SOF Ill - 1081 Southern Financial LLC Secondaries Market Outlook Secondaries Market will remain active Banks are not finished selling Sources of dealflow will increasingly include GP restructurings Trend towards smaller / more complex deals ii $3 trillion of private equity NAV + unfunded Secondaries market still only represents less than 1% per annum • Banks have reduced overall exposure to PE • However still account for approximately 6% or $100 billion of total PE assets Primary funds reach the end of their lives and new fundraising becomes more difficult An increasing number of GPs will need to reinvent themselves • Many of the large bank sales and pension plan 'macro' restructurings have happened ■ This leaves smaller and more difficult assets to sell 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) CONFIDENTIAL DB-SDNY-0 109192 SDNY_GM_00255376 EFTA01452272