Meridian Crescent Partners III, L.P.

Quarterly Report to Limited Partners — Second Quarter 2026

Prepared by

Meridian Crescent Partners

As of June 30, 2026 · Issued July 24, 2026

Confidential

MERIDIAN CRESCENT PARTNERS III, L.P. — QUARTERLY REPORT · Q2 2026 · CONFIDENTIAL

Fund III at a Glance

As of June 30, 2026 · $ in millions · Fund-level figures net of fees, expenses, and carried interest

NET IRR
18.4%
3/31/26: 18.1%

NET TVPI
1.43x
3/31/26: 1.41x

DPI
0.31x
3/31/26: 0.28x

RVPI
1.12x
3/31/26: 1.13x

CAPITAL CALLED
72.0%
$612.0 of $850.0 committed

NET ASSET VALUE
$685.5
3/31/26: $658.4

Source: Unaudited fund financial statements, June 30, 2026.

The quarter in brief

  • Called $30.0 (Call No. 8); distributed $28.4 from the partial realization of Arcadine Systems, at a 7.9% premium to our March 31 marks.
  • NAV up $27.1 on $55.0 of markups against $21.9 of markdowns — the latter concentrated in Tern Labs, addressed in the letter.
  • Unfunded commitments of $238.0; expect Call No. 9 late in Q3 for one new platform under exclusivity.

MERIDIAN CRESCENT PARTNERS III, L.P. — QUARTERLY REPORT · Q2 2026 · CONFIDENTIAL

Letter to Limited Partners

July 24, 2026

Dear Limited Partners,

Fund III ended the quarter at a net TVPI of 1.43x, a DPI of 0.31x, and an 18.4% net IRR. Those figures are consistent with the fund we described when we asked for your capital. We are pleased with the quarter; we will spend this letter on the part of it that was not pleasing.

The markdown. We reduced Tern Labs by $17.8 million, to 0.72x cost — the fund's first material markdown. AI-native alternatives have compressed exactly the budget line Tern sells into, and net revenue retention has now spent two quarters below 100%. Our underwriting error was durability: we paid a price that assumed Tern's growth was structural, and some of it was demand pulled forward. The company has cash into 2028 and a credible rebuild plan, but the mark reflects the business as it is, not the plan as we hope it unfolds. We would rather report a fair number today than a flattering one we walk back later.

The realization. We sold roughly 15% of our Arcadine position for $28.4 million — 7.9% above our March 31 carrying value, a useful external check on our marks — and distributed the proceeds in full. We sold because the price was full and the position had grown to nearly a quarter of NAV, not because conviction changed; Arcadine grew ARR 35% year over year.

Deployment stays deliberate: 72% called, $238 million of dry powder, and a pipeline we are underwriting to 2023–24 entry discipline. We thank you for your partnership — the annual meeting is October 14 in New York, and we welcome your questions before then.

Respectfully,

Thomas Ainsley · Ruth Calder — Managing Partners

MERIDIAN CRESCENT PARTNERS III, L.P. — QUARTERLY REPORT · Q2 2026 · CONFIDENTIAL

Fund performance

NAV first exceeded called capital in the fund's seventh quarter. Q2 markdowns were concentrated in Tern Labs ($17.8 of the $21.9).

EXHIBIT 1 — CAPITAL CALLED, DISTRIBUTED, AND NAV BY QUARTER ($M)

Source: Fund records through June 30, 2026. NAV net of accrued carried interest.

EXHIBIT 2 — CHANGE IN NET ASSET VALUE, Q2 2026 ($M)

Source: Unaudited fund financial statements. Axis truncated at $600M. "Realized uplift" is sale proceeds over March 31 carrying value; "Fees & carry" includes the change in accrued carried interest. Components tie to the capital account statement at the back of this report.

MERIDIAN CRESCENT PARTNERS III, L.P. — QUARTERLY REPORT · Q2 2026 · CONFIDENTIAL

Portfolio Review

Eleven active companies: $500.0 cost, $743.8 fair value — 1.49x gross.

Portfolio summary

CompanySectorInitial inv.Cost ($M)Fair value ($M)Gross MOIC
Arcadine SystemsSupply-chain softwareOct 202268.0142.72.10x
Veritline HealthHealthcare dataDec 202240.889.42.19x
Cobalt Ridge SoftwareField-service softwareMar 202354.296.61.78x
Helm & HarborLogistics softwareJun 202348.768.31.40x
QuillstoneLegal workflowSep 202345.066.41.48x
Basalt Peak AnalyticsIndustrial analyticsJan 202452.678.11.48x
Fairwater ComplianceCompliance softwareApr 202441.852.31.25x
Tern LabsDeveloper toolingAug 202438.527.70.72x
Rushmore PaymentsVertical paymentsNov 202444.351.91.17x
Lantern GridUtility softwareFeb 202536.139.01.08x
Pinebrook DataData-infra servicesMay 202530.031.41.05x
Total — active portfolio500.0743.81.49x

Source: Unaudited fund records, June 30, 2026. Gross MOIC is fair value over remaining cost, before fees and carry; excludes prior realizations (Arcadine $28.4; Veritline $66.0; Westgate Clinical, realized 2025, $95.3 on $32.0 — 2.98x). Fair values per ASC 820, audited annually.

MERIDIAN CRESCENT PARTNERS III, L.P. — QUARTERLY REPORT · Q2 2026 · CONFIDENTIAL

Portfolio composition

The five largest positions are 64% of portfolio fair value; Arcadine Systems is 20.8% of NAV after the June partial sale. One position is carried below cost (Tern Labs, 0.72x). Every mark this quarter moved on trailing performance, not rerating.

EXHIBIT 3 — FAIR VALUE BY SECTOR ($M)

Source: Unaudited fund records, June 30, 2026.

EXHIBIT 4 — GROSS MOIC BY COMPANY (x COST)

Source: Unaudited fund records. Reference line at 1.00x cost.

MERIDIAN CRESCENT PARTNERS III, L.P. — QUARTERLY REPORT · Q2 2026 · CONFIDENTIAL

SUPPLY-CHAIN SOFTWARE · INVESTED OCT 2022

Order-orchestration software for mid-market distributors and 3PLs. ARR of $71.3 million, up 35% year over year; 118% net revenue retention; EBITDA break-even.

Sold ~15% of the position in June for $28.4 million (7.9% above prior marks) and distributed the proceeds. Remaining position: $142.7 million, 2.10x cost — the fund's largest.

EXHIBIT 5 — ARCADINE ARR BY QUARTER ($M)

Source: Company-reported management accounts, unaudited.

Capital activity

$612.0 called across eight calls; $189.7 distributed across six; $238.0 unfunded. Call No. 9 expected late in Q3 2026 (est. $35–40), plus the H2 management fee.

EXHIBIT 6 — CONTRIBUTIONS AND DISTRIBUTIONS BY QUARTER ($M)

Source: Fund records through June 30, 2026. Contributions below the axis (capital in from LPs); distributions above (capital returned). No distributions to date are recallable.

MERIDIAN CRESCENT PARTNERS III, L.P. — QUARTERLY REPORT · Q2 2026 · CONFIDENTIAL

Capital Account Statement

Unaudited · $ in millions · U.S. GAAP for investment companies

Statement of changes in partners' capital

Quarter ended Jun 30, 2026Inception to date
Partners' capital, beginning of period658.4—
Contributions30.0612.0
Distributions(28.4)(189.7)
Realized gains on investments16.4100.5
Dividend and interest income0.844.1
Management fees and partnership expenses(4.1)(59.4)
Net change in unrealized appreciation18.8243.8
Carried interest allocated to the General Partner(6.4)(65.8)
Partners' capital, end of period685.5685.5

Source: Unaudited fund financial statements. Realized gains include the Arcadine partial sale ($28.4 proceeds over $12.0 cost). Carried interest (20% over an 8% preferred, whole-fund waterfall) is accrued on a hypothetical-liquidation basis — none has been paid. Per-LP capital account statements are available on the fund portal.

This report is confidential, furnished solely to the Limited Partners of Meridian Crescent Partners III, L.P., and is not an offer to sell any security. Unrealized values are good-faith estimates under the Fund's valuation policy; past performance is not indicative of future results. Meridian Crescent Partners · 201 Meridian Wharf, Suite 900 · Boston, MA 02210 · ir@meridiancrescent.example