Randol Capital Partners, LLC is a pledge fund private equity firm. We finance each deal separately rather than raising a fund in advance and then seeking ways in which to put investor resources to work. This approach reflects the uneven nature in which acquisitions tend to materialize, reduces the pressure to lower value creation standards in order to deploy capital and serves as an admission that funding has become a commodity in the private equity industry. We prepare ourselves to launch private placement memorandums with specific value creation plans to our select group of qualified investors within hours of concluding definitive acquisition agreements with companies. This approach succeeds because of the strength of the value creation concepts we develop for the companies that we are acquiring combined with our track record of executing such plans to the benefit of investors.

Randol Capital Partners, LLC has specific criteria that it seeks out in portfolio companies. We are looking for well established “average” companies that can be built into the pacesetters within their industry. Any company that is already the industry leader possesses marginal room for improvement and commands a premium price from investors. These situations present limited incremental opportunity for us and accordingly are not part of our target portfolio. Any company that is failing and needs deep corrections to survive possesses inordinate risk regardless of the purchase price and would not be a suitable candidate for Randol Capital Partners, LLC.

We are looking for companies that are guided by competent management teams who are willing to grow, expand their capabilities and potentially be used as platforms for additional acquisitions. We value continuity of management in the sales, customer service and technological aspects of every business because of the longer lead times needed to create value through these functional applications. Ideally, Randol Capital Partners, LLC prefers to support and reinforce existing management teams but is capable of injecting new leadership when situations of monetizing family or closely-held ownership, executing estate planning programs and filling leadership voids dictate otherwise.

In terms of industry attractiveness, we are interested in all forms of light to medium manufacturing companies with special emphasis on consumer products. These companies provide the critical mass needed for supply chain improvement while avoiding the serious capital investment strategies needed for heavy manufacturing industries. Consumer products companies enjoy even and predictable growth patterns with limited cyclicality. We like the food segment in particular because of its growing barriers to offshore competition. In terms of specific metrics, Randol Capital Partners, LLC has interest in the following portfolio company candidate characteristics:

• Sales in the $25 million to $200 million range
• EBITDA margins in the 7% to 20% range
• Purchase price of up to $100 million
• Ownership of its own property, plant and equipment
• A private company or divisional divestiture of a conglomerate
• Primary location in the continental United States or Canada
• Management team enthusiastic about private equity reward structures