Endowment Alternatives Fund

Fund Structure

^1.Please consult with your tax advisor for the specifics on your Fund investment tax ramifications. Hatteras does not render tax advise to investors. ^2.Registration does not imply that the SEC or any other regulatory authority has approved or disapproved the securities or passed upon the accuracy of the offering materials or the merits of an investment in the securities. However, registered closed-end investment companies such as the Funds are required by SEC rules and regulations to meet certain standards typically not required of non-registered funds. Registration requirements include existence of an independent Board of Directors, and that all holdings be reported to the SEC and made publicly available on a quarterly basis. ^3.Prospective investors will be required to certify that they are a “qualified client” as defined by federal securities laws. ^4.Investors in the Funds will bear their pro-rata share of the management fee, other expenses as set forth in the prospectus (including insurance costs, trustee fees and the applicable portion of the Funds’ total expenses). Such fees do not include other fees and expenses that may be borne by shareholders, such as placement fees, if applicable, at the Fund level, and indirectly, similar fees, expenses and incentive-based fees/allocations of Fund Investments. Please see the prospectus for a more detailed discussion of the costs and expenses investors will bear, directly or indirectly, by investing in the Fund. ^5.The General Partner of the Fund will be allocated a Performance Allocation that is equal to 10% of the excess of the new net profits of shareholder interests in the Fund. ^6.Quarterly Income Distributions – Shareholder may elect one of the following options, reinvest dividends, capital gains and all return of capital; reinvest capital gains and return of capital; distribute dividends in cash; reinvest return of capital; distribute capital gains and dividends in cash; distribute dividends, capital gains and all return on capital. ^7.A Shareholder may be subject to a repurchase fee equal to 2.00% of the amount requested if such partner has been a Partner for less than 12 months prior to the valuation date. ^8.The Fund generally intend to make quarterly offers to repurchase no more than 20% annually of the units of a Fund at the sole discretion of the Board of Directors as described in the Funds’ Prospectus. ^9.Please see prospectus for additional information about the details of each Class of Shares.

General Risks and Disclosures
Please carefully consider the Fund’s investment objectives, risks, charges and expenses before investing. This and other information is in the Prospectus, copies may be obtained online at hatterasinvestmentpartners.com or by contacting Hatteras at 866.388.6292. Please read the Prospectus carefully before you invest. 
This is not an offer to sell or a solicitation to buy the securities issued by Hatteras Endowment Alternatives Fund (the ”Fund”). The Fund is registered under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, closed-end investment company designed for long-term investors and is NOT a trading vehicle. An investment in the Fund is speculative and involves substantial risks. It is possible that investors may lose some or all of their investment. 
The Fund is a private investment. As such, the Fund invests in private equity investments. In general, private investments involve a high degree of risk, including potential loss of principal invested. These investments can be highly illiquid, charge higher fees than other investments, and typically do not grow at an even rate of return and may decline in value. Private equity investments are speculative investments and are not suitable for all investors, nor do they represent a complete investment program. 
The Fund differs from open-end investment companies in that investors do not have the right to redeem their shares daily. Instead, repurchases of shares are subject to the approval of the Fund’s Board of Trustees (the “Board”). The Fund’s shares represent illiquid securities of an unlisted closed-end fund, are not listed on any securities exchange or traded in any other market and are subject to substantial limitations on transferability. LIQUIDITY IN ANY GIVEN QUARTER IS NOT GUARANTEED. YOU SHOULD NOT INVEST IN THE FUND IF YOU NEED A LIQUID INVESTMENT. 
The illustrations are not intended to predict the performance of any specific investment or security. The past performance figures do not represent performance of any Hatteras security and there can be no assurance that any Hatteras security will achieve the past returns of the illustrative examples.