NB Diversified Arbitrage

Fund II L.P.

Fund Investment Objectives

The Diversified Arbitrage strategy is an absolute return strategy and is designed as a diversifier for client portfolios. The Fund invests with hedge funds managing relative value and event driven strategies, including distressed securities, convertible arbitrage, credit arbitrage, statistical arbitrage, fixed income arbitrage, capital structure arbitrage and merger arbitrage. The strategy seeks long-term capital appreciation while attempting to reduce risk and volatility by targeting consistent, positive absolute returns with low market correlation.