The foundation of our strategy is the combination of geographic focus in the Midwestern U.S. and Canada and industry specialization in the industrial and consumer sectors.

Mill City Capital maintains a highly focused investment strategy based on picking our spots carefully and focusing on situations on which our collective relationships, industry experience, and transactional expertise can best be brought to bear. We believe that success in the world of middle market private equity investments and buyouts requires a higher degree of specialization and focus and that the generalist approach to this market has become outdated.

Middle Market

Mill City Capital seeks control-oriented and minority equity investments in middle market businesses, which we generally define as companies with EBITDA of $2 million to $15 million.

We will consider opportunities involving larger or smaller companies as add-on acquisitions for existing portfolio companies and occasionally as stand-alone investments if there is a clear industry consolidation opportunity.

Geographic Focus

A key element of our investment strategy is our focus on companies located in the Midwest, with a particular emphasis on businesses located in the Upper Midwest, as well as central and western Canada. Our geographic focus offers many advantages, including:

• Access to an extensive network of relationships throughout the region

• Ease of communication and face-to-face interaction with management teams of our portfolio companies

• The geographic region is home to numerous successful middle market businesses, many of which are national and even worldwide market leaders in their respective market niches.

Value-Added Approach

We believe that our highly focused investment approach enables us to be effective owners and investors for our portfolio companies. By investing in companies in our region in industries we understand well, we are well positioned to apply the skills, experiences, and resources of our team to assist the management teams of our portfolio companies. The assistance and guidance we provide can range from industry perspective and contacts, assistance with sourcing strategic add-on acquisitions for portfolio companies, and general Board-level guidance related to strategic growth initiatives, lean manufacturing, and the like.