whose goal is the return of their legacy fund investments, while offering investors who

are interested in remaining invested with Tontine the opportunity to contribute their
legacy fund interests in a newly-formed, ongoing Tontine fund with a focus on
thematic, long term investing.

Before we discuss our vision for Tontine going forward and the fund restructuring in
detail, it is important to review our activity in the legacy funds this year. After our
conference call late last year, we embarked on a program to monetize the legacy
funds’ holdings in an orderly fashion. For those securities that were held across funds,
we allocated sales pro rata across the relevant funds, and we distributed the proceeds
periodically to investors.

unlevered vehicle that is less concentrated, more liquid and less focused on tax
efficiency. The portfolio consists primarily of mid-capitalization equities and is
highly liquid. TTR’s
The restructuring of the legacy funds will be seamless for most of you. As illustrated
in the chart below, the economic interests of legacy fund investors seeking the return
of their capital pursuant to the wind-down process (the “Redeeming Investors”) will
be separated from the economic interests of legacy fund investors who would like to
continue investing with Tontine by contributing their interests into the new TCP2
strategy (the “Contributing Investors”).

To facilitate the restructuring, we will create a new entity, TCP Overseas Master Fund
II, which will execute the TCP2 strategy described above. Contributing Investors will
contribute
Addition, TCP2 can use newly raised capital along with other cash proceeds to offer
to acquire, via tender offer, the interests of the Redeeming Investors in the legacy
funds. Any such tender offers would further accelerate the redemption process for
participating Redeeming Investors, while also allowing TCP2 to increase its economic
interests in the legacy fund holdings. Furthermore, we plan to have discussions with
intermediaries in the secondary market for partnership interests who may know of
potential purchasers of Tontine legacy fund interests. For legacy investors who are in
need of immediate liquidity and wish to explore selling their interests in the
secondary market we intend to allow the transfer of part of their valuable high water
marks along with their interests, which may act as an incentive to secondary market
purchasers. While we would be happy to put these legacy investors in touch with the
appropriate people we can not getget involved in price negotiations.

It is important to point out that all Contributing Investors into TCP2 will retain their
high water marks from the legacy funds. We have already allowed investors to use
their
harbor lingering doubts about the strength of recovery and assess the cost
implications of the current Administration’s labor policies. Those companies with
good balance sheets and
Even more intriguing is the public misunderstanding of the electricity grid in this
country. We hear every day about the need for a smart grid, but few people focus on
how many “dumb” things we can do before the smart grid arrives. Wind power is now
beginning to overwhelm the electric grid in Texas, the Dakotas and upstate New York,
and there should be extremely attractive opportunities to take advantage of nearly free
power produced at night, to be stored for sale at higher rates in the daytime. Most
obvious is the potential of the electric car, which could soak up some of the surplus
nighttime power for use during the day. In some areas of the country, over 50% of
generating capacity is shut down overnight when power demand drops, as electricity
has traditionally been a “use it or lose it” product. At night, hydro plants and many
natural gas plants are shut down and coal power plants try to reduce their power
output as much as possible. Imagine if we could take 20% of this dormant nighttime
capacity and use it to produce and store power to satisfy power demand during the
day. In theory, if we could store this power, we would not have to build a new fossil
fuel power plant for many years, if ever.