Private Placements include all investments CBT makes in businesses located in the Columbia Basin region. The investments take different forms. However, they can generally be broken into three categories:

• Real Estate - CBT has an ownership interest in a number of seniors' care facilities located in the Basin. Collectively, these properties contain more than 680 living suites and offer a range of services depending on the needs of the resident.
• Direct Lending - On a select basis, CBT invests directly in Basin-based businesses. These investments are managed exclusively by CBT, therefore the investment risks and financial returns accrue fully to Columbia Basin Trust.
• Loan Syndication - In partnership with regional Credit Unions, CBT invests in Basin-based businesses. These investments are managed on a joint basis with the Credit Unions and both parties share the risk, as well as the return.

CBT believes managing investment risks is equally important as generating returns. Therefore, we observe the principles of commercial market due diligence when investigating investment opportunities. Each of the three categories of Private Placements is required to generate a financial return to Columbia Basin Trust that is commensurate with the level of risk assumed.