Confidential

Blackstone Alternative Asset Management

November 2018

Blackstone

Table of Contents

Confidential

1

BAAM Overview 3I.

Investment Process 12II.

Macroeconomic Landscape 19III.

Hope Street Fund L.P. 30IV.

Appendix 41A.

Blackstone

Blackstone Team Biographies

2

Brad Rudner is a Managing Director of the Hedge Fund Solutions Group, where he serves as the Head of Global BusinessStrategy and works with BAAM’s largest clients and prospects across geographies. Prior to joining Blackstone in 2014,Mr. Rudner was the Head of Global Business Development and Client Relations for Aetos Capital. Prior to joining Aetos,Mr. Rudner was a Vice President at Lazard Asset Management where he was involved with institutional new businessdevelopment, client service and consultant relations across business channels.

Mr. Rudner received a B.A. in Economics from Duke University.

Alberto Santulin is a Managing Director of the Hedge Fund Solutions Group. Mr. Santulin is involved in portfoliomanagement and in hedge fund manager evaluation, selection and monitoring. He is primarily focused on multi‐strategy,event, arbitrage and reinsurance strategies. Before joining Blackstone in 2003, Mr. Santulin worked at Rasini & Co. Inc., aEuropean fund‐of‐hedge‐funds, where he opened and ran the New York office. Prior to joining Rasini, Mr. Santulin workedin London for Banque Paribas where he was in Fixed Income Derivatives Sales & Trading covering Italian institutions andhedge funds.

Mr. Santulin received a BA with a major in Finance from Bocconi University in Milan, Italy. His degree dissertation is titled"Hedge Funds: Evolution and Investment Strategies." He has earned the right to use the Chartered Financial Analystdesignation.

Bobby McGann is an Associate of the Hedge Fund Solutions Group. Mr. McGann is involved in servicing existing BAAM clientrelationships and also in new business development. Before joining Blackstone in 2016, Mr. McGann worked at TheGoldman Sachs Group as an investment banker within the Public Sector and Infrastructure Group.

Mr. McGann graduated from Georgetown University with a BA degree in Government Studies and a minor in Economics.

I. BAAM Overview

Blackstone

Confidential

4

(1) Subject to Blackstone’s information walls(2) AUM as of 6/30/2018, estimated and unaudited. AUM includes  committed but uncalled capital. (3) Standard & Poor’s and Fitch ratings are as of October 2017. (4) As of 9/1/17. Information is estimated and unaudited.(5) Source: InvestHedge Billion Dollar Club (as of December 31, 2017) based on AUM.

$123 billion AUM

GSO is one of the world’s largestcredit‐oriented alternative assetmanagers, with a focus on deliveringattractive risk‐adjusted returns andcapital preservation.

$77 billion AUM

As the world’s largest discretionaryallocator to Hedge Funds(5), BAAMcreates commingled and customizedinvestment solutions across a varietyof asset classes and strategies.

$119 billion AUM

The largest real estate private equityfranchise in the world with a focus oncreating value for both commercialand residential properties.

$120 billion AUM

A global leader dedicated to investinggrowth capital and operational expertiseto build the value of businesses, oftenpreviously distressed.

Founded in 1985; went public in 2007 Nearly 2,300 employees in 25 offices  globally A+ / A+ ratings from Standard & Poor’s / Fitch, respectively(3)

Blackstone invests on behalf of over 30 million pensioners in the U.S. and millions more internationally(4)

Hedge Fund SolutionsPrivate EquityReal Estate Credit

By leveraging the perspective, expertise, global relationships and market insights of our businesses, we strive to see opportunities that others don’t(1)(2)

Blackstone: Committed to Investment Excellence

Blackstone

Confidential

BAAM: Leveraging Hedge Fund Talent to Provide Innovative Solutions(1)

A broad range of solutions with high alignment of interests

(1) All data as of 7/1/2018, unless otherwise noted. AUM includes unfunded commitments and internal capital. AUM is estimated and unaudited. Assets of certain inter‐fund investments may be double counted. AUM data is rounded to the nearest billion and as such, may differ materially from the figures shown above. Further information may be provided upon request. Availability of any BAAM fund is subject to local Security Laws in each jurisdiction. 

(2) Customized AUM includes custom fund assets that are subject to custom fees. (3) Includes all registered funds managed by the Hedge Fund Solutions Group.(4) Represents AUM of Blackstone NWI Asset Management L.L.C., a 50/50 joint venture between Blackstone Alternative Asset Management L.P. and NWI Management, L.P. (5) Custom Co‐Investments includes committed but uncalled capital. Parallel Investments are defined as excess capacity co‐investment trades in BSOF executed investments, or investments that do not fit 

the BSOF risk mandate. Data as of 6/30/2018.(6) Representative of committed capital in SAF I, SAF II and SAF III. As of 6/30/2018, AUM was $1.3 billion across all SAF vehicles.(7) Representative of committed capital in Blackstone Strategic Capital Holdings. (8) Inclusive of GP AUM.

5

High alignment of interests: $2 bn of BAAM & Blackstone Capital(8)

GP Economic Participation

Customized ~$40b(2):• Customized hedge fund portfolio solutions 

tailored to client needs and objectives 

Commingled ~$20b: • Diversified, strategy focused and 

opportunistic strategies

Registered Funds ~$9b(3):• Registered & individual‐focused 

investment solutions (Mutual Fund, Closed‐End Funds, and UCITS)

Long Biased EM Debt ~$2b(4):• Partnership with NWI Management. 

Unconstrained multi‐sector EM debt strategy in both local and external markets

PortfolioSolutions

Direct Investing

Strategic Opportunity ~$5b(5): • Special situations platform targeting 

idiosyncratic opportunities across geographies and asset classes

• Hedged platform, leveraging ideas from BAAM’s network of hedge fund partners and other Blackstone relationships

Parallel Investments ~$3b(5): • Excess capacity co‐investment trades 

Custom Co-Investments ~$1b(5): • Customized separate account targeting 

special situation and co‐invest exposures utilizing tailored guidelines

Strategic Alliance ~ $5b(6): • Meaningful early stage seed to help hedge 

fund managers launch their business

• Source of emerging manager capacity

Strategic Capital Holdings ~$3b(7):• Acquiring minority GP stakes in established 

alternative asset managers

• Strategy seeks to generate continuous cash flows and allow for potential monetization

Blackstone

Confidential

Arthur LiaoChief 

Financial Officer

Oli Meyohas

Head of Global Investor Relations and Business 

Development

Ian Morris

Head of Allocation Strategy

Greg Geiling

Head of Special Situations Investing

Brian GavinChief 

Operating Officer

Bob Jordan

Risk Management; Special Situations 

Investing

Gideon BergerCo‐Chief 

Investment Officer

Brett Condron

Head of Global Individual

Investor Solutions

Mohamed El BeihHead of

Middle East 

Min Htoo

Co‐Chief Investment Officer and Head of 

Opportunistic Investing

(1) Data presented is as of 7/1/2018. Headcount excludes consultants and administrative staff(2) Inclusive of Senior Managing Directors(3) Inclusive of Investment Operations team(4) As of 6/30/2018

229BAAM 

professionals

102investment professionals

11 yearsaverage Blackstone tenure of Management Team(2)

Risk Management

Investment Team

Business & Financial

Evaluation

Legal, Compliance, & Product

StructuringOperations Investor Solutions

J. Tomilson HillChairman of BAAM & Vice Chairman of Blackstone

• 10 Risk professionals • 3 PhDs

• 72 professionals(3)

• 6 strategy focused groups

• 59manager research• 6  asset allocation and portfolio management

• 10 professionals • 2 CPA

• 26 professionals • 14 JDs(2)

• 44 professionals • 9 CPAs(2)

• 40 professionals 

Deep and Experienced Team(1)

Steve  Sullens

Head of Portfolio Management

Scott Soussa

Head of Strategic Capital Group

Peter KofflerGeneral 

Counsel & Chief Compliance Officer

John McCormickPresident & CEO of BAAM 

Indicates Senior Managing Director

Technology

• 12 Technology professionals

• 23 additional technology consultants (4)

6

Blackstone

Confidential

(1) Number shown as a percentage of total flows from external investors for the period 2008 – 2017.  (2) Based on assets under management, as of 7/1/2018.

7

Diversified and Institutional Client Base

Institutional composition of our client base provides the business with stability

BAAM Client Breakdown by Investor Type(2) BAAM Client Breakdown by Geography(2)

On average, over 50% of our inflows in recent years have come from existing investors(1)

Emphasis on transparency, knowledge transfer and investor education Institutional investor base allows for customization and innovation

Blackstone

Top 20 Clients and Investors by AUM(1)

(1) As of October 1, 2018. Estimated and unaudited.

8

Ranking Client Domicile AUM

1 Government Institution Middle East $ 5,799 

2 Corporate Japan 4,431 

3 Government Institution Hong Kong 3,131 

4 Public Pension California, United States 2,240 

5 Distribution Platform United States 1,906 

6 Non‐US Plan Assets Canada 1,797 

7 Government Institution Middle East 1,747 

8 Distribution Platform United States 1,700 

9 Government Institution Australia 1,551 

10 Government Institution China 1,425 

11 Public Pension Michigan, United States 1,098 

12 Foundation Texas, United States 978 

13 US Pension Minnesota, United States 964 

14 Healthcare Michigan, United States 943 

15 Distribution Platform Netherlands 917 

16 Non‐US Plan Assets United Kingdom 908 

17 Public Pension Pennsylvania, United States 907 

18 Corporate British Virgin Islands 768 

19 Government Institution Middle East 756 

20 Public Pension California, United States 692 

Blackstone

Confidential

(1) This analysis was performed utilizing BAAM’s 7/1/2018 active manager strategy list. This only includes investments by BAAM Principal Solutions in third‐party managed hedge funds. It does not include investments by BAAM's individual investor solutions (liquid alternatives), Strategic Capital (seeding and minority interests), Strategic Opportunities (co‐invests), and non‐discretionary platforms. This also  generally excludes strategies where full redemptions in corresponding fund investments have been submitted by BAAM but BAAM has not yet received proceeds, and strategies with which BAAM’s remaining investment is held in a side pocket or hedge fund strategies that are in liquidation. Active strategies generally exclude those strategies where BAAM’s only remaining investment is through a committed capital structure beyond the fund’s investment period.  Such strategies may be included in the analysis if there is a strategy with a substantially similar investment mandate within its investment period. AUM data is as of 3/31/2018  or later for all strategies. Totals might not equal 100% due to rounding.

(2) Includes all BAAM Hedge Fund Solutions advisors (together “BAAM”). Negotiated Structures/Transactions is calculated by dividing total amount invested in (i) all customized vehicles, which includes underlying funds where BAAM is the sole external investor and funds with which BAAM has negotiated guaranteed capacity; (ii) seeding platform funds; (iii) underlying vehicles with negotiated fee discounts, which includes beneficial fees exclusively negotiated for BAAM and beneficial fees applicable to some or all other investors where BAAM participated in the negotiations (negotiated benefits to BAAM funds will fluctuate depending on related AUM); and (iv) co‐investments (BSOF transactions) funded as of 6/30/2018, by BAAM's total AUM as at 7/1/2018. Analysis excludes unfunded commitments. 

9

Partnerships with Managers

Size and stability of our allocations enhances our ability to create deep relationships with many talented managers

Managers’ Size(1)Negotiated

Structures/Transactions(2)

• Experience partnering with both established and emerging hedge fund managers

• Valued partner for managers looking to raise capital

• Customized exposures created exclusively for BAAM• Ability to manufacture capacity • Infrastructure to support special situations investing

Blackstone

Confidential

(1) Source: InvestHedge Billion Dollar Club. Data as of June 2018 unless otherwise noted.(2) BAAM AUM is estimated and unaudited for 2018. Shown as of June 2018.(3) Source: InvestHedge Billion Dollar Club. Time period was selected by InvestHedge. Use of alternate time periods may yield different results. This reflects the 10 largest Fund of Hedge Funds firms by AUM ranked by

their AUM as of June 2018.

10

BAAM’s Industry Leadership is Demonstrated by its AUM Growth

A solutions-oriented partner to global institutions

Top 10 Industry Players by AUM as of 6/30/2018(3)

(US$ in billions)

Cumulative Growth in Assets for FoHFs >$1 billion(1), and BAAM(2)

(US$ in billions)

Cumulative Growth Since 2008

BAAM AUM ($bn)

6/30/2008 6/30/2018 % Change SinceManager AUM AUM June 2008

BAAM $31.7 $77.4 144.2%

Competitor 1 56.8 40.8 (28.2%)Competitor 2 23.7 32.6 37.6%Competitor 3 25.4 31.3 23.3%Competitor 4 27.4 27.3 (0.4%)Competitor 5 24.5 23.6 (3.7%)Competitor 6 21.9 23.2 5.9%Competitor 7 46.6 21.6 (53.6%)Competitor 8 43.5 20.7 (52.4%)Competitor 9 15.6 16.8 7.9%

$0

$10

$20

$30

$40

$50

$60

$70

$80

‐100%

‐50%

0%

50%

100%

150%

200%

250%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

BAAM AUM ($bn) BAAM FOF > $1bn ex‐BAAM

Blackstone

Confidential

(1) Past performance is not indicative of future results. There can be no assurance any BAAM funds will achieve its investment objectives or avoid significant losses.(2) As at 6/30/18. Estimated and unaudited.(3) Flows include both fee‐paying and non‐fee paying commitments.(4) Number shown as a percentage of average annual flows from external investors for the period 2008 – 2017.(5) Active managers as of 7/1/18. Includes active BAAM Principal Solutions (BPS), MMLS and BEMAP strategies only; does not include strategies of managers exclusively on BAAM's mutual fund, seed, minority interest,

strategic opportunity (“BSOF”) and advisory platforms.(6) Includes all Hedge Fund Solutions advisors (together “BAAM”). Negotiated Structures/Transactions is calculated by dividing total amount invested in (i) all customized vehicles, which includes underlying funds

where BAAM is the sole external investor and funds with which BAAM has negotiated guaranteed capacity; (ii) seeding platform funds; (iii) underlying vehicles with negotiated fee discounts, which includesbeneficial fees exclusively negotiated for BAAM and beneficial fees applicable to some or all other investors where BAAM participated in the negotiations (negotiated benefits to BAAM funds will fluctuatedepending on related AUM); and (iv) co‐investments (BSOF transactions) funded as of 6/30/2018, by BAAM's total AUM as at 7/1/2018. Analysis excludes unfunded commitments.

(7) Reflects underlying manager performance and management fee savings for Partners OS Fund based on allocations and negotiations completed as of 7/1/2018. Please see results using different return assumptionsand additional disclosures at the end of this presentation.

11

11 yearAverage tenure of Senior 

Managing Directors

~110 ManagersCurrently on 

BAAM’s platform(5)

$2.0bnInternal capital invested 

in BAAM funds(2)

50%Of annual inflows from 

existing clients in recent years(4)

18 yearsOf consecutive positive 

net inflows(3)

20+ yearTrack record (1)

Experienced Team Stable Business Strong Partnerships

79% of AUMIn negotiated 

structures / transactions(6)

31-52bpsTotal potential fee savings for BAAM’s flagship fund assuming gross manager returns of 0% to 12%(7)

20+ yearTrack record of partnering with  

institutional investors

BAAM’s Competitive Advantage

Innovative, solutions focused and relationship driven culture

II. Investment Process

Blackstone

Confidential

Deep Investment Team, with Real Market Experience

Investment team of 102 professionals, with 4 independent due diligence groups(1)

(1) As at 7/1/2018.(2) Includes team head where team head is  Senior Managing Director

13

ManagerResearch

RiskManagement 

Business &Financial Evaluation

Legal, Compliance, and Product Restructuring

Bob Jordan

Risk Management; Special Situations 

Investing

BAAM Investment Committee

10 investment professionals 3 PhDs Focus on manager’s risk controls

and risk profile

65 investment professionals Focus on identifying investment 

edge 6 strategy focused groups 59 investment professionals 

dedicated to manager research 6 investment professionals 

dedicated to asset allocation and PM

10 investment professionals 2 CPA Focus on manager operations and 

compliance 

6 investment  professionals 3 JDs(2)

Focus on key terms and protections as well as analysis of structural / tax implications

BAAM Due Diligence Teams

Researches & classifies managers.  Conducts in‐depth due diligence. Prepares recommendations to the Investment Committee.

Responsible for all allocation and investment decisions for each BAAM fund

Gideon Berger

Co‐CIO; Chairman of Investment Committee

Greg Geiling

Head of Special Situations Investing

Steve  SullensHead of Portfolio 

Management

John McCormickPresident & CEO of BAAM

Ian Morris

Vice Chairman of the Investment Committee; Head of Allocation 

Strategy

Min  Htoo

Co‐CIO; Head of Opportunistic Investing

Blackstone

Confidential

BAAM’s Investment Process

Each investment in a hedge fund is the culmination of our disciplined and multi-stage decision-making process(1)

(1) BAAM does not have any involvement in or responsibility for, and provides no assurance regarding, the performance, management or affairs of BAAM’s underlying managers.

14

Macro Perspective

Manager Sourcing

Due Diligence

Portfolio Construction &

Organization

Ongoing Monitoring

Top‐down views on global economy and 

markets combined with robust scenario analysis guide manager and strategy research

Differentiated sourcing network provides edge in identifying and screening 

managers

In‐depth qualitative and quantitative analyses by our multi‐disciplinary 

team identify prospective managers

Rigorous portfolio construction utilizing scenario analysis, risk 

budgeting and differentiated tools leads to optimal portfolios

Four‐pronged due diligence approach 

ensures continual review of managers

Blackstone

Top Down: BAAM’s Proprietary Approach to Allocation Strategy

(1) Subject to The Blackstone Group’s Internal Information Wall Policy

15

Dedicated Team Integration with Blackstone(1) Manager Relationships

Insights on the economy through BX ownership of portfolio companies

Perspective on capital markets through BX’s buying, selling and refinancing activities

Allocation Strategy Team focused solely on formulating top down views

Led by Ian Morris, an economist with over 15 years experience

Differentiated relationships with hedge fund managers• Invested with some of the 

most talented & experienced managers in the business

• Market color from a broad array of managers across different strategies

All these inputs are brought together in BAAM’s structured Allocation Strategy process

BAAM’s approach to formulating a top-down view stems from:

Blackstone

Confidential

Bottom Up: Manager Sourcing & Selection – Existing Managers 

Global footprint and broad strategy expertise enhances BAAM’s manager sourcing capabilities

(1) Meant to represent the entire Hedge Fund Industry. Source: HFR Industry Reports, © HFR, Inc. Q3 2016, www.hedgefundresearch.com.(2) Subject to The Blackstone Group’s internal Information Wall Policy

16

Qualitative and quantitative screens identify high‐priority hedge funds consistent with our top‐down view

High quality managers moved on to evaluation stage Classified & monitored in our proprietary system (No Interest, Revisit, Monitor, 

Prospect)

Only funds classified as Prospects are taken forward to due diligenceProspect

BAAM’s Strategy Teams meet with several hundred managers a year, new and existing

Trading backgrounds and  deep network of contacts enables the Investment Team to view a wide section of the hedge fund industry

Sourcing through traditional channels  (spin‐offs, cap intro, etc.) and the BX network(2); access to thousands of manager returns

High Quality

Manager Interaction

Sourcing Managers

9,000+(1)

Blackstone

Confidential

Bottom Up: Manager Sourcing & Selection – New Managers

Our ability to partner with talented investors at all stages of the hedge fund life cycle creates the potential for differentiated exposures and performance for our clients

17

Creating New Capacity

Seeding Early Stage Partnerships Customizing

Fund talented new managers 

Clients receive a long‐term share of the manager’s revenue

Investments in small / emerging managers who can add value to BAAM portfolios• Ability to be nimble / access niche

markets• Potential for fee discounts in exchange 

for BAAM capital

Partner with established investors in non‐hedge fund organizations to access special skills

Value‐add to BAAM:  • Access to talented new capacity• Potential for improved terms / 

fee discounts

Improving Infrastructure

Existing managers with strong idea generation / trading skills but inadequate infrastructure

BAAM works with managers to bring operational side up to industry best practices

BAAM has a long track record of creating value‐add customized exposure:• Invest in carve‐out of managers’ portfolios• Work with managers to create vehicles to 

take advantage of specific opportunities

SpecialSituations

BAAM has a history of investing in idiosyncratic opportunities

Blackstone

Confidential

Ongoing Monitoring

BAAM’s proprietary technology and consistent processes facilitate monitoring of investment decisions

Represents typical processes. Exception may apply to specific managers and situations.

18

“Color calls” with managers

Exposure monitoring

Assessment of risk factors

Capacity and liquidity monitoring

Review of manager returns vs. markets

Client‐ and fund‐specific investment guideline monitoring

Monitoring of allocation decisions across BAAM funds

Risk Monitoring

• Scenario analysis

• Peer group analysis

• Exposure analysis

• Exception reporting

Re‐underwriting of all active investments

• Front office review

• Back office review

• Legal review

Daily / Weekly Monthly / Quarterly Annually

III. Macroeconomic Landscape

Blackstone

0

5

10

15

20

25

30

35

40

45

50

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Cyclically-Adjusted Price/Earnings Ratio

Source: Robert Shiller, Standard & Poor’s, Bureau of Labor Statistics, Research Affiliates, Shiller Barclays CAPE Indices, BAAM calculations. As of June 30, 2018, Europe as of May, 31 2018.Information is not intended to be a prediction of how any financial markets will perform in the future. 

20

Ratio

US Average: 16.8

31.7+1 Stdev

‐1 Stdev

Europe

Emerging Markets

United States

Blackstone

‐20 ‐10 0 10 20 30 40

Prob

ability

Real S&P 500 Annualized TR (%)

21

Real S&P 500: Next 5 Year Annualized TR (%)

WhenCAPE = 29

Source: Robert Shiller, Standard & Poor’s, Bureau of Labor Statistics, BAAM analysis. Uses Kernel Density Estimation (KDE), which is a non‐parametric statistical technique to estimate the probability density function of a random variable. Vertical dotted line represents the fitted distribution mean. CAPE = Real S&P Price / 10 Year Average of Real S&P 500 EPS with 2008 adjustment. Analysis is from Dec 1880 – Sep 2017. These numbers are not intended to be a prediction of how any markets will perform in the future.

WhenCAPE = 10

Blackstone

Real S&P 500: Next 5 Year Annualized TR (%)Conditional on Starting Valuation and Unemployment Rate

Source: Robert Shiller, Standard & Poor’s, Bureau of Labor Statistics, BAAM analysis. Uses Kernel Density Estimation (KDE), which is a non‐parametric statistical technique to estimate the probability density function of a random variable. CAPE = Real S&P Price / 10 Year Average of Real S&P 500 EPS with 2008 adjustment. Analysis is from Jan 1950 – Sep 2017. These numbers are not intended to be a prediction of how any markets will perform in the future.

22

Unemployment Rate (%)All 4 6 8 9

All 7.1 3.1 7.5 10.2 11.7

16 8.2 6.0 7.6 10.5 12.318 7.9 4.2 7.9 12.5 12.8

CAPE 20 7.7 2.9 8.5 13.3 12.624 5.7 1.1 7.6 13.5 11.628 2.5 0.1 3.9 12.2 10.930 1.5 ‐0.2 2.8 10.1 10.6

Blackstone

Real S&P 500: Next 5 Year Max Loss (%)Conditional on Starting Valuation and Unemployment Rate

Source: Robert Shiller, Standard & Poor’s, Bureau of Labor Statistics, BAAM analysis. Uses Kernel Density Estimation (KDE), which is a non‐parametric statistical technique to estimate the probability density function of a random variable. CAPE = Real S&P Price / 10 Year Average of Real S&P 500 EPS with 2008 adjustment. Max Loss is defined as the return from the beginning of a 5 year period to the trough. Analysis is from Jan 1950 – Sep 2017. These numbers are not intended to be a prediction of how any markets will perform in the future.

23

Unemployment Rate (%)All 4 6 8 9

All ‐15.8 ‐24.0 ‐14.4 ‐8.6 ‐7.4

10 ‐9.0 ‐8.4 ‐9.4 ‐10.4 ‐8.215 ‐12.9 ‐15.5 ‐14.8 ‐8.1 ‐5.9

CAPE 20 ‐14.6 ‐20.7 ‐14.1 ‐5.3 ‐6.925 ‐20.9 ‐28.9 ‐16.3 ‐6.2 ‐9.930 ‐26.5 ‐31.9 ‐22.3 ‐10.3 ‐12.4

Blackstone

Real S&P 500: Next 5 Year Annualized TR (%)Conditional on Starting Valuation and Real 10 Year Yield

Source: Robert Shiller, Standard & Poor’s, Bureau of Labor Statistics, Macrobond, BAAM analysis. Uses Kernel Density Estimation (KDE), which is a non‐parametric statistical technique to estimate the probability density function of a random variable. CAPE = Real S&P Price / 10 Year Average of Real S&P 500 EPS with 2008 adjustment. Analysis is from Jan 1950 – Sep 2017. These numbers are not intended to be a prediction of how any markets will perform in the future.

24

Real 10 Year Yield (%)All 0 1 2 3 4

All 7.1 7.3 5.5 4.9 5.8 8.0

16 8.2 7.2 6.6 7.4 8.2 9.618 7.9 6.2 6.0 7.1 8.7 10.6

CAPE 20 7.7 6.0 5.5 6.5 9.0 11.924 5.7 5.4 3.4 3.9 7.3 12.528 2.5 1.8 0.4 1.1 3.6 7.230 1.5 0.1 ‐0.4 0.4 2.1 4.4

Blackstone

Real S&P 500: Next 5 Year Annualized TR (%)Conditional on Starting Valuation and Forward 5 Year Change in 10 Year Yield

Source: Robert Shiller, Standard & Poor’s, Bureau of Labor Statistics, Macrobond, BAAM analysis. Uses Kernel Density Estimation (KDE), which is a non‐parametric statistical technique to estimate the probability density function of a random variable. CAPE = Real S&P Price / 10 Year Average of Real S&P 500 EPS with 2008 adjustment. Analysis is from Jan 1950 – Sep 2017. These numbers are not intended to be a prediction of how any markets will perform in the future.

25

Forward 5 Year Change in 10 Year Yield (%)All ‐1 0 1 2 3 4

All 7.2 8.2 8.5 7.1 5.4 4.2 3.2

16 8.2 11.0 9.1 6.8 5.2 4.7 3.918 7.9 11.5 8.7 5.7 4.1 3.5 2.2

CAPE 20 7.7 11.7 8.8 5.3 3.6 2.6 0.724 5.7 8.3 7.7 5.0 3.0 1.3 ‐0.328 2.5 3.2 4.0 4.0 2.3 0.4 ‐0.830 1.5 1.9 2.5 3.0 2.1 0.2 ‐0.9

Blackstone

S&P 500: Next 1 Year Annualized TR (%)Conditional on Starting Valuation and Trailing 12m S&P 500 TR

Source: Robert Shiller, Standard & Poor’s, Bureau of Labor Statistics, BAAM analysis. Uses Kernel Density Estimation (KDE), which is a non‐parametric statistical technique to estimate the probability density function of a random variable. CAPE = Real S&P Price / 10 Year Average of Real S&P 500 EPS with 2008 adjustment. Analysis is from Dec 1880 – Sep 2017. These numbers are not intended to be a prediction of how any markets will perform in the future.

26

Trailing 12m S&P 500 TR (%)All ‐20 ‐10 0 10 20

All 10.8 13.4 12.9 10.2 8.3 10.1

8 19.0 29.9 25.2 20.1 17.1 16.010 16.9 23.7 20.1 17.1 15.7 16.412 14.4 16.7 14.7 13.4 13.2 15.214 11.4 12.4 11.8 9.7 9.2 12.116 8.9 9.8 11.0 7.7 5.9 8.4

CAPE 18 7.6 7.1 10.7 7.5 5.0 6.720 7.1 5.0 8.8 7.6 5.5 6.522 6.8 4.9 3.6 5.9 5.7 7.124 6.6 4.7 ‐1.3 3.2 5.5 7.926 6.3 ‐0.8 ‐4.3 2.0 5.4 8.828 5.1 ‐10.5 ‐9.8 1.0 5.3 9.930 2.9 ‐14.9 ‐15.3 ‐1.8 6.4 12.8

Blackstone

US‐China Trade: Soybeans for computers

(1) UN Comtrade, MIT, as of 2016.

US Imports from China ($386B in 2016)

US Exports to China ($135B in 2016)

27

Confidential

Blackstone

Impact of “Just A China‐US Trade War” – NOT global trade war

Favorable Unfavorable

Equity Indices• Mexico, Canada• Germany, Japan• Taiwan, Vietnam, Taiwan, Malaysia

• United States• China

Sectors

• Non‐Chinese Electronics Manufacturers• Asia ex‐China Apparel• Mexico & European Appliances, 

Furniture, and Machinery• Non‐US Agriculture (Brazil, Argentina, 

Australia, Canada, Russia)• Domestic Oriented US and China• Non‐US Automakers• Non‐US Aircraft manufacturers

• Chinese Electronics & ApparelManufacturers

• US Retailers• US Agriculture• US listed: tech, industrials, 

materials

FX • MXN, CAD, VND, TWD, THB, MYR• EUR, JPY, CHF • CNY?

Commodities • US Steel/Aluminum, Metals, Oil?  • Soy, Sorghum, Lumber

Bonds • Core Europe / Japan (on safe haven flows), US?• Peripheral Europe, Emerging 

Markets (on risk aversion)

This reflects the current opinions of BAAM as of the date appearing in this material only and is not intended to be a prediction of how any financial markets will perform in the future.

28

Confidential

Blackstone

Hedge Fund Strategy Allocation Priorities

Note: Information is as of September 2018 and reflects BAAM’s opinions as of this date only.  Strategy and allocation views are subject to ongoing revision.  Nothing herein is intended as a prediction of how any financial markets, BAAM Fund, or underlying manager will allocate or perform in the future.

29

Add

Global Macro  Diversified relative value trading on broader macro themes Quantitative Continued alpha potential with shorter term risk‐diversifying benefit

Structured Credit / ABS

Select opportunities in niche credit and Europe

Emerging Markets

Expected dispersion across countries, more opportunities in credit

Maintain

Mortgages Select opportunities in MSRs, whole loans, RMBS and risk transfer Special

SituationsFocus on highly structured, credit oriented deals

Distressed Credit

Default rates remain low, sector specific stress creates opportunities

Reduce

Fundamental Equity

Prioritizing managers with potential to navigate factor exposures, and provide both long and short book alpha

Event / Activist Activist catalysts shifting towards longer‐term, BOD‐level changes 

Credit Fundamental

Dislocations may provide opportunities in HY bonds and loans; valuations richer now; reallocate towards floating rate

IV. Hope Street Fund L.P.

Blackstone

Summary of LADWP’s Hedge Fund Program Objectives

(1) As provided by the LADWP Staff to BAAM.

31

LADWP’s Hedge Fund Program Objectives(1)

̶ Enhance the Plan’s long‐term risk‐adjusted total return

̶ Provide added diversification to the Plan’s overall investment program

̶ Maintain a low correlation with the public global equity markets

̶ Exhibit lower volatility than public investments for a given level of return

̶ Absolute return orientated while also providing preservation of capital

Hedge Fund Program Objectives(1)

Return Objective 90‐day T‐Bill Index + 300bps over a full market cycle

Volatility Less than one‐third of the MSCI ACWI over 3 – 5 years

Correlation Less than or equal to 0.50 of the MSCI ACWI over 3 – 5 years

BenchmarkShort‐TermLong‐Term

HFRI FoF Conservative Index90‐day T‐Bill Index + 300bps over a full market cycle

Liquidity 75% of portfolio redeemable within 1‐Year25% of portfolio redeemable within 2‐Years

Concentration Maximum single manager position of 10% at cost or 14% at market valueMaximum new emerging manager position of 5% at cost or 7% at market value 

Gross Exposure Not to exceed 400%

Blackstone

Confidential

Hope Street Fund L.P. Invests in a Diversified Group of Managers

Breadth of allocations are intended to reduce volatility and produce downside protection(1)

(1) Portfolio allocations represent the assets of the Hope Street Fund L.P. The fund is an actively managed portfolio and strategy allocations are subject to ongoing revision. There can be no assurance thatthe Fund, or any underlying manager, will achieve its objective or avoid significant losses.

(2) Data as of 10/1/2018. Estimated and unaudited.(3) As of 10/1/2018. Manager count includes only those with an allocation over 0.25%. Manager count is represented by the number of underlying vehicles in the Fund.

32

54%of fund represented by top 10 manager allocations

12strategies

28manager vehicles on a non look through basis

Portfolio Composition as of October 1, 2018AUM: $707 million(2)

Diversity Profile(3)

Blackstone

Performance(1)

(1) Certain recent performance information is estimated and unaudited. While this balance reflects all adjustments that are, in the opinion of management, based upon information currently availablenecessary for a fair presentation of the period presented, this information may be subject to a subsequent adjustment.

(2) Performance shown represents net returns for the Hope Street Fund L.P. from 10/1/2017 to 9/30/2018. Please see additional explanation at the end of this section. Results are net of all fees andexpenses. Past performance is not necessarily indicative of future results. There can be no assurance that the Fund will achieve its objective or avoid significant losses.

(3) Benchmarks of HFRI FoF Conservative Index and 90‐day T‐Bill + 3% provided by LADWP.(4) Provided at the request of LADWP. Indices are provided for illustrative purposes only. They have not been selected to represent appropriate benchmarks or targets for the Fund, but rather are disclosed

to allow for comparison of the Fund’s performance to that of well‐known and widely recognized indices. The indices will include holdings that are substantially different than investments held by theFund and do not reflect the strategy of the Fund. Comparisons to indices have limitations because indices have risk profiles, volatility, asset composition and other material characteristics that will differfrom the Fund. The indices do not reflect the deduction of fees or expenses. In the case of equity indices, performance of the indices reflects the reinvestment of dividends.

33

Hope Street

Estimated Balance on 9/30/2018 : $707,316,756 

Net Returns from Initial Investment

Short‐Term Benchmark(3)

Long‐Term Benchmark(3) Indices(4)

Hope StreetGross

Hope StreetNet(2)

HFRI FoF CnsvIndex 90‐Day T‐Bill + 3% S&P 500 TR

MSCI World TR USD

Barclays US Agg Bond TR

2017(Oct‐Dec) 1.57% 1.37% 1.16% 1.05% 6.64% 5.62% 0.39%2018 3.17% 2.78% 2.65% 3.65% 10.56% 5.89% (1.60%)

January 1.28% 1.15% 1.28% 0.37% 5.73% 5.30% (1.15%)February (0.75%) (0.71%) ‐0.76% 0.37% (3.69%) (4.10%) (0.95%)March 0.01% (0.02%) 0.05% 0.39% (2.54%) (2.11%) 0.64%April 0.57% 0.51% 0.47% 0.39% 0.38% 1.21% (0.74%)May 0.40% 0.33% 0.56% 0.41% 2.41% 0.72% 0.71%June 0.22% 0.19% 0.05% 0.40% 0.62% (0.01%) (0.12%)July 0.49% 0.45% 0.12% 0.41% 3.72% 3.15% 0.02%August 0.24% 0.20% 0.31% 0.42% 3.26% 1.28% 0.64%September 0.69% 0.65% 0.48% 0.42% 0.57% 0.60% (0.64%)

YTD 2018 Net Return: 3.17% 2.78% 2.59% 3.65% 10.56% 5.89% (1.60%)Annualized Net Return: 4.79% 4.19% 3.78% 4.73% 17.91% 11.84% (1.21%)Cumulative Net Return: 4.79% 4.19% 3.78% 4.73% 17.91% 11.84% (1.21%)Std. Deviation: 1.60% 1.60% 1.70% 0.10% 8.72% 7.92% 2.16%Sharpe Ratio: 1.56 1.56 1.23 ‐ 1.86 1.28 ‐1.34Beta to Index: 0.13 0.17 ‐0.11

Blackstone

Performance

(1) Performance shown represents net returns for the Hope Street Fund L.P. from 10/1/2017 to 9/30/2018. Please see additional explanation at the end of this section. Results are net of all fees andexpenses. Past performance is not necessarily indicative of future results. There can be no assurance that the Fund will achieve its objective or avoid significant losses.

(2) Benchmarks of HFRI FoF Conservative Index provided by LADWP. Indices are provided for illustrative purposes only. They have not been selected to represent appropriate benchmarks or targets for theFund, but rather are disclosed at the request of LADWP. Comparisons to indices have limitations because indices have risk profiles, volatility, asset composition and other material characteristics thatwill differ from the Fund. The indices do not reflect the deduction of fees or expenses. In the case of equity indices, performance of the indices reflects the reinvestment of dividends.

34

1.57%

0.53%

1.19%1.43%

3.17%

4.79%

1.37%

0.41%

1.03%1.31%

2.78%

4.19%

1.16%

0.56%

1.08%0.98%

2.59%

3.78%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 2018 ITD

Hope Street Gross Hope Street Net HFRI FoF Consv Index(1) (2)

Blackstone

Performance Contribution by Manager – 2017 and 2018(1)

________________________________________________

(1) Managers shown on a non lookthrough basis. Allocations of less than 0.25% as of 10/1/2018 have not been included. Oct 2018 allocations as of 10/1/2018.(2) The Hope Street Fund L.P. is an actively managed portfolio and strategy allocations are subject to change(3) 2017 Returns are for the period 10/1/2017 to 12/31/17. 2018 returns are for the period 1/1/2018 to 9/30/2018. Certain recent returns are estimated and unaudited. Underlying manager performance is

shown gross of BAAM fees but net of underlying manager fees. If BAAM fees were applied, returns would be lower. See prior slides for net returns of the fund. Past performance is not necessarilyindicative of future results. There can be no assurance the funds will meet their investment objectives or avoid significant losses.

* Please refer to the end of this section for additional disclosures relating to the managers’ affiliation with Blackstone.

35

Oct 2018 YTD YTD 2017Allocations(2) Return(3) Contribution(3) Return(3)

Equity Long/ShortEquities‐FundamentalManager A 3.35% 6.03% 0.19% (2.55%)Manager B* 2.65% (1.79%) (0.05%) ‐Manager C 2.61% (4.24%) (0.12%) ‐

8.61% 0.03%Equities‐TradingManager D 3.24% 6.68% 0.20% (2.31%)Manager E 0.68% (5.19%) (0.33%) 2.63%

3.91% (0.12%)Quantitative StrategiesManager F 3.37% 9.97% 0.30% 2.55%Manager G 2.55% 6.37% 0.25% 3.12%Manager H 2.45% 2.88% 0.07% (0.68%)Manager I 2.18% 7.82% 0.14% ‐Manager J 1.13% 3.53% 0.04% ‐Manager K 0.81% 5.74% 0.04% ‐Manager L 0.54% (8.66%) (0.05%) ‐

13.03% 0.80%Arbitrage & EventCredit‐Fundamental ‐Manager M 4.45% 12.95% 0.37% ‐Manager N 2.00% (5.75%) (0.20%) ‐

6.45% 0.17%Credit‐TradingManager O 2.61% 4.68% 0.13% 0.97%

2.61% 0.13%Credit‐DistressedManager P 5.35% 4.98% 0.26% 3.06%Manager Q* 3.40% 3.17% 0.10% 1.80%Manager R 2.88% 0.41% 0.05% 1.42%

11.63% 0.42%

Oct 2018 YTD YTD 2017Allocations(2) Return(3) Contribution(3) Return(3)

EM‐CreditManager S 4.35% (4.43%) (0.21%) 1.22%

4.35% (0.21%)Structured/ABSManager T 3.72% 5.19% 0.20% ‐Manager U 3.68% 3.81% 0.13% 0.98%Manager V 3.54% 0.35% 0.01% ‐

10.94% 0.34%Residential MortgagesManager W 6.25% 8.35% 0.46% 3.38%

6.25% 0.46%Multi‐StrategyManager W* 5.22% 4.21% 0.23% 1.23%Manager Y 2.15% 3.25% 0.08% 1.80%

7.37% 0.30%Directional Trading & Fixed IncomeMacro‐Rates ‐Manager Z 13.75% 7.59% 1.11% 0.48%

13.75% 1.11%Special SituationsSpecial Situations ‐Manager AA* 3.78% (0.83%) (0.05%) 1.39%Manager AB* 2.65% 3.84% 0.06% 1.36%

6.43% 0.00%

Cash and Managers 

Blackstone

YTD 2018 Top & Bottom Contributors(1)

(1) For the period 1/1/2018 ‐ 9/30/2018. The Fund is actively managed and strategy allocations are subject to ongoing revision. Past performance is not necessarily indicative of future results. There can beno assurance that the underlying funds will achieve their objectives or avoid significant losses. Values may not sum due to rounding. Certain recent performance is estimated and unaudited.Performance at the underlying manager level is shown net of manager fees but gross of BAAM fees, if BAAM fees were applied returns would be lower. See prior slides for the net returns of the fund.The Hope Street Fund L.P. is an actively managed portfolio and strategy allocations are subject to change

* Please refer to the end of this section for additional disclosures relating to the managers’ affiliation with Blackstone.

36

2018 YTD Top Contributors

Manager Strategy  Return Contribution % 9/01/2018 Allocation

Manager Z Macro‐Rates 1.11% 13.75%

Manager W Residential Mortgages 0.46% 6.25%

Manager M Credit‐Fundamental 0.37% 4.45%

Manager F Quantitative Strategies 0.30% 3.37%

Manager P Credit‐Distressed 0.26% 5.35%

2018 YTD Bottom Contributors

Manager Strategy  Return Contribution % 9/01/2018 Allocation

Manager E Equities‐Trading (0.33%) 0.68%

Manager S EM‐Credit (0.21%) 4.35%

Manager N Credit‐Fundamental (0.20%) 2.00%

Manager AC CTAs (0.15%) N/A

Manager C Equities‐Fundamental (0.12%) 2.61%

Blackstone

YTD Top Portfolio Changes(1)

(1) Shown for the period 1/1/2018 – 10/1/2018. Note that redemptions that take place on 1/1 of the beginning of the calendar year are part of prior year redemptions and are not included in YTD flows.The Hope Street Fund L.P. is an actively managed portfolio and strategy allocations are subject to ongoing revision. The above strategy definitions have been qualified to meaningfully distinguish amongvarious investment strategies and styles. BAAM's underlying managers have been categorized based on the strategy definitions to the best of BAAM's knowledge. There can be no guarantee that theunderlying managers will meet their investment objectives. Information is estimated and unaudited. Amounts redeemed/added are estimated and unaudited.

* Please refer to the end of this section for additional disclosures relating to the managers’ affiliation with Blackstone.

37

2018 Top Additions

Manager Strategy  Amount Date 9/01/2018 Allocation

Manager M Credit‐Fundamental $             29,000,000  2/18, 9/18 4.45%

Manager T Structured/ABS $             25,000,000  1/18 3.72%

Manager V Structured/ABS $             25,000,000  9/18 3.54%

Manager AA* Special Situations $             22,742,254  2/18, 5/18, 8/18, 9/18, 10/18 3.78%

Manager C Equities‐Fundamental $             19,310,000  1/18, 2/18, 7/18 2.61%

2018 Top Redemptions

Manager Strategy  Amount Date 9/01/2018 Allocation

Manager E Equities‐Trading $           (22,204,715) 10/18 0.68%

Manager AD Equities‐Fundamental $           (20,141,765) 7/18 N/A

Manager L CTAs $           (10,600,759) 9/18, 10/18 0.00%

Manager G Quantitative Strategies $             (8,500,000) 7/18 2.55%

Manager AE Equities‐Fundamental $                 (173,272) 4/18, 7/18, 10/18 0.00%

Blackstone

Exposure by Manager(1)

(1) Managers shown on a no lookthrough basis, with managers above 25 bps. Exposure data as of 9/30/2018.(2) Refers to the manager’s contribution to the Fund’s total gross exposure. Past performance is not necessarily indicative of future results. There can be(3) no assurance that the underlying funds will achieve their objectives or avoid significant losses.* Please refer to the end of this section for additional disclosures relating to the managers’ affiliation with Blackstone.

38

Gross  Net Long Short Gross ContributionExposure Exposure Exposure Exposure to Fund(2)

Equity Long/ShortEquities‐FundamentalManager A 164.99% 30.73% 97.86% 67.13% 5.53%Manager B* 240.14% 8.61% 124.37% 115.76% 6.36%Manager C 662.38% 74.73% 368.56% 293.82% 17.29%

Equities‐TradingManager D 143.24% 8.86% 76.05% 67.19% 4.64%Manager E 529.00% 21.00% 275.00% 254.00% 23.91%

Quantitative StrategiesManager F 631.10% 2.70% 316.90% 314.20% 21.27%Manager G 564.30% 198.41% 381.35% 182.95% 14.38%Manager H 819.00% ‐1.00% 409.00% 410.00% 20.03%Manager I 868.35% ‐0.01% 434.17% 434.18% 18.96%Manager J 679.26% 36.80% 358.03% 321.23% 7.70%Manager K 659.20% 6.32% 332.76% 326.44% 5.34%Manager L 1239.90% 9.40% 624.65% 615.25% 6.68%

Arbitrage & EventCredit‐FundamentalManager M 129.25% 128.63% 128.94% 0.31% 5.75%Manager N 189.00% 24.20% 106.60% 82.40% 3.78%

Credit‐TradingManager O 97.83% 80.89% 89.36% 8.47% 2.56%

Credit‐DistressedManager P 346.60% 216.34% 104.10% 19.60% 4.59%Manager Q* 140.50% 98.30% 119.40% 21.10% 4.77%Manager R 121.20% 85.60% 103.40% 17.80% 3.49%

Gross  Net Long Short Gross ContributionExposure Exposure Exposure Exposure to Fund(2)

EM‐CreditManager S 110.51% 16.97% 63.74% 46.77% 4.81%

Structured/ABSManager T 88.87% 88.87% 88.87% 0.00% 3.30%Manager U 157.01% 154.13% 155.57% 1.44% 5.78%Manager V 100.00% 100.00% 100.00% 0.00% 3.54%

Residential MortgagesManager W 172.70% 172.70% 172.70% 0.00% 9.57%

Multi‐StrategyManager W* 165.09% 96.41% 130.75% 34.34% 8.61%Manager Y 417.00% 91.00% 254.00% 163.00% 8.97%

Directional Trading & Fixed IncomeMacro‐RatesManager Z 753.74% 7.67% 380.71% 373.04% 103.61%

Special SituationsSpecial SituationsManager AA* 1045.90% 915.64% 980.77% 65.13% 9.43%Manager AB* 155.65% 94.41% 125.03% 30.62% 4.12%

Blackstone

Change in Market Value

39

Water and Power Employees Retiree Health Benefits Fund

Water and Power Employees Retirement Plan Total

Beginning Capital(October 1, 2017) 

$72,000,000  $415,000,000  $487,000,000 

Total Contributions(Through September 30, 2018)

99,377,786  583,484,289  682,862,075 

Withdrawals(Through September 30, 2018)

‐ ‐ ‐

Net Contributions 99,377,786  583,484,289  682,862,075 

Net Profits(Through September 30, 2018)

3,584,563  20,870,118  24,454,681 

Market Value (as of September 30, 2018)

$102,962,349  $604,354,407  $707,316,756 

Ownership 14.56% 85.44%

Blackstone

Hope Street Fund L.P. – Investment Guidelines as of September 30, 2018

1. Capitalized terms used but not defined herein shall have the meaning given to such terms in the Limited Partnership Agreement of Hope Street Fund L.P., dated October 1, 2017.2. This analysis presents what percentage of Hope Street Fund L.P. (the "Fund") may be redeemed each period based on the assumptions below. Blackstone Alternative Asset Management L.P. ("BAAM") does not guarantee that the 

hypothetical liquidity schedule depicted here will accurately reflect actual realized liquidity. Please note this analysis reflects the liquidity of the Fund's portfolio in the ordinary course of business and does not account for any liquidity restrictions of the Fund and any applicable feeder funds, as detailed in the respective fund documents. Certain of the data presented here is based on information obtained or derived from the underlying managers. BAAM does not guarantee the accuracy and completeness of such information. Note that the use of alternate assumptions may yield different results. 

ASSUMPTIONS: All redemption notices are submitted to underlying managers on 10/01/2018.Allocation percentages are calculated on the Fund's net asset value as of 10/01/2018. Cash held at the Fund level is redeemable monthly. Time served under lock‐up and investor‐level gates are factored into the analysis, but the analysis assumes underlying managers will not apply fund or share class level gates. 

The above does not include the effect of notice periods or initial lock‐ups of one year or less.The Fund will not pay a fee to redeem (i) more frequently, (ii) during a soft lock‐up or (iii) above an investor‐level gate.Note: The data presented above is based on information obtained from the underlying managers.  BAAM does not guarantee the accuracy and completeness of such information. Historical data is reported by each manager and may not be calculated in a uniform or consistent basis with other managers. All information is subject to change. BAAM funds are actively managed and allocations are subject to ongoing revision.

40

Investment Guidelines(1) Concentration Compliant

Blackstone Affiliation:

Max 30% of the NAV of the Partnership invested in Blackstone Affiliated Funds, Blackstone InterestFunds and BAAM Multi‐Manager Funds for which the Founding Limited Partners bear investmentmanagement fees or incentive fees to the Investment Manager or any of its Affiliates at the BAAMMulti‐Manager Fund level.

11.32%

Investment Strategy:

Max 40% of the NAV of the Partnership invested in any one investment strategy. 13.82%

Max 40% of the NAV of the Partnership invested in Portfolio Funds primarily focused on commodities,currencies, or financial futures. 15.94%

Liquidity(2):

Min 85% of the NAV of the Partnership redeemable within 1 year. 94.04%

100% of the NAV of the Partnership redeemable within 2 years, excluding BSOF. 100.00% Borrowing:

Borrowing or other fund raising shall be limited to 5% of the NAV of the Partnership. 0.00%

Blackstone

Hope Street Fund L.P. – Investment Guidelines as of September 30, 2018 (Cont’d)

1. Capitalized terms used but not defined herein shall have the meaning given to such terms in the Limited Partnership Agreement of Hope Street Fund L.P., dated October 1, 2017.ASSUMPTIONS: 

All redemption notices are submitted to underlying managers on 10/01/2018.Allocation percentages are calculated on the Fund's net asset value as of 10/01/2018. Cash held at the Fund level is redeemable monthly. Time served under lock‐up and investor‐level gates are factored into the analysis, but the analysis assumes underlying managers will not apply fund or share class level gates. 

The above does not include the effect of notice periods or initial lock‐ups of one year or less.The Fund will not pay a fee to redeem (i) more frequently, (ii) during a soft lock‐up or (iii) above an investor‐level gate.Note: The data presented above is based on information obtained from the underlying managers.  BAAM does not guarantee the accuracy and completeness of such information. Historical data is reported by each manager and may not be calculated in a uniform or consistent basis with other managers. All information is subject to change. BAAM funds are actively managed and allocations are subject to ongoing revision.

41

Portfolio Guidelines(1) Concentration Compliant

Max underlying manager concentration: 10% at cost 5.34%

Max underlying manager concentration: 14% at market value 5.57%

Max underlying investment in new or emerging managers: 5% at cost N/A

Max underlying investment in new or emerging managers: 7% at market value N/A

Max total gross leverage: 400% 353.36%

A. Appendix

Blackstone

Key Contacts for LADWP

43

Client Coverage

Brad RudnerManaging Director, Global Head of Business Strategy

345 Park AvenueNew York, NY 10054212‐583‐5508

Brad.Rudner@blackstone.com

Bobby McGannAssociate, Investor Relations and Business Development

345 Park AvenueNew York, NY 10054212‐390‐2453

Robert.McGann@blackstone.com

Portfolio Management

Alberto SantulinManaging Director

345 Park AvenueNew York, NY 10054212‐583‐5143

Santulin@blackstone.com

Blackstone

Confidential

44

Additional Disclosures Relating to Fee Savings

The calculation of underlying manager negotiated fee savings for BAAM’s Flagship Fund is based on the following assumptions. Fee savings will vary(potentially significantly) if assumptions are varied. Alternative assumptions will be applied upon request. The gross manager return assumptionsdo not represent a target or expected return for the fund/portfolio in question and do not reflect BAAM fees (which will materially reduce returns toinvestors).

• Static portfolio based on full look-through allocations and negotiations completed as of 7/1/2018• In instances where the negotiated deal includes a fee schedule with asset thresholds, the calculation assumes BAAM is receiving the top threshold or

maximum potential fee savings. There is no assurance that the top threshold will be met or maintained. If not met, a portion of the potential savings willnot be realized.

• The calculation ignores incentive fee hurdles and high water marks.• Exclusive fee savings represent negotiated fee savings available exclusively to BAAM.

1. Additional Assumptions Relating to Estimated Annual Potential Savings:

• The estimated underlying manager fee savings represent the estimated dollar savings as a percentage of current NAV.• The gross manager return assumptions do not represent a target or expected return for the fund/portfolio in question and do not reflect underlying manager

or BAAM fees (which will materially reduce returns to investors). Fee savings will vary (potentially significantly) depending on the actual returns of theunderlying funds; alternative return assumptions will be applied at your request.

• Management fee savings based on estimated average AUM over the period reflecting alternative assumed performance (see above).

Use of alternate assumptions could yield materially different results. Different assumptions will be applied at your request.

The data presented above is based on information obtained or derived from the underlying managers. BAAM does not guarantee the accuracy and completeness of such information. Historical data of managers is as reported by the given manager and may not be calculated in a uniform or consistent basis with information of other managers and all information is subject to change. Please consult your own third party advisors before making any investment decisions based on this information.

Assumed Gross Return of Underlying Manager12.00% 8.00% 4.00% 0.00%

Total Fee Savings 0.52% 0.45% 0.38% 0.31%Management Fee Savings 0.32% 0.32% 0.31% 0.31%

Performance Fee Savings 0.20% 0.13% 0.07% 0.00%

Blackstone

Disclaimer

45

*The Fund allocates to investment managers in which affiliates of Blackstone Alternative Asset Management L.P. (“BAAM”) own equity interests. These equity interests range from a minority stake to 100% ownership. An investment with such managers would benefit Blackstone and a withdrawal from such managers would be detrimental to Blackstone. Please refer to the Fund’s Private Placement Memorandum for additional information regarding BAAM’s potential conflicts of interest. 

Blackstone

Confidential

46

Important Disclosure InformationThe materials contained herein are for informational purposes only and do not constitute an offer to sell or a solicitation of an offer to purchase any interest in any private investment vehicles (the“Blackstone Funds”) managed by Blackstone Alternative Asset Management L.P. or any of its investment advisory affiliates (together, “Blackstone”). Any such offer of the Blackstone Funds is exempt fromregistration with the SEC and shall be made only pursuant to the confidential private placement memorandum for a Blackstone Fund (“PPM”), which qualifies in its entirety the information set forth hereinand contains a description of the risks of investing. These materials are also qualified by reference to the governing documents and the subscription agreement relating to the relevant Blackstone Fund(collectively, the “Agreements”). The PPM and Agreements relating to a Blackstone Fund have not been reviewed or approved by the SEC and should be reviewed carefully by all prospective investors priorto an investment in that Fund. The Blackstone Funds are speculative and involve a high degree of risk and may be offered only to investors who meet minimum financial requirements and for whom theinvestment is otherwise suitable. Prospective investors may not rely on any information contained in these materials in determining whether to invest in a Blackstone Fund.

In connection with your consideration of an investment in any Blackstone Funds, you should be aware of the following risks (Please see the Offering Memorandum for a summary of additional risks):

The Blackstone Funds may be leveraged and their portfolios may lack diversification, thereby increasing the risk of loss. Many of the Blackstone Funds may invest in instruments that are illiquidand difficult to value, which may limit an investor's ability to redeem or transfer its investment or delay receipt of redemption proceeds. The Blackstone Funds are speculative, involve a highdegree of risk and their performance may be volatile. An investor may lose some or all of its investment. Blackstone has total investment authority over the Blackstone Funds. There is nosecondary market for investors’ interests in the Blackstone Funds. There are restrictions on withdrawal and transfer of interests in the Blackstone Funds. The Blackstone Funds’ fees and expenses,and those of any underlying funds or managers, are substantial and will negatively impact performance.

Investments in the Blackstone Funds are not subject to the same regulatory requirements or governmental oversight as mutual funds. Blackstone Funds and their underlying managers maypurchase instruments that are traded on exchanges located outside the United States that are “principal markets” and are subject to the risk that the counterparty will not perform. Furthermore,since there may be government supervision and regulation of foreign exchanges, Blackstone Funds and their underlying managers are also subject to the risk of the failure of the exchanges andthere may be a higher risk of financial irregularities and/or lack of appropriate risk monitoring and controls.

Investors in Blackstone funds are entitled to receive limited pricing and valuation information and generally will have limited rights with respect to their investment interest, including limitedvoting rights and no participation in the management of the Funds.

Investment in any of the Blackstone Funds is only suitable for sophisticated investors for which such an investment does not constitute a complete investment program and which fully understandand are willing to assume the risks involved in such Funds. We strongly encourage Investors to obtain independent advice from their own investment tax, accounting and legal advisers regardingany investment in any Blackstone Fund. Investors are also urged to take appropriate advice regarding any applicable legal requirements and any applicable taxation and exchange controlregulations in the country of their citizenship, residence or domicile which may be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any Blackstone Funds.Blackstone Funds may involve complex tax and legal structures.

The past performance of any Blackstone Fund is not necessarily indicative of future results. There can be no assurance that any Blackstone Fund or any of its underlying investments will achievetheir objectives or avoid significant losses. There is no publically available performance information source for Blackstone Funds. Further details on the performance of these funds is available onrequest.

Blackstone has fiduciary and contractual obligations to a significant number of funds and accounts (“Blackstone Clients”), some of which have overlapping investment guidelines and mandates andtherefore compete for limited capacity. If an investment opportunity is appropriate for more than one Blackstone Client, Blackstone intends to allocate such opportunity in accordance withBlackstone’s allocation procedures, which take into account various investment criteria, such as the relative amounts of capital available for investments, relative exposure to market trends,investment objectives, liquidity, diversification, contractual restrictions and similar factors.

This document contains highly confidential information regarding Blackstone's investments, strategy and organization. Your acceptance of this document from Blackstone constitutes your agreement to (i)keep confidential all the information contained in this document, as well as any information derived by you from the information contained in this document (collectively, "Confidential Information") and notdisclose any such Confidential Information to any other person, (ii) not use any of the Confidential Information for any purpose other than to consider investing in, or monitor investments in, BlackstoneFunds, (iii) not use the Confidential Information for purposes of trading any security, including, without limitation, securities of Blackstone or its portfolio companies, (iv) not copy this document without theprior consent of Blackstone, and (v) promptly return this document and any copies hereof to Blackstone upon Blackstone's request. The use of the Confidential Information also is subject to theconfidentiality provisions set forth in the Agreements and in any other written agreement between the recipient and Blackstone.

ERISA Fiduciary Disclosure:The forgoing information has not been provided in a fiduciary capacity under ERISA, and it is not intended to be, and should not be considered as, impartial investment advice.