Kelso adheres to the following investment principles:

• The firm’s most important consideration in evaluating an investment is the capability, integrity, character, commitment, and experience of the company’s management.
• Kelso structures investments to closely align management’s interest with those of investors. Each key member of the company’s management team typically makes a significant personal equity investment in the company on the same terms as Kelso.
• Kelso’s Principals and employees are the largest investor in each of Kelso’s three most recent funds. Kelso believes that this financial commitment creates a strong alignment of interests with management teams.
• Kelso has a long-term investment philosophy. On average, Kelso has held realized portfolio investments for approximately five and a half years. Throughout the investment process, Kelso works closely with management to plan and implement strategic and operational improvements designed to increase equity value. Management teams are encouraged to grow their businesses through capital expenditures, acquisitions, and expansion.
  
  Kelso has consistently made follow-on equity investments to support portfolio company growth. Under Kelso's ownership, its portfolio companies have completed acquisitions with aggregate initial capitalization at close of over $6 billion.
• Kelso believes that its long-term view helps create value as it gives management sufficient time to implement a strategic plan for creating shareholder value, and it allows the firm to make opportunistic exit decisions.