismade as to the accuracy or completeness of the information set forth herein.

The information contained in this presentation is based in part on past performance and certainassumptions, particularly about future growth. These assumptions have certain inherent limitations, and willbe affected by any changes in the structure, criteria or assets involved in particular transactions. Theassumptions identified in this presentation do not represent all of the assumptions used to try to determinefuture growth. Actual performance may differ, and may differ substantially, from that set forth in thispresentation. No representation is made that the scenarios described herein are accurate or complete or donot contain errors, or that alternative assumptions would not be more appropriate or produce significantlydifferent results. The terms and characteristics of any investment with PCCP or in any fund, account or otherinvestment product or assets managed by PCCP may change based on economic and market conditions.Past performance is no guarantee of future results. PCCP assumes no obligation to update or otherwiserevise any projections, forecasts or estimates contained in this presentation, including any revisions toreflect changes in economic or market conditions or other circumstances arising after the date of thispresentation or to reflect the occurrence of unanticipated events.

This presentation is provided to you on the understanding that, as a sophisticated investor, you willunderstand and accept its inherent limitations, will not rely on it in making any decision to invest with PCCPor in any fund, account or other investment product or assets managed by PCCP and will use it only for thepurpose of preliminary discussions with PCCP. In making any investment decision, you should conduct, andmust rely on, your own investigation and analysis of the data and descriptions set forth in this presentation,including the merits and risks involved.

As will be provided in any applicable Transaction Documents, any investment in PCCP or in any fund,account or other investment product or assets managed by PCCP, is suitable only as an investment for, andwill be offered only to, persons who have, directly or through qualified representatives, the ability toevaluate the merits and risks of any such investment and the ability to assume the economic risks involvedin any such investment. Certain information contained herein constitutes “forward‐looking statements,”which can be identified by use of forward‐looking terminology such as “may,” “will,” “should,” “expect,”“attempt,” “anticipate,” “project,” “estimate,” “intend,” “seek,” “target,” “continue,” or “believe,” or thenegatives thereof or other variations thereon or comparable terminology. Due to the various risks anduncertainties, actual events or results in the actual performance of investments may differ materially fromthose reflected or contemplated in such forward‐looking statements.

The contents of this presentation are not to be construed as legal, regulatory, business, accounting or tax advice.You should consult your own attorney, business advisor, accountant and tax advisor as to legal, regulatory,business, accounting and tax advice.

This presentation is confidential. Any reproduction or distribution of this presentation, in whole or in part, or thedisclosure of the contents hereof, without the prior written consent of PCCP, is prohibited.

By receiving the presentation, you acknowledge and represent to PCCP that you have read, understood andaccept the terms of this presentation and acknowledge and agree that the presentation is confidential, non‐public and/or proprietary information. You hereby agree to return this presentation to PCCP promptly uponrequest.

The distribution of this presentation in certain jurisdictions may be restricted by law. You should inform yourselfas to the legal requirements and tax consequences of an investment within the countries of your citizenship,residence, domicile and place of business.

IMPORTANT NOTE CONCERNING TARGETED AND ESTIMATED RETURNSUnderwritten Gross IRRs for the Closed Transactions included herein are derived by PCCP from analyses basedupon market experience, market expectations and historical averages related to the risk/return profile andgenerally accepted criteria for making investments in the type of anticipated investments. PCCP’s underwrittenreturn estimates are based on the expected cumulative returns generated by a series of real estate investmentsacross a multi‐year investment period. Estimated underwritten returns are also based on certain assumptionsincluding, but not limited to, anticipated hold period, market conditions, default rates, tenant credit stability andturnover, exit strategies and availability and cost of financing. Underwritten returns or other forecasts containedherein are based upon subjective estimates and assumptions about circumstances and events that may not yethave taken place and may never take place. If any of the assumptions used do not prove to be true, results mayvary substantially from the underwritten return. Underwritten returns shown are pre‐tax and represent possiblereturns that may be achieved only for the period of time expressly identified. The Gross IRRs do not reflectvehicle operating expenses, the payment of management fees or incentive compensation to PCCP and itsaffiliates. Accordingly, actual net IRRs to investors may be materially lower than Gross IRRs set forth herein.PCCP makes no guarantee that underwritten returns will be achieved. The actual returns realized by the Fundwill depend on numerous factors, including, without limitation, future operating results, interest rates, the valueof the assets, any related transaction costs and the timing and manner of any such disposition, all of which aresubject to uncertainty.

The Sponsor makes no guarantee that underwritten or estimated returns will be achieved. Underwritten returnestimates should not be construed as providing any assurance as to the results that may be realized in the futurefrom investments. Many factors affect performance including changes in market conditions and interest ratesand changes in response to other economic, political or financial developments. Any targets and estimates arebeing shown for information purposes only and should not be relied upon to make predictions of actual futureperformances. The information underlying any forecasts has been obtained from or is based upon sourcesbelieved to be reliable, but the Sponsor assumes no responsibility for, and makes no representation or warranty,express or implied as to the adequacy, accuracy or completeness of, any such information.


2

IMPORTANT NOTE CONCERNING CLOSED TRANSACTIONSThis Presentation includes selected information about investments that have been closed on the Fund’sbehalf since June 2015 (each, a “Closed Transaction”). The Closed Transactions described herein areprovided for informational purposes only. Although indicative of strategies pursued for current investmentsof the Fund, they are not necessarily indicative of future investments or performance of the Fund. TheClosed Transactions represent only a portion of the Fund’s anticipated portfolio and are not necessarilyindicative of future investments or performance of the Fund. There can be no guarantee similartransactions will be in the Fund’s portfolio. For a list of all transactions closed by PCCP similar to those thatPCCP may pursue on behalf of the Fund see “Appendix B: Detailed Performance of PCCP’S OpportunisticEquity Platform” in the Private Placement Memorandum of the Fund, as amended, restated and/orsupplemented from time to time, which has previously been provided, or may be provided upon request.

DISCLAIMER AND CAUTIONARY STATEMENTS (CONTINUED)


3

REGION BYCLOSED COMMITMENTS

ASSET TYPE BYCLOSED COMMITMENTS

RISK MATRIX BYCLOSED COMMITMENTS

• $334 million in equity commitments as of April 2016. Investors include three large publicpension plans.

• We expect to reach our target fund size of $500 million in June 2016. $750 million hard cap.

• $188.3 million invested in 10 closed transactions.

• Well‐diversified portfolio of seeded investments:

STRONG MOMENTUM AFTER INITIAL CLOSING

OVERVIEW

Development/Lease Up

6%

Pre-Leased Development

8%

Lease Up

28%

Cash-Flowing

58%

California16%

Mountain17%

Midwest6%

Mideast6%

Southeast47%

Texas8%Multifamily

16%

Office61%

Industrial6%

Retail17%

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CONFIDENTIAL

THE CLOSED TRANSACTIONS DESCRIBED HEREIN ARE PROVIDED FOR INFORMATIONAL PURPOSES ONLY. SEE DISCLAIMER AND CAUTIONARY STATEMENTS ON PAGES 1 AND 2, AND ENDNOTES ON PAGE 16 FOR IMPORTANT INFORMATION RELATED TO THESETRANSACTIONS. THERE CAN BE NO ASSURANCE THAT AN INVESTMENT OFFERED BY THE FUND WILL ACHIEVE THE ESTIMATED RETURNS.

PCCP EQUITY VII: PORTFOLIO SUMMARY – April 2016

SUMMARY OF TRANSACTIONS

CLOSED TRANSACTIONS

ASSET NAMEPCCP

COMMITMENTDATE CLOSED

ASSETTYPE MSA OPPORTUNITY

715 Peachtree $30,952,971 Jul‐2015 Office Atlanta, GA Off‐market acquisition and lease up of a vacant 10‐story office building from a 95‐year‐old seller.

Alameda Center $8,695,000 Jul‐2015 Office San Francisco Bay Area, CA

Acquisition of a 155,040 sf office / R&D campus after a failed marketing process; sold by a liquidating fund.

Alcatel Lucent $15,696,600 Jul‐2015 Office Dallas, TX Off‐market Class A corporate headquarters build‐to‐suit with 12‐year net lease.

Gateway East 717 $10,655,417 Aug‐2015 Industrial St. Louis, MO Follow‐on phase 2 off‐market development of a Class A, cross‐docked industrial building totaling 717,060 sf.

Irvington Centre IV $10,203,756 Dec‐2015 Office Baltimore, MD‐Washington, D.C.

Acquisition of a 95% leased, Class A office building totaling 224,258 sf.

Pacific Center $21,891,077 Jun‐2015 Office Orange County, CA Acquisition of a 2‐building office campus from a net lease fund unable to re‐tenant the project upon expiration of leases.

Pavilions at Talking Stick

$34,083,996 Aug‐2015 Retail Phoenix, AZ Off‐market acquisition, in cooperation with the borrower, of a troubled loan on a 1.1 million sf power center from a liquidating corporate seller.

Pineapple Cove $12,353,853 Oct‐2015 Multifamily Port St. Lucie, FL Strategic acquisition and renovation of a Class A multifamily community containing 260 units in a high barrier to entry market.

Rivergate Tower $26,235,000 Aug‐2015 Office Tampa, FL Acquisition of a 515,965 sf Class A office building sold by troubled, liquidating hedge fund.

Water Terrace $17,506,733 Jun‐2015 Multifamily Ft. Lauderdale, FL Recapitalization and renovation of an apartment community sold by a liquidating fund.

GRAND TOTAL $188,274,403

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EQUITY VIICLOSED TRANSACTIONS REPEAT PARTNER DEBT RELATIONSHIP OFF‐MARKET SOURCING

715 Peachtree ✔ ✔

Alameda Center N/A* N/A*

Alcatel Lucent ✔ ✔

Gateway East 717 ✔ ✔

Irvington Centre IV ✔ ✔

Pacific Center ✔

Pavilions at Talking Stick ✔ ✔

Pineapple Cove

Rivergate Tower ✔ ✔

Water Terrace ✔ ✔ ✔

THE CLOSED TRANSACTIONS DESCRIBED HEREIN ARE PROVIDED FOR INFORMATIONAL PURPOSES ONLY. SEE DISCLAIMER AND CAUTIONARY STATEMENTS ON PAGES 1 AND 2, AND ENDNOTES ON PAGE 16 FOR IMPORTANT INFORMATION RELATED TO THESETRANSACTIONS. THERE CAN BE NO ASSURANCE THAT AN INVESTMENT OFFERED BY THE FUND WILL ACHIEVE THE ESTIMATED RETURNS.

THE PCCP PLATFORM – ADDING ALPHA THROUGH RELATIONSHIPS

SOURCING

* PCCP acquired the property without a sponsor.

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715 PEACHTREE (ATLANTA, GA)

REAL ESTATE● 10‐story, Class B office building with data center and retail space located in the

Midtown submarket of Atlanta, GA. In addition to traditional office space, thebuilding currently contains roughly 20,000 sf of raised floor data center space, and8,500 sf of ground floor retail.

● The building has been 100% vacant for nearly four years after the single tenantconsolidated its operations elsewhere and the seller mismanaged the re‐tenanting.

OPPORTUNITY● PCCP acquired the asset off market from an out of market HNW investor who had

owned the building for 25 years.● PCCP’s operating partner is a 55‐year‐old, full‐service real estate company

headquartered in Atlanta with extensive local knowledge and a national reach.● Capitalizing on the quickly tightening Atlanta office market fueled by strong job

growth each of the last three years and limited supply either underway or in thepipeline, PCCP plans to invest $4.0 million for capital improvements and $21.4million in leasing costs to bring the property back to full occupancy.

OUTCOME● The releasing effort will target high‐quality, large block office users and ground

floor retail.● To date LOI’s have been signed with office tenants representing 13% of the

building.● The exterior and interior common areas are under renovation with scheduled

completion in June 2016.


Estimated IRR1

17.3% Gross

Estimated Multiple1

1.8x Gross

CLOSED TRANSACTION

CLOSED TRANSACTION

Property Type OfficeSize 318,368 sfYear Built 1972Location Atlanta, GADate Acquired July 2015Equity Commitment $31.0 millionTotal Capitalization $64.3 millionLeverage 63%

UNDERCAPITALIZED VACANT BUILDING

SUBMARKET MOMENTUM

OFF‐MARKET ACQUISITION OPPORTUNITY

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, AND THERE CAN BE NO ASSURANCE THAT AN INVESTMENT OFFERED BY THE FUND WILL ACHIEVE COMPARABLE RESULTS TO ANY OF THE PRIOR PERFORMANCE INFORMATION CONTAINEDHEREIN OR THAT TARGETED RETURNS OR OTHER MEASURING STANDARDS, WHICH PCCP BELIEVES TO BE REASONABLE AND SOUND UNDER THE CIRCUMSTANCES, WILL BE MET. PLEASE SEE IMPORTANT DISCLOSURES REGARDING ESTIMATED IRRS ANDASSUMPTIONS REGARDING LEVERAGE IN “NOTES TO EQUITY VII TRANSACTIONS” ON PAGE 16.

1 See note 2 in Notes to Equity VII Transactions on page 16.

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ALAMEDA CENTER (SAN FRANCISCO BAY AREA, CA)

REAL ESTATE● Two, two‐story office buildings and two, one‐story office/R&D buildings totaling

155,040 sf in Alameda, CA within the San Francisco Bay Area. The buildings arecurrently 89% occupied by 11 tenants representing a variety of industries includingarchitecture, biomedicine, document solutions, and executive recruiting.

● The property sits on 8.2 acres of land on the island of Alameda less than one milefrom Downtown Oakland and proximate to Interstate 880. Direct tunnel connectionto downtown Oakland is located on either side of the property.

OPPORTUNITY● The seller lost the entirety of its equity value in the property during the downturn,

de‐incentivizing ownership to invest additional capital. The seller also damaged itsrelationship with tenant representation brokers due to a difficult transactionprocess and prevention of broker involvement in lease renewals.

● During the sales process a major tenant announced it would vacate the property atlease expiration. The subsequent re‐marketing was both poorly executed andhastily performed. PCCP’s existing relationship with the seller allowed PCCP toposition itself as a credible buyer late in the process.

● PCCP will provide fresh capital to reintroduce the property to the market and to thebrokerage community while benefitting from healthy, strong in‐place cash flow.

● The property is very well positioned within the submarket due to its proximity tothe recently opened Alameda Landing retail center, a new Class A grocery anchoredretail center.


Estimated IRR1

19.0% Gross


CLOSED TRANSACTION

CLOSED TRANSACTION

Property Type OfficeSize 155,040 sfYear Built 1990‐1998Location Alameda, CADate Acquired July 2015Equity Commitment $8.7 millionTotal Capitalization $24.6 millionLeverage 65%

INEFFICIENTMARKETING PROCESS

FINANCIALLY DISTRESSED OWNER


OPPORTUNITY



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ALCATEL LUCENT BUILD‐TO‐SUIT (DALLAS, TX)

REAL ESTATE● The project will be a four‐story, 251,347 sf Class A office building located in Plano,

TX within the Dallas MSA that will be 100% occupied by Alcatel Lucent as its U.S.headquarters.

● The 18‐acre site is located directly adjacent to Alcatel Lucent’s current office space,which it is vacating and selling in order to consolidate into the project.

OPPORTUNITY● The project came to PCCP off‐market direct from PCCP’s Dallas‐based operating

partner who has a long‐standing relationship with Alcatel Lucent.● Alcatel Lucent has signed a 12‐year lease for the entirety of the project.

Construction on the project commenced in July 2015 immediately after closing onthe land and is expected to be completed in 12 months.

OUTCOME● The project is expected to be built to a 9.0% unlevered return on cost, which is

320bps above the long dated corporate equivalent bond yield. Exit capitalizationrate is underwritten to 7.0%.

● PCCP’s operating partner is also in talks to purchase from Alcatel Lucent its currentoffice space adjacent to the property, which the company will vacate upon takingoccupancy of the new building. PCCP is considering this acquisition, but is notobligated to participate.

StatusPCCP and sponsor closed on the site on July 28th. Construction commenced immediately after closing.

Estimated IRR2

27.6% Gross

Estimated Multiple2

1.6x Gross

CLOSED TRANSACTION

CLOSED TRANSACTION

Property Type OfficeSize 251,347 sfYear Built 2016Location Plano, TXDate Acquired July 2015Equity Commitment $15.7 millionTotal Capitalization $54.1 millionLeverage 70%1

SPONSOR/TENANT LONG‐TERM RELATIONSHIP

OFF‐MARKET LAND ACQUISITION

12‐YEAR LEASEBACK TO CREDIT TENANT OPPORTUNITY

1 The Fund’s leverage limitation is tested on a portfolio-wide basis and therefore, leverage on a particular asset may exceed 65% so long as the portfolio-wide leverage of the Fund is less than 65%.2 See note 2 in Notes to Equity VII Transactions on page 16.


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GATEWAY EAST 717 (ST. LOUIS, MO)

REAL ESTATE● Speculative development of a 717,060 sf cross‐docked, 36’ clear height, distribution

warehouse with ample car and trailer parking on 55 acres of land in Edwardsville, ILwithin the St. Louis metro industrial market.

● The site is an A location within a 100% leased, highly institutional industrial park interms of amenities (truck maintenance facilities), ownership (USAA, JP Morgan,Exeter, Clarion, and First Industrial) and tenancy (Proctor & Gamble, Unilever,Hershey, and Dial Corp). The industrial park, Gateway Commerce Center, is the topmodern bulk industrial park in the 236.9 million sf St. Louis industrial market.

OPPORTUNITY● The investment opportunity was presented to PCCP directly by TriStar

Development, an existing PCCP relationship and local St. Louis based developer.● PCCP and TriStar recently completed the development of a comparable big box

distribution facility that pre‐leased during development. It was sold at completionof construction to JP Morgan well above pro forma sales execution.

● PCCP has elected to continue development within the subject industrial park due tothe success of the previous development as well as a continuing market supply anddemand dynamic that is very supportive of speculative development.

● Only one other project has been announced within the subject submarket and theproperty benefits from both an earlier timing of delivery and a superior location.The subject submarket is 3.2% vacant; modern bulk product has no vacancy.

● The project is underwritten to achieve an 8.0% return on cost and a sale shortlyafter stabilization at a 6.75% exit cap rate, a 125 bps spread on stabilized return oncost and competitive spread for institutional quality distribution product.

StatusPCCP and sponsor closed on August4th. Construction commenced immediately after closing.

Estimated IRR1

17.4% Gross

Estimated Multiple1

1.5x Gross

CLOSED TRANSACTION

CLOSED TRANSACTION

Property Type IndustrialSize 717,060 sfYear Built 2015Location Edwardsville, ILDate Acquired August 2015Equity Commitment $10.7 millionTotal Capitalization $29.8 millionLeverage 60%

HISTORICALLY LOW INDUSTRIAL MARKET

VACANCY RATE

100% LEASED INSTITUTIONAL QUALITY INDUSTRIAL PARK

REPEAT BUSINESS WITH DEVELOPER PARTNER IN

SUBJECT LOCATIONOPPORTUNITY



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IRVINGTON CENTRE IV (BALTIMORE, MD‐WASHINGTON, D.C.)

REAL ESTATE● A 95% leased, vintage 2007 Class A office building consisting of 224,258 SF located

in the King Farm community of Rockville, Maryland.● The property is located ¼ mile from I‐270, and is a five‐minute drive to Metrorail’s

heavily‐traveled Shady Grove Station. The property is walking distance tonumerous amenities, including King Farm Shopping Center.

OPPORTUNITY● The property was owned by a prominent pension fund and the sponsor as a core

investment since construction completion in 2007. The institutional investor issueda buy/sell notice on this asset and others in a portfolio. The buy/sell price for thisasset set the going‐in yield at approximately 8.7% when the market trades at closerto 7.0% or less.

● The property is the newest vintage of a four building portfolio and maintains thehighest occupancy/highest quality tenants.

● The acquisition price of $272 PSF represents a substantial discount (30%+) toreplacement cost and recent trades within Montgomery County.

● The business plan is to hold the property until all recently signed tenants move inand all free rent periods have burned off, then potentially sell the asset.

OUTCOME● Shortly after closing, the joint venture closed on a 70% LTC senior loan with BBVA

priced at L+2.05%. PCCP provided $44.5 million of bridge equity to facilitate a 10‐day closing. After financing, the cash on cash return to the equity is approximately15%.

StatusPCCP and sponsor closed on December21st.

Estimated IRR2

27.7% Gross

Estimated Multiple2

1.6x Gross

CLOSED TRANSACTION

CLOSED TRANSACTION

Property Type OfficeSize 224,258 SFYear Built 2007Location Rockville, MDDate Acquired December 2015Equity Commitment $10.2 million3

Total Capitalization $63.4 millionLeverage 70%1

95% LEASED CLASS A OFFICE PROPERTY FAVORABLE BUY/SELL EXPERIENCED SPONSOR OPPORTUNITYEXPEDITED CLOSING


1 The Fund’s leverage limitation is tested on a portfolio-wide basis and therefore, leverage on a particular asset may exceed 65% so long as the portfolio-wide leverage of the Fund is less than 65%.2 See note 2 in Notes to Equity VII Transactions on page 16. 3 Total Equity Commitment is $16,987,417, which is comprised of Equity VII and a co-investor.

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PACIFIC CENTER (ORANGE COUNTY, CA)

REAL ESTATE● Two Class B office buildings located in the Airport submarket of Orange County on a

24‐acre site.● Shortly after acquisition the buildings will become 100% vacant after a corporate

headquarters tenant relocates to higher cost space as part of a corporateleadership change.

● The buildings are well located in the Airport submarket, provide an above‐marketparking ratio, and offer large efficient floor plates desired by large tenants.

OPPORTUNITY● PCCP acquired the asset from a triple net owner that lacked the management

expertise and financial capacity to re‐tenant the asset.● The asset has been 100% occupied since construction and the joint venture has the

opportunity to improve the asset and reintroduce it to the market.● PCCP plans to implement a capital improvement and leasing plan, with a basis low

enough to undercut the competition to “buy occupancy” during lease‐up.● With limited availabilities of this size in the competitive set and a sub‐market

vacancy of 10%, the property is well‐positioned to take advantage of continuedimproving market fundamentals in Orange County.

OUTCOME● Several potential tenants have already toured the building and leasing brokers

report several additional prospects are in the market.● The joint venture started the capital improvement plan in the fall and is on

schedule for completion in early 2016.


Estimated IRR2

20.8% Gross


CLOSED TRANSACTION

CLOSED TRANSACTION

Property Type OfficeSize 392,879 sfYear Built 1992 / 1998Location Santa Ana, CADate Acquired June 2015Equity Commitment $21.9 millionTotal Capitalization $77.2 millionLeverage 70%1

VACANT BUT EFFICIENT BUILDING



OPPORTUNITY



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PAVILIONS AT TALKING STICK (PHOENIX, AZ)

REAL ESTATE● The property is a 1.1 million sf power retail center located in Scottsdale, AZ.● The property was constructed in 1989 and is currently 91% occupied with major

tenants including Target, Home Depot, Toys R Us, Ross and PetCo.● The property is located along the 101 freeway at the Indian Bend off‐ramp. The

property is adjacent to the Salt River Fields (Spring Training and event facility—500,000+ attendees per year) and is close to the Talking Stick resort and casino.

OPPORTUNITY● PCCP originally underwrote the debt when the sponsor and their previous equity

partner looked to refinance the high leverage existing loan via a DPO. Thesponsor’s previous equity partner sought a heavily discounted loan purchase price,which the lender refused, leading the prior equity partner to seek an exit.

● Equity VII leveraged its existing relationship with the sponsor and stepped in astheir equity partner.

● Equity VII purchased the existing $106 million loan for $90 million all cash, boughtout the previous equity partner and procured a new market‐rate senior loan.

OUTCOME● The business plan is to recapitalize the asset, lease the current vacancy, lease and

build out 14 new pad sites, and renew or re‐lease occupied space at market rentalrates increasing the return on cost from 5.7% in‐place to 9.0% over five years.

● PCCP views this as an opportunity to take advantage of an off‐market opportunityinvolving a defunct lender, broken note recapitalization process, and distressedequity partners to recapitalize the asset with the existing sponsor who is a localretail expert and existing PCCP sponsor.

StatusLeasing and pad development business plan to add value is underway.

Estimated IRR2

21.0% Gross

Estimated Multiple2

2.4x Gross

CLOSED TRANSACTION

CLOSED TRANSACTION

Property Type RetailSize 1.1 million sfYear Built 1989Location Scottsdale, AZDate Acquired August 2015Equity Commitment $34.1 millionTotal Capitalization $96.5 millionLeverage 70%1

PCCP/SPONSOR LONG‐TERM RELATIONSHIP

UNDERWROTE DEBT FOR REFINANCE DISTRESSED SITUATION OPPORTUNITY



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PINEAPPLE COVE (PORT ST. LUCIE, FL)

REAL ESTATE● A 97% leased Class A, garden style multifamily community containing 260 units

located in Jensen Beach, Florida, approximately 45 miles north of West Palm Beach.● The property is located in an in‐fill location within Martin County and benefits from

a strong school system and proximity to numerous retail amenities.

OPPORTUNITY● The property was owned and well maintained by an institutional investor since

construction completion in 2005 in a separate account vehicle. The vehicle has a10‐year investment horizon that expires in late 2015 which motivated the sale.

● The property is the newest asset in a high barrier to entry market with strongdemographics, sub 3% vacancy and no new construction underway.

● The acquisition price represents a substantial discount to replacement cost andrecent trades within South Florida.

● The business plan is to increase rents to market levels by making both interior andexterior renovations over a three‐year period.

● Cash‐on‐cash return projected to average 12.2% during 5‐year hold, withapproximately 50% of the venture’s projected returns anticipated from cash flow.

OUTCOME● Shortly after closing, the joint venture commenced planned exterior renovations to

common areas including clubhouse, fitness center, pool, new landscaping anddeferred maintenance repairs.

● The joint venture also intends to renovate approximately eight units each monthand complete all renovations within approximately three years of purchasing theproperty.

StatusPCCP and sponsor closed on October9th.

Estimated IRR2

17.7% Gross

Estimated Multiple2

1.9x Gross

CLOSED TRANSACTION

CLOSED TRANSACTION

Property Type MultifamilySize 260 UnitsYear Built 2005Location Jensen Beach, FLDate Acquired October 2015Equity Commitment $12.4 millionTotal Capitalization $41.3 millionLeverage 67%1

MOTIVATED SELLER UNWILLING TO FUND REHAB

ADD VALUE THROUGHRENOVATION OF UNITS

REPOSITIONIN THE MARKET OPPORTUNITY



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RIVERGATE TOWER (TAMPA, FL)

REAL ESTATE● An iconic 77% leased, 31‐story Class A office tower located in the heart of the

revitalized River Arts District in downtown Tampa, Florida.● Unique circular floorplates offering expansive views overlooking the Hillsborough

River and the Tampa skyline.

OPPORTUNITY● The property is being acquired from a distressed seller for less than 50% of

replacement cost and benefits from strong, stable in‐place cash flow with anaverage cash on cash return of 9.4% during the first two years, prior toamortization commencing under the loan.

● In‐place rents at the property are roughly 15% below market as the two previousowners were reluctant to invest additional capital and offer market rate tenantimprovement packages.

● Tampa is experiencing a late cycle recovery with vacancies approaching a historiclow and rents at a historic high attributable to the MSA’s low cost of doingbusiness, well‐educated workforce, low unemployment and high‐quality of life.Class A vacancy in the CBD submarket has dropped almost 9% since the peak to itscurrent level of 10%, presenting the opportunity to lease the subject property tomarket levels.

● PCCP’s operating partner owned the property during the last cycle and has anintimate understanding of the property’s strengths and historic challenges.

OUTCOME● The joint venture has initiated some minor renovations and is in the process of

finalizing the design and cost of many of the major capital improvement items,which are scheduled to begin early next year.

StatusPCCP and sponsor closed on August 6th.

Estimated IRR1

20.9% Gross

Estimated Multiple1

2.3x Gross

CLOSED TRANSACTION

CLOSED TRANSACTION

Property Type OfficeSize 515,965 sfYear Built 1988Location Tampa, FLDate Acquired August 2015Equity Commitment $26.2 millionTotal Capitalization $87.7 millionLeverage 65%

UNDER‐PERFORMING OFFICE ASSET

POSITIVE MARKET MOMENTUM

EXPERIENCED REPEAT PARTNER OPPORTUNITY



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UNDER‐PERFORMING MULTIFAMILY ASSET



OPPORTUNITY

WATER TERRACE (FORT LAUDERDALE, FL)

Property Type MultifamilySize 438 unitsYear Built 1986‐1988Location Sunrise, FLDate Acquired June 2015Equity Commitment $17.5 millionTotal Capitalization $71.8 millionLeverage 69%1

REAL ESTATE● A 98% leased Class B, garden style multifamily community containing 438 units

located in the Sunrise submarket of Ft. Lauderdale, Florida.● At acquisition, rents at the property were 10% lower than rents at comparable

properties in the submarket due to inferior unit finishes.

OPPORTUNITY● PCCP’s operating partner developed the property between 1986 and 1988 and has

owned and operated the property since completion.● The operating partner’s previous equity partner provided capital to renovate 14

units, all of which were immediately leased at market rents, but was unwilling toinvest the capital required to renovate the remaining units and increase the rentsto market, due to fund life issues.

● PCCP is implementing a strategic capital improvement plan to renovate theremaining units, which will raise rents 10% to market level.

OUTCOME● PCCP purchased an ownership stake in the existing property.● The joint venture has begun the capital improvement plan.● PCCP’s operating partner has managed the property since 1986 and has a

sophisticated knowledge of the market and renter profile. As a result, the operatingpartner knows the achievable rents relative to the competitive set and will allowthe joint venture to price rents accurately within the market.

● PCCP’s operating partner subordinated its equity co‐invest (20%) to PCCP’s equityand preferred return.


Estimated IRR2

17.7% Gross


CLOSED TRANSACTION



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NOTES TO EQUITY VII TRANSACTIONS

NOTES TO EQUITY VII TRANSACTIONS

(1) The transaction summaries provided in the Presentation are investments that have been closed on the Fund’s behalf since June 2015 (each, a “Closed Transaction”). The transactions described herein are provided forinformational purposes only. Although indicative of strategies pursued for current investments of the Fund, they are not necessarily indicative of future investments or performance of the Fund. The Closed Transactionsrepresent only a portion of the Fund’s anticipated portfolio and are not necessarily indicative of future investments or performance of the Fund. Actual returns of the Fund’s investments may differ substantially fromunderwritten returns. Estimated Gross IRRs and Estimated Gross multiples for the Closed Transactions are based on negotiated terms that are subject to change and may not be achieved. The financing for the ClosedTransactions may not be secured. The Fund will bear fees and expenses that will substantially reduce returns to investors. Cash flows for Closed Transactions are based on assumptions deemed reasonable by PCCP and asdescribed in note 2 below.

(2) The estimated equity return calculations are based on historical and future estimated cash flows from inception through the applicable dates of estimated resolution. The estimated IRRs reflected are derived using an annuallycompounded IRR formula. These estimates, and the other estimates herein, including estimates of future market conditions were made as of the date of the investments’ final acquisition underwriting and are made by PCCP ingood faith pursuant to its valuation policies and procedures. The Gross returns do not reflect the payment of other expenses, management fees or incentive compensation to PCCP and its affiliates. While Gross returns forunrealized transactions use estimated cashflows, cashflows are based on assumptions believed to be sound and reasonable by PCCP, including, but not limited to, anticipated hold period, market conditions, default rates, tenantcredit stability and turnover, exit strategies and availability and cost of financing, and generally accepted criteria for making investments in the type of anticipated investments. Such assumptions may not be realized, causingactual returns to be materially lower than those estimated. Actual returns will depend on, among other factors, future operating results, the value of the assets and the market conditions at the time of repayment or otherdisposition, any related transaction costs and the timing and manner of disposition, all of which are inherently uncertain and may differ materially from the assumptions and circumstances on which the valuations used in theprior performance data contained herein are based.

(3) For a list of all transactions closed by PCCP similar to those that PCCP may pursue on behalf of the Fund, see “Appendix B: Detailed Performance of PCCP’s Opportunistic Equity Platform” in the Private PlacementMemorandum of the Fund, as amended, restated and / or supplemented from time to time, which has previously been provided, or may be provided upon request.

(4) PCCP intends to use leverage on a secured or unsecured basis in connection with the acquisition and financing of the Fund’s investments (“Investment Financing”). The Fund’s leverage limitation is tested on a portfolio‐widebasis and therefore, leverage on a particular asset may exceed 65% so long as the portfolio‐wide leverage of the Fund is less than 65%. The Fund shall not incur leverage through Investment Financing (excluding Credit Facilityborrowings) to the extent such incurrence would cause the aggregate Fund indebtedness to exceed 65%, on a portfolio‐wide basis, of the greater of (a) the aggregate cost of all investments plus the sum of any cash reservesspecifically identified to the Partners at the time of acquisition of the investments and (b) the fair value of an investment as determined in the reasonable discretion of PCCP. For purposes of the foregoing restriction, until theFinal Closing Date, the aggregate Capital Commitments of the Fund will be assumed to be the greater of (x) $500,000,000 and (y) the actual amount of the aggregate Capital Commitments of the Fund.

I10174

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