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Equicapita Update Canadian Pensions Increase Allocations to Alternatives but

Still Lag US Averages

FOR IMMEDIATE RELEASE, ATTENTION INVESTMENT EDITORS October21

st, 2013 - Calgary

Low portfolio returns are driving Canadian pension plans to increase allocationsto alternatives according to pension consultant Mercer. A recent Mercer surveyshowed that in 2013:

- 38% of plans indicated they are investing in alternatives versus 25% in 2010;- 18% of plan assets were in alternatives, versus 15% in 2010.

Despite these increases, alternative allocations lag other markets, particularly theUS.

The Mercer survey also revealed what they believed was insufficientdiversification within the alternative universe with Canadian plans focusing onreal estate and infrastructure. According to Ryan Bisch, from Mercer. If werenot using all the tools in the toolkit, questions should be asked whether we canget the [necessary] degree of diversification, he said, explaining that pensionplans would benefit from venturing into hedge funds and private equity.

Greg Tooth, a partner a buy-out firm Equicapita reports, "One of the facets of ourinvestment premise is that the generational transfer of ownership of baby boomerbusinesses far exceeds the amount of capital currently dedicated to this space.In order for this hand-off to occur at reasonable valuations and in an orderlyfashion, much more institutional and dedicated investment capital must come intothe small, medium enterprise private equity space. Ultimately we believe this willinclude large pension plans via specialized SME PE funds such as Equicapita.In the meantime, we have created a RRSP eligible fund that allows individualinvestors to participate directly in this asset class today.

Equicapita is a Calgary-based buy-out fund focusing on acquiring Canadian

private businesses that can generate strong, sustainable cash flow from theiroperations in niche markets. Equicapita generally seeks to acquire businesses:

- at what it believes are reasonable prices;- with a demonstrated history of cash flow greater than $1 million per

annum;- with a durable competitive advantage;- that operate in industries that Equicapita believes have sound long-term

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macro prospects;- with ongoing participation of senior personnel;- with the ability to maintain the cash flow without disproportionate amounts

of new capital- where Equicapita can partner with management and align their interest

with Equicapita through tools such as earn-outs, vendor take backs andmanagement incentive plans;- to be held for the long term;- where there is some potential to grow sustainable free cash flow, but

where that growth is not essential to generate suitable returns.

Equicapita believes that there are compelling reasons for making private equityinvestments in the Canadian SME market which is experiencing one the largestgenerational transfers of wealth as boomer entrepreneurs retire and sell theirbusinesses. The investment has a number of key drivers including:

-Generational opportunity to acquire baby boomer SMEs: There is ademographic opportunity to capitalize on the accelerating turnover of babyboomer owned, western Canadian SMEs. According to CIBC Anestimated $1.9 trillion in business assets are poised to change hands infive years the biggest transfer of Canadian business control on record.

- Attractive target market: There is a private equity funding gap in the $2 to$20M range is often referred to as the Nano Gap. This creates anattractive environment to acquire low cost, stable cash flow streams.

- Valuations: Current trailing cash flow valuations are artificially low,incorporating weak 2008-10 operating results post credit crisis.

- Buy and hold strategy: Equicapita does not use a traditional PE businessmodel: acquisition, aggressive expansion capital, followed by exit.Equicapitas business strategy is to acquire and hold mature, long-standing enterprises at reasonable valuations.

This news release may contain certain information that is forward looking and, byits nature, such forward-looking information is subject to important risks anduncertainties. The words "anticipate," "expect," "may," "should" "estimate,""project," "outlook," "forecast" or other similar words are used to identify suchforward looking information. Those forward-looking statements herein made byEquicapita, if any, reflect Equicapita's beliefs and assumptions based oninformation available at the time the statements were made. Actual results orevents may differ from those anticipated or predicted in these forward-lookingstatements, and the differences may be material. Factors which could causeactual results or events to differ materially from current expectations include,among other things: risks associated with the ownership and operation ofbusinesses, including fluctuations in interest rates; general economic conditions;supply and demand for businesses; competition for available businesses;changes in legislation and the regulatory environment; and international tradeand global political conditions. Readers are cautioned not to place undue reliance

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on any forward-looking information contained in this news release (if any), whichis given as of the date it is expressed herein. Equicapita undertakes no obligationto update publicly or revise any forward-looking information, whether as a resultof new information, future events or otherwise.