3PM Financial Reasons: Return: You are doing well now…capitalize it Convert income into capital gains Keep majority control Incentives to grow business Assure valuation for the future Potential public offering Reduce Risk: Disability/death Business, product, manager Legal/regulatory Manager demand for capital Manager due diligence Value – added Services: Examples: Manager sourcing, research, due diligence, new product development Legal – contracts, lawsuits Compliance – SEC, NASD, AIMR IT – CRM, MIS, archiving Access to seed capital Supplier discounts Risk management/monitoring Insurance/bonding Creation of a fund-of-funds Financial Partners Financial Return from: Pursuing a 3PM roll-up strategy Purchasing minority interests only to retain acquiree’s incentive Paying private market values Offering further incentives to grow business Also hiring experienced sales people onto platform Exit strategy– SPAC, Financial Institution, FoF, IPO Scalability from: Number of salespeople/firms (165 est.) Operating leverage Number of products represented Assets raised ($250-$500mm/yr.) Fee schedule ($6mm in revenues/salesperson) Risk control Positioning: Become the largest independent institutional sales platform globally Focus on an entrepreneurial sales-driven culture Create a brand offering premier manager due diligence and the highest integrity supported by legal & compliance Conduit for seed capital Platform to share costs, ensure quality Become the preferred institutional distribution choice of asset managers, the final career stop for sales people, and garner respect from institutional investors for only representing the highest quality products with integrity