Footnotes

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Disclaimer

Investing in Tri-Party Venture Funds®, Hedges Funds, Private BDCs, or any other Funds, SPVs or Side-pocket Direct investments, sponsored by Capital Q Ventures Inc. and/or its affiliates (the “Funds” or “Investments”) involves risk, including the risk that an investor may receive little or no return on their investment or that an investor may lose part or all of their investment. Some Funds are subject to interest rate risk and will decline in value as interest rates rise. Certain Funds may engage in leveraging and other speculative investment practices that may increase the risk of loss of investment and/or accelerate the velocity of potential losses. In addition to the normal risks associated with investing, in certain international and emerging markets, the Funds may invest in, may involve risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, or from social, economic, or political instability in other nations. Certain Funds may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses. Certain SPVs and Side-pocket investment may invest in what would be considered startups, early-stage, and new and emerging companies which involve a high degree of uncertainty and failure rate which may magnify the risk of potential losses on such investments, and the investors into such SPVs and Side-pocket investments should consider all aspects of such Investments including their ability to sustain total loses of their invested capital.
Past performance is not indicative of future results. There is no assurance that the Investments or the investment process will consistently lead to successful investing. Diversification does not eliminate the risk of experiencing investment losses.

BDC Net Asset Value (“NAV”):

The BDC Net Asset Value (“NAV”) will be determined as is required by the BDC Management Agreement or as may be determined by the BDC Manager, but in any case, no less than Quarterly. Each Stockholder’s share of the BDC Net Asset Value is determined by multiplying the total value of the BDC’s investments and other assets less any liabilities, by the Stockholder’s Allocation Percentage. (See BDC PPM “Valuation of Investments.”)BDC Net asset value (NAV) represents a fund’s per-share intrinsic value. It is similar in some ways to the book value of a company. NAV is calculated by dividing the total value of all the cash and securities in a fund’s portfolio, minus any liabilities, by the number of outstanding shares.

DEFINITIONS

Alpha measures excess return relative to expected returns based on the fund’s degree of beta. A positive alpha indicates the portfolio is earning excess returns. A negative alpha indicates the portfolio is lagging in returns.

Beta is a measure of an asset’s or a portfolio’s volatility in comparison to a benchmark or the market as a whole, reflecting the tendency of returns to respond to market swings.

Correlation & non-correlated is a statistical measure of the extent to which two securities move in relation to each other, often expressed via a coefficient ranging from +1 to -1.

Equity hedge is represented by the HFRI Equity Hedge (Total) Index and includes funds in which the investment managers maintain positions both long and short in primarily equity and equity derivative securities.

Event-driven is represented by the HFRI Event Driven (Total) Index and includes funds in which the investment managers maintain positions in companies currently or prospectively involved in corporate transactions of a wide variety including, but not limited to, mergers, restructurings, financial distress, tender offers, shareholder buybacks, debt exchanges, security issuance and other capital structure adjustments.

Global macro is represented by the HFRI Macro (Total) Index and includes funds in which the investment managers trade a broad range of strategies in which the investment process is predicated on movements in underlying economic variables and the impact these have on equity, fixed income, hard currency and commodity markets. is designed to track the performance of U.S. dollar-denominated below investment grade corporate debt publicly issued in the U.S. domestic market.

The inception date refers to the date when Capital Q Management LLC officially initiated asset management within a legal entity, at an inception Net Asset Value (NAV) of $1,000 per share/unit for benchmark reporting purposes. Regardless of whether the legal entity had been offered privately or publicly to potential investors.

Multi-strategy blend represents equal weights of the HFRI Equity Hedge (Total) Index, the HFRI Macro (Total) Index, the HFRI Relative Value (Total) Index, and the HFRI Event-Driven (Total) Index.

Relative value is represented by the HFRI Relative Value (Total) Index and includes funds in which the investment managers maintain positions in which the investment thesis is predicated on the realization of a valuation discrepancy in the relationship between multiple securities.

Standard deviation is a statistical measure of the dispersion of an asset’s rate of return relative to its mean and is typically used to assess its historical volatility.

S&P 500 is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies by market value.

  1. Bloomberg, as of December 31, 2020. Performance data quoted represents past performance and is no guarantee of future results and is for illustrative purposes only.
  2. Past performance is not indicative of future results. Wilshire Compass, DALBAR’s 2019 Annual Quantitative Analysis of Investor Behavior Report (“DALBAR Report”) and the Wilshire Trust Universe Comparison Services® (“Wilshire TUCS®”). Individual investors are calculated as 60% average equity fund investor and 40% average fixed-income investor. Data for average equity fund investor and average fixed-income fund investor are from the DALBAR Report. Data for an average institutional investor is from Wilshire TUCS®, defined as the median total return, gross of fees, of master trusts—all plans.
  3. Bloomberg, as of December 31, 2020.
  4. All Comparisons Based on common LP Investors, without fee waivers and concessions.
  5. Data as of December 31, 2020. Based on Class I shares. Standard deviation is a statistical measure of the dispersion of an asset’s rate of return relative to its mean and is typically used to assess its historical volatility.
  6. The total annual fund operating expenses ratios per the Fund Prospectus and calculations are a percentage of average net assets.
  7. The total annual fund operating expenses after expense reductions, excluding dividend and interest expenses and total operating expenses (after expense reduction) ratios, are a percentage of average net assets for the year ended December 31, 2019, and are based on the expense limitation for such period. The expense limitation may be different in future years. The Adviser has entered into an expense limitation agreement with the Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Fund, if necessary, in an amount that limits ordinary operating expenses (exclusive of management fees, distribution or servicing fees, interest, taxes, brokerage fees and commissions, dividends and interest paid on short positions, acquired fund fees and expenses and extraordinary expenses (as determined in the sole discretion of the Adviser)) to not more than 0.25% of the average daily net assets for the Fund at least until April 30, 2021. The Fund may terminate the expense limitation agreement at any time. The expense limitation agreement permits the Adviser to recoup waived or reimbursed amounts within the three-year period from the date of the waiver after the Adviser bears the expense, provided total expenses, including such recoupment, do not exceed the annual expense limit in effect at the time of such waiver/reimbursement or recoupment.
  8. The total annual fund operating expenses after expense reductions, excluding dividend and interest expenses ratio, does not include dividend expense on short sales of 0.19% and interest, commitment fees and other borrowing costs of 0.28%.
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