Smedvig Capital Sells Protego

Smedvig Capital has sold Protego Real Estate Investors, a commercial real estate fund management company formed in 2004, to Cornerstone Real Estate Advisers LLC. No financial terms were disclosed, although Smedvig said the sale produced a 6.2x return with a 58% IRR.

Smedvig Capital (“Smedvig”), the London-based private equity firm, announces the sale of investee
company Protego Real Estate Investors (“Protego”) to Cornerstone Real Estate Advisers LLC. The
sale proceeds of Smedvig’s shareholding brings Smedvig’s total return to 6.2x with an IRR of 58%.
Further financial details of the transaction are not being disclosed.

Protego, a commercial real estate fund management company, was established in 2004 with backing
from Smedvig Capital. Since then it has grown both in the UK and in Continental Europe and today
has assets under management of approximately US$2.5 billion.

Commenting on the transaction, Robert Toms, Managing Director of Smedvig Capital said: “The
Protego team has done a fantastic job both building a business from the ground up and leading it
successfully and profitably through unprecedented conditions in the real estate market. Our focus at
Smedvig is to provide both financial backing and wider support to strong, dynamic management
teams. We seek businesses which will outperform their peer group through the economic cycle. I’m
delighted to say the team at Protego have done just that.

He added, “Discussions with Cornerstone have taken place over the last 18 months, and the timing of
the transaction is testament to how well the Protego management team have responded to wider
trading conditions. Cornerstone has secured an excellent addition to their client offering with
Protego’s European presence, and we wish the combined business continuing success.”

Iain Reid, CEO of Protego, added: “Our deal with Cornerstone allows us to transform our existing
business from one with a principally European focus to one with a global outlook. Smedvig has been
a very supportive investor, providing not only the funds we needed to get going, but also valuable
input to our strategic direction and a useful network of contacts. I’m now looking forward to developing
Protego with our new colleagues at Cornerstone and making a success of the next stage in our