Investment Strategy Investment Theme Approach

Inverness Graham employs a pro-active thematic approach to identifying and pursuing investment opportunities. Within our Technology Enabled Manufacturing focus, we target Investment Theme Areas in industry segments where we believe innovation is driving growth and where we can find companies that meet our four Targeted Attributes.

Productivity, Sustainability and Innovation:

Inverness Graham develops its key Investment Theme Areas in light of three macro trends that are taking place in the manufacturing and industrial landscape. Increased demand for manufacturing Productivity improvements, a focus on environmental Sustainability and accelerated pace of product Innovation are changing the way manufacturing companies must compete. Since Inverness Graham is focused exclusively at the nexus of manufacturing and technology, we are well positioned to observe and capitalize on these changes. "Where there is change, there is opportunity."

Productivity: Today's industry innovators are meeting global competition from lower labor cost domiciles and higher energy and raw material costs with technology to drive operational and supply chain efficiency. United States' labor is three times more productive than the global average due in large part to our leadership in adopting productivity focused technologies.

• Inverness Graham invests in companies such as Nexiant that are driving factory and supply chain productivity. Nexiant utilizes its proprietary technology to reduce costs and increase visibility into indirect material in the plant and office workplace.

Sustainability: Increased environmental regulation and corporate sustainability initiatives are being met with innovative solutions that are both "sustainable" and economically advantageous.

• Inverness Graham invests in leaders in sustainability such as Infiltrator. Infiltrator's proprietary technology provides environmentally advantageous solutions for on-site waste water remediation and the company is a leader in recycled plastics processing.

Innovation: Innovators are employing new materials and other technologies to deliver the smaller, smarter, faster, lighter and less costly products that are demanded in the marketplace today.

• Our portfolio company ExtruMed provides micro-lumen tubing that enables innovations in neurostimulation and other minimally invasive surgical procedures by providing smaller, more advanced implantable devices.