Unique Partnership Investment Model

Lineage’s unique partnership model combines the most attractive features of a recapitalization and a minority investment. Our model meets the needs of business owners who wish to receive substantial liquidity, maintain a meaningful stake in their businesses and retain board control. In addition to our value as a strategic growth partner, Lineage’s model includes three critical elements:

Continued Control for Original Shareholders

• Economic ownership is separated from corporate governance.
  Board control remains with owner-manager
• Management drives value creation through leadership and decision making

Alignment of Economic Interests

• Ambitious growth and performance goals require shared objectives and motivations
• Partners maintain economic ownership through reinvestment equity and a
  substantial incentive equity opportunity
• Generous economic incentives provide clarity to the alignment of our goals and reward strong performance

Comfortable Capital Structure

• We capitalize our investments to provide flexibility to managers to execute
  growth opportunities and minimize burdensome distractions
• We recognize that many owner-managers are debt averse and may not
  previously have operated with substantial debt
• We increase value through growth and operating improvements rather than
  relying on leverage