Characteristics:

Propel Investments seeks the following characteristics in potential investee companies:

• established businesses seeking funding to acquire complementary businesses, enter new markets, expand operations and/or launch new products
• proven and experienced management team
• prudent financial structure
• well positioned platform for growth
• proven business model
• evident exit mechanisms

Investment size:

Whilst flexible in terms of investment size, Propel Investments generally targets opportunities which require between A$20 million and A$80 million of equity. Businesses with Enterprise Values in the range of A$50 million to A$250 million are typically targeted.

Investment type:

Propel Investment's primary focus is on the following investment types:

Buy-and-build: companies operating in a fragmented industry which are aiming to become more competitive or entrench their market position by leading consolidation through acquisition.

Recapitalisations: re-financings typically of family-owned or closely-held companies designed to enable management to pursue growth opportunities and provide the owners with the mechanism to either achieve liquidity or raise equity without public listing.

Expansion: rapidly growing companies with a competitive edge in their industries which are seeking capital for expansion.

Ownership:

Propel Investment's equity participation ranges from significant minority to significant control positions. Propel Investments typically encourages co-investment by management teams (eg CEO/CFO) so that management's interests are aligned with those of the shareholders.

Industry preferences:

Propel Investments screens investment opportunities across most industries and rarely dismisses investment opportunities due to industry preference. As a guide, current and past investments have including the following industries:

• Services
• Financial services
• Healthcare
• Retail/Wholesale
• Consumer products
• Bulk storage

Geographic preference:

Investment entity based in Australia and New Zealand.