Investment Approach

Investment Principles

CCM is at the cutting edge of investment management holding companies. CCM has achieved this status through strong management, creative transaction structuring and delivering demonstrated value to its affiliates.

CCM operates on three key principles:

• Shared ownership – Equity is a key motivator for our affiliates.
• Independence - Affiliates require operational autonomy.
• Adding value – Affiliate organizations are CCM’s clients.

Investment Strategy

As of March 31, 2008, Convergent Capital Management consists of eight affiliates with approximately $30 billion in assets under management.

We invest in a broad range of asset management and related firms, including:

• Investment Counselors, which offer high net worth individuals, families and their endowments customized portfolio management and intensive client servicing delivered through a trusted advisor.
• Asset Managers, which provide specialized investment capabilities that are packaged and delivered to multiple markets.
• Distribution Platforms, which fuel the growth of CCM affiliates by providing access to new markets and services.

In addition, to achieve diversification of management styles and asset classes, we seek managers who have:

• More than $500 million under management
• Consistent, long-term asset growth
• Long-term performance outpacing the appropriate benchmark
• A successful entrepreneurial management team motivated by continued equity ownership
• A sustainable, competitive advantage

We will continue to focus on investments in more established firms. However, a meaningful share of our resources is earmarked for investing in fast-growing, emerging managers, start-ups and lift-outs. Where a firm is in terms of its lifecycle is less important to us than the people running the firm and its potential fit with CCM and its affiliates. Above all, we are looking for a dedicated team of entrepreneurs motivated by the opportunity to grow the value of the firm equity they continue to own.

Investment Structure

CCM prefers a flexible approach to ownership structure. Because no two investments are identical, we are more interested in structuring a relationship that meets everyone's needs. Sharing the ownership of each CCM affiliate with its management team provides incentives for sustaining success.

Our progressive partnership approach:

• After affiliation with CCM, our affiliates continue to operate under their own names. There is no change in our affiliates’ leadership, independence, investment philosophy or approach.
• Our affiliates’ management teams retain full operational autonomy. This ensures freedom in business decisions, including compensation, incentives and reinvestment. A unique revenue sharing arrangement also provides CCM with opportunities to make additional investment and reinvest in affiliates.
• Affiliation with CCM provides our affiliates’ owners with liquidity, growth opportunities, and a trusted advisor.

In short, our affiliates are doing business as usual – with the added confidence that they now have the resources to promote and handle growth, eventual management succession, retirement and estate planning.

For more information on our investment approach, please contact us.