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Net Lease Real Estate


  EGM Income & Growth Fund V
                                                                                                                                           EGM
                                                                                                                                           EQUITY GLOBAL MANAGEMENT



  Investing in Properties Essential to the Operations of Investment Grade Tenants

  Overview                                                                                  Current Opportunity
  EGM Income & Growth Fund V, LLC (“EGM V”) is a real estate                                Depressed construction costs, rents, and a recovering market give
  fund that focuses on investing net leased assets, or properties under                     EGM V the opportunity to invest at an attractive basis while
  long term leases, with built-in rental growth where the investment                        targeting risk adjusted spreads over 50% higher than historic
  grade corporate tenant agrees to pay for all the operating expenses                       average.(1)
  of the property. The long-term lease and investment grade tenant
  generate predictable secure cash flow, the opportunity for superior                                              (1)                                   (1)
  risk adjusted returns, and limit exposure to market fluctuations.                                        Today                                  2022

  EGM V will invest through: direct acquisitions, sale-leaseback                          Over                                                    3.75%
                                                                                          50%               5.85%
  transactions, and build-to-suit investments. EGM V seeks to create                                                                     (risk adjusted spread) Normalizes
                                                                                         higher     (risk adjusted spread)
  bond-like cash flow distributions and the potential for significant                     than
  capital appreciation.                                                                 average                                             Rental Rates
                                                                                                                                              for New                   Increasing
                                                                                                        Rental Rates                        Construction
            Invest in Single Tenant Net Lease Assets                                                      for New
    (essential to the ongoing operations of investment grade tenants)
                                                                                                        Construction
                                                                                                                                            Construction
                                                                                                        Construction                                                    Increasing
         Originate                   Structure                   Purchase                                  Costs
                                                                                                                                               Costs

      Sale-Leasebacks               Build-to-Suit           Institutional Quality
                                    Acquisitions                    Assets                           Bottoming/Rising                    Rising/ Flattening
                                                                                                          Market                              Market
     (attractive pricing)       (below market cost)              (discount)
                                                                                        (1) These diagrams are representative only. It should not be assumed that all of EGM
    Asset Formation                                    Asset Aggregation                    V’s investments will bear resemblance to this. Risk adjusted spread represents
                                                                                            spread to 10 year U.S. Treasuries.



  Property Focus                                                                            Credit Focus
  Property diversity enables EGM V to invest up and down and across                         Tenant diversity enables EGM V to capitalize on inefficiencies in the
  asset classes.(2)                                                                         investment grade sector.

          Single Tenant Net Lease Market                                                                        Moody's        S&P          Fitch
                                                                      Significant                                Long-term   Long-term     Long-term
            Office           Industrial              Retail          Institutional                                 Aaa          AAA          AAA                    Prime
                                                                     Competition                                   Aa1          AA+          AA+
                        $100m - $200m+
                              Trophy Assets                                                                        Aa2          AA           AA                   High grade
                                                                                                                   Aa3          AA-          AA-
                                                                                        EGM
                                                                                                                   A1           A+           A+
                           $50m - $75m                                                  Target
              Major Distribution/Warehouses, Headquarters                                                          A2           A            A             Upper medium grade
                                                                                                                   A3           A-           A-
                                                                                                                   Baa1         BBB+         BBB+
                           $25m - $50m                                 EGM                                         Baa2         BBB          BBB           Lower medium grade
           Multi-Region Distribution/Warehouses, Headquarters
                                                                       Target                                      Baa3         BBB-         BBB-
                                                                                                                   Ba1          BB+          BB+
                                                                                                                                                          Non-investment grade
                           $10m - $25m                                                                             Ba2          BB           BB
                                                                                                                                                               speculative
              Regional Distribution/Warehouses, Office, Retail                                                     Ba3          BB-          BB-
                                                                                                                   B1           B+           B+
                                                                                                                   B2           B            B                 Highly speculative
                            $1m - $10m
                         Non-Institutional Quality                                                                 B3           B-           B-
                                                                   Significant Retail
                                                                                                                   Caa1         CCC+                           Substantial risks
                                                                     Competition
                                                                                                                   Caa2         CCC                       Extremely speculative
                                                                                                                   Caa3         CCC-         CCC          Default imminent with
(2) Opinions expressed reflect the opinions of EGM as of the date of this material.                                                                         little prospect for
                                                                                                                   Ca           CC                                recovery
    Statements are based on EGM’s opinions of current market conditions which
    may change over the fund life.
                                                 THIS SUMMARY IS NOT AN OFFER FOR SALE
                                                                   .
                   THIS SUMMARY IS TO BE READ IN CONJUNCTION WITH THE CONFIDENTIAL PRIVATE OFFERING MEMORANDUM
EGM V Net Lease Strategy Overview
                               ► Invest in net lease assets essential to the operations of investment grade tenants
                               ► Originate sale-leasebacks at attractive pricing
      EGM V
                               ► Structure build-to-suit acquisitions at below market cost
      Strategy
                               ► Purchase institutional quality net lease assets at a discount
                               ► Seek to deliver predictable income and equity-like returns while taking bond-like risk

      EGM V                    ► Assets with short term leases
      Seeks to
       Avoid                   ► Investments with below investment grade credit


     EGM V                     ► Proven track record with some of the best returns in the industry
     Strategic                 ► Ability to creatively structure transactions and move with speed
    Advantage                  ► Investment opportunities through extensive industry relationships



EGM V Summary of Key Terms
  Investment Vehicle:                        EGM Income & Growth Fund V, LLC

  Managing Member:                           EGM Managing Member V, LLC

  Investment Strategy:                       Equity or debt investments in single-tenant office, industrial, and retail properties that are operationally significant
                                             and leased to high credit quality tenants on a long-term net basis through direct acquisitions, sale-leasebacks, and
                                             build-to-suits.

  Fund Size:                                 $250 million

  Minimum Commitment:                        $1 million

  Manager Commitment:                        2.5% of the Capital Commitments up to $3.125 million

  Investment Commitment Period:              The Managing Member’s right to make capital calls pursuant to the Capital Commitments to make new Investments
                                             will terminate three (3) years after the Final Closing Date, unless sooner terminated by the Managing Member.

  Term of Fund:                              Seven (7) years from termination of Investment Commitment Period with two (2) one-year extensions at Managing
                                             Member’s discretion.

  Mortgage Debt:                             65% - 75% of cost

  Annual Management Fee:                     During the Investment Commitment Period, 1.5% of the Capital Commitments
                                             After the Investment Commitment Period, 1.5% of the Invested Capital

  Target Annual Returns:                     15% - 18% net of all fees and expenses

  Distributions:                             (1) First, to Members in proportion to their respective Percentage Interests: 9.0% Preferred Return, compounded
                                             annually, on unreturned capital contributions, and a return of all capital contributions;
                                             (2) After which, distributions will be made: 50.0% to the Members and 50.0% to the Managing Member until the
                                             Managing Member has received 20% of all amounts distributed to Members as (i) a Preferred Return and (ii) as its
                                             share under this paragraph;
                                             (3) Thereafter, 80% to the Members and 20% to the Managing Member.

  Reporting:                                 Member unaudited quarterly financial statements and audited financial statements. Information in the event of
                                             material changes affecting any Investment(s). Annual report of all transactions between the Company and the
                                             Managing Member or any Affiliate of the Managing Member.

  Auditor:                                   Ernst & Young

  Counsel:                                   DLA Piper LLP (US)

 This presentation is for informational purposes only and should not be construed as legal, tax, investment, or other advice. It does not constitute an offer to sell, or the
 solicitation of an offer to buy any product. An offer may only be made by means of the private placement memorandum and governing documents of the fund (“Fund
 Documents”) which should be read in their entirety. This information is not intended to be complete or final and is qualified in its entirety by the Fund Documents. In
 the event this information is inconsistent or contrary to the descriptions of terms of the Fund Documents, the Fund Documents shall control. Interests in the Fund are
 privately offered to investors who satisfy the eligibility criteria described in the Fund Documents. The information in this document is confidential. It is intended only
 for the use of the person to whom it is given and may not be reproduced or redistributed.

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Institutional Net Lease Fund, Summary Information

  • 1. Net Lease Real Estate EGM Income & Growth Fund V EGM EQUITY GLOBAL MANAGEMENT Investing in Properties Essential to the Operations of Investment Grade Tenants Overview Current Opportunity EGM Income & Growth Fund V, LLC (“EGM V”) is a real estate Depressed construction costs, rents, and a recovering market give fund that focuses on investing net leased assets, or properties under EGM V the opportunity to invest at an attractive basis while long term leases, with built-in rental growth where the investment targeting risk adjusted spreads over 50% higher than historic grade corporate tenant agrees to pay for all the operating expenses average.(1) of the property. The long-term lease and investment grade tenant generate predictable secure cash flow, the opportunity for superior (1) (1) risk adjusted returns, and limit exposure to market fluctuations. Today 2022 EGM V will invest through: direct acquisitions, sale-leaseback Over 3.75% 50% 5.85% transactions, and build-to-suit investments. EGM V seeks to create (risk adjusted spread) Normalizes higher (risk adjusted spread) bond-like cash flow distributions and the potential for significant than capital appreciation. average Rental Rates for New Increasing Rental Rates Construction Invest in Single Tenant Net Lease Assets for New (essential to the ongoing operations of investment grade tenants) Construction Construction Construction Increasing Originate Structure Purchase Costs Costs Sale-Leasebacks Build-to-Suit Institutional Quality Acquisitions Assets Bottoming/Rising Rising/ Flattening Market Market (attractive pricing) (below market cost) (discount) (1) These diagrams are representative only. It should not be assumed that all of EGM Asset Formation Asset Aggregation V’s investments will bear resemblance to this. Risk adjusted spread represents spread to 10 year U.S. Treasuries. Property Focus Credit Focus Property diversity enables EGM V to invest up and down and across Tenant diversity enables EGM V to capitalize on inefficiencies in the asset classes.(2) investment grade sector. Single Tenant Net Lease Market Moody's S&P Fitch Significant Long-term Long-term Long-term Office Industrial Retail Institutional Aaa AAA AAA Prime Competition Aa1 AA+ AA+ $100m - $200m+ Trophy Assets Aa2 AA AA High grade Aa3 AA- AA- EGM A1 A+ A+ $50m - $75m Target Major Distribution/Warehouses, Headquarters A2 A A Upper medium grade A3 A- A- Baa1 BBB+ BBB+ $25m - $50m EGM Baa2 BBB BBB Lower medium grade Multi-Region Distribution/Warehouses, Headquarters Target Baa3 BBB- BBB- Ba1 BB+ BB+ Non-investment grade $10m - $25m Ba2 BB BB speculative Regional Distribution/Warehouses, Office, Retail Ba3 BB- BB- B1 B+ B+ B2 B B Highly speculative $1m - $10m Non-Institutional Quality B3 B- B- Significant Retail Caa1 CCC+ Substantial risks Competition Caa2 CCC Extremely speculative Caa3 CCC- CCC Default imminent with (2) Opinions expressed reflect the opinions of EGM as of the date of this material. little prospect for Ca CC recovery Statements are based on EGM’s opinions of current market conditions which may change over the fund life. THIS SUMMARY IS NOT AN OFFER FOR SALE . THIS SUMMARY IS TO BE READ IN CONJUNCTION WITH THE CONFIDENTIAL PRIVATE OFFERING MEMORANDUM
  • 2. EGM V Net Lease Strategy Overview ► Invest in net lease assets essential to the operations of investment grade tenants ► Originate sale-leasebacks at attractive pricing EGM V ► Structure build-to-suit acquisitions at below market cost Strategy ► Purchase institutional quality net lease assets at a discount ► Seek to deliver predictable income and equity-like returns while taking bond-like risk EGM V ► Assets with short term leases Seeks to Avoid ► Investments with below investment grade credit EGM V ► Proven track record with some of the best returns in the industry Strategic ► Ability to creatively structure transactions and move with speed Advantage ► Investment opportunities through extensive industry relationships EGM V Summary of Key Terms Investment Vehicle: EGM Income & Growth Fund V, LLC Managing Member: EGM Managing Member V, LLC Investment Strategy: Equity or debt investments in single-tenant office, industrial, and retail properties that are operationally significant and leased to high credit quality tenants on a long-term net basis through direct acquisitions, sale-leasebacks, and build-to-suits. Fund Size: $250 million Minimum Commitment: $1 million Manager Commitment: 2.5% of the Capital Commitments up to $3.125 million Investment Commitment Period: The Managing Member’s right to make capital calls pursuant to the Capital Commitments to make new Investments will terminate three (3) years after the Final Closing Date, unless sooner terminated by the Managing Member. Term of Fund: Seven (7) years from termination of Investment Commitment Period with two (2) one-year extensions at Managing Member’s discretion. Mortgage Debt: 65% - 75% of cost Annual Management Fee: During the Investment Commitment Period, 1.5% of the Capital Commitments After the Investment Commitment Period, 1.5% of the Invested Capital Target Annual Returns: 15% - 18% net of all fees and expenses Distributions: (1) First, to Members in proportion to their respective Percentage Interests: 9.0% Preferred Return, compounded annually, on unreturned capital contributions, and a return of all capital contributions; (2) After which, distributions will be made: 50.0% to the Members and 50.0% to the Managing Member until the Managing Member has received 20% of all amounts distributed to Members as (i) a Preferred Return and (ii) as its share under this paragraph; (3) Thereafter, 80% to the Members and 20% to the Managing Member. Reporting: Member unaudited quarterly financial statements and audited financial statements. Information in the event of material changes affecting any Investment(s). Annual report of all transactions between the Company and the Managing Member or any Affiliate of the Managing Member. Auditor: Ernst & Young Counsel: DLA Piper LLP (US) This presentation is for informational purposes only and should not be construed as legal, tax, investment, or other advice. It does not constitute an offer to sell, or the solicitation of an offer to buy any product. An offer may only be made by means of the private placement memorandum and governing documents of the fund (“Fund Documents”) which should be read in their entirety. This information is not intended to be complete or final and is qualified in its entirety by the Fund Documents. In the event this information is inconsistent or contrary to the descriptions of terms of the Fund Documents, the Fund Documents shall control. Interests in the Fund are privately offered to investors who satisfy the eligibility criteria described in the Fund Documents. The information in this document is confidential. It is intended only for the use of the person to whom it is given and may not be reproduced or redistributed.