Investment Size:
The Fund’s typical equity investment will be between €1.5 and €15 million, excluding co-investment opportunities which the Fund will make available to pre-qualified partners. For bridge financings the loan sizes range will be between €500k and €5 million.

Industry Orientation:
The Fund targets basic industries including manufacturing, consumer, specialty growth and diversified growth, and business services. In addition, the Fund avoids industries subject to rapid technological change and/or earnings volatility. See Industry Focus section for more details.

Use of Capital:
The Fund will provide capital to companies positioned for growth or that require recapitalization or balance sheet restructuring. Growth capital is utilized to finance internal expansion opportunities or acquisitions. The Fund invests capital to facilitate balance sheet restructuring in order to provide immediate operating liquidity to fundamentally strong companies and to repair unmanageable balance sheets that resulted from: (i) aggressive extension of credit; and/or (ii) unrealistic expectations given market conditions.

Portfolio Company Characteristics:
The Fund will seeks to identify middle market companies with the following characteristics: (i) talented entrepreneurial management teams with a significant ownership interest that have built a successful business; (ii) attractive growth prospects; (iii) limited technology risk; (iv) unique product features or brand strength; (v) positive industry trends; (vi) attractive free cash flow dynamics; (vii) cost advantages; and (viii) a defensible market position or niche with barriers-to-entry.

Management:
Investment opportunities will be evaluated based upon the strength of the existing senior management team as well as CPE's ability to augment that team. The CPE favors management teams with significant ownership interests that have either founded the company or have led the company for an extended period of time. The Fund will not typically invest in transactions where continuing management receives liquidity from the investment proceeds.

Investment Position:
The Fund will primarily makes investments where it is the lead institutional investor and financial sponsor working in tandem with management. The Fund will typically not invest in opportunities where the proceeds of the investment are being used to fund the purchase of a business being sponsored by another private equity firm. However, in selective situations, the Funds facilitate a balance sheet restructuring where there is an existing financial sponsor provided that pro forma the investment, the existing financial sponsor’s role is significantly diminished.

Investment Multiple:
Despite investing in companies with strong market positions and the potential for attractive growth, the Fund will utilize conservative capital structures. The Fund expects to make investments at relatively low investment multiples (typically less than 1.75x times trailing EBITDA).

Geographical Focus:
The United States, the UK, and Western Europe (Benelux Countries).

Exit Alternatives:
In addition to a sale to a strategic or a financial buyer, the debt and equity investment objectives of the Fund will be realized through: (i) refinancing; (ii) public offering; (iii) recapitalization; (iv) sale of non-core assets or subsidiaries; or (v) the sale of the company.