LEGAL NOTICE 34 PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS IMPORTANT NOTICE: The Firm-Level aggregate return includes only strategies which are currently active. The Strategy-Level performance returns presented herein represent the combined performance by strategy, including predecessor funds unless otherwise specified. The Strategy-Level performance returns presented herein represent the combined performance by strategy, including predecessor funds. For the purpose of calculating the combined Net IRR for European Real Estate, cash flows denominated in other than EUR were converted to EUR using the exchange rate at the date of the cash flows. All returns are unaudited and net of fund level expenses, including management fees, operating expenses and carried interest allocations and are calculated based on the assumption that each unrealized investment was realized on September 30, 2018 for its estimated fair value (unaudited and calculated in conformity with U.S. GAAP). These estimated fair values are inherently uncertain, and there can be no assurance that such investments will generate net proceeds equal to or exceeding these estimated fair values. This annual report is not an offer to sell or a solicitation of an offer to purchase interests in any funds sponsored by Harbert Management Corporation (“HMC”). Interests in those funds are offered only by confidential offering memorandum to accredited investors and where permitted by law. Interests in the funds are offered in the United States by our affiliated broker/dealer HMC Investments, Inc., FINRA/SIPC. This document is issued and approved for distribution by Harbert European Fund Advisors Ltd, authorized by the UK Financial Conduct Authority. The investment strategies discussed in this report are speculative and may involve risks that are greater than, and in addition to, the risks associated with other types of investment strategies. An individual strategy is not intended to be a complete investment program. Only investors who can withstand the loss of all or a substantial part of their investment should consider investing in any of the strategies discussed in this report. A strategy’s performance may be volatile and may involve the use of leverage, which may increase that volatility. There is no assurance that a strategy will achieve its investment objectives. Past performance is not indicative of future results. The fees and expenses charged in connection with investment in any of the strategies may be higher than those charged in connection with other investments and, in some market conditions, may offset any trading profits achieved by the strategy. Investors could lose all or a substantial amount of their investment in a strategy. Before investing, please obtain and consider the additional information available from us regarding these risks. This annual report contains certain “forward-looking statements” that are based on our assumptions and judgments with respect to, among other things, future economic, competitive, and market conditions; subjective evaluations of current investments and their prospects; and future business decisions, all of which are difficult or impossible to predict or evaluate accurately and many of which are beyond our control. Because of the significant uncertainties inherent in these assumptions and evaluations, you should not place undue reliance on these forward-looking statements, nor should you regard the inclusion of these statements as our representation that any fund will achieve any strategy, objectives or other plans. All forward-looking statements are made as of the date of this report. There is no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof, nor is there any assurance that the policies, strategies or approaches discussed herein will not change. All performance information included in this report is unaudited and should not be viewed as predictions or representations as to actual future performance. “HMC” is a service mark and the “Harbert” name and the “HMC Bridge Drawing” are registered trademarks owned by Harbert Management Corporation. All Rights Reserved. © 2019 Harbert Management Corporation.