Only Private Equity funds whose manager’s or management team’s previous funds have in the past performed within the Top Quartile of returns as measured by the relevant benchmark will be considered for investment by the Company.

This selection criterion will enhance the likelihood of the Company’s Net Investment Portfolio itself achieving Top Quartile returns. A comprehensive and rigorous system for the screening of fund managers for investment has been developed and will be utilised by the Investment Manager in selecting underlying fund opportunities for initial screening through to detailed due diligence and investment.

In summary the investment process proceeds as follows:

Using the Manager’s and advisors’ extensive network and expertise, the potential pool of Private Equity funds is identified and reviewed. After reviewing the potentially best performing funds, a preliminary investment proposal is written to provide an overview of the investment opportunity.

Due diligence investigation is commenced for those funds that achieve a positive recommendation. Upon receipt of an investment submission, the Investment Committee (consisting of the Board of the Company) meets to decide whether to proceed with a Commitment to the targeted Private Equity fund, conditional upon successful financial and legal negotiations. Once completed, the investment is monitored and periodically reported to Shareholders as part of the quarterly update.