Investment Philosophy

Methodology

The General Partner intends to follow a venture capital approach in Iran: all investments will be hands on. The intention is to always provide for management control of the portfolio companies.

The Fund will invest in both private and private and public companies. The control will be established through a network of co-investors both domestic and foreign. The Fund will only take a stake in a public company if management control can be established in conjunction with co-investors and significant improvement potentially achieved.

The Fund may form time to time invest in a non-Iranian company engaged in Iran if the General Partner believes that exceptional returns can be achieved.

The Fund's exist strategy will be through three methods:

1. Public Offering

Most private portfolio companies will be encouraged to make a public stock offering once conditions are right .The Tehran Stock exchange (see Iran/TSE) is vibrant and provides a ready market. At times it might be more appropriate to examine taking the portfolio company public in a non-Iranian stock market if a higher valuation can be achieved. The Fund's management is well placed to arrange this.

2. Local Private Sale or Merger

In certain cases it might be more profitable to arrange for the private sale of portfolio company. Such transactions are becoming more common as Iranian companies seek to expand by buying others. Mergers with another company may result in the Fund receiving cash or liquid securities for its position in the portfolio company.

3. Foreign Sale Merger

As Iranian capital markets develop and foreign interest in local companies becomes acute it might be appropriate to arrange the sale of the Fund's stake in a portfolio company to a foreign entity. In these cases the Fund will seek interested limited Partners informed of developments and where appropriate arrange for the sale of the company to a Limited Partner if it is prepared to match the highest bid received by third parties.


Portfolio Investments

The General Partner intends to concentrate the Fund's investments in areas where the highest returns are anticipated and where the management has experience: financial services, oil and petrochemicals, mining, agriculture, tourism and specifically the auto and consumer electronics industries.