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					                                        PRIVATE CAPITAL RESEARCH LLC


                               PRIVATE EQUITY CLIENT CRITERIA – JANUARY 2008



                                           Private Equity Client 1:
                         Mid-Atlantic Based Private Investment Company
Client is a family-owned investment management company committed to private ownership. They are long term
investors with no prescribed hold period, thus providing management with the opportunity to focus on long term
value creation. They intentionally maintain a diversified portfolio, both in industry type and in geography.

General Criteria:                                      Target Industries:
Revenue range: $10 – 200mm                                • Niche manufacturing
Transaction type: Cash Buyer -100% ownership – no         • Consumer products
financing contingencies                                   • General industrial
EBITDA: $3 – 15mm                                         • Specialty products
EBITDA Margins: 15% +                                     • Business services
Gross Margins: 30% +                                      • “Green” oriented businesses
Growth: 3-year CAGR 10% +
                                                          • Education related businesses
Additional Criteria: Sustainable organic growth,
                                                          • Pharma tech-services
steady demand, better than GNP growth markets,
                                                          • Non-invasive medical devices
companies should be able to growth faster than the
market they serve. Strong, highly motivated
management teams.

Current Portfolio Companies Include: highly successful manufacturing and service companies which are all
leaders in their market niche; companies serve a number of industries including pharmaceutical, specialty
chemical, office and craft, automotive.




                                           PRIVATE CAPITAL RESEARCH LLC
                                          GRAEME FRAZIER – JOSEPH MORRIS
                                     2176 HARTS LANE, CONSHOHOCKEN, PA 19428
                                                 WWW.PCRLLC.COM
                                      PRIVATE CAPITAL RESEARCH LLC




                             PRIVATE EQUITY CLIENT CRITERIA – JANUARY 2008


                                          Private Equity Client 2:
                              New York-Based Private Equity Group
Founded in 1998, this private investment firm is focused on making equity investments in America's smaller
middle-market companies. They seek to generate long-term capital appreciation (of $15 to $30mm) through a
value oriented investment strategy. Their ultimate goal is to create value – for customers, employees,
suppliers, lenders and shareholders. Their objective is to help management move their companies to a better,
more profitable position.

General Criteria:                                            Target Industries:
Revenues: $25 - 100mm                                        Stable demand industries that possess:
EBITDA range: $5 -15mm                                          • Strong defensible market positions
Margins: 13% + EBITDA margins                                   • High operating margins
Structure:                                                      • Strong operating management
  • Control positions, always partner with management           • Multiple growth opportunities
  • Utilize senior debt only, in addition to their equity
    investment which is usually 30% to 50% of the capital
    structure initially

Past And Current Portfolio Companies Include: folded carton packaging manufacturer, shelf stable bakery
products for the military, dining and entertainment cruises, eyewear and eye care accessory products,
premium Asian appetizers and entrees, independent specialty retailer catering to resorts and casinos.




                                         PRIVATE CAPITAL RESEARCH LLC
                                        GRAEME FRAZIER – JOSEPH MORRIS
                                   2176 HARTS LANE, CONSHOHOCKEN, PA 19428
                                               WWW.PCRLLC.COM
                                          PRIVATE CAPITAL RESEARCH LLC




                                 PRIVATE EQUITY CLIENT CRITERIA – JANUARY 2008




                                             Private Equity Client 3:
                        New York-Based Family-Backed Private Equity Firm
Founded in 1984, the firm looks to deploy equity and sub-debt into profitable middle-market companies. With
no outside limited partners, the office seeks to create a structure designed for long term success past the usual five
year holding period of traditional private equity funds. The firm seeks to partner with strong management teams
already in place.

General Criteria:                                          Target Industries:
Revenue size: $10 - 50mm                                   opportunistic but has made investments and has strong
EBITDA: $1 - 6mm                                           expertise in manufacturing, retail, consumer products,
Investment Type: MBOs, Growth Capital                      mail order/on-line businesses that sell consumer
Investment Size: $2 - 10mm in equity                       products
Geography: East of the Mississippi with an easy
travel to and from New York City.

Current Portfolio Companies Include: bowling ball, bag and bowling center capital equipment manufacturer;
consumer bathroom products manufacturer and distributor; bicycle accessories retailer, supply chain software
developer; home fitness equipment manufacturer and marketer, internet-based retirement plan record-keeping and
support services to financial industry.




                                             PRIVATE CAPITAL RESEARCH LLC
                                            GRAEME FRAZIER – JOSEPH MORRIS
                                       2176 HARTS LANE, CONSHOHOCKEN, PA 19428
                                                   WWW.PCRLLC.COM
                                           PRIVATE CAPITAL RESEARCH LLC




                                   PRIVATE EQUITY CLIENT CRITERIA – JANUARY 2008



                                                Private Equity Client 4:
                       Mid-Atlantic-Based Privately Held Equity Investment Firm
This privately held investment firm makes control-position investments in high-growth-oriented niche manufacturing
and business services companies with less than $50 million in revenues, with a strong preference for companies based in
the Mid-Atlantic region. They seek opportunities that support a platform strategy where growth can be accelerated
through strategic acquisitions, partnering with experienced owner-operators. They are affiliated with (and solely
sponsored by) a larger privately held investment company with over $1.5 billion in net assets, and therefore are not
obligated to view their investments with a pre-determined time-frame for exit.

General Criteria:                                              Target Industries:
Revenues: Less than $50mm                                         • Health & Wellness
                                                                           o   Human/animal nutrition
Investment Size: $2 - 10mm                                                 o   Nutraceutical, cosmeceuticals
EBITDA: 10%+ margins                                                       o   Pharmaceutical services
                                                                   •   Electronics Repair & Logistics
Transaction type: Control Investments                                      o   Device refurbishment and remanufacturing
                                                                           o   Reverse logistics
Geography: Mid-Atlantic USA
                                                                   •   Assessment, Certification & Testing
                                                                           o   Computer-based testing and test development


Current and Past Portfolio Companies Include: repair, remanufacturing and logistics for mobile electronic products;
computerized occupational and professional licensure and certification testing; manufacturer (and related IP) of natural
prebiotic compound used in dietary supplement, food & beverage, personal care and animal health markets.




                                               PRIVATE CAPITAL RESEARCH LLC
                                              GRAEME FRAZIER – JOSEPH MORRIS
                                         2176 HARTS LANE, CONSHOHOCKEN, PA 19428
                                                     WWW.PCRLLC.COM
                                              PRIVATE CAPITAL RESEARCH LLC



                                     PRIVATE EQUITY CLIENT CRITERIA – JANUARY 2008




                                                   Private Equity Client 5:
                                     Mid-Atlantic-Based Private Equity Group
Founded 1999, this Private Equity Group just had a final close on its second investment fund, raising over $100 million in an
oversubscribed offering. The team provides capital and trusted counsel in partnership with proven managers to drive the
growth of promising companies into outstanding enterprises. They will acquire a majority interest in partnership with
proven managers, and are also comfortable supporting managers as a non-control investor, providing flexible investment
structures designed to uniquely meet the needs of both the company and its owners.

General Criteria:                                                 Target Industries:
Revenues: $10 - 75mm                                              Opportunistic as to industry. Interested in opportunities
                                                                  with complications or unique attributes that may repel other
Investment Size: $3 - 8mm
                                                                  potential buyers. Seeking growing, well-managed
Transaction type: Buyouts, recapitalizations, non-control         companies which need support as they grow into market
growth equity investments                                         leaders. Business and consumer services and products tend
Geography: Mid-Atlantic and Eastern US; will consider             to fit well.
Midwest and Southeastern US

Current and Past Portfolio Companies Include: point-of-sale products and lifecycle support services for retailer store
automation; fragrance, bath and body products; special event digital photography services; portable x-ray and mobile
diagnostic health services; private cable operator and broadband solutions provider; janitorial and maintenance services
provider; regional railroad system; designer, seller and distributor of active wear; regional provider of home infusion and
respiratory therapy services.




                                                 PRIVATE CAPITAL RESEARCH LLC
                                                GRAEME FRAZIER – JOSEPH MORRIS
                                           2176 HARTS LANE, CONSHOHOCKEN, PA 19428
                                                       WWW.PCRLLC.COM
                                          PRIVATE CAPITAL RESEARCH LLC




                                 PRIVATE EQUITY CLIENT CRITERIA – JANUARY 2008



                                               Private Equity Client 6:
                                  New York-Based Private Equity Group
Client provides capital and resources for closely held, middle market U. S. companies. Typically, they will invest
between $10 and $20 million, but are well-positioned to participate on both larger and smaller transactions. They
usually invest in controlling positions or strategic minority positions in fundamentally sound companies.


General Criteria:                                           Target Industries:
Revenue range: $25 – 350mm                                  Consumer/retail-manufacturing or distribution;
Investment size: $10 − 20mm                                 General industrial – manufacturing or business services;
Transaction type: Controlling positions of 50%+ or          including food and beverage manufacturing; distribution
strategic minority positions.                               and logistics; branded and private label consumer
Geography: USA                                              packaged goods; consumer durables; packaging; and
Additional Criteria: Positive cash flow, exceptional        specialty retailing
management team, family owned or closely held
business

Current Portfolio Companies Include: designers and marketers of premium quality blankets, throws and bedroom
related products selling to a variety of nationally recognized retailers as well as providing private label products to
select retailers; manufacturer/distributor of electrolyte replacement drink specially created for the high heat-stress
environment of the industrial sector, offering a wide variety of dispensing options, such as ready-to-drink, liquid
and powder concentrates and package sizes - plus several, great tasting flavors, casual dining restaurants,
specialized industrial maintenance service provider that offers storage and safety equipment rental.




                                             PRIVATE CAPITAL RESEARCH LLC
                                            GRAEME FRAZIER – JOSEPH MORRIS
                                       2176 HARTS LANE, CONSHOHOCKEN, PA 19428
                                                   WWW.PCRLLC.COM
                                                  PRIVATE CAPITAL RESEARCH LLC


                                         PRIVATE EQUITY CLIENT CRITERIA – JANUARY 2008


                                                      Private Equity Client 7:
                              Philadelphia-Based Special Situations Private Equity Fund
Firm is focused on investing in distressed companies and is particularly adept at handling complex situations in time sensitive
scenarios. Predominantly industry agnostic: no fashion risk or technology with R&D components.
General Criteria:                                                 Transaction Types:
   • Revenues between $50 - 500 mm                                   • Restructurings & turnarounds
   • Failed strategies or execution                                  • Reorganizations & liquidations
   • Defaulting/maturing/over-leveraged capital structures           • Recapitalizations
   • Weak valuations or earnings                                     • Chapter 11 or out-of-court restructurings
   • Fragile or volatile cyclical industries or commodity prices     • Rescue, DIP, and exit financings or cash alternatives
   • Asset-rich, liquidity-constrained financial condition           • Senior and subordinated debt, bond, trade & contingent claim
   • Accounting changes, restatements or control problems              purchases
   • Governance disputes
   • Management disruption or turnover
   • Legislative or regulatory-induced crisis
   • Material litigation risks & liabilities
   • Market & technology-driven dislocations
Current Portfolio Companies Include: asset-backed equity position of a sub-prime mortgage lender with liquidity crisis, LBO of
home healthcare firm in chapter 11, LBO of merchant paper distribution company from fractured family ownership, LBO co-
investment of national department store chain
Post-Acquisition Role:
   •    Financial controls, working capital and risk management
   •    Recruiting and compensation
   •    Industry/competitive analysis and joint venture
   •    Acquisitions and divestitures
   •    Refinancings and recapitalizations
   •    Dispositions and liquidity events




                                                     PRIVATE CAPITAL RESEARCH LLC
                                                    GRAEME FRAZIER – JOSEPH MORRIS
                                               2176 HARTS LANE, CONSHOHOCKEN, PA 19428
                                                           WWW.PCRLLC.COM
                                     PRIVATE CAPITAL RESEARCH LLC



                            PRIVATE EQUITY CLIENT CRITERIA – JANUARY 2008



                                         Private Equity Client 8:
      Connecticut-Based Middle Market Buyout Fund Focused On Niche Industries
The Fund focuses on specialty manufacturing and financial service companies that have a definable business
franchise, a proprietary product, process or market coupled with a substantial opportunity for growth and
value creation. The Fund targets small to middle market companies with an enterprise value between $5 and
$150 million.

General Criteria:                                      Target Industries:

EBITDA Range: $2 - 20mm                                    •   Packaging
Margins: Minimum 15% EBITDA margins                        •   Specialty Industrial
Valuation: Conservative purchase multiples                 •   Pharmaceutical-Related
Growth: Minimum 10% annual growth projections              •   Medical Products
GEO: Eastern US and Canada                                 •   Consumer Goods
                                                           •   Insurance Services
                                                           •   Specialty Financial Services



Past And Current Portfolio Companies Include: extreme sports products manufacturer, air guns and other
outdoor products manufacturer, High-performance optics for military applications, specialty chemicals
manufacturer, high precision titanium medical implant casings, packaging equipment for the pharmaceutical
industry, disability insurance provider, high precision aluminum die castings, pasta manufacturer, church
construction financing, high-end car dealership.




                                        PRIVATE CAPITAL RESEARCH LLC
                                       GRAEME FRAZIER – JOSEPH MORRIS
                                  2176 HARTS LANE, CONSHOHOCKEN, PA 19428
                                              WWW.PCRLLC.COM

				
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