Product Name: Aetos Capital Balanced Portfolio
As of August 31, 2005

Product Description: The Aetos Capital Balanced Portfolio is a tactically allocated portfolio with low risk and return objectives, comprised of allocations to Aetos Capital’s
SEC-registered Funds, designed to provide U.S. and Offshore investors a consistent absolute return with lower volatility versus traditional markets. This Portfolio incorporates a
fundamentally based investment process with a disciplined approach to strategy allocation, manager selection and portfolio monitoring where risk management is integrated in
every step.

Total Firm Assets¹: $7,256MM

Total FoHF Assets: $2,124MM

Total Strategy Assets² : $1,352MM – Separate Accounts

$772MM – Funds/Portfolios

$1,146MM – Portable Alpha³

Auditor: PricewaterhouseCoopers LLP

Custodian: SEI Private Trust Company, Inc.

Multi-Strategy

Arbitrage Fund: 45%

Market Neutral

Fund: 15%

Distressed

Fund: 5%

Long/Short

Fund: 35%

Current Target Allocation⁴

Quarterly

Redemptions

60 Days

Notice Period

1 Year

Lock-Up

Monthly

Contributions

$1 Million

Minimum Investment

Yes

High Water Mark

T-bills

Hurdle Rate

10.0%

Performance Fee

1.0% (0.75% on investments of
$25mm+)

Management Fee

Terms⁵

-3.59%

0.64

13.10%

10.04%

S&P 500 Index

-2.44%

0.78

4.19%

4.88%

Lehman Agg. Bond Composite
Index

0.20%

1.58%

90-Day Treasury Bills

0.07

0.11

-0.60%

2.43

2.03%

6.52%

Aetos Capital Balanced Portfolio

Beta:
S&P
500

Beta:
Lehman
Agg.

Largest
Calendar Qtr.
Drawdown

Sharpe
Ratio

Standard
Deviation

Average
Annualized
Return

Assets Under Management:

¹Total Firm Assets = Aetos Absolute Return - $2,124MM

Aetos Fund Advisory - $332MM

Aetos Capital Asia (Opportunistic Real Estate) - $2,900MM

AEA Investors, LLC (Private Equity) - $1,900MM

²Aetos Capital currently offers the following hedge fund of funds strategies to our clients:

Aetos Funds: SEC-registered, strategy-specific hedge fund of funds:

Aetos Capital Multi-Strategy Arbitrage Fund

Aetos Capital Distressed Investment Strategies Fund

Aetos Capital Long/Short Strategies Fund

Aetos Capital Market Neutral Strategies Fund

Aetos Capital Opportunities Fund

Aetos Portfolios : Tactical allocations to the Funds managed to specific return and volatility targets:

Aetos Capital Conservative Portfolio (lower volatility)

Aetos Capital Balanced Portfolio (low volatility)

Aetos Capital Growth Portfolio (moderate volatility)

Custom Portfolios : Customized allocations to the Funds managed to client-specific return and volatility targets

Separate Accounts : Direct investments made in the client's name with underlying managers

Portable Alpha Mandates : Can utilize both commingled vehicles and separate accounts

Aetos Capital, LLC 875 Third Avenue New York, NY 10022 (212) 201-2509

Aetos Alternatives Management, LLC 2180 Sand Hill Road Menlo Park, CA 94025 (650) 234-1860

Aetos Capital: Portfolios and Products

1.90%

2.23%

Annual Standard
Deviation

4.13%

0.35%

0.93%

0.68%

0.62%

-0.33%

0.24%

1.14%

0.43%

2005

1.04%

0.85%

0.82%

December

0.53%

0.97%

1.36%

November

0.14%

1.02%

0.25%

October

-0.44%

1.02%

0.47%

September

0.58%

0.01%

August

-0.20%

-0.23%

July

1.26%

10.06%

4.14%

Year to Date

1.03%

0.27%

June

1.86%

-0.18%

May

1.34%

-0.69%

April

0.28%

-0.04%

March

0.17%

0.56%

February

0.73%

1.48%

January

2002

2003

2004

Investment Performance⁶ (US$)

Chief Investment Officer:

Anne Casscells - Menlo Park, CA

For More Information Please Contact: Andrea Bollyky (212) 201-2518 abollyky@aetoscapital.com

David Tonkovich (212) 201-2532 dtonkovich@aetoscapital.com

⁴ Terms:

Standard terms associated with an investment in the Funds through the investment program described in the prospectuses

⁵ Investment Performance:

          The Balanced Portfolio is a model portfolio/asset allocation program.  This Portfolio may not reflect an investor’s actual portfolio as
actual portfolios reflect each investor’s own objectives and risk tolerances.  The performance of the Portfolio is based on the weighted
performance over the respective periods of the Aetos Capital SEC-Registered Funds, weighted according to the allocations in effect
during the periods for the Portfolio as indicated above.  Performance figures shown are net of investment advisory and performance fees
of 1.00% of assets annually and 10% of profits above the three month Treasury bill return, respectively, the maximum level of fees
charged by Aetos to any account.  The returns also reflect Fund level expenses, some of which have been waived and/or reimbursed by
the Investment Adviser.  Returns would have been lower without such waivers and reimbursements.  Past performance is not indicative
of future returns.

Absolute return investing involves substantial risks, including the risk of loss of invested capital. Absolute return investments are
typically made through investments in illiquid, unregulated investment funds that employ sophisticated investment techniques, often
involving derivatives and leverage, in a wide range of financial instruments and markets. These investments entail a wide variety of
risks, which remain substantial notwithstanding the risk management practices we employ in selecting and monitoring funds we invest
in.

          Prospective investors should consider the investment objectives, risks, and the charges and expenses discussed above carefully
before investing.  The prospectus contains this and other information; a free copy of the prospectus may be obtained by calling
212-201-2540.  Please read the prospectus carefully before investing.

³Historical Allocations:

Aetos Capital, LLC 875 Third Avenue New York, NY 10022 (212) 201-2509

Aetos Alternatives Management, LLC 2180 Sand Hill Road Menlo Park, CA 94025 (650) 234-1860