EFTA01451946.pdf

SOF III - 1081 Southern Financial LLC Secondary Opportunities Fund III. LP Reduced blind pool risk: On average, private equity fund interests purchased by the DB Secondaries Funds on the secondary market up to September 30, 2013 were 83% funded at the time of purchase." By purchasing fund interests at a later stage of their investment period, with the ability to complete due diligence" on existing portfolio companies, the Manager believes that investors in the DB Secondaries Funds have been able to achieve a reduced risk profile relative to a primary commitment in a comparable fund. Diversified portfolio composition: To mitigate risk, the Secondary Team has built a diversified portfolio of seasoned private equity investments with exposure balanced across vintage years, fund managers, investment strategies, sectors, asset geography and positions in just over 1,200 underlying companies. Exhibit 3: DB Secondaries Funds — Portfolio Composition" •A6C'Mtket Buyout • • taxi Secalanes (irs: • Larpe Nina • CA•tWestrerts Gralan Laity It Stip! %t Dier Secondaries sCo.Irreeeareet • Mr•ztn•ne • Sa'rel OpixttulloeS 6% I Wallis •r leOrol0W •Eacte • Plearen • roan Amin statute Rrsi of oe Wad • Other 7 • Business Senate 6 ti rtrarcal Seivrrt COVIINCAbOrn SIC /Rea • Natural Resaires w Transpcnabon VIntsgsYsar 5t• 1% 4; • 158-154) • 1738,1990 2C00.204 • xai 18% •2006 • 2(0? 27,03 2‘70.7-.X 10 . 2011.2O3 " Aggregate figures represent lair market value in the aggregated D8 Secondaries Funds portfolio (DB SOF. 08 SOF 0 and DB SOF II) as at September 30. 2013. Historical deal flow characteristics do not provide a prediction of future deal flow trends. ss To the extent information is available from the imdedying fund. " Aggregate figures represent lair market value in the aggregated 08 Secondaries Funds portfolio (DO SOF. DB SOF D and DB SOF II) as at September 30, 2013. Historical deal flow characteristics do not provide a prediction of future deal flow trends. 37 This page should be read and reviened in conjunction with Appends 5: Important &nuance Information. Conhdential Private Placement Memorandum 13 CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0108808 CONFIDENTIAL SDNY_GM_00254992 EFTA01451946