1. Investment Objective

The investment objective of the Fourth Investment Compartment is to achieve long-term capital growth principally through equity participations in private companies not publicly traded holding financial assets (cash and cash equivalents), of which the Board of Directors believe to increase in value over time.

2. Investment Strategy and Policies

The Company will seek to achieve its Investment Objective through acquiring shares in private companies that hold financial assets (cash and cash equivalents) with a vision that such investments will generate income over time.

This Fourth Investment Compartment will also have the ability to pledge the acquired shares against third party liability with various banking institutions.

Such investments may lack a readily accessible market value, can be regarded as illiquid and will be generally held until the resolution of a special event or circumstance. The portfolio’s success will depend, in part, on its ability to source and enter into suitable investments.

Given challenging lending conditions in Europe with banks being forced to offload assets, this presents opportunities for opportunistic capital deployment in special situation investing for investors that can take a long-term view with potential for attractive long-term risk-adjusted returns. The portfolios will focus on opportunities for long-term capital growth offered by private companies.

The portfolios will not generally be as diversified as in other types of investments. Accordingly, the portfolios’ investments may be subject to more rapid changes in value than would be the case if the portfolios were required to maintain a wide diversification among investment styles and types of securities and other instruments and countries and industries.

A target list of potential investments will be identified via the Company’s proprietary network and 3rd party experts. Any acquisition will be made after completion of a step by step due diligence process which may include but shall not limited to:

–              An analysis of local market evolutions and regional trends specifically in the sector;

–              Defining and categorising investment opportunities, preparing and reviewing a list of targeted acquisitions;

–              Defining exit and monetisation strategy (typically through trade sales);

–              Qualitative due diligence of the target asset;

–              Independent valuation of the targeted acquisition opportunities;

–              Legal and tax review

The benefit of the Investment Compartment will be the capital appreciation and the dividend income from the acquired companies. The Investment Committee is responsible for the formulation of the Compartment’s investment objectives and policy. The investment objectives and policy are reviewed and approved by the Board of Directors. Any changes to the investment objective and/or policy will need to be notified and approved by the Cyprus Securities & Exchange Commission, and if substantial will require the consent of existing Participating Shareholders.

3. Methodology / Investment Process

The Management of the Company will be active in order to meet the investment objectives as set by the investment strategy and generate a moderate return on investment.

The Company chooses its allocation based on a thorough investment process derived mostly from fundamental research and the processes employed in the section entitled Investment Strategy and implementation.

4. Banking Institution

The Company intends to collaborate with various Banking Institutions, mainly in Europe, for the implementation of the Investment policy of this Compartment.