Investment Criteria –
The Fund generally will invest in consumer oriented companies. Particular attention will be paid to companies that are at once: disruptive to the markets they address; building a brand; have low capital requirements; have attractive gross margins; and are participating in, or creating, rapidly growing markets.

The Managers will primarily focus on companies with annual revenue in the $2-15 million range, but anticipate that they may also invest in true start-up situations as well as slightly larger companies. Portfolio companies will usually be private, but may also be venture stage public entities. In evaluating potential investments, the Fund will give significant consideration to entrepreneurs with proven track records who have learned how to manage within start-up and high growth environments. The Principals also believe that experienced entrepreneurs are more likely to have the ability to take advantage of the Meriwether partner network to provide significant additional leverage to Fund investments.

The General Partners are committed to negotiated deals whenever possible and believe that a disciplined approach to valuation is essential. The Principals also believe that simplicity and alignment of interests with management and other investors are key elements to successful deal structuring. The Fund will emphasize opportunities where the Fund can take advantage of the capabilities and experience of the Principals and its network of operators and advisors to assist management.

Portfolio companies will typically be located on the West Coast, but will also include companies in other markets. The Principals value physical proximity as another important element of the investment screening process and believe that significant time spent with management and employees at early stage companies is one of the best ways to provide leverage to Fund capital.