Investment guidelines

• General / Basis
• Investment objectives and policy
• Details of investment strategy
• Investment process
• Risk control
• Amendment of investment guidelines

General / Basis

The Articles of Association of Absolute Private Equity AG (the "Company") provide in article 3 that the Company shall invest worldwide through one or more subsidiaries primarily into a portfolio of private equity and venture capital investments as well as, in order to achieve an efficient administration of funds that are not yet or not anymore invested, into a mixed portfolio of stocks and bonds. Such investment strategy shall aim to produce attractive returns even in a difficult stock exchange environment.

Both kinds of investments can be made directly or indirectly through specialized non-traditional investment managers. The Company invests, directly, through one or more subsidiaries (the "Subsidiaries") in private equity funds, partnerships and other non-traditional investment funds such as hedge funds, commodity trading advisors (CTAs) or Credit Default Swaps (together "Investment Vehicles"). The Company may also invest, indirectly, in the investment funds and portfolio companies in which such Investment Vehicles hold securities as well as in management companies of such Investment Vehicles. Furthermore, the subsidiaries might make private equity investments on a side-by-side basis with such Investment Vehicles ("Direct Co-Investments") as well as direct investments ("Direct Investments").

The Company and the Subsidiaries are assisted by an investment manager (the "Investment Manager") that can be advised by investment advisors (the "Investment Advisors"). Certain details hereon are set forth in the Company's offering circular dated September 4, 2000.