Subject: Fund of Funds Concept Review Meeting Notes
From: "Joan Peugh" <[email-masked]>
To: <[email-masked]>, <[email-masked]>, "Arlene Busch" <[email-masked]>, "Eric Schwerin" <[email-masked]>, <[email-masked]>
Cc: "Joan Peugh" <[email-masked]>
Date: Tue, 15 Jun 2010 12:26:13 -0400

*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

[email-masked]