FrontPoint Partners LLC FrontPoint Strategic Credit Fund

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1 FrontPoint Partners LLC FrontPoint Strategic Credit Fund Long/Short Strategy across the Asset Backed Securities (ABS) market. INVESTMENT S TRATEGY AND P ROCESS FrontPoint Strategic Credit Fund ( FSC, The Fund ) is an alternative investment fund that takes long and short positions, on a cash or synthetic basis, in asset backed securities with an emphasis on residential mortgage credit. FSC will take long and short positions primarily in structured mortgage-backed, asset-backed and commercial mortgage-backed securities. The principal objective of the Fund is to generate high risk-adjusted absolute returns with low correlation to the broader markets. The Fund will use proprietary research and analytic models to help target mis-valued assets in the market which will include assets in all rating categories as well as whole loans. The team employ s a rigorous research process involving analysis of fundamental loan characteristics, general economic data and use of statistical research. The Fund will also include investments in corporates and derivatives related to the financial services and real estate sectors. R ISK MANAGEMENT Risk management of FSC falls into four main categories: 1) Asset selection is driven by intense research, loan level analysis, and volatility assessment 2) Monitoring of the portfolio by multiple factors including! Product concentrations! Size! Value! Leverage! Yield! Liquidity 3) Internally created risk metric models will be used to monitor the volatility of the portfolio under different methodologies and stress scenarios:! Notional investment long vs. notional investment short by both rating category and product! Market risk: use ABX or other market levels to determine yield to value portfolio! FSC risk metric: worst case scenario across portfolio 4) Various hedging strategies will be utilized for interest rates and credit.

2 Firm Background FrontPoint was founded in FrontPoint is an integrated alternatives asset management firm focused on providing single strategy and multi-strategy absolute return investments to institutional investors and their advisors. FrontPoint integrates and supports its portfolio teams through a central infrastructure managed by an experienced business team who provide trading, risk management, compliance, legal, accounting, technology, administrative services, marketing, and back office functions. This structure allows the portfolio teams to spend the majority of their time on investing and generating alpha. As of July 31, 2008, FrontPoint has 15 experienced investment teams, managing approximately $10.4 billion across 8 multi-strategy vehicles and 30 single strategy funds. In December 2006, Morgan Stanley acquired FrontPoint. As such, FrontPoint is now a part of Morgan Stanley s Investment Management Division. The ultimate parent of FrontPoint is Morgan Stanley; a New York Stock Exchange quoted company whose shares trade under the ticker symbol MS. As of March 31, 2008, Morgan Stanley employees owned approximately 15% and represented the largest shareholder group Principals Biographies Marc Rosenthal Co-Portfolio Manager Prior to joining FrontPoint, Marc was responsible for the investment activities of C-BASS where he was most recently a member of the Executive Committee and Chief Investment Officer and Co- Head of Capital Markets. He served as Managing Director in the Capital Markets area since 2004 and was responsible for investment activities in residential mortgage loans and securities since his start at C-BASS in March of Prior to joining C-BASS, he spent nine years at Merrill Lynch, six of which were in the fixed income industry, and he most recently served as a Vice President in the Structured Finance area where he was responsible for organizing and structuring asset-backed deals. Marc received a BA in Economics from Cornell University and an MBA in Finance from the Stern School of Business at New York University. Noelle Savarese Co-Portfolio Manager Prior to joining FrontPoint, Noelle was Co-Head of Capital Markets at C-BASS, where she was responsible for all finance/banking activities of the firm, including the acquisition of mortgagerelated products and the securitization of such assets. As a member of C-BASS Executive Committee, Noelle also managed the firm s private equity investments, the Capital Markets operations group in Houston, TX and Human Resources in New York. Noelle joined C-BASS in October 1996 as a Vice President in the Capital Markets group with responsibility for managing transactions in residential mortgage loans and securities. Prior to joining C-BASS, she spent five years at Citicorp Securities Inc. as a Vice President in the Mortgage Finance group, responsible for the acquisition and disposition of mortgage loans. Prior to Citicorp, Noelle spent two years at Salomon Brothers as an analyst in its mortgage department. Noelle received a BA in Economics from the University of Vermont.

3 Steve Eisman Co-Portfolio Manager Steve has been managing the FrontPoint Financial Services Fund since 2004 and the FrontPoint Financial Horizons Fund since Prior to joining FrontPoint, Steve was a Managing Director and Senior Financial Services Analyst at Chilton Investment Co., Inc. Prior to joining Chilton, Steve was a Managing Director and Senior Investment Bank/Asset Management and Specialty Finance Analyst at Oppenheimer & Co, where he worked for over 10 years. Steve has been ranked as an All-Star analyst by both Institutional Investor and the Wall Street Journal on multiple occasions. Steve received a JD from Harvard Law School and a BA from the University of Pennsylvania. Peter Cerwin Managing Director, Marketing Prior to joining FrontPoint, Pete was a Managing Director in the Capital Markets Group at C-BASS where he was responsible for Portfolio Management and Investor Relations. His extensive experience in the industry includes working with originators and issuers of a variety of mortgage products including subprime, subperforming, re-performing, prime and Alt-A. From 2001 to 2005, Pete was at Deutsche Bank where he was responsible for the origination of real estate-related structured products for a range of clients from large corporations to small specialty finance companies. Prior to joining Deutsche Bank in 2001, Pete was at Prudential Securities covering subprime mortgage issuers. Pete spent 13 years at Merrill Lynch where he was involved in all aspects of the residential mortgage business, including prime and subprime banking as well as MBS trading. Pete received a BA in Economics from Rutgers University and an MBA in Finance from the Stern School of Business at New York University. GENERAL F UND INFORMATION Contact Information Name: Pete Cerwin, Managing Director Address: FrontPoint Partners, 2 Greenwich Plaza, Greenwich, CT Main Phone: (917) Fax: (203) [email protected] Miscellaneous Fund Information Firm AUM (as of 7/31/08): $10.4 Billion Fund AUM (as of 7/31/08): $219 Million Firm Inception Date: November 2000 Fund Launch Date: April 2008 Valuation Currency: USD Domicile: The Offshore Fund is domiciled in the Cayman Islands. Fund Administrator Citco (Onshore/Offshore): Listed: No Auditor(s): Ernst & Young LLP

4 Prime Broker(s): Legal Counsel: Credit Suisse Securities (USA), Lehman Brothers Davis Polk & Wardwell Terms Minimum Investment: $1m for individuals, $5m for institutions Management Fee: 2% Performance Fee: 20%, subject to a high watermark Hurdle Rate: No High Water Mark: Yes Subscriptions (frequency / notice): Monthly Redemptions (frequency / notice): Quarterly Redemption Penalty: (Quarterly with 6% penalty) and annual thereafter (Quarterly with 3% penalty) Lock Up: 1st year hard lock, 2nd year soft lock The fund(s) whose summary or summaries are included in this document or, if applicable, in a profile book (each a Fund and together, the Funds ), are or may be customers or clients of Credit Suisse Securities (USA) LLC ( CSSU ), Credit Suisse Securities (Europe) Ltd. ( CSSEL ), Credit Suisse Securities (Hong Kong) Limited ( (CSHK ) or Credit Suisse Securities (Japan) Limited ( CSSJL ) and collectively with CSSU, CSSEL and their affiliates and subsidiaries, Credit Suisse ). This material is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Credit Suisse to any registration or licensing requirement within such jurisdiction. The provision of capital introduction services is subject to relevant local regulation and practice, and not all the services described in the materials are available in your particular jurisdiction. Where you are acting on behalf of others, references to you or your include those entities on whose behalf you are acting. Credit Suisse may act as prime broker to the Fund(s). Any investment you make in a Fund may have an indirect benefit to Credit Suisse either as prime broker or as counterparty to a transaction with such Fund, including derivative transactions. Credit Suisse may, to the extent permitted by law, effect transactions with or on behalf of the Fund(s), participate or invest in financing transactions with the Fund(s), perform services or solicit business from the Fund(s) or its or their managers, and/or have a position, holding or other material interest in the Fund(s). Credit Suisse may have received or may receive in the future prime brokerage or other transaction related compensation from the Fund. This summary (or if included in a profile book, the summaries) have been prepared and completed by the applicable Fund or the Fund s manager to which the summary relates. The summaries may be forwarded to you, at your request, by Credit Suisse for information purposes only as part of its capital introduction services. Credit Suisse has not verified the information contained in the summaries and gives no representation or warranty as to the accuracy, completeness or otherwise of the information contained in the summaries. You should independently verify any information contained in the summaries and obtain a copy of any prospectus or other offering or subscription documents of the Funds, which contain important risk disclosures and more specific information about the Funds, prior to making any investment decision. The summaries are not sales literature. These summaries and any materials or information provided to you by Credit Suisse are provided for information purposes only and do not constitute and should not be considered an offer to sell or a solicitation of an offer to buy or subscribe for an interest in any Fund or any other securities, to or from any person in any jurisdiction. Any such offer or solicitation may only be made pursuant

5 to a confidential private placement memorandum as supplemented from time to time that relates specifically to such Fund or securities. By accepting delivery of any materials, including these summaries, you agree to the foregoing. The investments and services contained or referred to in this material may not be suitable for you and it is recommended that you consult your own independent advisor if you are in doubt about such investments or services. Nothing in this material constitutes investment, legal, accounting or tax advice, or a representation that any investment or service is suitable or appropriate to your individual circumstances, or otherwise constitutes a recommendation to you. In providing these summaries, Credit Suisse is not acting as your advisor. You must make your own independent assessment (based on advice from such advisors and further verifications as you deem appropriate) as to whether investment in a Fund is appropriate for you and as to whether you are able to invest in the Funds. Investments in the Funds may be speculative and involve a high degree of risk, and investors in the Funds could lose all or a substantial amount of their investments. Credit Suisse has not made any determination on whether the Funds, or their managers, are permitted to market, promote or sell any investment to you under applicable law. Credit Suisse makes no representation as to the accuracy or completeness of the information in the summaries and accepts no liability for loss arising from use of the information in these summaries. These summaries are confidential and may not be disclosed, altered, transmitted, redistributed, divulged, copied or reproduced by you, in whole or in part. Separately from its provision of capital introduction services, Credit Suisse, through the Capital Services group, may also provide capital raising services (including acting as placement agent) to funds and their managers and clients of Credit Suisse and its affiliates, and investors in Credit Suisse s capital introductions program may be approached or contacted in connection with these capital raising services. Credit Suisse and its affiliates may be compensated for and benefit from providing such capital raising services. These summaries are provided in connection with the provision of capital introduction services, not capital raising services. All trademarks, service marks and logos used in this presentation are trademarks or service marks or registered trademarks or service marks of Credit Suisse. For investors supported by CSSU: The summaries are directed at institutional investors that are accredited investors (as defined by the U.S. Securities Act of 1933, as amended) and qualified purchasers (as defined by the U.S. Investment Company Act of 1940, as amended) only and is not intended for private customers. For investors supported by CSSEL: CSSEL is authorized and regulated by the Financial Services Authority (the FSA ) and this material is not for distribution to retail clients as defined in the FSA. This material is distributed by Credit Suisse depending on your particular jurisdiction and in conformity with applicable laws, rules and regulations. For investors supported by CSHK: This summary is directed at institutional investors that are professional investors (as defined by the Hong Kong Securities and Futures Ordinance) and is not intended for private customers. For investors supported by CSSJL: CSSJL is authorized and regulated by the Japan Financial Services Agency and this material is directed at institutional investors that are professional investors (as defined by the Financial Instruments and Exchange Law of Japan) and is not intended for general customers.