UIB CAPITAL'S APPROACH is to foster an equal partnership with the owners and managers of businesses we invest in, seeking to build value through a combination of sound business strategy, proper operational execution, and reasonable leverage. Structuring investments based on the individual situation of each company, we find that the following aspects of our investment philosophy are viewed favorably by managers and/or owners in comparison to other strategic and private equity investors:

• Common stock investments only
• No liquidation preference
• No use of participating stock
• Investments structured with reasonable or no leverage
• Significant equity retention offered to owners and management

UIB Capital favors taking a controlling equity position in portfolio companies, reducing the reliance on debt and eliminating the accompanying constraints on cash flows. We are committed to a long-term strategy of managing companies for value—having the flexibility to structure each transaction to meet the needs of parties involved and matching the capital structure to the business model that company management believes necessary for achieving growth and margin improvements.

We maintain active relationships with management at portfolio companies, providing guidance at the board level.