September 26, 2016

Dear Investors,
Over 28 years ago, Paul Leff and I started a money management firm. Our catalyst
oriented value approach combined financial analysis and active engagement with
management teams to create attractive opportunities with asymmetric risk/reward.
During this time, we provided capital to many companies and countries facing stress and
distress. Our style worked well for many years and we had the pleasure of hiring,
training, and working alongside some of the best people in this business who have
significantly contributed to the success of Perry Capital. Although I continue to believe
very strongly in our investments, process and team, the industry and market headwinds
against us have been strong, and the timing for success in our positions too
unpredictable.
As a result, we have decided to wind down Perry Partners LP. We will manage the
Funds wind down in the most effective way possible. We have been raising cash and
plan to return a substantial amount of the funds capital in the beginning of October. The
rest of the portfolio will be monetized in an orderly fashion and will be categorized by
expected liquidation horizon: short term (2-3 months), medium term (6-12 months) and
longer term (greater than 1 year).
We will prudently manage the remaining investments down over time. The short- and
medium- term investments will be sold opportunistically but efficiently so as not to move
markets or harm investment value. The longer term investments, for example the GSEs
and some of the RMBS putback securities, will take time and energy to successfully
realize an appropriate result. Our core team remains in place so that no effort or
diligence will be compromised. We are committed to these investments and to you, our
partners.
Going forward, we intend to return your capital quarterly. I am completely dedicated to
making sure this process goes as smoothly as possible and have no other plans. Our
interests are aligned the Perry funds represent almost all of my liquid capital.
Over the next few weeks, I hope to speak with many of you. I want to personally tell you
how much I have valued your support and trust. Thank you for your partnership over the
years.
All my best,
Richard Perry