GFI Energy Ventures - Investment Strategy

		Objectives•Screening Criteria •Industry Focus

		Equity Financing - We provide the equity financing needed to acquire a controlling or significant interest in private companies or business units of public companies. Under certain circumstances, we will acquire a large equity position in publicly-traded companies.
		Risk Profile - As equity investors, we are willing to accept reasonable levels of risk. In exchange, we target an annual return on our investments of around 25% - 35%.
		Active Investors - We work hard to add value to the companies in which we invest through our industry contacts and market knowledge and through facilitating collaboration among GFI portfolio companies.
		Exclusive Industry Focus - Because we invest exclusively in the energy and power industry, we can often value potential investments more highly and can make investment decisions more quickly and confidently than other investors who are less familiar with the distinctive characteristics of this industry.
		Long-term Investors - We understand that the pace of value creation is related to the timing of changes in the industry as a whole. We will seek to liquidate our investment and realize our returns when market and business conditions are optimal, not in response to arbitrary liquidity deadlines.
		Partnership with Management - We view the management of acquired companies as our partners. We believe strongly in programs in which management gains a significant equity position in the companies for which they are responsible.
		Auctions - We rarely participate in widely publicized company auctions. We prefer to deal with principals of companies who are seeking a fair price and who value confidentiality, discretion, expeditious decisions, and GFI's strategic focus.
		Leverage - We believe strongly in establishing and maintaining a capital structure that facilitates long-term growth rather than maximizing short-term leverage.
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		We seek to invest in companies which: Have sustainable competitive advantages in attractive, growing markets Have annual revenues of at least $50 million Have an enterprise value of $50 million to $500 million Have an experienced, well qualified management team in place, especially in key operational and technical areas Control top distribution channels in key markets Are motivated to sell and able to reach a speedy decision on price and terms Are, or have the potential to be, the dominant player in the markets they serve
		We will not consider investing in companies which: Have unproven technology Are start-ups or turnaround situations Are outside of our Industry Focus Have an equity investment requirement of less than $30 million
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		We are looking for companies in the following areas: Demand Management - Reducing or altering energy consumption through the provision of equipment, software or services. Transmission and Distribution Optimization - Improving the efficiency, capacity and cost effective management of energy transmission and distribution systems. Cleaner Generation – Reducing pollution from traditional power generation and facilitating the expanded commercial use of renewable, alternative generation. Energy Measurement and Control - Measuring and managing the nature and amounts of energy generated, delivered and consumed in ways that support network management, increasingly complex billing and energy conservation objectives. Power Quality/Power Conversion - Meeting the increasingly demanding and distinctive power supply needs of industrial and commercial customers for whom the form, quality, and availability of power is central to business operations. Information Systems and Transaction Support - Providing the information and transaction support needed to achieve commercial and public policy goals in a competitive energy market from the perspectives of electricity and natural gas suppliers, marketers, transporters, market makers, consumers, and regulators.

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