EMAIL DETAILS

*Fund of Funds Concept Review*

Date 6/14/10

Attendees: Chris Heinz, Hunter Biden, Arlene Busch, Eric Schwerin, Neil
Callahan, Joan Peugh


Objective- Start a Fund of Funds business with the following criteria:

1. Woman-owned

2. No management fee

3. Performance fee with hurdle

4. Concentrated portfolio starting with 3 managers and moving to 10

5. Strategy diversification

6. Invest only in advisory clients

7. Raise $30ML to begin with a goal of $300ML in 2 years


Main Points

1. Revenue streams

a. Advisory Fees

i. Discussed
different levels of advisory fees we could appropriately charge

ii. No conclusion
reached

b. Performance Fees

i. 5% performance
fee with a 8% hurdle

2. Discussed exploring working with 3rd -party marketers

a. Note: Since the Fund is woman-owned, per Marc LoPresti’s advice,
Arlene will need to keep 51% of any revenue generated


Next Steps

1. Potential Investors (Everyone)

2. Updated Pro Forma (ARB)

3. Costs associated with formation of fund and ongoing costs (ARB)

4. Model of returns with 3 clients at $30ML, $60ML, $100ML, $200 ML and
$300ML (ARB)

5. Performance fee analysis at 10%, 15% and 20% return (ARB)


*Joan K. Peugh*

*Rosemont Seneca Partners*

1010 Wisconsin Avenue, NW

Suite 705

Washington, DC 20007

T:(202) 333-1880

F: (202 333-1886

M: (202) 841-8543

jpeugh@rosemontseneca.co