INVESTMENT CRITERIA

Transaction Types
Agio focuses on management buyouts, add-on acquisitions for portfolio companies, corporate divestitures, family buyouts and recapitalizations.  Agio does not focus on venture capital investments (start-up or early stage companies with no history of revenues or cash flow) or companies that require a significant turn around.  Agio invests with experienced management in start-out situations with proven products or services.

Investment Structure
Generally, Agio's investments are common equity, although they can be structured as preferred stock and/or subordinated debt with equity features.  Agio’s primary objective is to create long-term capital gains.

Participation
Agio can be either a sole equity investor, the lead equity investor with significant equity participation, or as co-equity investor in a transaction sponsored by other investors.

Management Incentives
Agio offers equity stakes to the management teams of companies in which it invests, thus aligning Agio's long-term capital appreciation objectives with management's objectives.

Transaction Size
Agio's targeted investments are middle market companies with annual sales in the range of $5 million to $100 million and equity investments of $1 million to $5 million.

Industry Focus
Agio's focus is on manufacturing, production, fabrication, distribution, and service companies with a preference for profitable niche businesses.  We do not invest in high-tech, financial, real estate, or retail operations.  Specifically, Agio targets noncyclical; noncommodity industries with low product and market obsolescence.  Agio prefers companies with moderate capital expenditure requirements and no unusual working capital needs, and avoids exposure to companies with a history of labor, environmental, or legal issues.

Geographical
Agio has Midwestern focus, but is an active investor throughout the country.

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Agio Capital Partners I, L.P.
5050 Lincoln Drive, Suite 420
Edina, Minnesota 55436
Tel. 952-938-1628