Goals –
The goal of the Principals is to build a long-term investment platform and they firmly believe that the best way to do this is to generate superior returns. The Principals plan to achieve these returns by staying focused on early stage investments where they can: (a) avoid deal and price competition; (b) deploy small amounts of capital for significant equity stakes; (c) invest at the highest growth stage of a company’s lifecycle; and (d) leverage Fund capital by contributing an unusually high ratio of their sweat equity for each dollar invested, relative to other professional investors and alternative asset classes. Returns on portfolio company investments will be determined primarily by three factors: buying cheaply; building well; and selling richly. Whereas the first and third factors may be largely determined by the economic/market cycle, the second – building well – is where the Principals feel they can add the greatest degree of value to the Fund over time.

Board Leadership –
The Fund will require a seat or observer rights on each portfolio company’s board. The Industry Principals will each represent Meriwether Capital Partners on no more than three boards at any given time.

Strategy & Operations Guidance –
The Principals, led by Meriwether Capital Partners’ board representative with each company, intend to help portfolio companies identify industry and consumer trends that impact their business models and make key decisions to optimize success. To help portfolio companies accelerate execution of their business plans, the Fund intends to call upon its network of industry contacts to make introductions to potential strategic partners.

Organizational Development –
The Principals intend to invest in complete management teams. However, in cases where functional placements or management team changes are needed, the Principals intend to call upon their network of regional and national contacts to help portfolio companies hire qualified managers. The Fund also intends to help companies develop assessment tools critical to team and organizational building and retaining senior management.

Exit Strategy –
Through their industry contacts and experience, the Principals intend to assist portfolio companies in preparing for exits, in most cases through acquisition by a strategic or financial buyer. Exits through recapitalizations, dividends and initial public offerings may also occur.