Investment Strategy

The Partnerships may invest in opportunities at various stages of funding, including:

1. Multi-Stage Venture Capital

   Multi-stage venture capital (diversified stages, that could include early, mid and late) through fund investments, co-investments and structured investment vehicles based on specialized strategies.

2. Growth Equity

   Growth Equity (cash flow positive companies in need of financing to expand operations or make acquisitions) through fund investments and co-investments.

3. Buyout

   Buyout through fund investments and co-investments.

4. Special Situations/Mezzanine

   Special Situations/Mezzanine through fund investments and co-investments.

Geography

1. Companies

   The Partnerships seek to invest primarily in companies based in North Carolina. Opportunities in other regions will be considered, provided those companies (1) plan to move all or a significant portion of their operations to North Carolina, or (2) have some other meaningful connection to North Carolina. For the avoidance of doubt, companies that will be considered for investment by the Partnerships include (but are not limited to) the following: (1) companies that are headquartered in North Carolina; (2) companies that conduct a significant portion of their operations in North Carolina; (3) companies that derive a significant portion of their sales from North Carolina; (4) companies that are in the process of initiating, expanding and/or restructuring significant operations in North Carolina; or (5) companies that employ a significant portion of their workforce in North Carolina.

2. Funds

   For the avoidance of doubt, funds that will be considered for investment by the Partnerships include (but are not limited to) the following: (1) funds that are headquartered in North Carolina; (2) funds that conduct a significant portion of their operations in North Carolina; or (3) funds that deploy a significant portion of their investable capital in North Carolina.

Investment Restrictions

In pursuing their investment objectives and asset allocation goals, subject to the terms of their governing documents, the Partnerships will adhere to the North Carolina Department of State Treasurer’s (1) Investment Policy of the Private Equity Program’s Innovation Funds and (2) Alternative Investments Guidelines, Policies and Procedures, in addition to the following investment restrictions (unless otherwise agreed to by North Carolina Retirement Systems):

1. Aggregate Capital Commitment

   A partnership may not invest or commit more than 10% of its aggregate capital commitments (inclusive of follow-on investments) in any single investment, without prior written consent from the Treasurer as Limited Partner of such partnership. Investments generally are expected to range from $2 million to $20 million in size.

2. Vintage Year

   A partnership shall not invest or commit more than 33% of the aggregate Capital Commitments for investment in any one Vintage Year; provided, however, the Partnership may invest or commit more than 33% of the aggregate Capital Commitments for investment in a Vintage Year with the prior written consent of the Treasurer as Limited Partner of such partnership.