Stonehenge invests in the following situations:

Situations

• Management / leveraged buyouts
• Acquisitions
• Recapitalizations
• Growth

Characteristics of Investment Candidates

• Proven management teams with properly aligned incentives
• A stable operating history with revenue exceeding $10 million and cash flow in excess of $2 million
• Strong and defensible position in a defined market or niche
• Solid industry fundamentals

Industry Preference

Stonehenge invests in manufacturing, distribution, business services and healthcare companies. Stonehenge tends to avoid investments in real estate, oil and gas, high technology and industries that are susceptible to a high degree of cyclicality.

Investment Amounts

Stonehenge investments range from $3 million to $15 million.

Securities

• Subordinated debt
• Preferred Stock
• Common stock

Geographic Preference

Stonehenge invests in companies throughout the United States.