Partnership with Management

A key element of our investment strategy is to
identify, attract and partner with outstanding managers and management teams. Over the years, we have developed and maintained relationships with an extensive network of exceptional operators and other leaders who possess rich experience and expertise in a broad range of industries. Numerous individuals and teams have chosen to work with Charterhouse Group on multiple occasions, attesting to our ability to build successful ventures and lasting relationships over time.

We believe that our investment professionals are highly skilled in relationship management and in connecting with private business owners and managers. We concentrate on forging strong ties with individuals to develop plans or proposals for meeting the needs of, or aligning the interests of, business owners, managers and related parties in each transaction.

There are various ways that Charterhouse has worked with, and continues to work with, management teams. Since our inception in 1973, we have placed a strong emphasis on identifying and getting to know managers well in advance of an investment or acquisition. Our commitment to forming partnerships prior to putting capital to use is evidenced by our longstanding Charterhouse Entrepreneur Program. Within this program, our firm seeks to forge formal and informal relationships with experienced CEOs, Chairman and 'connector' types prior to pursuing specific investment opportunities. This program continues to enable us to learn more about existing and prospective sector and sub-sector opportunities of interest. Additionally, it equips us with managers who can fill needs, when necessary, within new or existing portfolio companies in instances where positions become available. Finally, our program provides us, and each business that we invest in, with the opportunity to offer a mentoring option to management teams - which, over the course of our history, has shown to be extraordinarily worthwhile from both board and advisory board standpoints.

In many instances, we are first introduced to managers or management teams after the point when a decision has been made by a company's owner(s) to bring a business to market. While this does not allow us the same amount of time to get to know our prospective management partner(s), our focus remains on building solid professional/personal connections. We sincerely believe that our initial meetings can be reflective of the quality of our long-term partnerships and we encourage new managers that we meet to spend as much time as possible getting to know us.

We do not have any set rules for how one or more of our Charterhouse Entrepreneurs would be involved with prospective portfolio companies. Most often, our bringing together human resources and intellectual capital is customized for each situation. We frequently meet management teams where the active day-to-day involvement of a Charterhouse Entrepreneur is not necessary - but where involvement may be best suited through an active board role or through another capacity. Again, the Charterhouse Group model of partnering with individuals and teams is situation-tailored to meet each individual company's existing and prospective needs - in light of each company's organic growth, acquisition opportunities and other factors.

Once we have been successful at forging a partnership with a management team and making an investment, Charterhouse Group's professionals typically assist the company's executives by:

• Supporting managers running their day-to-day business operations
• Promoting open and frequent communication on strategic and non-strategic matters
• Providing access to the collective expertise and industry contacts of our investment professionals and, when necessary, facilitating high-level introductions to various financial resources, strategic partners, service providers and others - both domestically and internationally
• Providing add-on acquisition search and execution services, especially in build-up situations, which might include: target identification; deal evaluation; deal processing; fundraising/financing (if necessary); acquisition integration; and, strategic planning services
• Developing potential exit and/or liquidity strategies and, at the appropriate time, assisting in both the creation and execution of specific exit and/or liquidity events

Throughout every phase of the investment process, from due diligence through value creation through the ultimate realization, Charterhouse's professionals, Entrepreneurs and management teams work to ensure that the collective skills of all parties are being utilized and the interests of all parties remain aligned.