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
Total private equay assets have risen to over $3 ...Cut annual secondarg volumes still < 1% of total PE assets
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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-0108823
CONFIDENTIAL SDNY_GM_00255007
EFTA01451959