 Two traditional private equity funds –IPC II raised $1.5B in 2000; fully invested in 2006 –IPC III raised $2.7B in 2006; one-third invested  Portfolio I raised $200M in 1997; fully invested in 2001 Founded in 1997, manages nearly $4.4B in equity  Consistently strong performance  Partner with talented operators  Make control or entrepreneurial investments  36% of capital invested has been in entrepreneurial transactions Irving Place Capital has invested in 51 companies Irving Place Capital Overview Retail/Consumer Middle market focus with silo approach Primary Silos Emerging Silos Financial Services Transportation Packaging Energy Healthcare CONFIDENTIAL

US Private Equity  Over $150 billion raised in 2008 alone.  Traditional investors include state pension funds, endowments, large financial institutions, and high net worth individuals.  Distinct from venture capital.  Investment horizon: 3-7 years and achievement of 25+% compounded rate of return.  The vast majority of private equity firms are not “barbarians at the gate”.

Private Equity, Tied House, and Lost Opportunities  Private Equity is an excellent source of financing for smaller and midsized companies, particularly those with unique needs.  Most private equity firms maintain a somewhat generalist approach that allows them to invest in multiple industries.  In the current environment, many leveraged retailers and producers are in need of equity capital.  However, tied house rules force many PE firms to shy away from the alcoholic beverage sector because of potential restrictions on their investing activity.  In IPC’s experience, the tied house rules do not reflect the realities of today’s capital markets, and the tied house evils can be avoided without the limiting intent of the current laws.