SOF III - 1081 Southern Financial LLC Merits of Secondary Investing — The private equity secondaries market provides a way for investors to sell their existing private equity investments despite the illiquid nature of the asset class — The secondary strategy has the potential for an attractive risk-reward profile: — Investments in mature assets that typically yield more predictable and earlier cash flows — Investments draw down and return capital more quickly than with primary funds — this mitigates the "J-curve" — Provides diversification across vintage years. fund managers, strategies. industries and geographies — Investments in re-priced existing assets to reflect current performance and economic environment Summary Terms The following is a summary of selected principal terms and is qualified in its entirety by reference to the Confidential Private Offering Memorandum of the Onshore Feeder Fund, including the Confidential Private Placement Memorandum of the Fund attached thereto, and the legal documentation relating to the Onshore Feeder Fund and the Fund. Fund Name Structure Strategy Minimum Commitment Target Size Fund Term Capital Calls Investment Period Auditor Administrator Legal Counsel Reporting Upfront Placement Fee Management Fee Investment Period Two Years after the end of the Investment Period Thereafter through the end of the Fund term' Carried interest Subsequent Closing Fee (if not first close) First Close Fee Break Fund Secondary Opportunities Fund III. LP English Limited Partnership Invest in private equity assets on the secondary market globally $5 million $1 billion 7 years from the date of the final closing plus up to S one-year extensions at the manager's discretion For the purposes of making portfolio investments and/or paying expenses. with not less than 12 business days' prior written notice 4 years from the final closing My of Pricewaterhouse Coopers LLP. Deloitte Touche Tohmatsu. KPMG or