E efficiency of operations inventory management

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Unformatted text preview: ors, including board representatives for the Partnership appropriate for its equity stake, and positions for independent directors; A significant equity position, with significant shareholder rights and protections; and Mechanisms for protecting and/or enhancing the Partnership’s investment, including the possibility of preferred shares, convertible debt, options, warrants, and other deal terms. Create Value After the acquisition is concluded, the General Partner will endeavor to work with the management team of the company in which a Portfolio Investment has been made in some or all of the following processes: • • • • • • Business planning and strategy; Financial planning, including analysis of the company’s cash flows, budgeting, balance sheet and capital structure; Personnel, human resources and compensation; Sales, marketing and distribution; Operations (i.e. efficiency of operations, inventory management review, etc.); and Board of directors and corporate governance matters. A representative of the General Partner will be the primary contact for each portfolio company, allowing the General Partner to seek to acquire special knowledge of the operations of that company and its sector, and allowing for closer monitoring of the developments within the portfolio company. This is also expected to assist in providing clear and effective lines of communication between the General Partner and the portfolio company. When circumstances require, or it is in what the General Partner believes to be the Partnership’s best interests, a representative of the General Partner may become directly involved in the management of regular business operations of a portfolio company. While such a role will generally be considered to be temporary or transitional, if the circumstances justify more extensive or extended involvement, a representative of the General Partner may be employed by a portfolio company and paid a salary on terms that are equally favourable to the company to those terms that are generally available on an arm’s length basis. Realize Value The General Partner will generally seek out companies in respect of which it believes it may have the capacity to achieve a successful sale of the Partnership’s investment within 4 to 7 years of the date of investment. The General Partner will consider a number of different exit strategies including refinancing, strategic sale or merger, the sale of the Partnership’s interest back to other shareholders or management of the company, a public offering, and the splitting of a company into groups of assets more suitable for sale to particular buyers. - 12 - Co-Investment The General Partner may offer opportunities to co-invest with the Partnership to Limited Partners and other entities (which may be related to the General Partner), including entities created for the purpose of coinvesting with the Partnership. Where the General Partner in good faith believes that co-investment opportunities within the scope of the Partnership's investment objectives are available and appropriate, the General Partner may, but will be under no obligation to, provide co-investment opportunities to Limited Partners before making such opportunities available to other entities, subject to the right of the General Partner to make co-investment opportunities available (in such amounts as determined by the General Partner) to interested entities (whether Limited Partners or not) who are deemed, in the General Partner's sole discretion, to be of strategic importance to the investment or to the Partnership prior to making any such co-investment opportunities available to the other Limited Partners. The terms of any such co-investment shall not, in the opinion of the General Partner acting reasonably, be materially any more favourable as a whole than the terms of the Portfolio Investment, other than differences related to the size of the investment or the strategic importance to the Portfolio Investment of the relationship with the co-investor. INVESTECO - PAST INVESTMENTS The Manager is currently the manager of Investeco Private Equity Fund, L.P. (“Fund I”) launched in 2003, and Investeco Private Equity Fund II L.P. (“Fund II”) launched in 2005. Fund I was closed in November, 2004 with $12.4 million in committed capital, and Fund II was closed in April, 2007 with $15.2 million in committed capital. Fund I and Fund II have invested in the following companies. INVESTECO FUND I AND FUND II INVESTMENTS Company Name Sector Initial Date Investment Total Currently Invested % of Capital Committed Fund I Biorem Inc. Schneider Power Inc. Organic Meadow Inc. Lotek Wireless Inc. UV Pure Inc. Triton Logging Inc. Rowe Farm Meats Limited Horizon Distributors Ltd. Clean Tech Energy Food Clean Tech Water Clean Tech Food Food 17-Aug-04 31-Aug-04 27-Oct-04 6-Jan-05 29-Apr-05 8-Jun-06 15-Jun-06 14-Jul-06 Total LP I $1,000,000 340,000 1,500,000 4,000,000 1,379,651 264,419 647,500 1,218,420 $10,349,990 8.1% 2.7% 12.1% 32.3% 11.1% 2.1% 5.2...
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This document was uploaded on 02/19/2014.

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