GSC Partners CDO Fund, Ltd. ("CDO")

In 2000 the Foundation invested $5,000,000 in GSC Partners CDO Fund, Ltd. a collateralized debt obligation fund.

On May 31, 2000 I spoke with Tom Libassi, the CDO portfolio manager, regarding the status of the fund. His comments are summarized below:

Fund debt

•	100% funded

•	8% average cost

Collateral debt

•	83% placed

•	Weighted average current yield

(Coupon ÷ Price) is 12.7%

•	Weighted average yield to maturity

(includes price appreciation) is 14.8%

•	Target price 86.77

•	Actual price 83.30 including accrued interest

Present estimated return to CDO fund after manager fees but before 20% split with general partner is 25.9%. Assumes 2% default rate and recovery of 40 cents on the dollar.