New challenges and paradigms dominated this past year; however, we also witnessed remarkable resiliency, innovation and entrepreneurism. During this period, Parthenon has worked closely with over 25 portfolio companies and management teams while transitioning over 15,000 employees to work-from-home and adjusting operational processes and go-to-market strategies. Our teams have supported one another, our companies and communities. We have stayed focused on the facts and the variables within our control.

Despite the dislocation and uncertainty, Parthenon had a highly productive year. We activated and began investing Fund VI. We closed three new platform investments between March and June in core Parthenon subsectors. We exited four companies, with three occurring after the pandemic struck. We recruited and onboarded 22 senior executives at 13 portfolio companies and nine new Parthenon employees. And, loanDepot (NYSE: LDI), founded by Parthenon and management in the wake of the 2009 housing market collapse, completed an initial public offering in early 2021. We are proud of and grateful for the hard work and collaboration of our co-workers, management teams, their colleagues, our limited partners, financing sources and advisors as we meet challenges and continue to grow.

While not yet out of the pandemic and with immense work ahead to repair sectors of the economy and address social injustice, we are optimistic that the same resiliency, innovation, collaboration and entrepreneurism that have been present throughout much of our history will also bring better days ahead.

Parthenon continues to stay true to our cores principles: we embrace change and harness new methods and technologies; we emphasize results achieved through sound strategic thinking and hard work; we foster entrepreneurial spirits and curiosities; we promote transparency and make fact-based decisions; we are partnership-oriented and constantly strive for a better future. We are positioned to stay on offense and continue to execute the same investment strategy -> partnering with strong management teams to build, grow and transform in our businesses with recurring revenues, defensible niches and technology and/or IP-based competitive advantages.

Primary investment criteria include:

• Equity investments of $50 million - $250 million per transaction (up to $500 million with LP coinvest) and total enterprise value of $75 million - $750 million
• Flexible ownership and structuring parameters but always partnership-oriented
• Sector and niche focus
- Financial and insurance services
- Healthcare technology and services
- Business services, technology and software
• Transformational focus
- Buy-and-build with 2/3’s of our portfolio highly acquisitive, averaging eight add-ons per company
- Willingness to start small and execute ambitious growth plans
- Resources to develop and build infrastructure and repeatable process: sales and marketing, capital markets, M&A integration, IT, HR and talent management, finance and reporting
- Ability to understand complicated and off-the-run situations

We thank you for your support and efforts in 2020 and look forward to working with you in 2021.

— The Parthenon Team