LIQUID HOLDINGS GROUP OVERVIEW

AUGUST 2015

2© Liquid Holdings Group, Inc. 2014

1 As of the end of Q2 20142 Third Party Development Staff3 As of August 18, 2014

Simplify success for today’s alternative asset manager

OUR MANTRA

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LIQUID AT A GLANCE

© Liquid Holdings Group, Inc. 2014

1 As of the end of Q2 20142 Third Party Development Staff3 As of August 18, 2014

1 Third Party Development Staff 2 As of December 1, 2014; includes 60 full-time employees and 30 full-time technology consultants

People • 90 Employees• Offices in NYC, Hoboken, Aventura and Romania1

• Development: 10+ years average experience

Processes• Platform-as-a-service• Data-as-a-service• Connectivity-as-a-service• Infrastructure-as-a-service

Products • Liquid Platform

- LiquidTradeSM - LiquidMetrics®- LiquidMobileSM

LIQUID OFFICE REMOTE LIQUID EMPLOYEE(S)

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Connectivity-as-a-Service: To counterparties and trading venues without independent infrastructure costs

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Data-as-a-Service: Historical repository of and real-time access to all portfolio and market data; end-of-day services to ensure accuracy

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Software-as-a-Service: Multi-strategy trading, risk management and reporting capabilities– accessible everywhere

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Redefining the concepts of ‘mission-critical’ and ‘vendor’

THE NEXT WAVE OF PREFERRED PROVIDERS

Infrastructure-as-a-Service: Business continuity and disaster recovery; seamless upgrades and maintenance without interruption

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LIQUID– A MODERN HF OPERATING SYSTEM

1. Industry’s First OERMS

2. With Managed Services

3. Through our Proprietary Cloud

4. Leveraging Next Gen, Open Technology

PLATFORMTHE LIQUID

A high value alternative to legacy solutions, delivering:

MODERN APPROACHES TO SERVICING HEDGE FUNDS

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Performance and risk analysis, client reporting and shadow NAVLIQUIDMETRICS®

I. SOFTWARE-AS-A-SERVICECONVERGENCE OF REAL-TIME FRONT-OFFICE CONTROLS

APPLICATION DESCRIPTION

Broker-neutral order and execution management systemLIQUIDTRADE℠

Web-optimized dashboards and reports on any mobile deviceLIQUIDMOBILE℠

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OUR SOLUTIONS: BROKER-NEUTRAL OEMS LIQUIDTRADE℠

Integrates the speed, workflow and trading tools of broker-neutral EMS with OMS capabilities:

• Select and trade single and basket orders

• Choose best broker(s) for your strategy

• Route trades to the execution venue of your choice

• Analyze performance and compliance in real-time

• Allocate trades to accounts in compliant manner

• Access full transactions history for deeper analysis

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OUR SOLUTIONS: REAL-TIME RISK & REPORTINGLIQUIDMETRICS®

Real-time dashboards and reports for continuous portfolio monitoring, and investor reporting:

• Extensive library of risk, performance, and P&L statistics and reports

• Isolate drivers of performance

• Identify and mitigate potentially adverse events

• Automate client reporting

• Crosscheck fund admin with shadow NAV

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OUR SOLUTIONS: ANYTIME MONITORINGLIQUIDMOBILE℠

Mobile-optimized investment management platform:

• View real-time portfolio and risk analytics for immediate insight on the market’s impact on your investments

• Stress test potential scenarios to answer investor questions, e.g. “How does the price-drop in oil affect my investments?”

• Create custom dashboards and reports to address the most specific investor mandates

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Outsourced services that enable firms to rapidly scale the business

Reduce Capital Expense

Re-allocate capital from ops to the front-office with outsourced start- and

end-of-day processes

Ensures data integrity and accuracy for analysis and reporting purposes

Eliminate Manual Processes

On-board new locations, users, and portfolio products to take advantage

of new opportunities

Faster Time to Market

Business Benefits

1. End-of-Day Reporting

2. Data Consumption

3. Trade & Position Reconciliation

4. Shadow NAV

II. DATA-AS-A-SERVICE

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III. CONNECTIVITY-AS-A-SERVICE

Simplified connectivity to growing number of liquidity venues and market data feeds in a broker-neutral environment

Access Range of Brokers

Expedites connectivity to brokers to take advantage of market opportunities

Reduces dependence on a single partner through ability to execute and clear trades with custodian of choice

Custody Neutral

Eliminates latency and multiple points of failure that can erode TCA

Direct-Fiber Connect to Markets

Business Benefits

EXECUTING BROKERS: BAML, Barclays, CITI, CS, Deutsche, Fidelity, Goldman, Instinet, Morgan Stanley, UBS, and others…

CLEARING BROKERS: BAML, Bank of New York, ConvergEx, Credit Suisse, GPP, JPM, MS, Nomura, SS&C, UBS, and others…

MARKET DATA FEEDS: ACTIV, Thomson Reuters

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IV. INFRASTRUCTURE-AS-A-SERVICE

Outsourced data center, equipment and maintenance to safeguard mission-critical workflows and data; ensures the highest levels of security and operational reliability

1. Trading Operations Equipment

2. Central Data Repository

3. Redundant Data Centers4. Automated Upgrades

Security

Controls access to equipment and data to combat access to

services and data

Ensures optimal speed and performance for low-latency

investing and analysis

Consistent Performance

Proven 99.9999% uptime with full back-up systems and redundancy

Improved Business Continuity

Business Benefits

Maintains portfolio data since inception for analysis and

reporting purposes

Unlimited Data Repository

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A COMPARATIVE VIEWMODERN VS. LEGACY APPROACHES TO SERVICING HEDGE FUNDS & THEIR INVESTORS

OMSEMS Pre-Trade Risk &

Compliance

Portfolio &Risk Analytics

Shadow NAVReal-TimeReporting

Liquid Platform

Data M’gmt Services

Legacy Suite

Point Solutions

Multi-Tenant Cloud

Multi-Asset Coverage

“This is (now) a cloud first and mobile first world. The industry does not respect tradition, it only respects innovation.” – Microsoft CEO

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REAL SOLUTIONS REAL CLIENTS$2.5B Boston-Based RIA

• Running 3 funds; preparing to launch a 4th

• Were evaluating OMS’ when we uncovered drivers:

• Real-time performance and risk statistics

• Ability to run compliance rules and client reports

$600M Activist Hedge Fund

Launched in 2013; tripled AUM in 18 months

Requirements: integrated OMS/EMS/PMS with reporting

Referred to us by their largest investor

$100M New Launch– HealthCare Focus$800M Options-Based Asset Manager

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Management team came from Soros & SAC Capital

Priming at Goldman and Morgan Stanley

Required EMS/PMS with real-time risk and reporting to actively manage investments

• Established fund built and managed in-house investment systems

• Infrastructure did not keep pace with markets

• Scalability, TCO and the ability to launch new products were an issue

16© Liquid Holdings Group, Inc. 2014

1 As of the end of Q2 20142 Third Party Development Staff3 As of August 18, 2014

LiquidMobile provides my investment team with modern, real-time analytics to proactively manage our investments and client relationships. I’m in and out of two particular dashboards constantly, whether I’m at my desk or on my iPad, so I have a handle on the business at all times.

“

Pablo Garcia, Founding Partner, Goldwater

CLIENT TESTIMONIAL

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ROI OF INVESTING IN INFRASTRUCTUREINSTITUTIONALIZED MANAGER• $800M Options-Based Manager

• Dynamic Funds + Managed Accounts

• Very Established; 26 Year Track Record

CRITICAL BUSINESS ISSUESDisparate, Non Real-Time Systems

Multiple Points of Failure

Inability to Expand into New Markets

High TCO

Single End-to-End Platform

Market-Tested Options Capabilities

Proprietary Cloud; Managed Services

Eliminate Systems and Ops Headcount• 89% Annual Savings vs Legacy Approach

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VALUE OF MODERNROI

$129K

Alternative¹

Modern

1 Average 3rd party expenses by % of AUM; Citi Prime Finance Expense Survey

TRADING COSTS RISK COSTSTECH COSTS OPERATIONS COSTS

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ROI OF INVESTING IN INFRASTRUCTURE

• Allocated $140K per annum back to the front-office

ROI

TRADING COSTS RISK COSTSTECH COSTS OPERATIONS COSTS

$60K

Alternative

Modern

$200K

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ROI OF INVESTING IN INFRASTRUCTUREEMERGING MANAGER• $250M L/S Equity Fund

• 3 Funds + Managed Accounts

• Strong Pedigree; 5 Year Track Record

CRITICAL ISSUESAnalytics and investor reporting; Mobile access

Non real-time systems that do not synch

Tech costs outpaced growth & fees

Single end-to-end platform

Integrated real-time risk analytics

Limited IT; No operations footprint

Institutionalized to raise more assets• Allocate $140K per annum back to the front-office

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1 Technology and Operations Expenses as Reported by Liquid Holdings Client

VALUE OF MODERNROI

TRADING COSTS RISK COSTSTECH COSTS OPERATIONS COSTS

$60K

Alternative¹

Modern

$200K

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ROI OF INVESTING IN INFRASTRUCTURESTART-UP• $40M Event Driven Fund

• 3 Employees: CIO, Head Trader, CFO

• CIO & Head Trader: 10-year track record

CRITICAL ISSUES AT LAUNCHReal-time workflows to synch front-office

Present-day & future transparency

Appear institutional to pension funds

Front-office system scales as business grows

Support different fund structures

Automate middle-office with repeatable controls

Tech and ops expenses align with cash flow• Allocate $90K per annum back to the front-office

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1 Technology and Operations Expenses as Reported by Liquid Holdings Client

VALUE OF MODERNROI

$40K

Alternative¹

Modern

$130K

TRADING COSTS RISK COSTSTECH COSTS OPERATIONS COSTS

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