1. HIGHLAND GROUP
Maritime Fund
An Innovative Structure Combining
Exposure to Maritime Investments
with Private Equity Characteristics
INVESTMENT HIGHLIGHTS
• Access investments with barriers to
entry and enhance portfolio
diversification
• elated with other asset
• Earn private equity-like returns on
risk
• Benefit from resources and
expertise of strategic alliance with
industry partners
Non-corr
classes
assets
• Invest in a fund with rigorous
control policy
Access investment opportunities in the
fast-changing maritime industry
The shipping industry has experienced rapid development
in recent years; as a result not all new entrants have the
skills and ability to be successful. Shipping is a capital
intensive business with industry players facing high
exposure to the marketplace and increased scrutiny. Due
to the capital intensive and cyclical nature of these
markets, risk minimization techniques have become
increasingly important.
Our intent is to combine these shipping trends, allowing
firms with a demand for shipping services but reluctance
to invest in their own fleet. We offer investors the
opportunity to invest in a structure where they can
achieve portfolio diversification while benefiting from a
specialized knowledge with industry participants.
The objective of the Highland Group (HG) Maritime Fund
is to offer investors the benefit of investment opportunities
in the maritime industry.
HG Vessel
Management
Fund Management
Highland
Group
HG Maritime Fund
HG Vessel
Management
Fund Management
Highland
Group
HG Maritime Fund
Through a vehicle combining private equity and maritime
investment characteristics, HG will invest with a high
degree of transparency and liquidity in a number of
potentially high revenue producing vessels and provide
them with management expertise and resources.
Compared with other investment funds HG Maritime Fund
allows investors to benefit from:
A specialized performance based segment that
is usually difficult to identify and access
A potentially significant capital gain from asset
play through equity participation

2. HG Maritime Fund will issue multiple
funds opportunistically selected across
four main competencies:
A UNIQUE COMBINATION OF EXPERTISE
The Investment Team will use the resources and expertise at HG to
select the most promising vessel acquisitions while focusing on
revenue generation.
An Investment Committee composed of senior professionals from the
Maritime and Alternative Investment Industry will supervise the
management of the fund.
Support from related entities
In addition to a significant commitment from the Highland Group, our
alliances will involve support from all entities that can bring value to
the fund (administration, acquisition, risk management, asset
management, asset raising, etc.) Highland Group has expertise in
the maritime business.
AN ATTRACTIVE REVENUE SCHEME
The fund’s structure will make it possible to capture the performance
and the equity participation of these vessels during the life of the
fund.
Benefits will include two revenue components:
Performance of the assets managed by fund managers
Capital through asset appreciation and/or charter
agreements
A BUILT-IN RISK CONTROL STRATEGY
Our investment strategy will rely on a highly selective investment
process focusing on vessels and firms which have already
demonstrated their performance ability; it will also integrate the
following:
Investments through valuation analysis
will secure full transparency
evaluate cash flow and net asset value
analyze asset risk and asset protection
Stable and long-term charter policy/internal credit analysis
Assessment of exit strategies at the outset
Knock out provisions: predetermined rules will allow the fund
to exit before maturity based on performance
Use of financial instruments to manage risk in freight,
bunker, foreign exchange and interest rate markets
Highland Group compliance and risk control will apply to all
underlying assets
INVESTOR OPPORTUNITIES
Transport demand is surging from oil demand
growth in the world’s developing countries,
especially China and India. The oil demand
growth in developed countries is also strong on
an already large demand base
Longer transport distances increasing tonnage
demand
Regulation IMO phase-out of non-double hull
vessels
A deficit of vessel supply versus transport
demand
Tanker Moving Average 3yr.
Charter rates and vessel prices have consistently
increased over last two decades
Crude Oil Tanker Demand
Major pipeline projects planned for the near future
Historical growth of crude oil demand 2% annually
917
1,033 1,033
441
497
442
-
100
200
300
400
500
600
700
800
900
1,000
1,100
2004 2010
Forecast
2010
Order Book
OilDemand
410
420
430
440
450
460
470
480
490
500
510
VesselsRequired
Quantity of Vessels Shortage

3. HG Maritime Fund is managed by
HG Management L.L.C., a wholly-
owned subsidiary of Highland Group,
which is dedicated to alternative
investments (hedge funds, structured
asset management, private equity,
and maritime investments).
The dedicated investment selection
management and research teams,
based in New York and London,
bring together a quality of
management based on a synergy of
specific skills: experienced
managers, dedicated teams of
analyst and researchers, a structured
due diligence process and
continuous operational monitoring.
The results and structures of the
investments are monitored by the
managers and a team dedicated to
risk control supervised by Highland
Group.
47 W. 57th St. 6th Fl.
New York, N.Y. 10019
HIGHLAND GROUP
Maritime Fund
MAIN CHARACTERISTICS*
Investment vehicle Cayman Ltd.
Currency USD share classes
Management Company HG Management L.L.C.
Targeted size Approximately US$35 million
Closing Third quarter 2006
Maturity 10 years after the first capital call
Closed- end
Investment scope High potential vessels, excellent mt.
Min. Commitment US $500,000
Fees 1.5% Management Fee
10 % Performance Fee
* Full details of the characteristics are given in the HG Maritime Fund Private Placement Memorandum.
The information contained herein regarding the investment fund(s) discussed in this material (the “Funds”) has been
prepared solely for informational purposes and is not an offer to buy or sell, or a solicitation of an offer to buy or sell, any
shareholder or limited partnership interest in the Fund(s) or to participate in any trading strategy. If any offer of a
shareholder or a limited partnership interest is made, it shall be pursuant to a definitive Private Placement Memorandum
or similar offering document prepared by or on behalf of the Fund(s) which would contain material information not
contained herein and which shall supersede this information in its entirety. Information herein (some of which has been
obtained from third parties without independent verification) is believed by HG Management L.L.C. and Highland Group
to be reliable. However, Highland Group makes no representation or warranty, express or implied, as to the fairness,
accuracy, completeness or correctness of such information, nor does Highland Group accept any liability arising from its
use. By receipt of the enclosure, recipient acknowledges that information may change and recipient is on notice that
recipient should determine if updated information is required. Any decision to invest in the Fund(s) described herein
should be made after reviewing the definitive disclosure materials and offering documents for the Fund(s), conducting
such investigations as the investor deems necessary and consulting the investor’s own investment, legal, accounting,
and tax advisors in order to make an independent determination of the suitability and consequences of an investment in
the Fund(s). Potential investors should be aware that the manager has no experience managing this type of fund, which
is an experimental project with a significant amount of risk.
The information contained herein regarding the Fund(s) is confidential and proprietary. By accepting this information, the
recipient agrees that it will use the information only to evaluate its potential interests in the Fund(s) described herein and
for no other purpose and will not divulge any such information to any other party. This presentation and its contents are
proprietary information of Highland Group and any reproduction of this information, in whole or in part, without the prior
written consent of Highland Group is prohibited. Additional information is available from Highland Group upon request.
Neither Highland Group nor its affiliates are acting as your advisor or agent.
Hedge funds such as the Fund(s) described herein: (1) often engage in leveraging and other speculative investment
practices that may increase the risk of investment loss; (2) can be highly illiquid; (3) are not required to provide periodic
pricing or valuation information to investors; (4) may involve complex tax structures and delays in distributing important
tax information; (5) are not subject to the same regulatory requirements as mutual funds; and (6) often charge high fees.
Any information provided herein shall not form the primary basis of any investment decision. It is the user’s responsibility to
independently confirm the information contained in this material and obtain any other information deemed relevant to
any investment decision.
Highland Group
CONTACT:
Tel: 212.838.0150
Fax: 212.838.0196