Sustainability asa tool for Value
Creation
Palladium’s Approach
SIIF - Impact Workshop
Tokyo
November 28, 2023

This presentation is for the intended recipient only no portion of it may be distributedor copied Confidential and trade secret © 2023 Palladium Equity Partners, LLC

Who We Are – The Palladium Way
Successful 27-year history investing in the middle market– Over 200 investments (40 platforms and 170+ add-ons)(1)– Realized $4.0 billion on $1.7 billion invested(2)Distinct competitive advantage in the U.S. Hispanic Market– Invested over $1.25 billion in 19 platform companies
in this market since 2000(3)– Hispanic Market represents now $3.2 trillion or 13% of U.S.
GDP(4)

Stewardship and Authenticity– Thought leader in the incorporation of sustainable practices asa tool for value creation– One of a handful of non-impact U.S. private equity firms toachieve B Corp certification

Note: All figures are as of June 30, 2023, unless otherwise stated. Certain statements above represent the opinions and beliefs of Palladium. Such statements involve known and unknown risks, uncertainties and other factors, andundue reliance should not be placed thereon. Please refer to the track records of the Palladium Funds for further information on how the gross and net figures stated herein are calculated. (1) $4.0 billion delivered is gross of recycled
capital. Includes all investments across Fund II, Fund IV and Fund V and the 12 largest Fund III investments. Total platform figures count Taco Bueno once in order to avoid double counting. GoodWest and Jordan’s Skinny Mixes(“JSM”) count as one platform investment. 39 total platform investments includes Superior Environmental Solutions, which closed 8/1/23, while all other data is as of 6/30/23. (2) Realized Investment includes fully and partiallyrealized investments. Partially realized investments include investments that have Realized Proceeds of over 50% of Invested Capital. The actual value of unrealized investments will depend on, among other factors, future operating
results, the value of the assets and the market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions and circumstances on which thecurrent unrealized valuations are based. (3) Since 2000, Palladium has invested over $1.2 billion across 20 U.S. Hispanic-oriented platform investments across the Palladium Equity Partners Funds. Hispanic-orientation was not an
investment consideration prior to Fund III. (4) Latino Gross Domestic Product (“GDP”) Report, September 2022, which states the methodology used for estimating Hispanic GDP.

Confidential and trade secret22Characteristics of Our Investments
What is a Palladium Deal?

U.S. Hispanic Market
55% of platform investments(1)Founder Transitions
67% of platform investments(1) Seek to capitalize on growth of$2.8 trillion market fueled bystrong demographic trends
 Hispanic owners, employees,
consumers, and end users

 Seek founder-backed businesses
to transform into professional
enterprises poised for growth Sectors include: consumer,
services, healthcare andindustrials

Accretive M&A
67% of platform investments(1) Seek fragmented industries withconsolidation opportunities
 Average 4 add-ons per platform

Charts are for illustrative purposes only. U.S. Latino Gross Domestic Product (“GDP”) Report, September 2022, which states that the methodology used for estimating Hispanic GDP and the associated data for population,
employment and labor force, education and citizenship, relied almost exclusively on data and public use microdata from the U.S. Department of Commerce and the U.S. Department of Labor. (1) Data set includes Fund III’s 12largest investments, which represent 85% of invested capital of Fund III, all of Fund IV and Fund V investments to date. Past performance is not necessarily indicative of future results, and there can be no assurance
that any Palladium Vehicle will achieve comparable results, will meet its target returns, achieve its investment objectives, be able to implement its investment strategy or be able to avoid losses. Therecan be no assurances that any potential acquisitions will close on the terms presently contemplated, or at all.

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Sustainability is integral of Palladium’s History, Mission, and Investments
We believe that integrating responsible business practices across our Firm and our portfolio createsvalue for all stakeholders.
PALLADIUMPORTFOLIOCOMPANIESCOMMUNITY

63% of employees(1)43% of board members(3)68% of investments(4)55% of partners and 64% ofSenior Team are either diverse
and/or female(2)Palladium is committed tohaving at least 30% female and30% diverse directors on eachcontrolled portfolio company
board

Many of Palladium’s portfolio
companies create products orservices to help narrow economic
disparities that exist in thesecommunities

Community
Partnerships

Palladium continues to deepen its commitment to socially responsible investing

Note: All figures as of October 2023 unless otherwise indicated. (1) Based on ethnic minorities and women out of all Palladium employees. (2) “Senior Team” is defined as employees at or
above the Vice President level. (3) Out of 131 board members, 27% are female and 27% are diverse, and 43% of board members are female and/or diverse. Information as of September 2023
(4) Includes Fund III’s 12 largest investments, which represent 85% of invested capital, all of Fund IV’s twelve investments to date and the nine Fund V investments to date. Excluding Fund
III, approximately 55% of Fund IV’s twelve investments and the nine Fund V investments to date are Hispanic-oriented.

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The Underserved U.S. Hispanic Market
Emerging market investment opportunity in a developed market

10-Year GDP CAGR (2010-2020)

8%
7%
6%
5%

China
$14.863T
India$2.668TUK$2.759T

4%
Korea$1.638T

3%
2%

France$2.780T

1%
0%$10,000$20,000

Italy$30,000 $1.891TJapan$5.040T$40,000

U.S.
Hispanic$2.777T
US$20.894T
Canada$1.645T
Germany$3. 843T$50,000$60,000-1 %GDP per Capita (2020)

This market would equal the 5th largest country and 3rd fastest growing GDP
The median age of the U.S. Hispanic population is 11 years younger than the U.S. Non-Hispanic population
By 2060, Hispanics are expected to represent ~30% of the U.S. population
Source: Latino Gross Domestic Product (“GDP”) Report, September 2022, which states that the methodology used for estimating Hispanic GDP, and the associated data for population, employment and labor force, education andcitizenship, relied almost exclusively on data and public use microdata as of December 31, 2020 from the U.S. Department of Commerce and the U.S. Department of Labor. Information for all other countries from World Bank data.
Note: For illustrative purposes only. No assurance can be given that current market conditions and related trends will continue.

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Going beyond the semantics – Palladium Stewardship Approach

Confidential and trade secret6• Minimizing
Negative
Environmental
Impact• Workforce Safety• Reduction ofBenefits Gap• Human Rights &Diversity• Traceability ofSupply Chain• Positive Impact onSociety &Communities

Integrity & Accountability• Efficient Resource
Management –Energy/Water

People & Community

Resource Efficiency

Sustainability Verticals• Board Diversity• Transparency &Ethics• Cybersecurity
Protocols

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Objectives of Sustainability Integration
Three clear and defined objectives guides us through that integration

Risk Assessment & Mitigation••

Identify relevant risks acrossthe portfolio, i.e. resource
efficiency, people andcommunities, and integrity andaccountability
Mitigate the identified risks
arising during the onboarding,engagement and monitoring of
the portfolio company

Alpha Generation•

Interventions at theportfolio company level thatwill generate measurable
value enhancement•

Recognition of market trends
that assign value to strong
Sustainability performance

New Business Opportunities•

Innovation and new products
and business lines centeredaround themes thatincorporate sustainability or
impact trends.

Acceleration: Best practices disseminated across the entire portfolio
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Framework for Integration of Sustainability across the portfolioIndependent Review: Start with an independent review of relevant
KPIs for the firm and each portfolio company

MeasureTransparent Reporting: Participate in industry wide
Sustainability Initiatives aiming at standardizing reporting

AssessBenchmark Results
 Benchmark sustainability performance of all our portfolio againstpeers
 Benchmark Firm performance across best in class within the AM
IndustryContinuous Improvement: Develop Action Plan to improve key
indicators YoY

ImproveUpdate Proprietary Sustainability Playbook: Accelerate

Confidential and trade secretadoption of lessons learned throughout the portfolio

Confidential and trade secret9Roadmap for Integrating Sustainability

Confidential and trade secretDeal Origination And Due Diligence
Palladium will work with the widely used Sustainability Accounting Standards Board (SASB) framework for measuring operationaland financial materiality by sector.

Confidential and trade secret11Origination And Due Diligence – Initial AI Driven Assessment
Once the Deal Team is sufficiently interested moving to the pre-LOI phase of due diligence, a low-cost AI driven assessment ofpublicly available data can be used to determine materiality around key sustainability issues.
Early Stage/Pre-LOI: DataESG uses artificial intelligence to gather Sustainability related data from public sources about
private companies and systematically converts it into a structured Sustainability assessment. Sources include SEC filings,
interviews and media reports, analyst reports, company published resources, and others.

DataESG ASSESSMENT: Example - Envoy Global*• Volume/Contribution of each SASB
Dimension: A DataESG assessment ofpublicly available information on Envoy Global
indicated a strong perception about thecompany’s work related tocommunity relations and its relationship with
key outside parties (Social and Human
Capital).
• Intelligence Score:
The Intelligence Score measures a company’s
long-term ESG record across the 5 key SASB
dimensions and summarizes the sentimentprojected by the publicly available information
at any given time.
Source: DataESG* The full DataESG report can be found in the Appendix.

Confidential and trade secret12Implementation/Hold Period – Establishing a Baseline with EcoVadis
During the Hold Period, measuring, monitoring, and reporting will ensure investment decisions involving Sustainability will focus
on long term, scalable, and recurrent value creation.
Measuring, Monitoring and Reporting: EcoVadis plays a critical role at this stage by working with management to identify
Sustainability factors material to the company’s financial and operating activities. Monitoring will include specific Action
Improvement Plans to address any of the above identified factors

Best in classbenchmarks

Source: EcoVadis

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Implementation/Hold Period – Establishing a Baseline with GreenProjectMeasuring, Monitoring and Reporting: Green Project Tech will also play a critical role at this stage by helping establish a carbon footprint
for each of our portfolio companies, as well as identifying different protocols by which we can operationally reduce this footprint in an
efficient and effective manner.

Source: Green Project Tech

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Implementation/Hold Period – Continuous Reporting on Standard KPIs

Adaptation on the Gini Coefficient, a well-establishedmethodology to measure income inequality.

Confidential and trade secretImplementation/Hold Period – Benchmark against peers

Confidential and trade secretCase Studies

Overview

Resource Efficiency People andCommunity

Integrity andAccountability

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Resource Efficiency: Accupac Case Study

Description: Contract manufacturer and packager forinternational personal and beauty care components
Date of Investment: January 2020
Region: Mid Atlantic U.S.
Sector: Personal Care Manufacturing
Initiative: Wastewater Management

As a personal and beauty product manufacturer, Accupac’s
blue chip global customers demand best-in-class design,quality, pricing, and resource efficiency. Accupac’s efforts in
2022 contributed approximately $600k to its EBITDA
through cost savings on product inputs and further alignment
with customer preferences. Accupac identified opportunities
to improve practices through leading-edge resource
conservation programs.
Accupac is upgrading its Pennsylvania wastewater
management system, increasing its processing capacity andlimiting the hauling of wastewater. This investment willbolster water conservation and management, saving costs byincreasing the effectiveness of waste and water separation.
In addition to its wastewater management efforts, Accupac
recycles and uses renewable energy. Recycling initiatives
increase the lifespan of materials, which subsequently results
in reduced GHG emissions and cost savings. Annually,
Accupac recycles 1k tons of cardboard, 80 tons of steel, and180k gallons of ethanol. Accupac’s investments streamline
operational efficiency, appeal to customers, and promoteresource conservation.

Accupac’s
goal
is
to
completeits
wastewater management upgrade in 2024,
which will increase processing capacity
and limit the hauling of wastewater.

In Numbers

180K

gallons of ethanol
recycled annually

1,470

MTCO2E of GHGs
reduced in 2022

41K

tons of mixed plastics diverted
from regional landfills since
2010

2,097

tons of waste diverted
in 2022$600k

EBITDA contribution fromresource focused initiatives

Confidential and trade secret18Overview

Resource Efficiency People andCommunity

Integrity andAccountability

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People and Community: EverDriven Case Study

Description: Provider of safe, reliable transportation forchildren with special transportation needs
Date of Investment: February 2020
Region: U.S.
Sector: Transportation
Initiative: Driver Safety

In providing student transportation, EverDriven understands
the importance of driver safety and embraces its
responsibility to protect the wellbeing of its employees,
students, and the local communities it serves. Being theleader in safety can generate significant customer goodwill
and interest in new markets, positively impacting
EverDriven’s bottom line and protecting people.
EverDriven’s safety program provides thorough guidance todrivers through its SafeRide guidelines. EverDriven
formalized these guidelines in a certification this year to
showcase that its standards exceed the minimums set by amosaic of regulatory requirements. SafeRide certification
includes a stringent background check, alcohol and drug
screening, a driver safety test, a vehicle check followed byongoing audits, and third-party safety inspections.
Safety incidents are tracked closely to ensure comprehensive
analysis and proactive response. In 2022, EverDriven’s safety
and operational incidents rate (0.05%) was significantly
below the benchmark in 2020 at the time of initial investment(0.1%). Since Palladium’s investment in 2020, EverDriven has
not experienced a significant driver or student safety incident.
Additionally, it proactively reviews its proprietary routing
system and addresses all findings with its drivers. Moving
forward, EverDriven intends to integrate telematics systems
into its vehicles, providing greater visibility into safety
behavior and appropriate responses.

EverDriven understands that a
prioritization of people is not just crucial tohealth and driver safety; it is vital to longterm success.

In Numbers

1.5M

0.05%

trips

incident rate in 2022

22k

0

students served

3.95

significant* driver safetyincidents since investment

vehicle accidents per million
miles*A significant incident is defined as a driver and /or passenger fatality

Confidential and trade secret19Overview

Resource Efficiency People andCommunity

Integrity andAccountability

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Integrity and Accountability: Health Connect Case Study

Description: In-home, community and school-based mental
and behavioral health services
Date of Investment: August 2021
Region: Southeast U.S.
Sector: Healthcare
Initiative: Governance Initiatives

As a healthcare provider, Health Connect America (“HealthConnect”) maintains a strong governance program that
promotes the integrity and security of its services. It is
responsible for upholding a strong program to address risks
including regulatory obligations to healthcare and data
privacy laws and ensuring proper patient interactions. Risks
are heightened due to its services to vulnerable populations
within in-home and school settings. Incidents could be costly
without appropriate governance; good data management andcompliance practices protect insurance reimbursement andrevenue streams, attract new customers, and prevent costly
regulatory violations.
Health Connect provides quality, affordable mental andbehavioral services to individuals and their families in theSoutheast U.S. Many of its customers face heightened
barriers to proper healthcare, particularly to behavioral andmental health services. Strong governance allows its
vulnerable clients to feel secure and protected in theirprovider relationships and focus solely on successful
healthcare outcomes.
After conducting its initial EcoVadis assessment, HealthConnect established an Action Improvement Plan outlining
initiatives to strengthen its governance program across laborand human rights, ethics, and environmental topics.

Health Connect provides quality, affordable mental
and behavioral services to individuals and theirfamilies in the Southeast U.S.

In Numbers

21K+

children and families served~74%

closed action
plan items

7

States served

improvement

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