Editing Augmentum Fintech PLC (section)

=== Strategy Implementation Risks ===
The Group is subject to the risk that its long-term strategy and its level of performance fail to meet the expectations of its shareholders.

Investment Risks

The performance of the Group’s portfolio is influenced by a number of factors. These include, but are not limited to:

# the quality of the initial investment decision;
# reliance on co-investment parties;
# the quality of the management team of each underlying portfolio company and the ability of that team to successfully implement its business strategy;
# the success of the Portfolio Manager in building an effective working relationship with each team in order to agree and implement value-creation strategies;
# changes in the market or competitive environment in which each portfolio company operates;
# the macroeconomic risks described above; and
# environmental, social and governance (“ESG”) factors.

Any of these factors could have an impact on the valuation of an investment and on the Group’s ability to realise the investment in a profitable and timely manner.

The Company also invests in early-stage companies which, by their nature, may be smaller capitalisation companies. Such companies may not have the financial strength, diversity and the resources of larger and more established companies, and may find it more difficult to operate, especially in periods of low economic growth.<ref name=":3" />