This transaction is accounted for as an extinguishment of Series D preferred shares of RAIT and issuance of Series A, Series B and Series C preferred shares, in each case, of RAIT. Accordingly, the difference between the fair value of the consideration transferred to the Investor (i.e., cash and RAIT’s Series A, Series B and Series C preferred shares) and the carrying amount of the Series D preferred shares that were redeemed and exchanged represents a return from the Investor. The following table summarizes the transaction:

Liquidation preference of Series D preferred shares of RAIT prior to June 27, 2018					$	73,480

Cash received for sale of RAIT IV's interests in Holdings 2016 and Holdings 2017	$	54,632
Defined available cash held by RAIT IV		2,133
Total par amount of Series D preferred shares of RAIT redeemed	$	56,765

Fair value of Series A preferred shares of RAIT issued in exchange		2,498	(1	)
Fair value of Series B preferred shares of RAIT issued in exchange		1,091	(2	)
Fair value of Series C preferred shares of RAIT issued in exchange		776	(3	)
Total fair value of Series A, Series B and Series C preferred shares exchanged	$	4,365

Cash exchange fee	$	418

Total consideration transferred in redemption and exchange					$	61,548

Net increase to equity as a result of redemption					$	11,932

(1)

Represents the fair value of 383,147 shares of Series A preferred that were issued to the Investor. The fair value is based upon $6.52 per share, which was the closing price of the Series A preferred shares on June 27, 2018.

(2)

Represents the fair value of 167,828 shares of Series B preferred that were issued to the Investor. The fair value is based upon $6.50 per share, which was the closing price of the Series B preferred shares on June 27, 2018.

(3)

Represents the fair value of 117,605 shares of Series C preferred that were issued to the Investor. The fair value is based upon $6.60 per share, which was the closing price of the Series C preferred shares on June 27, 2018.