Our approach to ownership structure takes into account the needs of management. It is our goal to enter partnerships with management teams under circumstances and terms that are mutually attractive, thereby creating an environment conducive to everyone's success. As a part of the transaction structuring process, we strive to achieve shared common objectives and incentives with existing management and current owners.

OWNERSHIP ARRANGEMENTS CONSIDERED:

Control Investments: We will invest in companies with strong management teams that would like to purchase the ownership position of existing owners, many times called a management buy out ("MBO"). Teakwood prefers that a strong management team will remain in place. In such circumstances, Teakwood will normally own greater than 50% of a company but will share a substantial ownership position with management.

Non-Control Investments: We will invest in companies that are growing fast and don't have the working capital to fund the growth. In these circumstances, we typically receive an ownership position that varies between 25% and 49% of a company. The capital that Teakwood provides will be used primarily to unlock and accelerate company growth.

SECURITY TYPES PURCHASED:

	Preferred Stock: Teakwood will typically purchase preferred stock securities from companies.
	Mezzanine Debt: Under certain circumstances, Teakwood will also purchase mezzanine debt securities from companies.