The cornerstone of Lehman Brothers Merchant Banking's investment philosophy is to make investments in partnership with strong, proven management teams to drive long-term value from fundamental opportunities for growth. Whether partnering with a management team or strategic corporate entity, Lehman Brothers Merchant Banking seeks to invest in companies that it believes maintain a sustainable competitive advantage in a particular market and for which the management team has a compelling vision and business strategy.

Partner With Proven Management Teams
Partner with equity-motivated entrepreneurs and provide appropriate management incentives to achieve business and financial objectives.

Look for Sound Business Fundamentals
Recognize sound business fundamentals as the cornerstone of long-term value creation.

Buy the Right Business at the Right Price
Historical performance and realistic business prospects should support a reasonable valuation that permits achievement of the partnership’s return objectives.

Use Prudent Financial Leverage
Use debt in the capital structure to enhance equity returns while allowing the company the flexibility to adapt to unforeseen economic conditions.

Control Value-Impacting Decisions
Retain control over critical capital and corporate governance decisions, regardless of ownership percentages; active involvement through board representation and requisite shareholder rights.

Enter With Well-Defined Exit Strategies
Incorporate analysis of options for realization of gains as an integral component of an investment thesis, and continually review alternatives to take advantage of favorable monetization opportunities.

In general, Lehman Brothers Merchant Banking seeks to make equity investments of $50 million to $200 million in companies throughout North America, Europe and Asia-Pacific that have enterprise values of between $100 million to $1 billion and EBITDA of at least $10 million.

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