Primary Fund Investing: Investments in newly formed funds managed by independent private equity managers underlie all of Permal's private equity activities and Permal enjoys numerous long-term relationships in the private equity community. As a 30-year veteran of investing in alternative investment funds, Permal is viewed as a desirable limited partner. In addition, Permal's experience as a direct investor, its global network, manager syndication ability, knowledge of private equity structures and environment, and deal flow adds value to the manager's business.

Secondary market fund purchases: Permal will purchase limited partnership interests in existing funds, providing an important sources of liquidity for investors who may seek to exit prior to the termination of private equity funds in which they are invested. Focused in particular on smaller limited partnership interests, Permal can replace a potential source of distraction for general partners with a long-term committed and experienced investor with the intent to develop and/or maintain a long-term relationship with the manager.

Liquidity managed structures: The Permal Group has a demonstrated capability of developing innovative structures through which investors with various needs and goals can participate in alternative investments, including principal protected structures, notes, etc. A recent innovation relating to private equity participation, the liquidity-managed vehicle allows the investor to fund its commitment at close with the liquidity managed productively in a multi-manager hedge fund portfolio, mitigating the J curve and other inefficiencies associated with private equity structures.

Direct Investment: Permal may invest directly in companies alongside high-quality managers who value their long-term relationship with Permal or to provide liquidity (secondary directs) to other co-investors seeking liquidity. Permal's manager relationships provide an important source of information and syndication potential for deals that Permal sources.