PRIVATE CAPITAL INVESTMENT STRATEGY

Direct Investments

Columbia Partners Private Capital is an excellent partner for private equity sponsors and management, providing patient and thoughtfully structured capital to emerging growth companies. We can be significantly more flexible and creative than banks or commercial finance companies.

The direct Private Capital investment model considers three primary objectives when reviewing investment opportunities:

●	Opportunity to achieve a superior internal rate of return over a 3 to 7 year investment period
●	Ability to protect invested capital
●	Direct or indirect strategic benefit to our investor clients

We seek investments in privately held companies with the following characteristics:

●	Company in mid to later stage of development -- growth and/or expansion need for financing
●	Sophisticated financial and strategic sponsors already invested or committed to invest concurrently
●	Prefer to invest "high in the capital structure" via secured, structured or convertible debt but also will consider equity investments. Can be extremely flexible with terms and conditions to meet requirements of a compelling business plan
●	3 to 7 year investment period
●	Prefer to invest $15 million to $40 million per company
●	Industry focus in communications, telecommunications, media, energy and technology sectors. Will consider other industries opportunistically considering potential investor client strategic benefits

We do not seek control investments and prefer control in the hands of sophisticated institutional financial and strategic investors along with proven management. We will participate on boards when appropriate but do not require a board seat in order to invest. We typically require board observation rights. We are not passive investors and prefer investments where we can contribute tactical or strategic benefit to the company.

Fund Investments

Our fund investment strategy has been developed through our close association with private equity funds, including those with which we have invested or with which we have worked closely on transactions. We believe that in addition to past performance and other standard measures of private equity funds, prudent fund investing requires deep knowledge of a fund’s investment philosophy and deal process. The underpinning for our fund investments is to seek a combination of management talent and integrity, financial acumen and an operational focus. Through our direct investment activities, we gain insight into numerous funds, giving us a unique perspective on those funds we would consider as attractive investment opportunities. We expect that our fund investments will produce strategic benefit for our direct investment efforts. The fund investment model considers the possibility of co-investment with the fund and the same three primary objectives as our direct investment model:

●	Opportunity to achieve superior internal rate of return and gain liquidity in 7 years or less
●	Comfort with the fund’s ability to protect and return invested capital
●	Comfort with the fund’s investment strategy as it relates to our investor client’s strategic objectives

We seek fund investments in private equity funds with the following characteristics:

●	Focused on growth companies in the communications, telecommunications, media, energy, services and technology sectors
●	Late stage venture through early (smaller) buyout funds acceptable
●	Specific, proven, deep domain knowledge in their targeted industry sectors
●	Superior process, controls and portfolio management capabilities
●	5 or more years of successful investment history
●	Superior management team in all respects
●	Prefer funds $250 million to $1 billion in size

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