SFG realizes that in today's tough climate, investors are looking for maximum gains with minimum risk. Today, investors prefer an existing, tangible product with enthusiastic customers, a short time to bring it to market, experienced management, and a sound business plan.

Late-stage technology companies represent a lower risk opportunity for investors. These companies have a sound business plan, and can be more effectively groomed for exit - either IPO or M&A.

Late-stage opportunities include LBO's, distressed or turnaround situations, mezzanine, and additional situations. Despite the diversity of these situations, the common denominator remains operational issues that can be solved at the management level. The managers in SFG have diverse operational skills that allow them to add value in these types of situations.

A few select opportunities are chosen, and only under scenarios when SFG is able to gain a controlling stake in the investment and leverage the managerial and technology experience of in-house management. In addition, from a general portfolio perspective, these investments provide diversification and also minimize the risk relative to early stage investments in the portfolio.

The combination of exacting due diligence and in-depth management involvement spells secure opportunity for SFG's late-stage investors, and success for our late-stage portfolio companies.