2012 Holiday Update

As you have likely read in the press, Starbucks recently announced its agreement to acquire our portfolio company, Teavana (NYSE: TEA), for $620 million in cash. This highly strategic transaction represents a terrific outcome for Teavana’s shareholders, founders Andy and Nancy Mack, Teavana’s management team, and investors in SKM Equity Fund III.

We are thrilled for Teavana and are proud to have had the opportunity to partner with the company. Since making our investment in 2004, Teavana has grown from 12 company-owned stores to over 300 stores today. During that period, we worked closely with Andy and Nancy to help them build the infrastructure required to execute their rapid growth plan successfully. We were integrally involved in acquiring the company’s largest supplier, jump-starting Teavana’s online business, making significant additions to the company’s management team, and implementing top-tier business processes to support growth. Teavana's market-leading growth in new units, revenue and profitability enabled the company to complete a highly-successful IPO in July 2011.

Our investment in Teavana is a great example of the types of companies Parallel seeks to invest in – highly differentiated, emerging growth businesses with significant opportunities for long-term value creation. We appreciate your continued support in our efforts to discover and partner with companies like Teavana. We look forward to sharing more exciting news about our portfolio companies with you in the future.