GOING Ventures generally targets equity investments in lower-middle market companies with enterprise values of $10 million to $100 million that exhibit the potential for continued growth through value-added investing. Depending on market conditions, we expect to make approximately 10 to 15 portfolio company investments (not including add-on acquisitions) during a five-year period. The strategy is to exit some of the investments within three to six years after investing, while holding on to significant portion in line with our buy and hold strategy.

A. Areas of Investment Focus

We generally targets areas where we have extensive knowledge, contacts, and investment expertise, and where we have already demonstrated the ability to achieve superior results. These sectors include:

• consumer products with significant brand equity;
• distribution with value-added characteristics;
• industrial and business services with niche offerings;
• family edutainment and digital media
• healthcare with sustainable models and low payor risk; and
• differentiated financial/business services businesses.

B. Investment Criteria

We target companies that represent opportunities for significant and sustainable growth. Typically, these target companies possess:

• proven management teams;
• identifiable areas for Mr. Hazzan (or a colleague) to add value as an active board member;
• substantial growth potential;
• well-defined and scalable business models;
• stable and profitable operating histories and cash flow;
• sustainable competitive advantages;
• discernible and attractive exit strategies; and
• the opportunity to extend operations and activities to Africa and other emerging markets.