SOF III - 1081 Southern Financial LLC
Section 5: Secondary Opportunities Fund lit Secondary Opportunities Fund III, LP
Exhibit 16: Due diligence process combines top down asset selection with bottom-up pricing°.
Extensive private equity database
4:) GPil 4 BOO funds
Top-down selection filters
Target 90 GPs and 250 funds
• Offdie-shelf pnang for 70• funds
• Adcttional 60 • raga pionty funds
Investment requirements Investment requirements
• Alvany of value in identilabit • Quality MVOS
ellactne assets • GP!tP alignmot of
• Reasonable leverage al ponlo o
company lova Deal Execution • Leveraged relationships web 08 PE r
• Attractive -er• through' ere, onasche Ranh pletfornit
mutest* a seconcary pacing
Rigorous value-focussed, asset-by-asset bottom-up due diligence
• 0perehonal Inaba and rata ask analysis (*teeth • Ranh. of fund and port ftho corrtaany management
underlying path:So corpse./ • Cash flow anateus al pen folio level
• Analysis of IM impact of tams and swcta• on vela, • Cntical assestmer4 of the prospects tor Scpckty
* Information is as of September 30. 2013.
Confidential Private Placement Memorandum 39
CONFIDENTIAL — PURSUANT TO FED. R CRIM. P. 6(e) DB-SDNY-0108834
CONFIDENTIAL SDNY_GM_00255018
EFTA01451967