Breakwater Management Completes Financing of yurbuds®

Growth capital fund backs leading innovative sport technology company to support its product development and ongoing business expansion.

LOS ANGELES, May 2014 – Breakwater Management, LP (“Breakwater”) is pleased to announce the recent closing of a new-platform growth capital investment into yurbuds® out of its Breakwater Structured Growth Opportunities Fund. Based in Los Angeles, Breakwater is a private investment firm that specializes in direct investments in leading lower middle market businesses that demonstrate attractive opportunities for growth.

Based in St. Louis, Missouri, yurbuds is the #1 selling sport earphone company in the United States. The business sells its diversified range of products through a wide distribution network of large retailers such as Target and Walmart, consumer electronics stores like Apple, Best Buy and AT&T, and sporting goods retailers such as Dick’s Sporting Goods and Sports Authority.

“We are extremely pleased to partner with the professionals at Breakwater,” said Seth Burgett, co-founder, Chairman and CEO at yurbuds. “This is another year of active expansion for the yurbudsbrand. The financing from Breakwater will provide valuable working capital to support our strategic plans and ongoing business growth, helping to further yurbuds’ mission to transform the athlete’s experience through personalized service and exceptional products that integrate ergonomics, performance, and emotive design.”

“We are delighted to support this well-recognized premium brand within the sport tech market,” said Saif Mansour, Founding Partner at Breakwater. “With its strong financial performance, multiple channels of distribution, and seasoned management team, yurbuds is ideally positioned for high sales growth over the coming years. We are very pleased to be financing this innovative company at such an exciting phase of its business.”

ABOUT YURBUDS, LLC

yurbuds was founded in 2008 by Seth Burgett, Chairman and CEO, an active Ironman triathlete and Richard Daniels, COO, a 25-time marathoner and Ironman triathlete. Burgett and Daniels left their corporate roles and joined forces to improve personal performance. They have been joined by Craig Ceranna, CFO and Managing Director, to realize the company’s mission: transform the athlete’s experience through personalized service and exceptional audio products that integrate ergonomics and emotive design.

As a company, yurbuds was recently honored by the 2013 International CEA Innovations Design and Engineering Awards for the Focus Limited Edition. yurbuds has also been awarded for its marketing, including a 2011 “Site of the Day” for Awwwards.com and a 2010 GOOD DESIGN AWARD. Forbes also named yurbuds the 9th Most Promising Company in America for 2009.

ABOUT BREAKWATER MANAGEMENT, LP

Breakwater Management is a private investment firm that specializes in direct investments in leading lower middle market growth companies, especially businesses with expanding global operations. The firm aligns itself with committed management teams, owners, and sponsors to help propel lower middle market businesses into their growth curve. Breakwater has an established, world-class alternative asset management platform, with multiple partnerships and investment vehicles that service the lower middle market’s myriad capital needs.

To learn more about Breakwater, visit www.breakwatermgmt.com or call (424) 777-4000.

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Dear friends,

It is with profound sadness that we relay news of the recent death of our partner Saif Mansour. Saif passed away suddenly on October 27th due to an undiagnosed heart condition.

Saif founded Breakwater in 2009 as a young entrepreneur, with the vision of creating an investment firm that reflected his commitment to excellence, integrity, and long-term partnership. He was an incredibly intelligent, energetic, kind, and charismatic person, and a great connector of people who brought joy to everyone who knew him. He was a talented investor, a wonderful friend, and a natural leader.

Saif’s passion for Breakwater was surpassed only by his enormous love for his wife and their two young children. We grieve with them and extend our deepest sympathies to all of his family and friends.

We are heartbroken by this terrible loss but will honor Saif’s memory by continuing to build a firm that reflects his entrepreneurial spirit and core values. May his memory be a blessing to us all.

Sincerely,
The Breakwater Family

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