Confidence in an investment's potential for dynamic growth is a prerequisite for every Cypress investment. We use our investment capital either to change a strategic growth plan or to accelerate a plan already in place. As we pursue this growth strategy, we look for fundamentally sound established companies with a competitive edge—typically, industry leaders or niche businesses with unique products, lines of business, distribution channels or corporate resources.

The way we see it, management is a critical factor in the success of every investment. We form strategic partnerships with talented entrepreneurs or management teams who have a realistic vision of how their companies can grow. In support of their vision, they invest alongside us. When this powerful combination of executive talent, strategic vision and personal investment is present, we believe the opportunity to achieve significant returns is greatly enhanced.

Marrying the correct capital structure to management's strategic plan is part of The Cypress Group's unique professional expertise.

Cypress views leverage as an investment characteristic that must be approached differently for each investment. We believe that the amount of equity capital should be determined by the needs of a company's business plan—not by how little the lender requires.

Many private equity managers are focused primarily on investing capital. But we believe that exiting them successfully is just as important as making the initial investment. Right from the start, we understand how we will realize on a particular investment. And we don't allow ourselves to be reliant upon a singular exit strategy—because at any one time, a particular avenue may be closed. Disciplined adherence to this philosophy is what has allowed us to invest successfully during various economic and capital markets cycles.

Teams of Cypress professionals with specific industry expertise invest a considerable amount of time understanding an industry from the top down before attempting to make judgments about the investment merits of an individual company operating within that industry. This approach allows us to follow a path of investigation that deepens our understanding and appreciation of a management team's strategic vision.

An industry-specific approach helps to create proprietary investment opportunities or access to highly limited competitive situations where Cypress can gain an advantage through its industry knowledge. We have chosen to focus on the following industries because we believe they possess attractive growth characteristics.

· Aerospace/Defense
· Automotive
· Building Products
· Business Services
· Construction Materials
· Consumer Products
· Financial Services
· General Industrial
· Healthcare
· Lodging and Leisure
· Media and Entertainment
· Packaging
· Retail

Opportunities worth pursuing are not always obvious. We seek opportunities that many other private equity managers may be unwilling to act on. When we conclude that we've found the right managers and the right business, we'll find a way to structure an investment. That's how we define opportunity.

Unlike many equity sponsors, Cypress is willing to consider investments where it owns less than a majority position. Our willingness to consider these kinds of alternative structures is based on an overriding confidence in our management partners and has enabled us to profit from opportunities others simply never consider.