EFTA01451959.pdf

SOF III - 1081 Southern Financial LLC Section 5 Secondary Opportunities Fund III Secondary Opportunities Fund III. LP Exhibit 5: Growth of Primary and Secondary Markets Total private equay assets have risen to over $3 ...Cut annual secondarg volumes still < 1% of total PE assets OS'S on amil.ecan3.0", f)raMort sok% spume/0.3 pang vat —AS% 0170.1PE &6e% INN KW) 30 3.000 2000 .,,d11111 TKO 0 6% 0 4% 0 3% 0 2% 01% t2c13241112111 .2066 i00a 2[10 2D „ 2012 0% Sowc• Wm, ISC•lbiatt :kma !)0 NOM Met ...XI-AP:SI 4S Uthe.ttivty MS 4,14e4 SconewyPOsiviT•rrvls weNIN *an= !Ot.,,Art !wary:Ail Privet may dry powder/ deal volume by Pond type 2012 • Dot Powdei • Demi volume all Cry Powder/ vOlum0 :4W:a MAI bah; m:0,3 Nen:4446k IV7alt [Way 5,ep.11 rieedn tCLI14:411.4.(44 CC kr t In the Manager's view, the estimates of supply vs. demand described above in respect of secondaries funds, when compared with buyout or venture capital funds, clearly point to a favourable dynamic for buyers in the secondary market. Drivers of the Secondary Market In the Manager's view, many of the drivers of secondary market volumes over the last few years still underpin the market and prospects are therefore positive for its near-term future. Prior to the financial crisis, the secondary market grew in line with the growth in private equity assets generally. Following Confidential Private Placement Memorandum 28 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0108823 CONFIDENTIAL SDNY_GM_00255007 EFTA01451959