Telecom equipment, undisclosed

Development capital project between 2006 and 2009. Sweden

In July 2006, Proventus extended a loan to a fast growing Swedish manufacturer of high-tech telecom equipment. The cash enabled the company to continue its rapid international expansion while keeping focus on R&D activities. Proventus provided a three year bullet loan of EUR 3 million, which was extended to a total of EUR 4 million. Proventus secured standard financial covenants and had additional down-side protection based on a business pledge. The loan was repaid in July 2009.

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.