Freeman Spogli has consistently identified acquisition candidates that provide superior returns while reducing the risks associated with investing in leveraged transactions. In doing so, the firm has developed an investment philosophy that is characterized by:

Freeman Spogli invests in companies that are positioned for sustained earnings momentum through secular growth, consolidation or other fundamental growth opportunities. Freeman Spogli believes that the key to creating value is through long-term earnings growth rather than through the utilization of excessive leverage. In addition to providing downside protection, the larger equity base helps to accommodate internal expansion plans and provides flexibility to take advantage of other opportunities, such as add-on acquisitions.

Because Freeman Spogli believes that companies achieve strategic and operating objectives more consistently when management has a significant equity ownership in the business, management is always provided with the opportunity to invest in the company alongside Freeman Spogli.

Freeman Spogli focuses on middle-market companies in the retailing, direct marketing and distribution industries in the United States ("The Target Markets") in order to leverage the Firm's strengths in these sectors. The Target Markets have demonstrated compelling fundamentals over the past 30 years, including strong revenue growth, stable, predictable profitability and attractive public market returns. In addition, these sectors are large and highly fragmented, providing a wealth of attractive investment opportunities. Since the Firm's founding in 1983, Freeman Spogli has developed an expertise in these sectors, investing almost 75% of its capital in the Target Markets. This focus provides Freeman Spogli with a detailed knowledge and understanding of changes in consumer and business buying patterns, demographic trends, competitive dynamics and shifting distribution channels.