UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21527

THE ENDOWMENT MASTER FUND, L.P.
(Exact name of registrant as specified in charter)

4265 SAN FELIPE, SUITE 900, HOUSTON, TX 77027
(Address of principal executive offices) (Zip code)

A. HAAG SHERMAN
THE ENDOWMENT MASTER FUND, L.P.
4265 SAN FELIPE, SUITE 900, HOUSTON, TX 77027
(Name and address of agent for service)

Registrant's telephone number, including area code: 800-725-9456

Date of fiscal year end: 12/31/05

Date of reporting period: 12/31/05

Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

LOGO

THE ENDOWMENT MASTER FUND, L.P.

SHAREHOLDERS' REPORT

December 31, 2005

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Partners
The Endowment Master Fund, L.P.:

We have audited the accompanying statement of assets, liabilities, and
partners' capital of The Endowment Master Fund, L.P. (the Fund), including the
schedule of investments, as of December 31, 2005, and the related statement of
operations for the year then ended, the statements of changes in partners'
capital and cash flows for each of the years in the two-year period then ended,
and the financial highlights for each of the years in the two year period ended
December 31, 2005 and for the period April 1, 2003 (inception) through December
31, 2003. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 2005, by correspondence with
custodians and investees. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of The
Endowment Master Fund, L.P. as of December 31, 2005, the results of its
operations for the year then ended, the changes in its partners' capital and
cash flows for the years ended December 31, 2005 and 2004, and the financial
highlights for the years ended December 31, 2005 and 2004 and for the period
April 1, 2003 (inception) through December 31, 2003, in conformity with U.S.
generally accepted accounting principles.

/s/ KPMG LLP

Houston, Texas
February 21, 2006

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

STATEMENT OF ASSETS, LIABILITIES, AND PARTNERS' CAPITAL
DECEMBER 31, 2005

<Table>

ASSETS
Investments in Investment Funds, at estimated fair value
(cost $276,224,566)....................................... $333,925,065
Investments in securities, at value (cost $33,754,052)...... 41,376,171
------------
Total investments......................................... 375,301,236
Cash and cash equivalents................................... 290,074
Prepaid contributions to Investment Funds................... 15,100,000
Interest and dividends receivable........................... 781,816
Receivable from Investment Funds............................ 349,183
Prepaids and other assets................................... 11,726
------------
Total assets.............................................. 391,834,035
============
LIABILITIES AND PARTNERS' CAPITAL
Line of credit.............................................. 14,390,426
Management fees payable..................................... 912,980
Offshore withholding tax payable............................ 232,692
Administration fees payable................................. 21,178
Accounts payable and accrued expenses....................... 107,700
------------
Total liabilities......................................... 15,664,976
------------
Paid in capital............................................. 310,846,441
Net unrealized gain on investments.......................... 65,322,618
------------
Partners' capital......................................... 376,169,059
------------
Total liabilities and partners' capital................... $391,834,035
============
</Table>

See accompanying notes to financial statements.
1

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SCHEDULE OF INVESTMENTS
DECEMBER 31, 2005

<Table>
<Caption>
% OF
SHARES/ PARTNERS'
PAR VALUE* FAIR VALUE CAPITAL
---------- ------------ ---------

Investments in Investment Funds
Limited Partnerships and Limited Liability Companies
United States
Domestic Equity (14.71% of Partners' Capital)
Caduceus Capital II, L.P. .......................... $ 7,416,654
Contrarian Capital Distressed Equity Fund, L.P. .... 4,773,350
Copper Arch Fund, L.P. ............................. 5,903,382
Criterion Institutional Partners, L.P. ............. 2,100,909
Everglades Partners, L.P. .......................... 1,465,449
GMO U.S. Aggressive Long/Short Fund (Onshore)....... 8,662,800
Leaf Investment Partners, L.P. ..................... 3,451,589
Sci-Tech Investment Partners, L.P. ................. 1,052,573
Shumway Equity Fund, L.P. .......................... 6,370,869
The Raptor Global Fund, L.P. ....................... 8,411,201
Tiger Consumer Partners, L.P. ...................... 5,741,711
International Equity (17.43% of Partners' Capital)
Avenue Asia Equity Investments L.P. ................ 1,045,366
Boyer Allan Pacific Partners, L.P. ................. 9,901,305
CCM International Small Cap Value Fund, L.P. ....... 1,006,395
Gradient Europe Fund................................ 4,607,527
L-R Global Fund Partners, L.P. ..................... 2,273,011
SR Global Fund -- Asia Portfolio (Class B, L.P.).... 6,327,711
SR Global Fund -- Europe Portfolio (Class A,
L.P.)............................................ 4,667,831
SR Global Fund -- International Portfolio (Class C,
L.P.)............................................ 9,931,234
SR Global Fund -- Emerging Markets Portfolio (Class
G, L.P.)......................................... 7,842,611
Steel Partners Japan, L.P. ......................... 3,609,668
Taiyo Fund, L.P. ................................... 1,506,106
The Explorador Fund, L.P. .......................... 5,426,387
Torrey Pines Fund, LLC.............................. 7,420,988
Opportunistic Equity (8.37% of Partners' Capital)
AQR Absolute Return Institutional Fund, L.P. ....... 5,613,792
Global Undervalued Securities Fund.................. 9,883,136
GMO Mean Reversion Fund (Onshore)................... 9,639,588
Maverick Fund USA, Ltd. ............................ 6,361,688
Absolute Return (8.36% of Partners' Capital)
Black River Global Multi-Strategy Leveraged Fund,
LLC.............................................. 9,257,991
Courage Special Situations Fund, (Class C, L.P.).... 7,114,262
Harbert Convertible Arbitrage Fund, L.P. ........... 8,494,047
M&M Arbitrage, LLC.................................. 5,638,375
Silverback Partners, L.P. .......................... 947,554
Real Estate (5.55% of Partners' Capital)
Aslan Realty Partners III, LLC...................... 327,725
Clarion Global Fund, L.P. .......................... 1,022,671
Clarion CRA Hedge Fund, L.P. ....................... 2,215,706
Mercury Special Situations Fund..................... 5,086,236
</Table>

See accompanying notes to schedule of investments.
2

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SCHEDULE OF INVESTMENTS
DECEMBER 31, 2005 -- (CONTINUED)

<Table>
<Caption>
% OF
SHARES/ PARTNERS'
PAR VALUE* FAIR VALUE CAPITAL
---------- ------------ ---------

MONY/Transwestern Mezzanine Realty Partners II,
LLC.............................................. 928,743
NL Ventures V, L.P. ................................ 3,000,000
Security Capital, L.P. ............................. 4,998,612
Wells Street Partners, LLC.......................... 3,279,943
Natural Resources (9.14% of Partners' Capital)
Cambridge Energy, L.P. ............................. 9,061,960
The Ospraie Fund L.P. .............................. 9,047,381
Tocqueville Gold Partners, L.P. .................... 6,056,375
Treaty Oak Partners, L.P. .......................... 10,194,580
Private Equity (7.41% of Partners' Capital)
Cap Royalty Partners L.P. .......................... 97,982
Cogene Biotech Ventures II, L.P. ................... 18,628
Crosslink Crossover Fund IV, L.P. .................. 4,932,562
PIPE Equity Partners LLC............................ 7,876,507
Private Equity Investors, L.P. ..................... 377,926
Protege Partners, L.P. ............................. 4,566,722
Q Investments....................................... 8,428,850
Sanderling Venture VI Co-Investment Fund, L.P. ..... 255,681
Sanderling Venture VI, L.P. ........................ 118,276
Sterling Capital Partners II........................ 201,507
Sterling Group Partners II.......................... 263,850
Venture Capital Fund of America..................... 733,541
Enhanced Fixed Income (12.52% of Partners' Capital)
Arx Global High Yield Securities Fund I L.P. ....... 7,744,121
BDC Partners I, L.P. ............................... 12,906,149
Contrarian Capital Fund I, L.P. .................... 7,318,500
Greylock Global Opportunity Fund, L.P. ............. 7,311,687
Harbert Distressed Investment Fund, L.P. ........... 8,404,630
Ore Hill, L.P. ..................................... 3,421,724
------------
Total United States.............................. 314,065,835
------------
British Virgin Islands
Real Estate (0.08% of Partners' Capital)
Patron Capital, L.P. II............................. 292,792
------------
Total British Virgin Islands..................... 292,792
------------
Total Limited Partnerships and Limited Liability
Companies (Cost $259,687,154).................. 314,358,627 83.57%
Passive Foreign Investment Corporations
United States
International Equity (1.08% of Partners' Capital)
India Capital Fund Ltd. A2 Shares................... 4,069,025
------------
Total United States.............................. 4,069,025
Republic of Mauritius
International Equity (0.83% of Partners' Capital)
Boyer Allan India Fund, Inc. ....................... 3,121,902
------------
Total Republic of Mauritius...................... 3,121,902
------------
</Table>

See accompanying notes to schedule of investments.
3

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SCHEDULE OF INVESTMENTS
DECEMBER 31, 2005 -- (CONTINUED)

<Table>
<Caption>
% OF
SHARES/ PARTNERS'
PAR VALUE* FAIR VALUE CAPITAL
---------- ------------ ---------

Total Passive Foreign Investment Corporations
(Cost $5,000,000).............................. 7,190,927 1.91%
Bermuda Exempted Fund Company
Private Equity (1.05% of Partners' Capital)
Highland CDO Opportunity Fund....................... 3,931,768
------------
Total Bermuda Exempted Fund Company (Cost
$4,000,000).................................... 3,931,768 1.05%
Cayman Company Limited by Shares
United States
Absolute Return (2.24% of Partners' Capital)
Overseas CAP Partners, Inc. ........................ 8,443,743
------------
Total Cayman Company Limited by Shares (Cost
$7,537,412).................................... 8,443,743 2.24%
------------
Total Investments in Investment Funds (Cost
$276,224,566).................................. 333,925,065 88.77%
Investments in Securities
Registered Investment Companies
United States
International Equity (1.57% of Partners' Capital)
GMO Emerging Markets Fund III....................... 224,401 5,903,562
Enhanced Fixed Income (1.44% of Partners' Capital)
GMO Global Bond Fund................................ 408,326 4,327,407
Wasatch-Hoisington U.S. Treasury Fund............... 74,373 1,085,839
Natural Resources (3.39% of Partners' Capital)
State Street Research Global Resources Fund......... 192,728 12,762,448
------------
Total United States.............................. 24,079,256
------------
Total Registered Investment Companies (Cost
$16,188,020)................................... 24,079,256 6.40%
Closed End Funds
United States
Financial (0.88% of Partners' Capital)
Aberdeen Asia-Pacific Income Fund, Inc. ............ 8,200 47,560
Blackrock Broad Investment Grade 2009 Term Trust.... 12,500 187,375
Blackrock Income Opportunity Trust.................. 63,300 681,108
Ishares Trust....................................... 6,750 726,435
MFS Government Markets Income Trust................. 85,700 557,050
Morgan Stanley Government Income Trust.............. 60,200 529,158
New America High Income Fund........................ 126,300 256,389
Putnam Premier Income Trust......................... 52,171 316,678
------------
Total United States.............................. 3,301,753
------------
Total Closed End Funds (Cost $3,423,283)......... 3,301,753 0.88%
</Table>

See accompanying notes to schedule of investments.
4

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SCHEDULE OF INVESTMENTS
DECEMBER 31, 2005 -- (CONTINUED)

<Table>
<Caption>
% OF
SHARES/ PARTNERS'
PAR VALUE* FAIR VALUE CAPITAL
---------- ------------ ---------

Fixed Income
United States
Treasuries (0.75% of Partners' Capital)
United States Treasury Bonds, 5.250%, 2/15/29....... 765,000 834,776
United States Treasury Notes, 4.125%, 5/15/15....... 860,000 841,154
Treasury Inflation Protected Securities, 1.875%,
7/15/13.......................................... 275,000 294,184
Treasury Inflation Protected Securities, 2.00%,
7/15/14.......................................... 150,000 157,632
Treasury Inflation Protected Securities, 1.875%,
7/15/15.......................................... 300,101 295,131
Treasury Inflation Protected Securities, 3.625%,
4/15/28.......................................... 250,000 380,685
Agencies (1.13% of Partners' Capital)
Federal Home Loan Mortgage Corp., Pool E74790,
5.00%, 2/1/14.................................... 77,242 76,614
Federal Home Loan Mortgage Corp., Pool E75753,
5.50%, 3/1/14.................................... 39,889 40,189
Federal Home Loan Mortgage Corp., Series 2750, Class
OB, 4.00%, 7/15/15............................... 201,000 197,083
Federal Home Loan Mortgage Corp., Pool E92286,
5.00%, 11/1/17................................... 21,212 21,036
Federal Home Loan Mortgage Corp., Pool E95383,
5.00%, 2/1/18.................................... 85,143 84,437
Federal Home Loan Mortgage Corp., Pool E94694,
5.50%, 2/1/18.................................... 27,419 27,593
Federal Home Loan Mortgage Corp., Pool B10507,
4.50%, 10/1/18................................... 39,278 38,308
Federal Home Loan Mortgage Corp., Pool B14009,
5.00%, 5/1/19.................................... 76,872 76,091
Federal Home Loan Mortgage Corp, Pool C77936, 5.50%,
2/01/33.......................................... 59,138 58,753
Federal Home Loan Mortgage Corp., Pool A10760,
5.50%, 6/1/33.................................... 13,552 13,461
Federal Home Loan Mortgage Corp., Pool 80749,
4.125%, 10/20/33................................. 484,567 485,990
Federal Home Loan Mortgage Corp., Pool A16536,
5.50%, 12/1/33................................... 61,139 60,728
Federal Home Loan Mortgage Corp., Pool C01812,
5.50%, 4/1/34.................................... 320,710 318,552
Federal National Mortgage Association, Pool 380839,
6.12%, 11/1/08................................... 298,012 304,064
Federal National Mortgage Association, Pool 254188,
5.50%, 1/1/09.................................... 133,957 134,152
Federal National Mortgage Association, Pool 545210,
5.92%, 10/1/11................................... 228,524 237,303
Federal National Mortgage Association, Pool 730353,
4.50%, 7/1/18.................................... 32,438 31,637
Federal National Mortgage Association, Pool 767658,
5.00%, 2/1/19.................................... 164,977 163,475
Federal National Mortgage Association, Pool 415971,
6.00%, 12/1/28................................... 45,822 46,405
</Table>

See accompanying notes to schedule of investments.
5

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SCHEDULE OF INVESTMENTS
DECEMBER 31, 2005 -- (CONTINUED)

<Table>
<Caption>
% OF
SHARES/ PARTNERS'
PAR VALUE* FAIR VALUE CAPITAL
---------- ------------ ---------

Federal National Mortgage Association, Pool 699436,
7.50%, 2/1/33.................................... 14,054 14,670
Federal National Mortgage Association, Pool 689659,
6.00%, 3/1/33.................................... 34,129 34,485
Federal National Mortgage Association, Pool 698979,
5.50%, 4/1/33.................................... 107,101 106,347
Federal National Mortgage Association, Pool 723874,
5.50%, 4/1/33.................................... 27,836 27,632
Federal National Mortgage Association, Pool 555528,
6.00%, 4/1/33.................................... 23,338 23,599
Federal National Mortgage Association, Pool 737299,
5.50%, 1/1/34.................................... 87,301 86,661
Federal National Mortgage Association, Pool 777737,
5.00%, 5/1/34.................................... 140,016 135,941
Federal National Mortgage Association, Pool 778316,
5.50%, 6/1/34.................................... 376,649 373,321
Federal National Mortgage Association, Pool 783382,
6.00%, 8/1/34.................................... 122,710 123,871
Government National Mortgage Association, Pool
451883, 6.00%, 7/15/28........................... 59,055 60,566
Government National Mortgage Association, Series
2004-78, Class C, 4.658%, 4/16/29................ 250,000 243,481
Government National Mortgage Association, Pool
488259, 6.50%, 8/15/29........................... 22,337 23,374
Government National Mortgage Association, Pool
501012, 6.50%, 4/15/31........................... 3,100 3,240
Government National Mortgage Association, Pool
603650, 6.00%, 4/15/33........................... 12,730 13,050
Government National Mortgage Association, Pool
621822, 5.50%, 12/15/33.......................... 32,384 32,638
Government National Mortgage Association, Pool
562508, 5.50%, 2/15/34........................... 99,023 99,703
Government National Mortgage Association, Pool
628111, 5.50%, 5/15/34........................... 244,416 246,095
New Valley Generation II, Series 2001, 5.572%,
5/1/20........................................... 44,163 44,722
Overseas Private Investment Corp., 3.74%, 4/15/15... 161,601 154,316
Asset Backed Securities (1.75% of Partners' Capital)
Alesco Preferred Funding LTD, Series 5A, Class C3,
6.314%, 12/23/34................................. 200,000 202,812
American Business Financial Services 6.68%
7/15/33.......................................... 300,000 302,018
Bank of America Mortgage Securities, Series 2004-8,
Class 2B1, 6.00% 10/25/34........................ 237,352 236,388
Bank of America Mortgage Securities, Series 2005-5,
Class 1A12, 5.50% 6/25/35........................ 427,783 426,847
Bear Stearns Adjustable Rate Mortgage Trust, Series
2002-5, Class 4A4, 5.80% 6/25/32................. 56,780 56,694
</Table>

See accompanying notes to schedule of investments.
6

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SCHEDULE OF INVESTMENTS
DECEMBER 31, 2005 -- (CONTINUED)

<Table>
<Caption>
% OF
SHARES/ PARTNERS'
PAR VALUE* FAIR VALUE CAPITAL
---------- ------------ ---------

Bear Stearns Adjustable Rate Mortgage Trust, Series
2003-1, Class 6A1, 5.07% 4/25/33................. 146,415 145,218
Bear Stearns Adjustable Rate Mortgage Trust, Series
2003-1, Class 3A1, 5.38% 4/25/33................. 142,711 141,955
Citigroup Mortgage Loan Trust, Inc., Series
2004-HYB4, Class 3B2, 4.46% 12/25/34............. 196,845 192,293
Citigroup Mortgage Loan Trust, Inc., Series 2005-1,
Class 2A2B, 4.76%, 4/25/35....................... 229,455 228,809
Countrywine Alternative Loan Trust, Series 2004-33,
Class 2B1, 5.28%, 12/25/34....................... 224,029 222,488
Countrywine Alternative Loan Trust, Series
2005-19CB, Class A4, 5.50%, 06/25/35............. 228,807 225,444
Countrywide Home Loans, Series 2003.-3, Class M6,
7.09%, 7/25/32................................... 100,000 101,579
Countrywide Home Loans, Series 2003.-20, Class 1A14,
5.50%, 7/25/33................................... 147,431 146,053
CSFB Mortgage Securities Corp., Series 2002-10,
Class 1M2, 7.00%, 5/25/32........................ 180,000 180,051
CSFB Mortgage Securities Corp., Series 2004-8, Class
4A4, 5.50%, 11/25/34............................. 163,980 161,619
CSFB Mortgage Securities Corp., Series 2005-5, Class
4A2, 6.25%, 7/25/35.............................. 161,759 162,875
Diversified REIT Trust, Series 1999-1A, Class D,
6.78% 3/18/11.................................... 135,000 139,802
Drexel Burnham Lambert CMO Trust, Series V, Class 1,
PO, 0%, 9/1/18................................... 34,032 28,899
First Horizon Alternative Mortgage Securities,
Series 2005-FA5, Class 3A2, 5.50%, 8/25/35....... 325,680 322,262
GSR Mortgage Loan Trust, Series 2004-11, Class B2,
4.59%, 9/25/34................................... 298,293 295,730
GSR Mortgage Loan Trust, Series 2005-5F, Class 3A3,
5.00%, 06/25/35.................................. 302,530 297,851
Harborview Mortgage Loan Trust, Series, 2004-7,
Class 3A2, 4.74%, 11/19/34....................... 215,357 212,766
Impac Secured Assets Corp., Series 2002-3, Class M2,
7.18%, 8/25/32................................... 175,000 178,187
JP Morgan Mortgage Trust, Series 2004-A1, Class 3A2,
5.06%, 02/25/34.................................. 230,300 220,404
JP Morgan Mortgage Trust, Series 2004-A3, Class 3A2,
4.97%, 07/25/34.................................. 169,587 166,513
Master Seasoned Securities Trust, Series 2004-1,
Class 15B2, 6.24%, 8/25/17....................... 255,032 256,306
Option One Mortgage Loan Trust, Series 2005-1, Class
M6, 4.50%, 2/25/35............................... 250,000 249,873
Residential Accredit Loans, Inc., Series 2003-QS7,
Class M2, 6.00%, 4/25/33......................... 129,878 127,922
Residential Asset Mortgage Products, Inc., Series
2004-SL2, Class A1, 6.50% 10/25/16............... 174,218 177,323
</Table>

See accompanying notes to schedule of investments.
7

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SCHEDULE OF INVESTMENTS
DECEMBER 31, 2005 -- (CONTINUED)

<Table>
<Caption>
% OF
SHARES/ PARTNERS'
PAR VALUE* FAIR VALUE CAPITAL
---------- ------------ ---------

Structured Asset Securities Corp., Series 2003-4,
Class A6, 5.00%, 2/25/33......................... 142,183 140,601
Washington Mutual, Series 2003-S11, Class 1A, 5.00%,
11/25/33......................................... 80,607 77,732
Wells Fargo Mortgage Backed Securities Trust, Series
2003-1, Class A1, 4.49%, 11/25/33................ 180,608 173,835
Wells Fargo Mortgage Backed Securities Trust, Series
2004-S, Class A3, 3.54%, 9/25/34................. 200,000 198,340
Wells Fargo Mortgage Backed Securities Trust, Series
2004-W, Class B2, 4.63%, 11/25/34................ 199,303 188,995
Corporates
Consumer (0.01% of Partners' Capital)
General Motors Acceptance Corp., 6.125%,
1/22/08........................................ 50,000 45,786
Financial (0.08% of Partners' Capital)
JP Morgan Chase & Co., 5.15%, 10/1/15............ 300,000 295,747
------------
Total United States................................. 13,995,162
------------
Total Fixed Income (Cost $14,142,749)............... 13,995,162 3.72%
------------
Total Investments in Securities (Cost
$33,754,052)................................... 41,376,171 11.00%
------------
Total Investments (Cost $309,978,618).......... 375,301,236 99.77%
============
</Table>

- ---------------

* Shares or par value is listed for each investment if it is applicable for that
investment type.

CMO -- Collateralized Mortgage Obligation

PO -- Principal Only

REIT -- Real Estate Investment Trust

See accompanying notes to schedule of investments.
8

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2005

<Table>

Investment income:
Dividend income (net of foreign tax of $273,336).......... $ 1,833,794
Interest income........................................... 667,962
-----------
Total investment income................................ 2,501,756
-----------
Expenses:
Management fees........................................... 3,336,051
Administration fees....................................... 230,201
Legal fees................................................ 76,132
Professional fees......................................... 89,250
Custodian fees............................................ 47,907
Directors fees............................................ 48,271
Other expenses............................................ 152,295
-----------
Total expenses......................................... 3,980,107
-----------
Net investment loss......................................... (1,478,351)
-----------
Net realized and unrealized gain from investments:
Net realized gain from investments........................ 3,533,829
Net unrealized gain from investments...................... 32,384,181
-----------
Net realized and unrealized gain on investments........ 35,918,010
-----------
Net increase in partners' capital resulting from
operations.......................................... $34,439,659
===========
</Table>

See accompanying notes to financial statements.
9

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
YEARS ENDED DECEMBER 31, 2005 AND 2004

<Table>

Partners' capital at December 31, 2003...................... $109,262,447
Contributions............................................... 160,096,398
Distributions............................................... (8,540,602)
Net increase in partners' capital resulting from operations:
Net investment loss....................................... (1,853,840)
Net realized gain from investments........................ 2,038,564
Net unrealized gain from investments...................... 19,213,060
------------
Net increase in partners' capital resulting from
operations............................................ 19,397,784
------------
Partners' capital at December 31, 2004...................... 280,216,027
------------
Contributions............................................... 73,321,507
Distributions............................................... (11,808,134)
Net increase in partners' capital resulting from operations:
Net investment loss....................................... (1,478,351)
Net realized gain from investments........................ 3,533,829
Net unrealized gain from investments...................... 32,384,181
------------
Net increase in partners' capital resulting from
operations............................................ 34,439,659
------------
Partners' capital at December 31, 2005...................... $376,169,059
============
</Table>

See accompanying notes to financial statements.
10

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2005 AND 2004

<Table>
<Caption>
2005 2004
------------- -------------

Cash flow from operating activities:
Net increase in partners' capital resulting from
operations............................................. $ 34,439,659 $ 19,397,784
Adjustments to reconcile net increase in partners' capital
resulting from operations to net cash used in operating
activities:
Purchases of investments............................... (104,090,555) (170,502,049)
Proceeds from disposition of investments............... 43,304,376 20,517,183
Net realized gain...................................... (3,533,829) (2,038,564)
Net unrealized gain.................................... (32,384,181) (19,213,060)
Accretion of bond discount, net........................ (9,845) --
Increase in prepaid contributions to Investment
Funds................................................ (4,600,000) (3,750,000)
Increase in interest and dividends receivable.......... (179,021) (562,426)
Increase in receivable from Investment Funds........... (349,183) --
Decrease (Increase) in prepaids and other assets....... 1,291 (13,017)
Decrease (Increase) in receivable from Adviser......... 5,759 (5,759)
Decrease in redemption payable......................... -- (352,872)
Increase in management fees payable.................... 252,400 660,580
Increase in offshore withholding tax payable........... 58,694 115,990
Increase in accounts payable and accrued expenses...... 17,797 89,976
(Decrease) Increase in payable to Adviser.............. (132,497) 132,497
(Decrease) Increase in administration fees payable..... (73,420) 77,376
Decrease in subscriptions received in advance.......... -- (15,350,000)
Decrease in managed account fees payable............... -- (11,698)
Decrease in professional fees payable.................. -- (57,000)
------------- -------------
Net cash used in operating activities................ (67,272,555) (170,865,059)
------------- -------------
Cash flow from financing activities:
Borrowings on line of credit.............................. 44,378,340 30,633,152
Repayments on line of credit.............................. (39,957,429) (20,663,637)
Contributions from partners............................... 73,321,507 160,096,398
Distributions to partners................................. (11,808,134) (6,671,480)
------------- -------------
Net cash provided by financing activities............ 65,934,284 163,394,433
------------- -------------
Net decrease in cash and cash equivalents................... (1,338,271) (7,470,626)
Cash and cash equivalents at beginning of year.............. 1,628,345 9,098,971
------------- -------------
Cash and cash equivalents at end of year.................... $ 290,074 $ 1,628,345
============= =============
Supplemental disclosure of noncash activity:
Noncash distribution of investment........................ $ -- $ 1,869,122
Supplemental disclosure of cash activity:
Cash paid for interest.................................... $ 35,305 $ 8,029
</Table>

See accompanying notes to financial statements.
11

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2005

(1) ORGANIZATION

The Endowment Master Fund, L.P. (the "Fund") is a limited partnership
organized under the laws of the state of Delaware. The Fund began operations in
April 2003 ("Inception"). The Fund operated as an unregistered investment
vehicle until March 10, 2004, at which time it registered as a nondiversified,
closed-end management investment company under the Investment Company Act of
1940 (the "1940 Act"). The Fund is the master fund in a master-feeder structure
in which there are currently six feeder funds.

The Fund's investment objective is to preserve capital and to generate
consistent long-term appreciation and returns across all market cycles. The Fund
pursues its investment objective by investing its assets in a variety of
investment vehicles including but not limited to limited partnerships and
limited liability companies (collectively, the "Investment Funds"), registered
investment companies and direct investments in marketable securities and
derivative instruments. The Fund is a "fund of funds" and is intended to afford
investors the ability to invest in a multi-manager portfolio, exhibiting a
variety of investment styles and philosophies, in an attempt to achieve positive
risk-adjusted returns over an extended period of time. The Fund's investments
are managed by a select group of investment managers identified by the Adviser,
as hereinafter defined, to have investments that when grouped with other
investments of the Fund result in a portfolio that is allocated more broadly
across markets, asset classes, and risk profiles.

The Endowment Fund GP, L.P., a Delaware limited partnership, serves as the
general partner of the Fund (the "General Partner"). To the fullest extent
permitted by applicable law, the General Partner has irrevocably delegated to a
board of directors (the "Board" and each member a "Director") its rights and
powers to monitor and oversee the business affairs of the Fund, including the
complete and exclusive authority to oversee and establish policies regarding the
management, conduct, and operation of the Fund's business. A majority of the
members of the Board are independent of the General Partner and its management.
To the extent permitted by applicable law, the Board may delegate any of its
rights, powers and authority to, among others, the officers of the Fund, the
Adviser, or any committee of the Board.

The Board is authorized to engage an investment adviser and it has selected
Endowment Advisers, L.P. (the "Adviser"), to manage the Fund's portfolio and
operations, pursuant to an investment management agreement (the "Investment
Management Agreement"). The Adviser is a Delaware limited partnership that is
registered as an investment adviser under the Investment Advisers Act of 1940
(the "Advisers Act"). Under the Investment Management Agreement, the Adviser is
responsible for the establishment of an investment committee (the "Investment
Committee"), which is responsible for developing, implementing, and supervising
the Fund's investment program subject to the ultimate supervision of the Board.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

(a) BASIS OF ACCOUNTING

The accompanying financial statements have been presented on the accrual
basis of accounting in conformity with U.S. generally accepted accounting
principles.

(b) CASH EQUIVALENTS

The Fund considers all unpledged temporary cash investments with a maturity
date at the time of purchase of three months or less to be cash equivalents.

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2005 -- (CONTINUED)

The Fund records security transactions on a trade-date basis.

Securities owned or sold, not yet purchased, are marked to estimated fair
value at the date of the financial statements, and the corresponding unrealized
gain or loss is included in the statement of operations.

Realized gains or losses on the disposition of investments are accounted
for based on the first in first out ("FIFO") method.

Distributions received from Investment Funds, whether in the form of cash
or securities, are applied as a reduction of the cost of the investment.

(d) VALUATION OF INVESTMENTS

The valuation of the Fund's investments will be determined as of the close
of business at the end of any fiscal period, generally monthly. The valuation of
the Fund's investments is generally calculated by BISYS Fund Services Ohio, Inc.
("BISYS"), the Fund's independent administrator (the "Independent
Administrator") in consultation with the Adviser. The valuation procedures of
the Fund's underlying investments are reviewed by a committee approved by the
Board that was established to oversee the valuation of the Fund's investments
(the "Valuation Committee"), in consultation with the Adviser and the
Independent Administrator. The net assets of the Fund will equal the value of
the total assets of the Fund, less all of its liabilities, including accrued
fees and expenses.

Investments are valued as follows:

- INVESTMENT FUNDS -- Investments in Investment Funds are ordinarily valued
at the valuations provided to the Independent Administrator by the
investment managers of such Investment Funds or the administrators of
those Investment Funds. The Fund's investments in Investment Funds are
subject to the terms and conditions of the respective operating
agreements and offering memoranda, as appropriate. The Fund's investments
in Investment Funds are carried at estimated fair value as determined by
the Fund's pro-rata interest in the net assets of each Investment Fund.
Because of the inherent uncertainty of valuation, this estimated fair
value may differ from the value that would have been used had a ready
market for the investments in Investment Funds existed. These Investment
Funds value their underlying investments in accordance with policies
established by such Investment Funds. All valuations utilize financial
information supplied by each Investment Fund and are net of management
and estimated performance incentive fees or allocations payable to the
Investment Funds' managers pursuant to the Investment Funds' agreements.

- SECURITIES LISTED ON A SECURITIES EXCHANGE -- In general, the Fund values
listed securities at their last sales price as of the last business day
of the applicable period. If no sales occurred on that date, the
securities are valued at the mean between the "bid" and "asked" prices at
the close of trading on that date.

- SECURITIES LISTED ON OVER-THE-COUNTER EXCHANGES -- Securities listed on
over-the-counter exchanges are valued at the last reported sales price on
the date of determination, if available, through the facilities of a
recognized interdealer quotation system (such as securities in the NASDAQ
National Market List) or at the NASDAQ Official Closing Price. If the
last reported sales price is not available, the securities are valued at
the mean between the "bid" and "asked" prices at the close of trading on
that date.

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2005 -- (CONTINUED)

- OPTIONS -- Options that are listed on a securities exchange or traded
over-the-counter are valued at the mean between the closing "bid" and
"asked" prices for such options on the date of determination.

- SECURITIES NOT ACTIVELY TRADED -- The value of securities, derivatives or
synthetic securities that are not actively traded on an exchange shall be
determined by obtaining indicative quotes from brokers that normally deal
in such securities or by an unaffiliated pricing service that may use
actual trade data or procedures using market indices, matrices, yield
curves, specific trading characteristics of certain groups of securities,
pricing models or a combination of these procedures.

- OTHER -- Where no value is readily available from an Investment Fund or
other security or where a value supplied by an Investment Fund is deemed
not to be indicative of the Investment Fund's value, the Valuation
Committee and/or the Board, in consultation with the Independent
Administrator or the Adviser will determine, in good faith, the estimated
fair value of the Investment Fund or security.

(e) INTEREST AND DIVIDEND INCOME

Dividend income is recorded on the ex-dividend date. Interest income is
recorded as earned on the accrual basis.

(f) FUND EXPENSES

Unless voluntarily or contractually assumed by the Adviser or another
party, the Fund bears all expenses incurred in its business, including, but not
limited to, the following: all costs and expenses related to investment
transactions and positions for the Fund's account; legal fees; accounting,
auditing and tax preparation fees; custodial fees; costs of computing the Fund's
net asset value; costs of insurance; registration expenses; certain offering
costs; expenses of meetings of the partners; directors fees; all costs with
respect to communications to partners; and other types of expenses as may be
approved from time to time by the General Partner. Offering costs are amortized
over a twelve-month period or less from the date they are incurred.

(g) INCOME TAXES

The Fund itself is not subject to federal, state, or local income taxes
because such taxes are the responsibility of the individual partners in the
Fund. Accordingly, no provision for income taxes has been made in the Fund's
financial statements other than withholding tax on dividend income that is
allocated to the Fund's offshore feeders.

(h) USE OF ESTIMATES

The preparation of the financial statements in accordance with U.S.
generally accepted accounting principles requires management to make estimates
and assumptions relating to the reported amounts of assets and liabilities and
the disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.

(i) ORGANIZATIONAL EXPENSES

The Fund's organizational expenses (the "Organizational Expenses") were
initially borne by the Adviser or an affiliate thereof and for capital account
allocation purposes assumed to be reimbursed, over not more than a 60 month
period of time, notwithstanding that such Organizational Expenses were expensed
in accordance with U.S. generally accepted accounting principles for Fund
reporting purposes upon commencement of operations.
14

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2005 -- (CONTINUED)

(j) RECLASSIFICATIONS

Certain reclassifications have been made to the 2004 financial statements
to conform them with the 2005 presentation.

(3) PARTNERS' CAPITAL ACCOUNTS

(a) ISSUANCE OF INTERESTS

Upon receipt from an eligible investor of an application for interests (the
"Interests"), which will generally be accepted as of the first day of each
month, the Fund will issue new Interests. The Interests have not been registered
under the Securities Act of 1933, as amended (the "Securities Act"), or the
securities laws of any state. The Fund issues Interests only in private
placement transactions in accordance with Regulation D or other applicable
exemptions under the Securities Act. No public market exists for the Interests,
and none is expected to develop. The Fund is not required, and does not intend,
to hold annual meetings of its partners. The Interests are subject to
substantial restrictions on transferability and resale and may not be
transferred or resold except as permitted under the Fund's limited partnership
agreement (the "LP Agreement"). The Fund reserves the right to reject any
applications for subscription of Interests.

(b) ALLOCATION OF PROFITS AND LOSSES

For each fiscal period, generally monthly, net profits or net losses of the
Fund are allocated among and credited to or debited against the capital accounts
of all partners as of the last day of each fiscal period in accordance with the
partners' respective investment ownership percentages for the fiscal period. Net
profits or net losses are measured as the net change in the value of the net
assets of the Fund, including any net change in unrealized appreciation or
depreciation of investments and income, net of expenses, and realized gains or
losses during a fiscal period. Net profits or net losses are allocated after
giving effect for any repurchases of Interests or initial or additional
applications for Interests, which generally occur at the beginning of the month.

A partner will not be eligible to have the Fund repurchase all or any
portion of an Interest at the partner's discretion at any time. However, the
Adviser expects that it will recommend to the Board that the Fund offer to
repurchase Interests each calendar quarter, pursuant to written tenders by
partners. The Board retains the sole discretion to accept or reject the
recommendation of the Adviser and to determine the amount, if any, that will be
purchased in any tender offer that it does approve. In the event Interests are
repurchased, there will be a substantial period of time between the date as of
which partners must accept the Fund's offer to repurchase their Interests and
the date they can expect to receive payment for their Interests from the Fund.

(4) INVESTMENTS IN PORTFOLIO SECURITIES

As of December 31, 2005, the Fund had investments in Investment Funds,
registered investment companies and marketable securities in a separately
managed account, which is managed by a sub-adviser ("Sub-Adviser"). The
$15,100,000 in prepaid contribution to Investment Funds as of December 31, 2005
represents funding of a portion of the January 2006 investment in such funds.
The agreements related to investments in Investment Funds provide for
compensation to the Investment Funds' managers/general partners or advisors in
the form of management fees ranging from 0.25% to 2.5% of net assets annually.
In addition, many Investment Funds also provide for performance incentive
fees/allocations ranging from 15% to 25% of an Investment Fund's net profits,
although it is possible that such ranges may be exceeded for certain

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2005 -- (CONTINUED)

investment managers. These fees and incentive fees are in addition to the
management fees charged by the Fund.

In general, most of the Investment Funds in which the Fund invests, other
than Investment Funds investing primarily in private equity, energy and real
estate transactions, provide for periodic redemptions ranging from monthly to
annually with lock up provisions usually for a period of up to four years.
Investment Funds that do provide for periodic redemptions may, depending on the
Investment Fund's governing documents, have the ability to deny or delay a
redemption request. Amounts representing redemption requests of underlying
Investment Funds for which the redemption has not been processed as of year end
are included in the category Investments in Investment Funds. For the year ended
December 31, 2005, the aggregate cost of purchases and proceeds from sales of
investments were $104,090,555 and $43,304,376 respectively.

The cost of investments for Federal income tax purposes is adjusted for
items of taxable income allocated to the Fund from its investments. The
allocated taxable income is reported to the Fund by its investments on Schedules
K-1 or 1099's. As of December 31, 2005, the cost of the Fund's investments was
$309,978,618. Accordingly, unrealized appreciation and depreciation on
investments was $66,601,242 and $1,278,624 respectively.

(5) FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

In the normal course of business, the Investment Funds in which the Fund
invests trade various derivative securities and other financial instruments, and
enter into various investment activities with off-balance sheet risk both as an
investor and as a principal. The Fund's risk of loss in these Investment Funds
is limited to the value of the investment in such Investment Funds as reported
by the Fund. In addition, the Fund may from time to time invest in derivative
securities or other financial instruments to gain greater or lesser exposure to
a particular asset class.

(6) DUE FROM BROKERS

The Fund conducts business with various brokers for its investment
activities. The clearing and depository operations for the investment activities
are performed pursuant to agreements with the brokers. The Fund is subject to
credit risk to the extent any broker with whom the Fund conducts business is
unable to deliver cash balances or securities, or clear security transactions on
the Fund's behalf. The Fund monitors the financial condition of the brokers with
which the Fund conducts business and believes the likelihood of loss under the
aforementioned circumstances is remote.

(7) ADMINISTRATION AGREEMENT

In consideration for administrative, accounting, and recordkeeping
services, the Fund will pay the Independent Administrator a monthly
administration fee (the "Administration Fee") based on the month end net assets
of the Fund. The Fund is charged, on an annual basis, 8 basis points on Fund net
assets of up to $100 million, 7 basis points on Fund net assets between the
amounts of $100 million and $250 million and 6 basis points for amounts over
$250 million. The asset based fees are assessed based on month end net assets
and are payable in arrears. The Independent Administrator will also provide the
Fund with legal, compliance, transfer agency, and other investor related
services at an additional cost.

The fees for Fund administration will be paid out of the Fund's assets,
which will decrease the net profits or increase the net losses of the partners
in the Fund. As of December 31, 2005, the Fund had $376,169,059 in net assets.
The total administration fee incurred for the year ended December 31, 2005 was
$230,201.

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2005 -- (CONTINUED)

(8) RELATED PARTY TRANSACTIONS

(a) INVESTMENT MANAGEMENT FEE

In consideration of the advisory and other services provided by the Adviser
to the Fund pursuant to the Investment Management Agreement, the Fund will pay
the Adviser an investment management fee (the "Investment Management Fee"),
equal to 1% on an annualized basis of the Fund's net assets calculated based on
the Fund's net asset value at the end of each month, payable quarterly in
arrears. The Investment Management Fee will decrease the net profits or increase
the net losses of the Fund that are credited to or debited against the capital
accounts of its limited partners. For the year ended December 31, 2005,
$3,336,051 was incurred for Investment Management Fees.

(b) PLACEMENT AGENTS

The Fund may engage one or more placement agents (each, a "Placement
Agent") to solicit investments in the Fund. Sanders Morris Harris, Inc. ("SMH"),
an affiliate of the General Partner and the Adviser, has been engaged by the
Fund to serve as a Placement Agent. SMH is a full-service investment banking,
broker-dealer, asset management and financial services organization. A Placement
Agent may engage one or more sub-placement agents. The Adviser or its affiliates
may pay a fee out of their own resources to Placement Agents and sub-placement
agents.

(9) INDEBTEDNESS OF THE FUND

Pursuant to the Fund LP Agreement, the Fund may borrow up to, but not more
than, 10% of net assets of the Fund (at the time such borrowings were made and
after taking into account the investment and/or deployment of such proceeds) for
the purpose of making investments, funding redemptions and for other working
capital and general Fund purposes. For purposes of the Fund's investment
restrictions and certain investment limitations under the 1940 Act, including
for example, the Fund's leverage limitations, the Fund will not "look through"
Investment Funds in which the Fund invests. Investment Funds may also use
leverage, whether through borrowings, futures, or other derivative products and
are not subject to the Fund's investment restrictions. However, such borrowings
by Investment Funds are without recourse to the Fund and the Fund's risk of loss
is limited to its investment in such Investment Funds. The rights of any lenders
to the Fund to receive payments of interest or repayments of principal will be
senior to those of the partners, and the terms of any borrowings may contain
provisions that limit certain activities of the Fund.

The Fund maintains a credit facility for which the investments of the Fund
serve as collateral for the facility. The maximum amount that can be borrowed is
based on the value of the underlying collateral; provided, however, that the
Fund's fundamental policies provide that the Fund cannot borrow more than 10% of
the value of the Fund's net assets. As of December 31, 2005, $14,390,426 was
outstanding under the credit facility at a current interest rate of 6.89%. The
weighted average interest rate paid on the line of credit during the year was
6.19%.

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2005 -- (CONTINUED)

(10) FINANCIAL HIGHLIGHTS

<Table>
<Caption>
PERIOD
APRIL 1, 2003
YEAR ENDED YEAR ENDED (INCEPTION) TO
DECEMBER 31, 2005 DECEMBER 31, 2004 DECEMBER 31, 2003
----------------- ----------------- -----------------

Net investment loss to average
partners' capital(1).............. (0.44)% (0.92)% (0.26)%
Expenses to average partners'
capital(1)........................ 1.19% 1.40% 0.66%
Portfolio turnover.................. 12.65% 10.29% 11.90%
Total return(2)..................... 10.40% 8.90% 21.66%
Partners' capital, end of period.... $376,169,059 $280,216,027 $109,262,447
Average amount of borrowings
outstanding during the period..... $762,381 $233,334 --
</Table>

An investor's return (and operating ratios) may vary from those reflected
based on different fee and expense arrangements and the timing of capital
transactions.
- ---------------

(1) Ratios are calculated by dividing by average partners' capital measured at
the end of each month during the period. The 2003 ratios have been
annualized.

(2) Calculated as geometrically linked monthly returns for each month in the
period.

(11) SUBSEQUENT EVENT

The Adviser recommended to the Board that a tender offer in an amount of up
to $12,000,000 be made, based on the projected March 31, 2006 net asset value of
the Fund, to those partners who elect to tender their Interests prior to the
expiration of the tender offer period. The Board approved such recommendation
and a tender offer notice expiring February 28, 2006 was sent out to the
investors in the Fund.

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SUPPLEMENTAL INFORMATION (UNAUDITED)
DECEMBER 31, 2005

DIRECTORS AND OFFICERS

The Fund's operations are managed under the direction and oversight of the
Board. Each Director serves for an indefinite term or until he or she reaches
mandatory retirement, if any, as established by the Board. The Board appoints
the officers of the Fund who are responsible for the Fund's day-to-day business
decisions based on policies set by the Board. The officers serve at the pleasure
of the Board.

The Directors and officers of the Fund may also be directors or officers of
some or all of the other registered investment companies managed by the Adviser
or its affiliates (the "Fund Complex"). The tables below show, for each Director
and executive officer, his or her full name, address and age (as of December 31,
2005), the position held with the Fund, the length of time served in that
position, his or her principal occupations during the last five years, the
number of portfolios in the Fund Complex overseen by the Director, and other
directorships held by such Director.

INTERESTED DIRECTORS

<Table>
<Caption>
NUMBER OF
PORTFOLIOS
IN FUND OTHER
POSITION(S) COMPLEX(2) DIRECTORSHIPS
HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY HELD BY
NAME, ADDRESS AND AGE FUND TIME SERVED DURING THE PAST 5 YEARS DIRECTOR DIRECTOR
- --------------------- ------------ ------------ ----------------------- ----------- -------------

John A. Blaisdell(1) Director, Since Member, Investment 3 0
Age: 45 Co- January 2004 Committee of the
Address: c/o The Endowment Principal Adviser, since January
Master Fund L.P. Executive 2004; Managing Director
4265 San Felipe, Suite 900, Officer of Salient, since
Houston, Texas 77027 December 2002; Chief
Executive Officer of
Wincrest Ventures,
L.P., 1997-2002.
Andrew B. Linbeck(1) Director, Since Member, Investment 3 0
Age: 41 Co- January 2004 Committee of the
Address: c/o The Endowment Principal Adviser, since January
Master Fund L.P. Executive 2004; Managing Director
4265 San Felipe, Suite 900, Officer of Salient, since
Houston, Tx 77027 August 2002; Partner
and executive officer
of The Redstone
Companies, L.P. and
certain affiliates
thereof (collectively,
"Redstone"), 1998-2002.
</Table>

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SUPPLEMENTAL INFORMATION (UNAUDITED)
DECEMBER 31, 2005 -- (CONTINUED)

A. Haag Sherman(1) Director, Since Member, Investment 3 0
Age: 40 Co- January 2004 Committee of the
Address: c/o The Endowment Principal Adviser, since January
Master Fund L.P. Executive 2004; Managing Director
4265 San Felipe, Suite 900, Officer of Salient, since
Houston, Tx 77027 August 2002; Partner
and executive officer
of Redstone,
1998-2002.
Mark W. Yusko(1) Director Since Member, Investment 3 0
Age: 42 January 2004 Committee of the
Address: c/o The Endowment Adviser, since January
Master Fund L.P. 2004; President of
4265 San Felipe, Suite 900, Morgan Creek Capital
Houston, Tx 77027 Management, since July
2004; Principal,
Hatteras Capital
Management, since
September 2003; Chief
Investment Officer of
the University of North
Carolina at Chapel
Hill, 1998-2004
</Table>

- ---------------

(1) This person's status as an "interested" director arises from his affiliation
with Salient Partners, L.P. ("Salient"), which itself is an affiliate of The
Endowment Registered Fund, L.P. (the "Registered Fund"), the Fund, The
Endowment TEI Fund, L.P. (the "TEI Fund"), and the Adviser.

(2) The Fund Complex includes the Registered Fund, the TEI Fund and the Fund.

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SUPPLEMENTAL INFORMATION (UNAUDITED)
DECEMBER 31, 2005 -- (CONTINUED)

INDEPENDENT DIRECTORS

<Table>
<Caption>
NUMBER OF
PORTFOLIOS
IN FUND OTHER
POSITION(S) PRINCIPAL COMPLEX(1) DIRECTORSHIPS
HELD WITH LENGTH OF OCCUPATION(S) DURING OVERSEEN BY HELD BY
NAME, ADDRESS AND AGE FUND TIME SERVED THE PAST 5 YEARS DIRECTOR DIRECTOR
- --------------------- ------------ ------------ -------------------- ----------- -------------

Bob L. Boldt Director Since Chief Executive 3 None
Age: 57 January 2005 Officer, University
Address: c/o The Endowment of Texas Investment
Master Fund L.P. Management Co. since
4265 San Felipe, Suite 900, 2002; Managing
Houston, Tx 77027 Director, Pivotal
Asset Management
from 2000-2002;
Senior Investment
Officer for
California Public
Employee Retirement
System from
1995-2000.
Jonathan P. Carroll Director Since Private investor for 3 None
Age: 44 January 2004 the past five years.
Address: c/o The Endowment
Master Fund L.P.
4265 San Felipe, Suite 900,
Houston, Tx 77027

Richard C. Johnson Director Since Senior Counsel for 3 None
Age: 68 January 2004 Baker Botts LLP
Address: c/o The Endowment since 2002; Managing
Master Fund L.P. Partner for Baker
4265 San Felipe, Suite 900, Botts from
Houston, Tx 77027 1998-2002; practiced
law at Baker Botts
from 1966-2002 (from
1972 to 2002 as a
partner)
</Table>

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SUPPLEMENTAL INFORMATION (UNAUDITED)
DECEMBER 31, 2005 -- (CONTINUED)

G. Edward Powell Director Since Principal of Mills & 3 Sterling
Age: 69 January 2004 Stowell from March Bancshares,
Address: c/o The Endowment 2002 to present; Inc.; Global
Master Fund L.P. Principal of Water
4265 San Felipe, Suite 900, Innovation Growth Technologies,
Houston, Tx 77027 Partners in 2002; Inc.; Datavox
From 1994-2002, Mr. Holdings,
Powell provided Inc.
consulting services
to emerging and
middle market
businesses; Managing
Partner for Houston
office of Price
Waterhouse & Co.
from 1982 to his
retirement in 1994.
Scott F. Schwinger Director Since Senior Vice 3 None
Age: 40 January 2004 President, Chief
Address: c/o The Endowment Financial Officer
Master Fund L.P. and Treasurer of the
4265 San Felipe, Suite 900, Houston Texans
Houston, Tx 77027

Scott W. Wise Director Since Senior Vice 3 None
Age: 56 January 2004 President and
Address: c/o The Endowment Treasurer, Rice
Master Fund L.P. University for the
4265 San Felipe, Suite 900, past five years.
Houston, Tx 77027
</Table>

- ---------------

(1) The Fund Complex includes the Registered Fund, the TEI Fund and the Fund.

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SUPPLEMENTAL INFORMATION (UNAUDITED)
DECEMBER 31, 2005 -- (CONTINUED)

OFFICERS OF THE FUND WHO ARE NOT DIRECTORS

<Table>
<Caption>
PRINCIPAL OCCUPATION(S)
NAME, ADDRESS AND AGE POSITION(S) HELD WITH FUND DURING THE PAST 5 YEARS
- --------------------- ----------------------------- -----------------------------

Jeremy L. Radcliffe Chief Compliance Officer Managing Director of Adviser,
Age: 31 since January 2004; Partner
Address: c/o The Endowment and Managing Director of
Master Fund L.P. Salient, since August 2002;
4265 San Felipe, Suite 900, Partner and officer of
Houston, Tx 77027 Redstone, 1998-2002.

John E. Price Treasurer; Principal Director and Chief Financial
Age: 38 Financial Officer Officer of the Adviser, since
Address: c/o The Endowment January 2004; Partner and
Master Fund L.P. Director of Salient, since
4265 San Felipe, Suite 900, October 2003; Controller of
Houston, Tx 77027 Wincrest Ventures, L.P.,
1997-2003.

Adam L. Thomas Secretary Director of Adviser since
Age: 31 January 2004; Partner and
Address: c/o The Endowment Director of Salient, since
Master Fund L.P. September 2002; Associate at
4265 San Felipe, Suite 900, Redstone, 2001- 2002;
Houston, Tx 77027 Associate at Albrecht &
Associates Inc., August 1996
through August 1999. Attended
University of Texas Business
School, 1999-2001.
</Table>

COMPENSATION FOR DIRECTORS

The Fund, the Registered Fund and the TEI Fund together currently pay each
Independent Director an annual fee of $7,500, paid quarterly, a fee of $2,000
per Board meeting ($5,000 for an organizational Board meeting), and a $500 fee
per meeting for each member on the audit committee. In the interest of retaining
Independent Directors of high quality, the Board intends to periodically review
such compensation and may modify it as the Board deems appropriate.

THE ENDOWMENT MASTER FUND, L.P.
(A LIMITED PARTNERSHIP)

SUPPLEMENTAL INFORMATION (UNAUDITED)
DECEMBER 31, 2005 -- (CONTINUED)

ALLOCATION OF INVESTMENTS

The following chart indicates the allocation of investments among the asset
classes in the Master Fund as of December 31, 2005.

<Table>
<Caption>
ASSET CLASS(1) FAIR VALUE %
- -------------- ----------- ------

Domestic Equity............................................. 55,350,487 14.75%
International Equity........................................ 72,757,067 19.39%
Opportunistic Equity........................................ 31,498,204 8.39%
Absolute Return............................................. 39,895,972 10.63%
Real Estate................................................. 21,152,428 5.64%
Natural Resources........................................... 47,122,744 12.56%
Private Equity.............................................. 31,803,800 8.47%
Fixed Income................................................ 17,296,915 4.61%
Enhanced Fixed Income....................................... 52,520,057 13.99%
Debt Fund................................................... 5,903,562 1.57%
----------- ------
TOTAL INVESTMENTS........................................... 375,301,236 100.00%
----------- ------
</Table>

- ---------------

(1) The complete list of investments included in the following asset class
categories are included in the schedule of investments of the Fund.

FORM N-Q FILINGS

The Fund files a complete schedule of portfolio holdings with the
Securities and Exchange Commission for the first and third quarters of each
fiscal year on Form N-Q. The Fund's Form N-Q is available on the Securities and
Exchange Commission website at http://www.sec.gov. The Fund's Form N-Q may be
reviewed and copied at the Securities and Exchange Commission Public Reference
Room in Washington, DC and information regarding operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.

PROXY VOTING POLICIES

A description of the policies and procedures that the Fund uses to
determine how to vote proxies relating to portfolio securities is available (i)
without charge, upon request, by calling 1-800-725-9456; and (ii) on the
Securities and Exchange Commission website at http://www.sec.gov.

Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available (i)
without charge, upon request, by calling 1-800-725-9456; and (ii) on the
Securities and Exchange Commission website at http://www.sec.gov.

ADDITIONAL INFORMATION

The Fund's private placement memorandum (the "PPM") includes additional
information about directors of the Fund. The PPM is available, without charge,
upon request by calling 1-800-725-9456.

ITEM 2. CODE OF ETHICS.

(a) The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions. This code of ethics is included as an Exhibit.

(b) During the period covered by the report, with respect to the
registrant's code of ethics that applies to its principal executive
officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions; there have been no
amendments to, nor any waivers granted from, a provision that relates to
any element of the code of ethics definition enumerated in paragraph (b) of
this Item 2.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

3(a)(1) The registrant's board of directors has determined that the registrant
has at least one audit committee financial expert serving on its audit
committee.

3(a)(2) The audit committee financial expert is G. Edward Powell, who is
"independent" for purposes of this Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
[DESCRIBE THE NATURE OF THE FEES LISTED BELOW.]

CURRENT YEAR PREVIOUS YEAR
------------ -------------

Audit Fees $58,000 $50,000
Audit-Related Fees $ 0 $ 0
Tax Fees $27,825 $ 7,475
All Other Fees $ 0 $ 0

(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

The audit committee may delegate its authority to pre-approve audit and
permissable non-audit services to one or more members of the committee. Any
decision of such members to pre-approve services shall be presented to the full
audit committee at its next regularly scheduled meeting.

(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

CURRENT YEAR PREVIOUS YEAR
- ------------ -------------

0% 100%

(f) Not applicable.

(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under
common control with the adviser that provides ongoing services to the
registrant for each of the last two fiscal years of the registrant.

CURRENT YEAR PREVIOUS YEAR
- ------------ -------------

$0 $35,000 (to Salient Partners, LP)

(h) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.

These policies are included as Exhibit 12(a)(4).

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

THE ADVISER'S INVESTMENT COMMITTEE MEMBERS

The Investment Committee is responsible for the day-to-day management of
the Fund's portfolio. The Endowment Master Fund, L.P. (the "Master Fund"), The
Endowment TEI Fund, L.P. (the "TEI Fund") and The Endowment Registered Fund,
L.P. (the "Registered Fund") are registered investment companies (collectively,
the "Fund Complex" and each individually the "Fund"). The members of the
Investment Committee (each an "Investment Committee Member") are: Messrs. John
A. Blaisdell, Andrew B. Linbeck, A. Haag Sherman and Mark W. Yusko.

Mr. Blaisdell has served as an Investment Committee Member since January
2004 and Managing Director of Salient Partners, L.P. ("Salient") since December
2002. Previously, he held the position of Chief Executive Officer of Wincrest
Ventures, L.P. (from 1997-2002). Mr. Linbeck has served as an Investment
Committee Member since January 2004 and Managing Director of Salient since
August 2002. Previously, he held the position of Partner and executive officer
of The Redstone Companies, L.P. and certain affiliates thereof (from 1998-2002).
Mr. Sherman has served as an Investment Committee Member since January 2004 and
Managing Director of Salient since August 2002. Previously, he held the position
of Partner and executive officer of Redstone (from 1998-2002). Mr.Yusko has
served as an Investment Committee Member since January 2004. He is also
President of Morgan Creek Capital Management (since July 2004) and Principal of
Hatteras Capital Management (since September 2003). Previously, Mr. Yusko held
the position of Chief Investment Officer of the University of North Carolina at
Chapel Hill (from 1998-2004). Each member of the Investment Committee reviews
asset allocation recommendations by the Adviser's staff, manager due diligence
and recommendations and, by a majority vote of the Investment Committee,
determines asset allocation and manager selection.

The Adviser and certain other entities controlled by the Principals manage
investment programs which are similar to that of the Fund, and the Adviser
and/or the Principals may in the future serve as an investment adviser or
otherwise manage or direct the investment activities of other registered and/or
private investment companies with investment programs similar to the Fund's.

OTHER ACCOUNTS MANAGED BY THE INVESTMENT ADVISER

Certain Investment Committee Members, who are primarily responsible for the
day-to-day management of the Fund, also manage other registered investment
companies, other pooled investment vehicles and other accounts, as indicated
below. The following tables identify, as of December 31, 2005: (i) the number of
registered investment companies (including the Fund), other pooled investment
vehicles and other accounts managed by the Investment Committee Member and the
total assets of such companies, vehicles and accounts; and (ii) the number and
total assets of such companies, vehicles and accounts with respect to which the
advisory fee is based on performance.

Registered Investment Pooled Investment
Companies Managed by Vehicles Managed by Other Accounts
Investment Committee Investment Committee Managed by Investment
Member Member Committee Member
Name of Investment --------------------- --------------------- -------------------------
Committee Member Number Total Assets Number Total Assets Number Total Assets
- ------------------ ------ ------------ ------ ------------ ------ ----------------

John A. Blaisdell 3 $392 million 4 $212 million >50 >200 million (1)
Andrew B. Linbeck 3 $392 million 4 $212 million >50 >200 million (1)
A. Haag Sherman 3 $392 million 4 $212 million >50 >200 million (1)
Mark W. Yusko 6 $572 million 5 $399 million 0 0

(1) Messrs. Blaisdell, Linbeck and Sherman serve as principal executive
officers of Salient Partners, which owns Salient Trust Co., LTA, a trust
company chartered under the laws of the state of Texas. In such capacities,
Messrs. Blaisdell, Linbeck and Sherman have investment responsibilities on
the clients of such entities. However, the number of accounts and asset
figures cited in the table relate to the accounts and assets over which
Messrs. Blaisdell, Linbeck and Sherman have discretion in their capacities
as principal executive officers of such entities.

Registered Investment Pooled Investment Vehicles
Companies Managed by Managed by Other Accounts Managed by
Investment Committee Member Investment Committee Member Investment Committee Member
--------------------------- --------------------------- ---------------------------
Total Assets Total Assets Total Assets
Number with with Number with with Number with with
Name of Investment Performance Performance Performance Performance Performance Performance
Committee Member Based Fees Based Fees Based Fees Based Fees Based Fees Based Fees
- ------------------ ----------- ------------ ----------- ------------ ----------- ------------

John A. Blaisdell 0 0 1 $74 million 0 0
Andrew B. Linbeck 0 0 1 $74 million 0 0
A. Haag Sherman 0 0 1 $74 million 0 0
Mark W. Yusko 3 $180 million 1 $74 million 0 0

CONFLICTS OF INTEREST OF THE ADVISER

From time to time, potential conflicts of interest may arise between an
Investment Committee Member's management of the investments of the Fund, on the
one hand, and the management of other registered investment companies, pooled
investment vehicles and other accounts (collectively, "other accounts"), on the
other. The other accounts might have similar investment objectives or strategies
as the Fund, track the same index the Fund tracks or otherwise hold, purchase,
or sell securities that are eligible to be held,

purchased or sold by the Fund. The other accounts might also have different
investment objectives or strategies than the Fund.

Knowledge and Timing of Fund Trades. A potential conflict of interest may
arise as a result of the Investment Committee Member's day-to-day management of
a Fund. Because of their positions with the Fund, the Investment Committee
Members know the size, timing and possible market impact of the Fund's trades.
It is theoretically possible that the Investment Committee Members could use
this information to the advantage of other accounts they manage and to the
possible detriment of the Fund.

Investment Opportunities. A potential conflict of interest may arise as a
result of the Investment Committee Member's management of a number of accounts
with varying investment guidelines. Often, an investment opportunity may be
suitable for both the Fund and other accounts managed by the Investment
Committee Member, but may not be available in sufficient quantities for both the
Fund and the other accounts to participate fully. Similarly, there may be
limited opportunity to sell an investment held by the Fund and other accounts.
The Adviser has adopted policies and procedures reasonably designed to allocate
investment opportunities on a fair and equitable basis over time.

Performance Fees. An Investment Committee Member may advise certain
accounts with respect to which the advisory fee is based entirely or partially
on performance. Performance fee arrangements may create a conflict of interest
for the Investment Committee Member in that the Member may have an incentive to
allocate the investment opportunities that he or she believes might be the most
profitable to such other accounts instead of allocating them to the Fund.

COMPENSATION TO INVESTMENT COMMITTEE MEMBERS

Messrs. Blaisdell, Linbeck, Sherman and Yusko own equity interests in the
Adviser. As it relates to the Fund and other funds within the Fund Complex,
Messrs. Blaisdell, Linbeck, Sherman and Yusko receive all of their compensation
based on the size of the Fund and the other funds within the Fund Complex and
the management and advisory fees charged thereon. Accordingly, they believe that
a significant driver of their compensation is the performance of the Fund and
the Fund Complex, which has a significant bearing on the ability to raise
additional assets. Messrs. Blaisdell, Linbeck, Sherman and Yusko also own equity
in the general partner of another fund, and are compensated directly on
performance (based on an incentive allocation) and the size of the fund's asset
base. In addition, Messrs. Blaisdell, Linbeck and Sherman are partners and
principal executive officers of Salient and related affiliates and subsidiaries
(collectively, the "Salient Group"), which pays them a base salary (but no
bonus) and is obligated to make distributions of profits to them, as well as the
other partners, on an annual basis. These individuals are responsible for the
investment processes and management of the Salient Group. Messrs. Blaisdell,
Linbeck and Sherman believe that to the extent that they are successful in their
investment endeavors, the greater the number of assets over time and the more
significant their compensation from the Salient Group.

Mr. Yusko is a partner of Morgan Creek Capital Management, which pays him a
base salary and is anticipated to make distributions of profits above and beyond
that which is necessary to operate the business. Mr. Yusko is chiefly
responsible for the

investment processes and management of Morgan Creek Capital Management. He
believes that to the extent that he and the staff at Morgan Creek Capital
Management are successful in their investment endeavors, the greater the number
of assets over time and the more significant their compensation.

SECURITIES OWNERSHIP OF INVESTMENT COMMITTEE MEMBERS

The table below shows the dollar range of the interests of each Fund
beneficially owned as of December 31, 2005 by each Investment Committee Member
(2).

Investment Committee Member Master Fund Registered Fund TEI Fund
- --------------------------- ---------------------- -------------------- ------------------

John A. Blaisdell over $1,000,000 $100,001 to $500,000 $10,001 to $50,000
Andrew B. Linbeck $100,001 to $500,000 $100,001 to $500,000 $10,001 to $50,000
A. Haag Sherman $100,001 to $500,000 $100,001 to $500,000 $10,001 to $50,000
Mark W. Yusko $500,001 to $1,000,000 None None

(2) Includes the portion of investments made by the Salient Group beneficially
owned and personal investments

PORTFOLIO MANAGER COMPENSATION

Mr. Adam L. Thomas has significant day-to-day duties in the management of
the portfolio of the Fund, including providing analysis and recommendations on
Asset Allocation and Investment Fund selection to the Investment Committee. Mr.
Thomas owns equity interests in the Adviser. In addition, Mr. Thomas receives an
additional interest in a portion of the revenues of the Adviser. As it relates
to the Fund and other funds within the Fund Complex, Mr. Thomas receives all of
his compensation based on the size of the Fund and the other funds within the
Fund Complex and the management and advisory fees charged thereon. Accordingly,
he believes that a significant driver of his compensation is the performance of
the Fund and the Fund Complex, which has a significant bearing on the ability to
raise additional assets. Mr. Thomas also owns equity in the general partner of
another fund (and Mr. Thomas also owns a interest in a portion of the revenues
derived by such general partner), and is compensated directly on performance
(based on an incentive allocation) and the size of the fund's asset base (as of
December 31, 2005, this fund's asset base was approximately $74 million). In
addition, Mr. Thomas is a partner and officer of entities within the Salient
Group, which pay him a base salary and he may receive a bonus, and Salient is
obligated to make distributions of profits to him, as well as the other
partners, on an annual basis. Mr. Thomas believes that to the extent that he is
successful in his investment endeavors, the greater the number of assets over
time and the more significant his compensation from the Salient Group will be.

SECURITIES OWNERSHIP OF PORTFOLIO MANAGER

The table below shows the dollar range of shares of the Fund beneficially
owned as of December 31, 2005, by Mr. Thomas (3):

Master Registered TEI
------ ---------- ---

$10,001 to $50,000 $10,001 to $50,000 $1 to $10,000

(3) Includes the portion of investments made by the Salient Group beneficially
owned

THE SUB-ADVISER

In accordance with the Investment Management Agreement, the Adviser has
engaged Tanglewood Asset Management, LLC ("Tanglewood") as a sub-adviser (the
"Sub-Adviser") to manage portions of the Master Fund's traditional fixed income
investment portfolio. Tanglewood does not invest in Investment Funds, but rather
invests directly in debt securities and open and closed end funds.

Tanglewood is a North Carolina limited liability company, is registered as
an investment adviser under the Advisers Act, and is located at 110 Oakwood
Drive, Suite 210, Winston-Salem, NC 27103. Tanglewood offers advisory and
portfolio management services for fixed income, equity, and balanced accounts.
Tanglewood manages a moderate duration fixed income portfolio for the Master
Fund, the fees for which are 0.25%, on an annualized basis, for the first $10
million of assets managed, 0.20% on the next $20 million, and 0.15% thereafter.

SUB-ADVISER PRINCIPALS

Persons responsible for the day-to-day management of the portions of the
Fund's assets that are managed by Tanglewood are: Wayne Forrest Morgan, Samuel
Meador Gibbs, II, and Alfred Reiner Guenthner (each, a "Principal"). Other
Accounts Managed by the Sub-Adviser

Certain Principals who are primarily responsible for the day-to-day
management of certain portions of the Master Fund's assets, also manage other
registered investment companies, other pooled investment vehicles and other
accounts, as indicated below. The following tables identify, as of December 31,
2005: (i) the number of other registered investment companies, pooled investment
vehicles and other accounts managed by these Principals and the total assets of
such companies, vehicles and accounts; and (ii) the number and total assets of
such companies, vehicles and accounts with respect to which the advisory fee is
based on performance.

The table below includes only those Tanglewood Principals who are primarily
involved in the portfolio management of the Master Fund's assets:

Registered Investment Pooled Investment
Companies Vehicles Managed Other Accounts
Managed by Principal by Principal Managed by Principal
---------------------- --------------------- ---------------------
Name of Principal Number Total Assets Number Total Assets Number Total Assets
- ----------------- ------ ------------- ------ ------------ ------ ------------

Wayne F. Morgan 1 $17.7 million 1 $7.3 million 45 $489 million
Samuel M. Gibbs, II 1 $17.7 million 0 0 45 $496 million
Alfred R. Guenthner 1 $17.7 million 1 $3.9 million 45 $492 million

Registered Investment Pooled Investment
Companies Vehicles Managed Other Accounts
Managed by Principal by Principal Managed by Principal
--------------------------- --------------------------- ----------------------------
Total Assets Total Assets Total Assets
Number with with Number with with Number with with
Performance- Performance Performance- Performance Performance- Performance
Name of Principal e-Based Fees e Based Fees e-Based Fees e Based Fees e-Based Fees e Based Fees
- ----------------- ------------ ------------ ------------ ------------ ------------ -------------

Wayne F. Morgan 0 0 0 0 1 $56.8 million
Samuel M. Gibbs, II 0 0 0 0 0 0
Alfred R. Guenthner 0 0 0 0 0 0

CONFLICTS OF INTEREST OF THE SUB-ADVISER

From time to time, potential conflicts of interest may arise between a
portfolio manager's management of the investments of the Master Fund, on the one
hand, and the management of other registered investment companies, pooled
investment vehicles and other accounts (collectively, "other accounts"), on the
other. The other accounts might have similar investment objectives or strategies
as the Master Fund, track the same index the Fund tracks or otherwise hold,
purchase, or sell securities that are eligible to be held, purchased or sold by
the Master Fund. The other accounts might also have different investment
objectives or strategies than the Master Fund. Tanglewood manages the
"traditional fixed income" portfolio of the Master Fund and principally invests
directly in US government and agency securities as well as US "investment grade"
corporate fixed income securities as well as open and closed end fixed income
funds. In general, the market for such securities is deep and highly liquid.
Accordingly, Tanglewood is not subject to the same conflict of interest issues
that many other Investment Managers are (e.g., market impact of trades and
allocation of investment opportunities).

Tanglewood believes that its largest potential conflict of interest relates
to the allocation of trades and brokerage commissions to its various accounts.
Tanglewood has adopted policies and procedures reasonably designed to allocate
investment opportunities and brokerage commissions on a fair and equitable basis
over time.

Knowledge and Timing of Master Fund Trades. A potential conflict of
interest may arise as a result of the Principal's day-to-day management of a
portion of the assets of the Master Fund. Because of their positions with the
Master Fund, the portfolio managers know the size, timing and possible market
impact of the Master Fund's trades. It is theoretically possible that the
portfolio managers could use this information to the

advantage of other accounts they manage and to the possible detriment of the
Master Fund.

Investment Opportunities. A potential conflict of interest may arise as
result of the Principal's management of a number of accounts with varying
investment guidelines. Often, an investment opportunity may be suitable for both
the Master Fund and other accounts managed by the Principal, but may not be
available in sufficient quantities for both the Master Fund and the other
accounts to participate fully. Similarly, there may be limited opportunity to
sell an investment held by the Master Fund and another account. Tanglewood has
adopted policies and procedures reasonably designed to allocate investment
opportunities on a fair and equitable basis over time.

Performance Fees. A portfolio manager may advise certain accounts with
respect to which the advisory fee is based entirely or partially on performance.
Performance fee arrangements may create a conflict of interest for the portfolio
manager in that the portfolio manager may have an incentive to allocate the
investment opportunities that he or she believes might be the most profitable to
such other accounts instead of allocating them to the Master Fund.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

(a) Total (c) Total Number of (d) Maximum Number (or
Number of Shares (or Units) Approximate Dollar Value)
Shares (or (b) Average Price Purchases as Part of of Shares (or Units) that
Units) Paid per Share Publicly Announced May Yet Be Purchased Under
Period Purchased (or Unit) Plans or Programs the Plans or Programs
- ------ ---------- ----------------- -------------------- ----------------------------

July 1, 2005 through July 31, 2005 $ -- N/A N/A N/A
August 1, 2005 through August 31, 2005 $ -- N/A N/A N/A
September 1, 2005 through September 30, 2005 $1,936,963 N/A N/A N/A
October 1, 2005 through October 31, 2005 $ -- N/A N/A N/A
November 1, 2005 through November 30, 2005 $ -- N/A N/A N/A
December 1, 2005 through December 31, 2005 $1,825,576 N/A N/A N/A
Total $3,762,539

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

The registrant's principal executive officer and principal financial officer
have concluded, based on their evaluation of the registrant's disclosure
controls and procedures as conducted within 90 days of the filing date of this
report, that these disclosure controls and procedures are adequately designed
and are operating effectively to ensure that information required to be
disclosed by the registrant on Form N-CSR is (i) accumulated and communicated to
the investment company's management, including its certifying officers, to allow
timely decisions regarding required disclosure; and (ii) recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commission's rules and forms.

There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that have materially affected or are reasonably likely to
materially affect, the registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) The code of ethics that is the subject of the disclosure required by Item
2 is attached hereto.

(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.

(a)(3) Not applicable.

(a)(4) Proxy voting policies and procedures pursuant to Item 7 are attached
hereto.

(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)__________ The Endowment Master Fund, L.P. _______________________

By (Signature and Title) /s/ John A. Blaisdell
---------------------
John A. Blaisdell
Co-Principal Executive Officer

Date February 27, 2006

By (Signature and Title) /s/ Andrew B. Linbeck
---------------------
Andrew B. Linbeck
Co-Principal Executive Officer

Date February 27, 2006

By (Signature and Title) /s/ A. Haag Sherman
-------------------
A. Haag Sherman
Co-Principal Executive Officer

Date February 27, 2006

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By (Signature and Title) /s/ John A. Blaisdell
---------------------
John A. Blaisdell
Co-Principal Executive Officer

Date February 27, 2006

By (Signature and Title) /s/ Andrew B. Linbeck
---------------------
Andrew B. Linbeck
Co-Principal Executive Officer

Date February 27, 2006

By (Signature and Title) /s/ A. Haag Sherman
-------------------
A. Haag Sherman
Co-Principal Executive Officer

Date February 27, 2006

By (Signature and Title) /s/ John E. Price
-----------------
John E. Price
Principal Financial Officer

Date February 27, 2006