Investments

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INVESTMENTS

PRIVATE EQUITY FUND MANAGEMENT

NYLCAP's fund management program focuses on identifying and investing in a select group of top performing private equity firms ("Core Partner" strategy) and seeks to develop long-term relationships with these firms through equity co-investment and mezzanine activity, advisory board roles, and investments in successive funds over time.

NYLCAP invests for its clients on a discretionary basis, in a broad range of private equity strategies, all over the world. NYLCAP typically invests $20 to $130 million per partnership.

FUND-OF-FUNDS

NYLCAP currently manages a fund-of-funds focused primarily on investments in u.s. based middle market buyout funds with a total committed capital of $101.4 milion. The middle market, for the fund-of- fund's program purposes, includes managers raising private equity funds with targeted fund sizes of $1.0 billon and below. The fund-of-fund's program invests primarily in established financial sponsors with whom NYLCAP has had a long-standing relationship pursuant to its private equity fund management program described above, supplemented by high-quality, emerging middle market sponsors raising their initial institutional funds, and direct equity co-investments.

EQUITY CO-INVESTMENT FUNDS

NYLCAP was one of the early pioneers in the institutional co-investment sector starting in 1992. The program was opened to non-affiliated institutional investors with the launch of its first co-investment fund in 1999. NYLCAP currently manages four private equity co-investment funds with a total of $1.7 billion of committed capital.

The equity co-investment program typically invests $10 to $50 million alongside proven equity sponsors in leveraged buyout, recapitalization, and growth capital transactions.

MEZZANINE FUNDS

NYLCAP began its mezzanine investment program in 1992, and raised its first dedicated fund in 2002, a $475 million fund, which included commitments from New York Life and ten additional institutional investors. NYLCAP is currently investing from its second mezzanine fund, an $800 million fund, which had a final closing in October 2007 with commitments from 26 institutional investors.

The mezzanine program invests primarily in privately placed, unrated, non-investment grade subordinated debt with warrants or equity and other mezzanine securities typically in conjunction with leveraged buyouts of middle market companies in the United States and Europe. The mezzanine program targets sponsored transactions across all industry sectors and will usually hold $15 to $50 million in any given transaction.