MSouth's investment philosophy has been very consistent for many years and has contributed to its successful investment results. The key elements of this philosophy are:

Partnership With Management - The cornerstone of the MSouth investment philosophy is that we seek to partner with outstanding management teams. We believe that the most critical element in any successful investment is the people. For this reason we attempt to partner with successful, experienced management teams. We expect these individuals to have significant ownership stakes in their company, to share our commitment to growth and to maintain the highest standard of integrity. Each company is operated autonomously and with an entrepreneurial philosophy.

Value Creation Through Growth - It is our belief that the best way to build shareholder value in the long run is to pursue growth. We are attracted to companies with proven growth records and where future growth opportunities exist. Since many of the industries in which we invest are relatively mature, these growth strategies often include the pursuit of complementary acquisitions.

Flexible Capital Structures - In keeping with this growth-oriented philosophy, we ensure that each company's balance sheet is designed to support its strategic plan (not vice-versa). While most of our acquisitions are leveraged, the degree of leverage and the debt structures utilized are tailored specifically to each individual company.

Personal Commitment - While most of the capital committed to our partnerships is provided by large institutional investors, MSouth's partners also invest personally in every transaction. We believe that this personal investment strengthens our commitment to the success of each company and ensures that our interests are completely aligned with those of our management partners.