Funds

Defense Enterprise Fund

Management: Plowshare Management, an affiliate of Russia Partners Management (assumed management in 1999)

The Defense Enterprise Fund (“DEF”) was a not-for-profit entity incorporated in June 1994 pursuant to the National Defense Authorization Act for Fiscal Year 1994. DEF assisted the Newly-Independent States (NIS) of Russia, Ukraine and Kazakhstan in the successful privatization of defense industries and conversion of military technologies and capabilities into civilian activities. The Fund made both equity investments and loans, and developed financial transactions and instruments, which were appropriate to the existing circumstances of the NIS economy and financial sectors.

Subsequent to assuming management of the portfolio, Russia Partners assisted the Board in rationalizing its portfolio after the Russian ruble crisis of 1998. Russia Partners did not invest any additional capital into this portfolio.