Microdrug

In 2000, Proventus invested in preferred equity in Microdrug AB, a private company engaged in the development and marketing of advanced medical drug delivery systems. The company has developed favourably and now holds a number of patents and other intellectual property. Rather than being divested to a larger pharmaceutical company early, Microdrug has chosen to develop into a stand-alone research company. Proventus has continued to support the company as initiatives have proven to create additional value.

Proventus has in the past few years moved to meet what we believe to be an important, unfilled need among mid-sized European companies that are in expansion or restructuring, but are unable to acquire bank financing and unwilling to dilute current ownership to fund such initiatives. In August 2009, Proventus laid the ground for Proventus Capital Partners, a co-investment vehicle through which Proventus invests its own and external funds in public corporate bonds, leveraged loans and private corporate loans to mid-sized companies in need for growth and restructuring capital. We see this as a major investment opportunity, targeting capital needs that cannot currently be financed because of restrictive loan policies of banks and others. We think there is a significant need for a more active market of this kind and aim to take part in developing it.