The Riverside Company2011 Review & Reflection

Béla Szigethy Riverside Co-CEO

We look back with great satisfaction at hundreds of successful investments, and look forward to greater innovation and growth in the future.

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2011 at a glanCE 2

CasE: tRanspOREOn 3

2011 aCquisitiOns 4

spECialisatiOns 7

thE RiVERsiDE DiFFEREnCE 8

2011 Exits 10

CasE: physiCians phaRMaCy allianCE 13

FunD highlights 14

COntaCt us 16

www.RiVERsiDEEuROpE.COM

ReviewReflect&

2011 AT A

GLANCE

80CURRENT PORTFOLIO

OFFICELONDONNEW

16,000+PORTFOLIO EMPLOYEES

d2.5BNASSETS UNDER MANAGEMENT

All data as of 31 December 2011 unless otherwise stated. Past performance is not necessarily indicative of future results.

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Riverside has proudly done things differently since 1988. Its unique approach to buying and building companies, coupled with a diverse and talented international team, has delivered superior outcomes for over two decades.

Riverside has evolved since its founding, but the things that define the firm remain consistent – its principled approach, its dedication to small deals on a global scale, and its ability to deliver consistently superior returns.

Riverside looks back on an outstanding 2011, which saw the firm excel in a challenging environment.

297

ACQUISITIONS

EXITS

RETURNEDd227MM

NET

d414MMINVESTED

ACCElErATiNg EffiCiENCy

TRANSPOREON Group uses its Internet logistics platform to link industrial and trading companies with their carriers, saving clients considerable time and money. Its software-as-a-service (SaaS) optimises transport logistic processes and communication between industrial companies, trading companies, carriers, drivers and consignees, finding the best delivery method while reducing shipping time and expense. As the market leader in Europe, TRANSPOREON links more than 450 shippers to 22,000 carriers, and its customer service team supports 60,000 users from 70 countries using the platform in 17 different languages.

Riverside invested in TRANSPOREON in August 2011 in order to enter into the attractive European transport industry through an innovative market leader. Riverside plans to grow TRANSPOREON by adding new markets and helping the company continue to automate and professionalise the relationship between shippers and logistics-service providers. The company has already begun market expansion with pilot operations in the U.S. and China.

New initiatives, new products and new markets are all on the horizon for TRANSPOREON.

2 0 1 1 AC q U I S I T I O N

Acquisitions “the Riverside team delivered in terms of exciting new investments. we enter 2012 with a strong pipeline of deals and great conviction around our unique model.”

Antonio Cabral Riverside Fund Manager

Physicians Pharmacy Alliance Acquired: January Location: United States Camelot Education Acquired: January Location: United States Rameder Acquired: January Location: Germany Pareto Acquired: March Location: Canada Bio San Laboratories Acquired: April Location: United States Reima Acquired: JulyLocation: Finland Sunless Acquired: July Location: United States TRANSPOREON Acquired: August Location: Germany

Mitco [DuBois Chemicals] Acquired: March Location: United States Ostomy Center [ActivStyle] Acquired: April Location: United States Alliance1 [Express] Acquired: May Location: United States Home Wellness [ActivStyle] Acquired: June Location: United States Insurance Claims Cooperative [Global Claims Services]Acquired: June Location: Canada Blue Sky Factory [WhatCounts] Acquired: July Location: United States Action Automation [iAutomation] Acquired: July Location: United States

Avatar International Acquired: September Location: United States Centiv Services Acquired: September Location: United States Power Planning System (PPS) Acquired: October Location: Sweden KEYMILE Acquired: October Location: Germany Emergency Communications Network, (ECN) Acquired: October Location: United States HRA Pharma Acquired: November Location: France CPA Site Solutions Acquired: November Location: United States

Hospice Care of Southwest [American Hospice] Acquired: August Location: United States Next Health [MLCOA] Acquired: November Location: Australia HR Solutions [Avatar] Acquired: December Location: United States Newvision [Tensator] Acquired: December Location: Portugal TradeOne Marketing [Centiv Services] Acquired: December Location: United States Global Compliance Services [ELT] Acquired: December Location: United States Wiz Ilsan [Wiz Korea] Acquired: December Location: South Korea

PlATfOrMS ADD-ONS

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2011

Acquisitions shown reflect acquisitions across all Riverside funds. Not all investors will participate in all such investments. References to the portfolio companies of the Funds should not be considered a recommendation or solicitation for the portfolio company mentioned, nor should individual portfolio company performance be considered representative of all portfolio companies held by the Funds.

AcquisitionHighlights

acquired: January location: germany

rameder offers tow bars, roof racks, bicycle racks, ski boxes and other carrying accessories for almost any make and model car sold in Europe. Complementing its headquarters in germany, Rameder has operations in austria and poland, giving the firm a strong CEE foothold. the company’s well-established market position is due to a unique combination of excellent products, robust online sales, sophisticated logistics processes and exceptional customer service. www.kupplung.de

acquired: September location: United States

Avatar provides patient-satisfaction surveys mandated by the Centers for Medicare & Medicaid services in addition to customised surveys focusing on the patient’s healthcare experience, actionable data reports, benchmarking, and best practices guidance. avatar serves more than 350 hospitals, 14,000 physicians and 120 home health agencies. www.avatar-intl.com

acquired: Julylocation: finland

reima is a leading brand of high-quality children’s outdoor clothing, with a strong market position in the nordics and Russia. the core focus of Reima is developing high-quality, functional clothing - allowing kids the freedom to do what they please outside and remain protected from the elements all year round. the company sells its clothes under three main brands: Reima, lassie and tutta. www.reima.com

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AcquisitionHighlights

acquired: Septemberlocation: United States

Centiv offers a comprehensive marketing automation platform that provides tools to develop customised, local marketing campaigns that can be designed, produced and fulfilled quickly. Centiv combines front-end marketing resource management software with digital print production capabilities to support campaigns from conception through execution and fulfilment. www.centiv.com

IndustrySpecialisations

Data accurate as of 31 December 2011. Past performance is not necessarily indicative of future results.Performance of these specialties is not typical. See Page 10 for additional information.

These four specialities have realised a powerful 3.4x net cash-on-cash return from 14 exits that yielded €468 million.

riverside is among the most active and experienced healthcare and education investors in the world, completing 83 such deals in the firm’s history - 12 in the last 12 months alone!

Riverside’s specialisations played a role in most of its 2011 acquisitions, accounting for 18 of the 29 deals it completed.

While there are no plans to abandon its generalist approach, over the past several years, Riverside has deepened its expertise in several key industries; Healthcare, Education & Training, Software and franchising.

Future planned specialisations for the firm include clean technology and consumer products, two rapidly growing segments in which Riverside already has considerable experience and dedicated staff.

Riverside has seen faster growth and greater returns on exits from investments developed by specialist teams.

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riverside is the only global private equity firm focused exclusively on the smaller end of the middle market.Through its 200+ employees on the ground in 20 international offices, riverside has the connections to grow small businesses across its footprint.

Stewart Kohl Riverside Co-CEO

“no firm in the world shares Riverside’s resources and approach. Even as we’ve become larger and more sophisticated, we’ve remained commited to accelerating growth for small successful companies”

THE riVErSiDE DiffErENCE

OrigiNATiON ANyWHErE Riverside works on the ground everywhere the firm invests, scouring the globe for opportunities. Riverside pioneered the use of dedicated sourcing professionals, and while this global approach has since been imitated, few firms in Riverside’s market can equal its experience and results.

PriNCiPlED APPrOACH Riverside has always embraced investors’ interest in environmental, social and corporate governance (ESG+V) issues. At Riverside, we’ve ‘added a ‘V’ for values to represent a values-based philosophy of doing business. Riverside has long considered sustainability, environmental impact, and company leadership as a natural part of its due diligence and day-to-day operations.

CONTiNUOUS iMPrOVEMENT Riverside University is an ongoing series of professional development and education programs open to all Riversiders and portfolio company management teams. This program culminates in a two-day annual leadership summit, which brings together Riverside employees, portfolio company CEOs and CFOs, and outside board members.

iNDUSTry VOiCE Riverside takes great pride in its positive approach to private equity. As the industry has come under increased scrutiny, Riverside has stepped up its advocacy role, highlighting the benefits of private equity to the public and policymakers through direct interaction with elected officials, speeches and articles, and participation with trade organisations.

iNTErNATiONAl grOWTH Whether it’s evaluating investment opportunities or opening new markets, Riverside helps its entire portfolio globalise throughout every market in which it operates. In addition, Riverside’s dedicated Asian sourcing program helps companies access growth opportunities across Asia.

SUPEriOr SUPPOrT Riverside supports all of its activity with a coordinated multifaceted team that shares the same goals as the firm’s investment professionals. These professionals monitor portfolio performance, develop cost-saving programs, promote Riverside globally, and support the development of investment professionals and portfolio company management.

ADDiNg VAlUE Riverside dedicates its expertise, resources and experience to making its companies bigger and better by sourcing new customers, suppliers or other opportunities. For specific challenges, the firm uses its Riverside Toolkit, a large pool of vetted resources that help optimise companies through lean manufacturing, pricing, sales and marketing, and other areas of expertise.

OPErATiNg MUSClE With more than 25 senior executives serving in full-time operating roles, Riverside has always been a leading proponent of creating lasting value organically. An operating team was once seen as a resource for fixing problems at companies. Today, it’s recognised as a force for innovation, creating value and growing companies.

Sentinel Acquired: August 2005 Exited: February 3.1x gross cash-on-cash return 22% gross iRR

Justrite Manufacturing Acquired: December 2004 Exited: June 3.5x gross cash-on-cash return 20% gross iRR

Momentum Acquired: August 2006 Exited: August 4.9x gross cash-on-cash return 35% gross iRR

EM Test Acquired: March 2008 Exited: October 3.5x gross cash-on-cash return 39% gross iRR

results Weight loss Acquired: August 2008 Exited: November 0.0x gross cash-on-cash return -100% gross iRR

Media Source Acquired: April 2007 Exited: November 2.8x gross cash-on-cash return 25% gross iRR

Crisis Prevention institute Acquired: September 2006 Exited: November 5.0x gross cash-on-cash return 36% gross iRR

2011year in review

COMBINED IRR

NET

NET

COMBINED CASH-ON-CASH RETURN

Exits “the volume of Riverside’s exits show how active we are around the world. the quality of those exits demonstrates our commitment to sustainable growth.”

Pam Hendrickson Riverside COO

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2011

Unless otherwise indicated, (i) any references to “gross IRR,” are to the aggregate, annual, compound, gross internal rate of return on investments and (ii) any references to “multiple of investment,” “MoC” or “multiple of cost” are to gross multiples of invested capital. Unless otherwise indicated, any references to “net IRR to LPs,” “net multiple of cost,” “net multiple of investment,” “net MoC” or “net DPI” are to the internal rate of return or multiple of invested capital calculated or net distribution per invested capital at the relevant Fund level, after payment of applicable management fees and carried interest and other applicable expenses. An individual limited partner’s net IRR may vary based on the timing of capital contributions and distributions. Past performance is not necessarily indicative of future results.

CPi is the world’s leading training organisation specialising in the safe management of disruptive and assaultive behaviour.

acquired: September 2006

5.0x gross cash-on-cash return36% gross irr

the 2009 add-on acquisition of Dementia Care specialists expanded Cpi’s focus to include seniors suffering with dementia and their caregivers, while the 2010 addition of positive Options solidified Cpi’s market leadership position in the uK market and internationally. the company conducts more than 300 training programs each year in 39 different countries and 130 cities around the world.

EM Test manufactures electromagnetic compatibility (“EMC”) test and measurement instrumentation for the automotive, industrial, telecom and other industries.

acquired: March 2008

3.5x gross cash-on-cash return39% gross irr

Riverside’s original investment plan called for expanding and deepening EM test’s footprint and products. however, confronted with the global economic crisis, EM test adjusted its output. with the key drivers for demand in EM test’s products intact, the company was poised for growth after the downturn and further strengthened its position as the leading supplier in its space. the 2009 add-on acquisition of lüthi Elektronik Feinmechanik ag allowed EM test to integrate a leading producer of measuring clamps for EMC test equipment.

ExitHighlights

Momentum distributes fabric to commercial furniture manufacturers as well as architectural and design firms that serve the office, hospitality, education and healthcare markets.

acquired: August 2006

4.9x gross cash-on-cash return35% gross irr

Combined with the strong management team, Riverside helped Momentum to prosper and grow organically during the global Financial Crisis. the company more than doubled its EBitDa and increased sales during Riverside’s hold period through controlling expenses, the implementation of competitive pricing strategies, an investment in initiatives, and innovative product development.

Sentinel manufactures products used to clean and protect residential central heating systems.

acquired: August 2005

3.1x gross cash-on-cash return22% gross irr

Riverside invested in sentinel as a corporate carve-out from general Electric. Riverside transformed sentinel from a small corporate division to a standalone company with operations and personnel spread across six countries. During Riverside’s ownership, sentinel added a range of products and customers with the 2007 add-on acquisition of salamander Engineering ltd., a smaller uK-based competitor. the investment was truly international for the global firm, as it involved two Riverside funds – the north america-based Riverside Capital appreciation Fund and the Riverside Europe Fund. having deal team members on both sides of the atlantic delivered a broad range of insight and experience to the company.

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ExitHighlights

Past performance is not necessarily indicative of future results. See Page 10 for additional information.

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iMPrOViNg OUTCOMES, lOWEriNg COSTSHealthcare costs continue to spiral upward internationally, and nowhere is that more true than the U.S. Riverside sees tremendous potential in companies that help reduce costs while improving patient outcomes. Physicians Pharmacy Alliance (PPA) is an ideal example.

The company, based in North Carolina, provides high-touch medication dispensing services for patients who require extra attention due to their use of multiple, high-cost, or specialty drugs. PPA works in concert with providers and patients, helping ensure the safety of the chronically ill patients they serve while reducing costs due to incorrect dosages, drug interactions, and other medication-interaction problems. The home-delivery method also helps ensure that patients are safely maintaining their prescription regimen.

Using its healthcare specialisation to evaluate the opportunity, Riverside invested in PPA in January 2011, and anticipates expanding the company geographically, through added services, and potentially via add-on acquisitions.

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FundHighlights

2011

in the face of macroeconomic uncertainty, riverside remained steadfast, with its funds outperforming competitors and major market indices and its portfolio increasing valuations in eight out of ten active funds. Highlights included:

Past performance is not necessarily indicative of future results.References to the S&P 500 Index or other indices are made for comparison purposes only and an investment in a private equity fund (e.g., the Funds) is unlike an investment in an index of liquid public equity securities.“Top quartile” performance is based on Cambridge Associates net cash-on-cash return benchmark and Riverside returns as of September 30, 2011.

riverside Europe fund (rEf) Founded in 1997, this fund family invests in leading companies in Europe with EBITDA between €3 million and €20 million.

Through four fund families, Riverside invests in healthy growing companies valued up to $200/€200 million in North America, Europe and the Asia-Pacific region.

riverside Capital Appreciation fund (rCAf) Founded in 1988, this fund family invests in North American-based companies with EBITDA of $5 million to $20 million.

riverside Micro-Cap fund (rMCf) Founded in 2005, this fund family seeks fast-growing North American “micro” companies with up to $5 million in EBITDA.

riverside Asia-Pacific fund (rAf) Founded in 2007, this fund family targets the developed economies of the Asia-Pacific region, focusing on companies with EBITDA of $4 million to $15 million.

• Closing RMCF II at $137 million, 37% above target. It is the first time Riverside has partnered with the U.S. government’s Small Business Administration (SBA) as a Small Business Investment Company (SBIC) fund. This gives RMCF II access to incredibly low-interest rate debt from the SBA, and adds up to $150 million in capital, providing RMCF II with a total of $287 million to invest. The fund is off to a running start, purchasing five companies and performing very well.

• Maintaing top-quartile performance in seven out of nine mature funds.

• NET €227 million returned to investors.

2.9xCOMBINED CASH-ON-CASH RETURN

NET

47%COMBINED IRR

NET

68EXITS

RETURN COMPARISON

Past performance is not necessarily indicative of future results. See Page 10 for additional information.All data as of 31 December 2011 unless otherwise stated.

10%

5%

0

-5%

3 YEAR RETURN15%

10%

5%

0

5 YEAR RETURN

15%

10%

5%

0

10 YEAR RETURN20%

15%

10%

5%

0

20 YEAR RETURN

RIVERSIDE NET RETURNS CAMBRIDGE ASSOCIATES LLC U.S. PRIVATE EQUITY®

CAMBRIDGE ASSOCIATES LLC GLOBAL (EX-U.S.) PRIVATE EQUITY INDEX S&P 500 MSCI WORLD EX U.S. INDEX

Source: Cambridge Associates; MSCI; Riverside. Information as of 30/06/2011

NET REAlISATIONS

>10x>5x - 10x<1x 1x - 2.5x >2.5x - 5xCOC

4 EXITS

12 EXITS13 EXITS

29 EXITS

10 EXITS

lifETiMEEXITS

NOrTH AMEriCA

atlanta 2746 Dover Road Atlanta, GA 30327 United States T: +1 770 948 4256

Chicago 4545 N. Hermitage Avenue Chicago, IL 60640 United States T: +1 773 334 7518

Cleveland Terminal Tower 50 Public Square, 29th Floor Cleveland, OH 44113 United States T: +1 216 344 1040

Dallas 3131 McKinney Avenue Suite 160 Dallas, TX 75204 United States T: +1 214 871 9640

los angeles 1453 3rd Street Promenade Suite 305 Santa Monica, CA 90401 United States T: +310 499 5080

new york 45 Rockefeller Centre, 630 Fifth Avenue, Suite 2400 New York, NY 10111 United States T: +1 212 265 6575

san Francisco 455 Market Street Suite 1520 San Francisco, CA 94105 United States T: +1 415 348 9560

EUrOPE

Brussels, Belgium 7. Avenue Lloyd George B-1000 Brussels Belgium T: +322 626 21 21

Budapest, hungary Millenáris Avantgarde Fény u. 16. H-1024 Budapest Hungary T: +361 224 9050

london, united Kingdom City Point 1 Ropemaker Street London, EC2Y 9HT T: +44 208 895 4876

luxembourg, luxembourg 46A, Avenue J.F. Kennedy L-1855 Luxembourg Luxembourg T:+ 352 271729 1

Madrid, spain Serrano 120-3°dcha 28006, Madrid España T:+34 91 590 1337

Munich, germany Alter Hof 5 80331 München Deutschland T:+49 89 242 248 90

prague, Czech Republic Václavské náměstí 832/19 110 00 Praha 1 Česká Republika T:+420 224 890 166

stockholm, sweden Blasieholmsgatan 4A 114 48 Stockholm Sverige T: +46 8 545 0 3030

warsaw, poland ul. Zielna 37/c 00-108 Warszawa Polska T:+48 22 320 4820

ASiA PACifiC

hong Kong, China Times Square Room 2912 Shell Tower 1 Matheson Street Causeway Bay, Hong Kong China T: +85 2 2159 7492

seoul, south Korea 21FL, Seoul Finance Center Taepyeongro 1-ga, Jung-gu 100-768 Seoul South Korea T: +82 2 3782 6820

tokyo, Japan Level 9, Kamiyacho Prime Place 4-1-17, Toranomon, Minato-ku Tokyo 105-0001 Japan T: +81 3 5408 1230

Melbourne, australia Level 35, 140 William Street Melbourne, VIC 3000 Australia T: +61 3 8672 2000

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The Information contained herein speaks as of the date hereof or as of the specific date(s) noted herein, as applicable. The Information contained herein is not intended to be relied upon as investment advice and is not, and should not be assumed to be, complete.

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The Riverside Company 2012. The information contained herein (“Information”) is furnished on a confidential basis for the sole and exclusive purpose of allowing a recipient to evaluate its investment in the limited partnership interests or redeemable participating shares, as applicable, of private funds (“Funds”) offered by Riverside Partners (“Riverside” and its affiliates), L.L.C. d/b/a The Riverside Company (“Riverside”). As a condition to being given access to the Information, each recipient thereof agrees not to transmit, reproduce or make available to anyone any of the Information or to use it for any purpose other than the evaluation of such recipient’s investment Funds. Each person who has accessed, or received a copy of, the Information (or any part thereof) is deemed to have agreed (i) not to reproduce or distribute the Information, in whole or in part, except to any employee, agent or representative directly concerned with the recipient’s investment in the Funds who agrees to be bound by this paragraph, (ii) to return the Information to the Funds promptly upon request and (iii) to be responsible for any disclosure of the Information, by such person or any of its employees, agents or representatives.