EFTA01451575.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 Totalprivateequity assets have risen to (art 53 Millon. . ...Cut annual secondarg volumes still < 1% of total PE assets OS'S on spume/0.3 pang vat Mitt, emesmnsm, f)raMort(left sole; —AS % 0170.1PE &Se% INN $CS) 30 10% 9% 3.000 06% 2.600 0 1% .,,d11111 00% 2.005 06% 0 4% 03A 02% 1% t2c13241112111 2C 10 2D „ 2012 004 Soca ,00 Pccalkica.Ctitt.cc,sccc. Acta DONC.! cw! r20-ieti, fcCez *bat:pry 1,4• 4 XM0 4,14e4 ScenecyPOCO•rsic Scceica wrICHN*CaR ?00..C.Irt cac 209 Privet may dry powder/ deal volume by kind type 2012 • I2y Powdei • Demi volume all Cry Powder/ volute :tun MC ban 00:0,3 Ptocci0c0t Pc7a0 CSC 5,0011 (Wain tC IC:11. tlPW4 cc ire::. 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-0108257 CONFIDENTIAL SDNY_GM_00254441 EFTA01451575