Many companies in Jamaica and the Caribbean lack the financial resources and professional management required to position them for the next stage of growth. Many of these target companies can experience a rapid increase in value from the professional oversight, strategic guidance and capital resources that the Company offers, regardless of their sector of activity. Ostrich Investments believes it is important to be flexible so that the Company may capitalize on opportunities as they arise. At the same time, its rigorous industry analyses and the adherence to its philosophy of focusing on businesses in which the Company can improve operating performance will reduce risks to its investors.

Despite its diversified sector focus, Ostrich Investments will follow a very disciplined investment approach, initially abiding by the investment guidelines below:

• The Company will not invest in opportunities without majority control or board representation of at least two directors on the board of target companies

• The Company will decline any investment opportunity, which has been determined in good faith to be related to activities or industries that have negative social and environmental implications;

• Ostrich Investments will follow certain diversification limits, ensuring that a single company or sector will not represent more than 25% or 35% of its assets, respectively; and

• The Company will not contract leverage in its balance sheet higher than 70% of its assets.

• Focusing on Start-up or Greenfield Projects, Mature Companies, Innovative Business Models, Infrastructure and Renewable Energy Development in Jamaica, the Caribbean and Latin America.

Ostrich Investments Private Equity Fund is targeted at investments in companies of a start-up or green-field nature, innovative business models in the  technology sector, investments in distressed assets, infrastructure, and renewable energy, companies that provide outsourcing solutions as well as certain family owned and run businesses, recapitalizations and growth financing of established mature businesses in the export sector. These investments will cover geographic areas such as Jamaica, the wider Caribbean, Latin America including Brazil and Columbia. The Fund is targeted at small to medium size companies because they tend to have a series of advantages  over larger businesses, including: (i) need for a smaller equity investment, resulting in a larger number of companies in the portfolio, consistent with Ostrich’s operations-oriented strategy, (ii) diversity and strong growth potential (iii) easier attraction of entrepreneurial management talent, and (iv) broader exit prospects due to ease of access to the international capital markets.

• Pursuing Innovative and Strategic Opportunities

The Company will focus on start-up or businesses of a green-field nature, innovative business models in the technology sector, investments in distressed assets, infrastructure, and renewable energy, companies that provide outsourcing solutions as well as certain family owned and run businesses, recapitalizations and growth financing of established mature businesses in the export sector. These types of transactions may arise as a result of an opportunity for: (i) consolidation in fragmented industries; (ii) divestitures by larger companies of non-core assets; (iii) acquisitions of family or individually owned businesses in need of growth capital or a highly skilled management team; and (iv) restructurings of fundamentally sound but poorly managed companies or the recapitalization of under-capitalized companies (v) innovative start up and greenfield operations for example in technology that has strong growth prospects and excellent pay back prospects. Ostrich Investments believes that these situations may generate opportunities to make interesting investments at attractive entry valuations.

• Implementing Sound Management Philosophy in Portfolio Companies

Ostrich Investments will maintain and replicate at its portfolio companies the successful management philosophy that the Ostrich Group has been refining since 2008. This philosophy, based on the principles of strict cost control, lean organizational structures, talent development, meritocracy, and business ethics, is a powerful framework that will help the Company maximize the operating performance of each acquired asset, and reduce risks.

• Reducing Risk through a Disciplined Investment Process and Diversity

The Company will focus on the risk/reward profile of each prospective portfolio company. Ostrich Investments will seek to reduce risks by: (i) focusing on companies with excellent growth prospects aimed at acquiring or maintaining leading market positions and strong cash flows, (ii) engaging in extensive due diligence from the perspective of a long-term investor, (iii) investing at low price to cash flow multiples, (iv) acquiring control or joint control positions, (v) devising likely exit alternatives whilst still in the investment phase.

• Investment Restrictions
Ostrich Investments equity investments will be made by the Company directly or through other private equity funds that may be established from time to time, for example, Ostrich III which focuses on Infrastructure development and Renewable Energy Investments.