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GPE - Services for Hedge Fund Administrators &

Middle Offices

September 23, 2009

Globalprivatequity.com, Inc.

Independent Fair Value Services www.gpe-inc.com

Transparency, Transaction & Price Discovery Services www.assetaccess.net

http://www.gpe-inc.com/

http://www.assetaccess.net/

2Globalprivatequity.com, Inc. All Rights Reserved 2006-

2009

GPE Overview – Who We Are‘GPE’ (Globalprivatequity.com, Inc. ) is a financial data services and technology company offering on-demand fair value pricing and data solutions for structured and illiquid fixed income assets to quality-concerned professional Level 2 data users.

GPE’s Independent Fair Value Services (iFVS®) provide automated asset price valuation support for asset-backed securities (ABS), mortgage-backed securities (MBS), loans, corporate debt, distressed debt, and all structured credit products.

GPE uses modeling techniques and algorithms running through our core proprietary technology Financial Business Intelligent System (FBIS™) server network to create evaluated pricing of illiquid assets.

GPE provides custom auction and multi-lateral counterparty liquidity and transparency solutions for illiquid and structured fixed income assets via our patented AssetAccess™ trading platform.


2009

What We Offer

Level 2 Pricing for All Major Exempt or Unlisted Asset groups Single proprietary model to single Level 2 price delivered Computed on the date reported

Data Aggregation Services: Level 1 data exchange for faster referencing of traded prices marketwide, daily via investor data collaboration anonymously on WWW interface

Bid to Offer Discovery Tool Using ‘Dark pool’ Technology (more later)

Independent Reporting without Conflict of Interest — we own no assets, nor rate assets, nor make markets in any assets


2009

HFA Data Partner Needs

Automated Data sources: Level 2 valuations of client assets Level 1 sourcing via aggregating ‘data bank’

Reporting — input and output data Compliance — firm-based as well as industry-based Flexible Platform — easily integrated Speed and Consistency — of analytic services Archive and Retrieval — of all relevant data

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GPE Distribution Strategy:Partnering with HFA & Client Users

Strategy: Partnering with current data users of Level 2 prices to deliver “premium”, non-matrixed iFVS® timely, independent and accurate valuations with supporting model transparency to customers

This means IP protected & licensed exempt securities data and independent valuations developed on a subscription basis for: Hedge Fund Administrators Asset Managers Pension Trustees Custodians


2009

Value Proposition

GPE’s software based data and transparency solution deliver post trade Level 2 data and in 12 to 14 months, on demand in transaction U/Is to meet needs of a broad array of global financial institutions and markets – led by unlisted & alternative products

Synthetic price data alone does not support a fair value data franchise – tracking illiquid Level 1 & sister asset prices

Other services include – Level 1 aggregation, Bid-offer discovery, & full model support and documentation vis a vis CPA and regulator or investor constituency needs


2009

Value Proposition (2)

Target user audience seeks independent, quality based and cost effective fair valuation of assets & liabilities as means of mitigating market risk, investor relations /compliance risk, and positively impacting overall business & profitability risks

Data conveniently delivered and accessed for all user environments whether exchange based or ‘upstairs’ office based and leveraging latest IT and distributed computing elements – all with automated archiving & on-demand retrieval as well as valuation model documentation to investor, regulator and CPA constituencies.

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What’s Available Today

iFVS® Level 2 data via subscription monthly or weekly for the following categories:

CLOs and distressed debt & loans CMBS & RMBS CRE MBS & RE whole loans

Also, Level 2 data in; CDS & selected bespoke derivatives and options Total return swaps & equity linked notes or notes with embedded Performance features

Delivered as individually calculated on our FBIS™ servers without extrapolation or shortcuts or estimating techniques known as ‘matrix pricing’ engaged in by all major Level 2 data sellers.

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Phasing of Product Delivery & Supporting Architecture

Phase 1 (3 to 6 mos.)

Phase 2(10 to 12 mos.)

Phase 3(14 to 18 mos.)

Automated Pricing Delivery-Single Asset - CLOs.- and Single API-Request Response Service

Fully Automated Analytics-Add Analytics Engines-Add Push Service

Complete Solution-Add Data Warehouse-Add GUI Interface


2009

Competition

The largest financial data vendors today cannot offer the highest quality and integrity Level 2 valuation solutions either on-demand or via audited workflow of algorithms & observable inputs. Failure of legacy data providers to invest in advanced

systems, high throughput networks, & innovative work flow to meet the growing demand & legal needs of ’40 Act Invst. Mgrs.

Clinging to the status quo of pre FAS 157 & pre ’08 credit crisis practices of matrix derived evaluated pricing – which is really Level 3 and not Level 2 price data under FAS 157


2009

GPE’s Intellectual Property Assets

US Patent Granted for:1. Integrated Trading Information Processing & Transmission System for

Exempt Securities— Apr. 28, 2009 (US #7,526,444)

Patents Pending for:1. USPTO Application No. 12/153,311 Integrated Trading & Information

System for Collection and Dissemination of Valuation Data — May 2008 filed

2. Unique High Throughput System for Financial Data Architecture Application – being filed in mid-2009

Trademark granted for GPE Name & Logo Trademark granted for iFVS® Name & logo Source code rights to $8MM Pedestal whole loan transaction platform secured

in 2003 – only combined ABS/MBS & whole loan trading platform ever built


2009

Components Delivering Fair Value Data

Fair Value Data Production & Business

Process Scalable to100K + CUSIPS/day

Model Engineers & Trading/Analyst

ProfessionalsWith Independent

Status

FBIS™ Workflow viaHigh Throughput

Proprietary Software& Data I/O & Delivery

Architecture

Model Quality Assurance & Testing.

With full model Documentation &

Archives


2009

Fair Value Model: Key Inputs

1. UnbundleCredit or Asset Groups

2. Select Model Key Criteria – by industry or sector

3. CalculateWeighted

Means – for each sector model

4. ExtrapolateLiquidity

Prem. – for each sector model

• Loans/Leases, Coupon, Term, FICO, Type, New/Used, Geography

• Servicer/Seller –Captive or Independent

5. Fair Value Synthesis

• Deal Structure or Whole Loan Pool Valuation

• Vintage and Issuer Credit performance and pre-payments

• Program Size

• Apply GPE algorithms and models to create set of weighted sums or default coefficient driven measures in rank order.

• Apply appropriate coefficient or beta catalyst of liquid to illiquid market differential for each sector & instrument type

• Apply coefficient of period average of aggregated vs. disaggregated valuation spreads

• Or a combination of the above

• Impute final fair values for given period based on the designated model.

• Apply Monte Carlo simulation for default risks

• Archive FV records & associated models at GPE data center for easy retrieval by user, CPA or regulator.

Challenges:• Consistency of evaluation analysis • Sector documentation supporting initial valuation• Modeling on-going assessments of investment

evaluation & liquidity premium • Understanding ongoing make-up of distressed loan or

credit derivatives position or PE Fund position

Track & Correlate Sector Spread Behavior


2009

Level 1 Price Aggregation IOI w/Price Discovery via AssetAccess™

‘Dark pool’ bid-offer discovery only (no trading required) for market participants on anonymous basis – RFQ or IOI (indication of interest) query is then shared with corresponding user community On demand, 24 X 7 availability to full subscribers of

Level 2 data All dark pool participants are pre-qualified holders of the

asset class within last X days or have purchased a Level 2 subscription for that class


2009

Automated Work Flow Controls Through FBIS™

Transaction Fraud Detection /User Security Profile updates accepted on a near real time basis via User Preference & Profile Settings in GPE modules

Discerning Level 2 data buyers are now seeking these premium characteristics in their data purchases:

● TIME STAMP & PROCESS checked labeling on their prices to prove all model algorithm steps were actually run on a given CUSIP

● ON-LINE VALIDATION and DOCUMENTATION of model used and inputs deployed on exact date of Level 2 price creation

●AVOIDANCE of short-cut processed data and matrix pricing techniques used by all legacy mass data providers. Every CUSIP or asset is run through its approved, contracted for model set – on a computing network.

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Delivering Automated Control Standards for Sound Liquidity & Risk Mgt. via the GPE Solution Suite

Operational Principle Addressed Asset Access™

FBIS™

Establishment of robust liquidity risk mgt. framework X XArticulate liquidity risk tolerance XDevelop strategy policy and practices (data support) X XAlign risk taking with liquidity costs XIdentify measure, monitor, & control cash flows XManage liquidity across business lines, legal entities & currencies

X

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Delivering Automated Control Standards for Sound Liquidity & Risk Mgt. via the GPE Solution Suite

Operational Principle Addressed AssetAccess™ FBIS™

Establish a diversified funding strategy X

Management of intraday liquidity positions X

Management of Collateral X X

Conduct stress test & contingency funding plan n/a n/a

Liquidity buffer X

Reporting of liquidity position X

New regulations will require banks to report continuous, transparent and integrated market and credit risk management metrics; HFA’s will need to provide new risk reporting data for their clients.


2009

GPE Management Team

Douglas E. Miles, Founder, Chairman & CEO: With more than 20 years of experience as a Wall Street investment banker, Mr. Miles has held senior positions at Merrill Lynch Capital Markets, Deutsche Morgan Grenfell, and Kleinwort Benson

Jake Ginder, Chief Data Officer: Mr. Ginder is an experienced entrepreneur with strong business development and operations management skills in technology, healthcare, and logistics. He oversees GPE’s proprietary software and intellectual property assets.

William Kister, Operations Director: Mr. Kister’s Wall Street operations career spans more than 25 years, specializing in fixed income derivative and structured financial products operations and client support at Citigroup, JPMorgan Chase, Merrill Lynch Capital Services and AIG Financial Products.

Plus a team of over seven veteran independent modeling engineers and analysts representing major hard to value asset classes and understanding the essentials to achieving high quality Level 2 data reporting and creation of market surfaces in relevant sectors


2009

Independent Fair Valuation & Alternative Asset Web Transparency & Data Services

Documents

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