P-Tech Advisors Business Development for BlackEagle Partners

1. BlackEagle Partners Fund, L.P.
A Lower Middle Market Turnaround Fund
Providing Liquidity and Solutions in an Illiquid Market
Confidential | Not For Distribution

2. BlackEagle Partners Overview
Right size, strategy and market space
$175 million fund with final closing in July 2008
Operationally intensive approach to investing in and improving
troubled companies
Planned implementation of post-acquisition improvements
Key alliance with Caledonia Group provides operating leverage
Tools, capability and experience necessary to deal with complex
situations
Buyouts of distressed / operationally challenged companies
Lower middle market
No investments in telecom, high-tech or real estate; no revenue driven
turnarounds
BlackEagle investments are defined by:
Enterprise value below $100 million; EBITDA negative to $20 million
Conservative capital structures
Purchase price supported by sizeable asset base
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3. P-Tech Advisors
Transaction Origination Initiative
P-Tech Advisors focuses on helping middle market private equity firms,
private companies and financial institutions find and execute
transactions, raise capital and work though special situations
P-Tech Advisors
Michael Petix, CPA, MBA
44942 Oak Forest Drive
Northville, MI 48168
248.514.3555
mike@ptechadvisors.com
www.ptechadvisors.com
P-Tech Advisors is engaged to originate new investment opportunities
through the lending, legal and turnaround advisory community on
behalf of BlackEagle Partners
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4. Investment Criteria
Operationally focused investors
Investment opportunities in companies ranging from financially sound
but operationally underperforming, to operationally sound with broken
balance sheets to deep in distress
Underperforming or troubled businesses
Non-core subsidiaries of larger entities
Companies in breach of their covenants
In or near bankruptcy
Impacted by recession and lack of liquidity in credit markets
Out-of-favor industries
Focus on investments with a path to control
Requiring between $5 - $40 million in equity capital across a range of industries
Direct control equity
Debt restructurings, DIP financings, equity for deleveraging or strategic
acquisitions
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5. “Broken Markets” – Challenges and Opportunities
Capital and liquidity in an illiquid market
Asset-based and lower middle market lenders with challenged loans, business
owners and professionals helping to manage credits lack refinancing
alternatives in the current market
Most management teams and owners unable to take necessary actions often ending in a
liquidation
BlackEagle brings capital and operational improvement to challenging situations
Mandate to invest in challenging situations
Many private equity groups with available capital are avoiding challenged companies or out-
of-favor industries
Difficulty refinancing troubled deals at any price
Companies missing historic opportunities for strategic growth due to lack of capital
Lenders and owners can create opportunity for resolution of illiquid, challenged
loans
Lenders can exit the credit or reduce exposure and bring in new liquidity
Owners can partner with BlackEagle to drive operational improvement and preserve value
verses inferior alternatives
Fix balance sheets through debt acquisition / conversion or new equity infusion
Improve operations to provide optimal recovery for lenders and optimal value of
owner’s remaining share
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6. Competitive Advantage
Proven ability to create value through operational improvements
Envisioning a new future for distressed companies
A long history of transforming distressed businesses
Partner with critical legacy management at all levels and integrate with
new hires
Affiliation with Caledonia Group; utilize for due diligence, interim
management, policy deployment and implementing systems for safety,
quality, delivery and cost
Extensive history of distressed investing has led BlackEagle to
become the “go to” source of capital for special situations
Direct and relevant insight or contacts in every target deal
Sterling reputation in the distressed industry; “user friendly”
Awarded Private Equity Turnaround Deal of the Year by Global M&A
Network in June 2009 (recognized acquisition of InStar Services Group)
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7. The Investment Team
Seasoned and experienced turnaround and private equity investors
Michael D. Madden, Managing Partner
20+ years in investment banking; Head of Banking at Kidder Peabody and Lehman Brothers
13 years in private equity, most recently with Questor Management
Wharton MBA, LeMoyne College BA
Garrett P. Kanehann, Partner
17 years experience, most recently with Questor Management
Specialist in executing and financing distressed transactions
Wharton MBA, Notre Dame BA
Jason G. Runco, Partner
16 years experience, most recently with Questor Management
Served as CEO of a $30 million family business
Michigan MBA, Miami JD, Colorado BA
Harry Watson, Partner
30+ years experience, most recently as Founder/Chairman of Caledonia Group Inc.
First mover in implementing lean principles in private equity
UCLA PhD, Western Ontario, Honors BA
Gene Matalene, Chief Administrative
25+ years of transaction experience with EOS Capital, Paine Webber Development Fund, Drexel and Kidder Peabody
Extensive industry experience in investment banking and private equity
Columbia MBA, North Carolina BA
Michael Monroe, Vice President
Bryan Tolles, Associate
Michael Wheatley, Associate
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8. Investments
Investing in and supporting change
Existing Portfolio
Cabinet manufacturer, Eurodesign
Insurance restoration and related service provider, InStar Services Group
Heavy-duty and auto aftermarket chassis and suspension component supplier,
Rockford Products
Broach tool and machine manufacturer, Federal Broach & Machine Company
(in conjunction with Apollo Management)
Target Industries
Aerospace and defense Building products and construction services
Business and consumer services Consumer products
Distribution Healthcare products and services
Industrial products and services Natural resources
Niche manufacturing Transportation
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