EFTA01451563.pdf

SOF III - 1081 Southern Financial LLC Secondary Opportunities Fund III. LP Investment Performance DB Secondaries Performance Highlights The Manager believes that the Secondary Team has delivered attractive returns to investors in the DB Secondaries Funds to date, with a relatively low risk profile due to the broad diversification and cash flow characteristics of its secondary transactions. Through September 30, 2013, the DB Secondaries Funds had invested' US$1.1 billion in 39 closed transactions and generated a 1.75x net TVPI, 26.8% net IRR and 0.83x net DPI across all funds.' Exhibit 1: Performance of DB Secondaries Funds - September 30 2013" OS SOF GB SOF 0 0,3 SOF II Total Fund vintage 2006 2010 2011 Fund size US$ 565 USE 168 USS 614 US$ 1,347 Invested capital 559 164 386 1,108 Capital called from inventors 420 as 196 701 Unrealised value, net 296 138 242 676 Distributions to in vestors 485 76 20 581 Total value US$ 781 US$ 214 US$ 262 USS 1,267 Gut:, roluin on ttvre-ard capriat 2 Oh 264, 134. 187x Gross IRP. 480\ 42.2-, 35.1% Net multiple (TYPO 1.86x 216x 1.34x 1.76x Net distributed (DPI) 1.16x 0.90x 0.10x 0.89x Net IRR 25.3% 35.5% 32.4% 26.8% The Manager believes that the performance and portfolio composition of the DB Secondaries Funds highlight both the attractiveness of secondary investments as an important part of a diversified private equity portfolio and the success of the Secondary Team's strategy. Strong Performance:' DB SOF is a top decile 2006 vintage secondary fund,' having generated strong investment 26 "Invested- Is defined as the sum or the purchase perm and remaining unfunded obligation as al the time of closing, or lime el expected dosing for pending deals. 26 TVPI = Total Value to Paid-in Capital; IRR = Internal Rate of Return: DPI = Distnbutions to Paid-in Capital. The performance figures have not been audited and aro based on the unaudited aggregated performance results of the DB Secondaries Funds as of September 30. 2013 and should he read and ravened in conjunction with Appendix 5: Important Performance Informaffon which sets forth, amongst other things. important information regarding the performance described above. Gross returns are gross of fees. expenses and carried interest. which are not charged at the investment level. Investors should consult with their own advisors as to the appropriate factors to be considered in evaluating this information. Past performance of the 06 Secondaries Funds is eel a prediction ol their future performance or that of the Fund. The performance figures have not been audited and are based on the unaudited aggregated perlormance results of the DB Secondaries Funds as of September 30. 2013 and should be read and reviewed ri conjunction with Appendix 5: Important PefiOM1O17O3 information which sets forth, amongst other things. important information regarding the performance described above. Gross returns are gross of fees, expenses and carried interest. which are not charged al the investment level. Investors should consult with their own advisors as to the appropriate factors to be considered in evaluating this Womanise. Past performance ol the DB Secondaries Funds is not a prediction of their future performance or that of the Fund. DB SOF D b a Euro denominated fund. US$ values have been converted at the September 30. 2013 rate of 1.35370. The performance figures have not been audited and are based on the unaudited aggregated performance results of the DB Secondaries Funds as of September 30. 2013 and should be read and reviewed in conjunction wah Appendix 5: Important Performance Infonnalbn which sets forth, amongst other things, important information regarding the performance described above. Gross returns are gross of fees, expenses and carried interest, which are not charged al the investment level Investors should consult with their own advisors as to the appropriate factors to be considered e evaluating this information. Past performance of the DB Secondaries Funds is not a prediction of their future performance or that of the Fund. :1 Based only on Cambridge Associates Secondaries Benchmark statistics as of June 30, 2013 DB SOF is shown benchmarked against its vintage year peer group. This information reflects a comparison of DB SOF performance against one benchmark only. DB SOF performance may differ when compared to other benchmark data. DB SOF performance is not included in the data set used to calculate the benchmark data. Confidential Private Placement Memorandum 11 CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0106240 CONFIDENTIAL SDNY_GM_00254424 EFTA01451563