Special Situation Fund II

LB Advisors, LLC is a Los Angeles based private equity firm that invests in
recapitalizations, special situations, and acquisitions of small and middle-market
companies. Partners of LB Advisors co-founded Balmoral Advisors and co-managed
the highly successful Balmoral Fund I, which achieved superior returns (2.2x realized
return and 2.2x unrealized returns from 2007 through 2011). Based on CalPERS 2010
Private Equity performance data, Balmoral Fund I would be in top 2% of fund
managers (based on IRR & Multiple). LB Special Situations Fund II benefits from the
prior funds track record as a trusted capital provider and turnaround operator for
distressed companies, bank workout groups and restructuring advisors.

The firms target companies are typically (1) experiencing financial distress; (2)
undergoing or in need of an operational turnaround; and/or (3) misunderstood or
undervalued by their markets or stakeholders. LB Advisors seeks to profit from the
return to normalized profitability of its investments through operational influence,
optimization of the capital structure and strategic exits. LB Advisors focuses on
companies with revenues of $30 – 200 million. We make investments of $5 – 15 million,
with the capability of much larger transactions through the capital resources of the LB
Advisors LPs that exceeds $20 billion. Our investment types are equity, debt and/or
hybrids; control and non-control, with a 3 – 5 years investment horizon. We focus on a
broad range of industries including manufacturing, business services, consumer
products, retail, and value-added distribution in the United States and Canada.
LB Special Situations Fund II LP – Investment Highlights / Considerations

        Patient and Disciplined Investing
        Niche Strategy: Good, Small Businesses / Bad Transaction Dynamics
        Deep Relationships to Source Good Deals
        Partnership with Management
        Flexible and Creative in Deal Structuring
        Skilled in Complex, Multiparty Negotiations         
        Improving Operations and Investment Profile Before Closing
        Protected Downside
        Substantial GP Commitment
        Successful Track Record of Special Situations Investing
Services