Annualized Standard Deviation² : 4.65%

Average Annualized Return²: 3.52%

Product Name: Aetos Capital Balanced Portfolio As of
October 31, 2008

Product Description: The Aetos Capital Balanced Portfolio is a tactically allocated portfolio comprised of allocations to Aetos Capital’s 1940 Act SEC-registered Hedge
Funds of 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.

As of November 1, 2008:

-9.45%

0.01

14.01%

2.82%

0.27%

-5.19%

-36.08%

S&P 500 DRI
Index

0.23

Beta: MSCI World Index

-15.24%

0.10

15.17%

4.19%

1.73%

-5.30%

-41.85%

MSCI World
Index

-2.44%

-7.96%

Largest Calendar Qtr. Drawdown

0.31

0.19

Sharpe Ratio

From Inception through 10/31/08:

0.22

Beta: S&P 500 DRI Index

0.30

Beta: Lehman Aggregate Bond Index

3.69%

0.43%

4.65%

Annualized Standard Deviation

3.81%

2.65%

3.52%

Average Annualized Return

3.48%

3.01%

2.45%

5 Year Annualized Return

0.31%

1.86%

-12.69%

1 Year Annualized Return

3.60%

3.68%

0.57%

3 Year Annualized Return

Lehman Aggregate
Bond Index

90-Day Treasury
Bills

Aetos Capital Balanced
Portfolio

Investment Returns:

As of 10/31/08:

Chief Investment Officer:

Anne Casscells - Menlo Park, CA

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

Brad Rudner (212) 201-2532 brudner@aetoscapital.com

Aetos Capital Hedge Fund of Fund Allocation

Strategy Allocation¹

Historical Strategy Allocation

Number of Managers = 35 Median Position Size = 2.0%

Number of Strategies = 15 Average Position Size = 2.7%

Top 20 Holdings = 81.4% Maximum Position Size =7.1%

Distressed Core: 5%

Capital Structure Arbitrage: 4%

Merger / Event-Driven

Arbitrage: 19%

Fixed Income

Arbitrage: 12%

Real Assets Equity: 1%

Hedged-Equity/

Market Neutral: 26%

Credit Arbitrage: 2%

Directional Equity: 7%

Short-biased Equity: 4%

Activist: 3%

Convertible Arbitrage: 3%

Distressed Liquid: 6%

Short-biased Credit: 4%

Distressed Multi-Strategy: 4%

¹ Allocations are subject to change over time.

²Performance figures shown for the period of September 1, 2002 through October 31, 2008 are of the Aetos Capital Balanced Portfolio and are net of an investment advisory fee of 0.75% of assets annually and 10% of profits above the three month Treasury bill return, respectively.  The Aetos Capital 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.  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. (Profile B)

³September 2008 exposures are estimates.

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.

Aetos Capital, LP 875 Third Avenue New York, NY 10022 (212) 201-2500

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

Aetos Capital Balanced Portfolio As of
October 31, 2008

SEI Private Trust Company, Inc.

Administrator

PricewaterhouseCoopers, LLC

Auditor

Quarterly / 90 Days

Redemption Frequency / Notice Period

$1 million

Minimum Investment

1 Year

Lock-Up Period

Monthly / 30 Days

Contribution Frequency / Notice Period

Yes

High Water Mark

3 Month T-bills

Hurdle Rate

10% of profits

Incentive Fee

0.75%

Management Fee

Aetos Capital: Portfolios and Products

Gross Exposure

Long

Net Exposure

Short

Fees & Terms

3.86%

5.66%

0.51%

-0.09%

1.39%

0.91%

-1.26%

-1.96%

0.30%

1.56%

1.32%

1.09%

0.35%

1.47%

2007

-13.06%

-5.33%

-6.91%

-0.44%

-0.69%

-0.39%

1.76%

0.58%

-1.49%

1.09%

-1.73%

2008

1.88%

8.92%

1.23%

1.27%

0.72%

0.28%

0.45%

0.51%

0.44%

-0.34%

0.89%

0.88%

0.49%

1.76%

2006

1.94%

6.06%

1.23%

0.43%

-0.69%

0.73%

0.37%

0.95%

0.69%

0.64%

-0.31%

0.26%

1.15%

0.45%

2005

Standard
Deviation

YTD

Dec

Nov

Oct

Sept

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

1.34%

1.05%

0.55%

0.16%

-0.42%

2002

1.90%

10.31%

0.87%

0.99%

1.03%

1.04%

0.59%

-0.19%

1.04%

1.88%

1.36%

0.30%

0.19%

0.75%

2003

2.23%

4.38%

0.84%

1.38%

0.27%

0.49%

0.03%

-0.22%

0.29%

-0.16%

-0.67%

-0.02%

0.58%

1.50%

2004

Investment Performance²(US$)

Historical Exposures³