Subject: Becker Burke follow up
From: "Neil Callahan" <[email-masked]>
To: "'Arlene Busch'" <[email-masked]>, "'Alexandra Stanton'" <[email-masked]>, "'Alex Stanton'" <[email-masked]>, "'Joan Peugh'" <[email-masked]>, "'Hunter Biden'" <[email-masked]>, "'Devon Archer'" <[email-masked]>, "'Eric Schwerin'" <[email-masked]>
Date: Fri, 1 Oct 2010 16:31:31 -0400

Hi guys,

Here is a run down of the next steps with BB based on our call this morning.
Please review and let me know your thoughts.  My plan would be to head out
there after at least 2 of the due diligence meetings are conducted.

1.	4 Due Diligence meetings

a.	They agreed to do due diligence meetings at all of clients
b.	BB will schedule them directly with our clients and get all the
meeting completed this month
c.	BB will share their due diligence report with us so we can learn
what they are looking for which will help us to hone our offerings

2.	Collaborative Ideas with BB

a.	Thought Leadership / Education

                                                               i.      We
could be very helpful in education the Public and Union plan boards on the
Alternative Investments

1.       Telling the Heinz story of their success in AI investing and giving
examples of Public and Union funds that have been successful in the space
would be very helpful to the boards, BB and us

2.       Essentially many of the Public and Union boards in the sub $1B
space are not sophisticated and look at Wall Street and Hedge Fund through
the lenses of the newspapers – and don’t spend the time to become educated
on the market

3.       And with Public funds adjusting their models (i.e., the NYS
projected annual rate of return in being lowered from 8.5%) they will be
force to seek higher returns in the AI space, or they will have to raise tax
and/or reduce retiree benefits – both of which will hurt the politicians, so
seeking AI will likely win out

4.       How it could work:

a.       We develop some educational material and have calls/meetings with
BB clients and prospects and other.

b.      We charge a “seminar fee” / training fee – or BB hire us as a
research company, etc.

b.	Private Deal Flow

                                                               i.      BB
was very interesting in hearing about the Private Deal (i.e, Matador, IB
Solar, others)

1.       They mentioned they fill those deals 100% if we had them

2.       Their Public, Corp and Union clients loves those types of deals –
basically principle is risk fee and the IRRs of 11-12% are just fine with
them

3.       So we could find deals and have BB and other consultants fill them
with their clients – something we have talked about, but this gives us a
vehicle to try and do it without any incremental cost of overhead

c.	Public Plans

                                                               i.      BB
opened my eyes to the Public Plans – there are more of them and they have
less stringent governance regulations than the Unions

                                                             ii.      The
sub $1B space could be very attractive to introduce our clients to (i.e.,
City of Syracuse plan, etc.)

                                                            iii.      Is
there a reason for us to stay away from the Public plans directly or
indirectly?

d.	Introductions

                                                               i.      We
could help BB meet Public and Union plans in the sub $1B space (i.e., City
of Ann Arbor, Rhode Island Firefights, etc.)

                                                             ii.      We
could be paid a research fee or retainer, etc.

3.	Next steps are to follow up and make sure the due diligence meetings
happen and to meet up in Chicago to brainstorm on the ¾ ideas listed above.

Best,

Neil

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Neil Callahan

Rosemont Seneca

401 Greenwich Street, Suite 400 | New York NY 10013 | 212-933-9965 |
212-796-4037

1010 Wisconsin Avenue, Suite 705 | Washington DC 20007 | 202-333-1880

917-945-9516 (mobile) 

866-749-8879  (fax)