EFTA01451808.pdf

SOF Ill - 1081 Southern Financial LLC Secondaries Market Outlook Secondaries Market $3 trillion of private equity NAV + unfunded will remain active Secondaries market still only represents less than 1% per annum Banks are not • Banks have reduced overall exposure to PE finished selling • However still account for approximately 6% or $100 billion of total PE assets Sources of Primary funds reach the end of their lives and new fundraising becomes more dealflow will increasingly include difficult GP restructurings An increasing number of GPs will need to reinvent themselves Trend towards • Many of the large bank sales and pension plan 'macro' restructurings have smaller / more happened complex deals ■ This leaves smaller and more difficult assets to sell ii Source. Cogeril Secondary Pricing Trends & Analysis. UBS Outlook 2013. both January 2013 and 2013 Prectin Global Private Equdy Report. February 2013. Note: GP = General Partner. Deutsche Asset 8 Wealth Management 18 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 108626 CONFIDENTIAL SDNY_GM_00254810 EFTA01451808