Strategy

• The type of Consumer Debt Portfolios purchased by the Services Company on behalf of the Strategy will be strategically determined according to price, quantity, governing law and the core competencies of the recovery partners (e.g., collection law firms and collection agencies).

• Such Consumer Debt Portfolios may include, but are not limited to, consumer credit card accounts, consumer loans, auto loans, retail credit cards and general lines of credit or instalment loans.

• By diversifying across multiple types of Consumer Debt Portfolios and geographies within the United States, the Advisor believes that exposure to investment volatility and risk should be reduced.

• In its search for consumer debt at attractive prices, the manager will, on occasions, enter into purchase and sale relationships with companies that are in a position to sell or secure consumer debt. Purchase and sale relationships that extend over a period of time are generally referred to as “forward flow” arrangements and constitute an agreement to purchase or sell consumer debt with specific attributes at a specific time(s) on either a one-off or recurring basis.

• Returns generated from the return of capital on files collected will be utilised for a number of factors:

         – It will be factored into the NAV of the fund.

         – To satisfy some potential liquidity, the fund will hold certain amounts of cash and may

        generate an additional return via the holding of liquid, money market-like instruments.

         – It may be further re-invested in ongoing forward flow agreements, in order to amplify th

        potential returns for the fund’s investors and make the most efficient use of cash available.