fantastic_racing

Turnaround Investments

In almost all of the turnaround deals that we have been involved in, new money is injected. This normally comes from third party investors usually in conjunction with leveraged debt from banks or specialist asset based lenders.

However, in this section we have illustrated the deals where we have acted as equity investors (as opposed to advisors) either as the majority shareholders or as minorities on a syndicated deal. The way we make our investments is that our partners pick and chose which deals they want to do and therefore individual shareholdings vary from deal to deal.

Fantastic Racing – Corporate Motorsport - 100% shareholders

For a few years we had been running business development race days and weekends in Cape Town, South Africa. We ran them on a very basic level, using small single seater racing cars called Formula Vees. It was great fun and totally met TMP’s business development objectives.

However, we noticed just how much our business buddies loved the experience. They kept asking to do the same for their clients. This simply was not possible given the depth of fleet that we had and also the cost entry of buying a robust fleet that would make the business viable.

In mid 2005 we spotted an opportunity where we could buy a world class fleet of single series from the Barber Dodge Series in USA which acted as the feeder series to Champ Cars. Within a few weeks we had visited the US, put together a game plan and bought the series.

We acquired:

• 27 race cars.

• A very extensive range of spares.

• The manufacturing rights to build the cars.

The commercial logic of the investment was that:

• We could see the unsatisfied demand from our clients, and that there was no competition in

South Africa – and indeed very little competition outside the UK and the US.

• Our entry price was extremely was extremely low – meaning that if the business failed to met

our expectations we could sell the fleet individually for the amount we invested. Therefore there

was a reasonable prospect of recovering 100% in a distressed situation.

• On the upside – the business had significant potential, which we felt we could build over 3 to 5 years.

We have now been running the business since January 2006 and we have (at the time of writing January 2007) achieved the following so far:

• Set up great facilities, workshops, event teams and marketing divisions in Cape Town and

Johannesburg, South Africa.

• Generated significant sales from the SA market and the international market – in particular

from the financial community in London.

• We are now focusing on penetrating the South African market properly – now that we are

fully established operationally.

We have a number of core products:

• Race day / weekend events for corporates and also groups of individuals.

• Arrive and drive racing in regional South African races.

• A Race Academy which is in the process of being established.

We are also intending building cars for sale and expansion of the business to different markets. We would hope to have the first car completed by mid 2007.

www.fantasticracing.com

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Restructuring &

Turnarounds

Powerplan

Global Marine Systems

Powerhouse

Orb Group

Furniture To Go

Southend Property Holdings

Turnaround Investments

Fantastic Racing