DUAL NICHE INVESTMENT FOCUS Businesses owned and/or managed by minority entrepreneurs Businesses located in, employing from, or serving Southern California's under-served urban communities GROWTH CAPITAL TO PROVEN BUSINESSES Buyouts Expansion financing Growth through internal and/or external initiatives including operating improvements, product extensions, geographic expansion, market expansion or strategic acquisitions BASIC INVESTMENT PARAMETERS Company sales and valuations from $5 million to $75 million Fund investments from $1 million to $5 million (average initial investments of $2-4 million) Fund investments in equity and/or subordinate debt securities with warrants Company management must have a material equity interest that is economically and philosophically aligned with the Fund PREFERRED INDUSTRY SECTORS Commercial and consumer service companies Light manufacturing Communications No turnarounds, real estate, project finance, talent-driven entertainment, re-lending, or technology (if it involves a proof of market or concept). Select start-up financing INVESTMENT COMMONALTIES Strong management teams with proven track records Large, fragmented, consolidating industries with strategic acquirers Attractive cash flow margins, disciplined purchase multiples Prudent leverage levels for return enhancement and additional capital for growth Multiple exit strategies (including sale/merger, recapitilization, public offerings of securities, management buyback, and staged redemption) TARGETED GEOGRAPHY Strong investment emphasis on Southern California entrepreneurs Anticipating up to 35% of capital invested outside of Southern California through strong national deal flow and significant co-investor relationships STRONG FUND SPONSORSHIP Active portfolio company Board participation Proactive advisors and partners in the underlying business Substantial investment of time and intellectual resources Extensive network of value enhancing relationships and resources

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