Current Investments

Inverness currently manages three platform investments and we are actively building these businesses. The following is a brief summary of the investments:

KELLSTROM INDUSTRIES INC. (“Kellstrom”) is one of the largest distributors of aviation parts for the commercial airline market and the defense industry. In July 2002, Inverness purchased the business through a pre-packaged bankruptcy plan for approximately $51 million. Kellstrom has significantly expanded its distribution relationships, increased its geographic presence and strengthened its repair and overhaul capabilities.

INDEPENDENT INSURANCE INVESTMENTS, INC. (4i’s) is a specialty provider of non-standard automobile insurance. In December of 2004, Inverness purchased the business from Arch Capital Holdings for $45 million. 4i’s has completed two acquisitions which have significantly expanded 4i’s geographic footprint and premium base.

PAYMENT ALLIANCE INTERNATIONAL (“PAI”) provides third-party credit and debit card processing services and is the second largest processor of ATMs in the US. In September 2005, Inverness purchased Electronic Data Resources from private investors for $46 million. PAI has subsequently completed six additional acquisitions, which have expanded the business’ product offerings and distribution channels.

Exited Investments

The following demonstrates Inverness's participation in diverse industries and transactions over a wide range of values:

AMC ENTERTAINMENT, INC. is one of the leading movie theater operators in the U.S., which at the time of Inverness' investment operated 189 locations with 2,807 screens in the U.S. and internationally. In October 2000, Inverness purchased approximately $100 million in face amount of Senior Subordinated Notes for approximately $48 million. Exit date: June, 2001; Multiple of Investment: 2.0x; IRR: 289.9%.

SOUTHWESTERN LIFE HOLDINGS is a life insurance holding company. In September 1998, Inverness invested $31.5 million in a transaction valued at approximately $202 million. Exit date: June, 2001; Multiple of Investment: 1.5x; IRR: 24.0%.

NATIONAL-OILWELL, INC. is a leader in the design and manufacture of drilling rig components and one of the world's largest distributors of standardized oil field products. In January 1996, Inverness purchased National-Oilwell in a management-lead buyout from Armco and USX Corporation for approximately $180 million. Exit date: March, 2000; Multiple of Investment: 22.0x; IRR: 110.0%.

PREFERRED TECHNICAL GROUP is a designer and manufacturer of coupled-hose products for passenger cars and light trucks. In September, 1992, the company was purchased in a $70 million buyout from a unit of United Technologies. Exit date: December, 1994; Multiple of Investment: 10.2x; IRR: 175.9%.

PIEDMONT AVIATION SERVICES, INC. was the second largest distributor of parts to the general aviation market. The company was a full service, fixed base operator and a major provider of overhaul services to regional airlines and air cargo companies when it was purchased for $68 million from US Air in July, 1992. Exit date: July, 1998; Multiple of Investment: 4.5x; IRR: 28.6%.

FINANCIAL ALLIANCE PROCESSING SERVICES, INC. is a leading provider of credit card processing services to the small merchant market. In December, 1996, Inverness and management purchased the company from Deluxe Corporation for $45 million. Exit date: October, 1997; Multiple of Investment: 3.7x; IRR: 385.8%.

PENNCORP FINANCIAL GROUP, INC. is an underwriter of specialty accident and health insurance. In August, 1990, Inverness initiated and negotiated the purchase of PennCorp from Primerica, Inc, in a $279 million leveraged buyout. Exit date: October, 1992; Multiple of Investment: 4.3x; IRR: 62.3%.