SOF III - 1081 Southern Financial LLC Section 5: Secondary Opportunities Fund HI Secondary Opportunities Fund III: LP Exhibit 12: Attractiveness of Secondary Opportunities for Investors — De not pay reislaKal foes — Future fees are nsaxinted from the vansar5on meg) Stcondanos can result in niter cash flows — Funded otntleJble assets at more 1 z!:, mature stage I WO Pool Risk - Relativelysmall remaining unlunoen cetnritmerao too COO nt Constructbn — SI onci dusa6al vl 0-westrrynft. 400 — Earlier cash diskittations 700 — Aoculeteaysdeuleymoil of captii PxN — Pio-odes doers' flea exposuie Kress µTh vintage strategy InSustry and ge0graphy — Repiceexisbng ...unded assets Capitalist/co cdonginerkien:tes To-wfrarr.e Of sexndart investrr;:nt ■ rirtAl Cat I' ltifOl vivant Nu ■ 0,mb/wit Cuirtartsve cast, lbws sat* mn wpm" wairfrir More specifically, the Manager believes that secondary investments otter the potential for an attractive risk-reward profile due to: • Pricing flexibility: capacity to re-price existing assets to reflect current performance and economic environment and to opportunistically target price inefficiencies resulting from market dislocation and supply-demand imbalances in the private equity market • Mitigation of blind pool risk a secondary manager is typically able to analyse existing assets and will therefore have greater visibility on cash-flows • Mitigation of J-curve effect typically secondary investments are drawn down more quickly and retum capital more quickly than primary funds and therefore suffer less from the J-curve effect Exhibit 13: Attractive risk reward dynamics I 30 25 20 15 Real ono EatCy gage • Co in it ti eve S 'Avoid 'Aimee capital Ste of bobble e sin of rune! innert • ttetzwine Garai Buyout Soconclaws Ontstsse4PE Frm0 of Nadi" • ktfrastmtur• O 5 10 15 20 Return imam net RR (:Fl Confidential Private Placement Memorandum 34 CONFIDENTIAL — PURSUANT