Private Equity FAQ

1. What makes Camden Partners Different?

   Experience, judgment, and synergy. Our senior partners have spent years building their extensive networks in our target markets and we strive every day to bring these resources to bear for our portfolio companies. The experience of our senior partners comes from their direct involvement in successful companies in our target markets and their extensive private equity investment experience. Senior partner Dick Johnston was the chairman of West Penn Allegany Health Care Systems (the second largest health care network in West Pennsylvania). Richard Berkeley, was the head of private placements at Alex Brown, and David Warnock was co-manager of the T. Rowe Price New Horizons Fund. Don Hughes was Chief Financial Officer of Capstone Pharmacy Services, a NASDAQ listed small-cap company.

   Our experience and judgment also comes into play when closing deals in our target markets. We routinely use debt with warrants or convertible preferred structures of various types in order to bring our experience to bear. When we find an excellent management team, we have the experience to structure a deal that works for all constituencies. No matter what kind of deal, we're able to harness the resources of the entire firm to provide the knowledge and experience that make our clients successful. If you'd like to learn more about what we can do for you, please contact us today.

2. How involved in the companies are you?

   We make it a priority to be very involved with our portfolio companies. It begins with serving on their board of directors to an extent proportional to our ownership. However, our value goes well beyond serving on boards: we also play a prominent role in acquisition, financing sourcing, and board member recruitment. We serve as financial experts on audit committees. For example, General Partner Don Hughes lends his senior partner experience as a CFO to the CEOs of many of our portfolio companies. We pride ourselves in being a resource to our portfolio companies and their CEOs. In fact, our CEOs are our best references.

3. On which industries do you focus?

   Four key target markets: healthcare, education, business services, and financial services. These tend to be the more stable segments of the economy and together make up 25% of the U. S. Gross Domestic Product.

4. What kinds of transactions do we typically invest in?

   Financing for buyouts, recapitalizations and acquisition-related transactions. We focus on negotiated and structured deals and while targeting equity-type returns.  We routinely use deal structures that combine debt with warrants to replacement and various types of preferred stocks.

5. What has your investment history been like?

   Camden Partners invests in both private companies as well as micro-cap public companies, typically in the healthcare, education, business services, and financial services industries. In most cases we use an approach that stresses our involvement, including senior convertible securities and representation on boards of directors.  We work to add value during a two to five year investment horizon.

6. Why does Camden focus on small and micro-cap companies?

   This segment of the public equity market presents significant investment opportunities. Because of our experience in this sector and  because of the inefficiencies inherent in researching these companies, we can see advantages that others often miss.   Over half of the roughly 11,000 public companies in America have a market capitalization of less than $300 million and are often ignored by large institutional houses.

7. What and who Is Camden Partners Holdings?

   Camden was founded in 1995 as a diversified investment firm focused on value-added alternative investments.  Camden has three product areas: Private Equity, Small Cap and Indirect. While each fund has its own dedicated team, the teams work together synergistically to pursue great investment ideas by sharing ideas, research, and the experience of the general partners.

   Camden Partner Holdings, LLC, our parent company, has been a Registered Investment Advisor since 2002. Our SEC # is: 801-60669.

   The private equity strategy is managed by a four-person investment committee assisted by full time analysts. The members of the committee are:

   • David L. Warnock
   • Richard M. Johnston
   • Richard M. Berkeley
   • Donald W. Hughes

8. Are your investments solely in the United States?

   Most of our portfolio companies have their headquarters in the US, but we have made successful opportunistic investments in Europe and have invested in companies that perform most of their operations overseas.

9. How can I introduce an investment opportunity to Camden Partners?

   Business plans or inquiries should be directed to any of the Managing Members, Principals or Associates: 500 East Pratt Street, Suite 1200, Baltimore, MD 21202. Click here to contact us.