Slide 1
Supreme Capital GroupPrivate Equity FundsCreating Value by
Restoring Human Dignity
ChicagoTampaPhiladelphiaNew York
Executive summarySocial Impact InvestingIndustry
SectorsInvestment StrategiesCompetitive AdvantageTeam
ExperienceAlignment of Interests
Social impact investingCreating ValueRebuilding
CommunitiesProviding JobsRestoring Human Dignityexperienced
investment professionals demonstrating excellence in . . .
Industry sectorsManufacturing TechnologyFood ProcessingEnergy
ManagementEnvironmental RemediationHealth CareEducation Delivery
SystemsReal Estate Development
investing in companies pursuing exciting new developments in the
fields of . . .
Investment strategiesVenture CapitalGrowth/BuyoutSpecial
SituationsValue-AddedOpportunisticachieving competitive returns by
employing these proven strategies. . .
Competitive advantageRelationshipsResearchRisk
Managementproviding consistently strong results through our . .
.
Team experienceTeamAvg yrs
expExecutives27Research21Operations20Advisory Board24Average23
executives, staff, & senior advisors average 23 years in the
industry
Alignment of interestsInstitutional InvestorsFiduciariesCompany
ManagementCommunity Leadersforming strong, lasting partnerships
with . . .
Investment philosophyMarket InsightsEmerging Markets
ApproachInvestment Criteria
Market insightsMass de-leveraging among consumer & business
sectorsU.S. labor market has become less competitiveEnvironmental
impacts of carbon emissions and energy resources are major
concernsIn the aftershock of the Great Recession, the dominant
themes in the U.S. economy are. . .
emerging Markets approachCompelling evidence suggests that
emerging markets private equity:Outperforms developed market
private equity;Has broader scope; andIs less risky than
conventional wisdom would suggest.Many devastated American
communities have become the new emerging markets. . .
Investment criteriaSolid value propositions that solve
meaningful problems;Revenue growth potential;Cash flow;
andSustainable performanceFrom our proprietary network of deal
sources, we are constantly searching for scalable, repeatable
business models that have. . .
Market opportunitiesFund Launch TimingOther OpportunitiesAreas
of InterestDeal Pipeline
FundLaunch timing of the nationsrecent college graduates work in
jobs that don't require a degree;69% of U.S. adults are
overweight;23 million Americans are dependent on some mind- or
mood-altering substanceTo date, U.S. public schools, economic
growth, and equal rights have failed to overcome class, race, and
gender inequalities, so it is imperative to start raising living
standards today because. . .
Areas of interest
Other opportunitiesQualified low-income community investments
(QLICIs) make our U.S. investors eligible to receive New Market Tax
Credits (NMTC);EB-5 visas may be set aside for non-U.S. investorsin
our funds; andA technical assistance (TA) facility is used to pay a
3d party to measure and validate the social impacts achieved by our
investments.Despite strong growth in recent years, overall
penetration of private equity in what can be described as "emerging
markets" in the U.S. remains low relative to developed markets . .
.
Deal pipelineWe are currently warehousing the following
investments in anticipation of our initial closing in July, 2014. .
.
Investment processDeal SourcingOperationsResearch & Due
DiligenceRisk ManagementValue CreationExit Strategies
Deal sourcingIndustry relationshipsPrivate
databasesIntermediariesPast investorsOur investment advisors are
skilled at finding attractive investment opportunities and
generating great deal flow from our network of . .
Research & due diligenceOur teams work to uncover any "fatal
flaws" in a potential investment or business plan before we invest;
andWe understand the relationship between the required skill set
for successful emerging market projects, company managers, and the
drivers of returns for the funds.Our operational, financial, and
tax due diligence is among the finest in the industry . . .
Value creationOur analysts form an investment thesis that
focuses on:Improving profitability; andIncreasing capital
efficiencyWe create economic value, by creating real and
sustainable productivity improvements at our portfolio companies
and properties. . . .
operationsOur operations teams establish challenging performance
targets for existing or new management; andWe pursue follow-on
investments to facilitate further growth.We monitor our investments
with an on-line solution that allows our managers and analysts to
understand what is really happening at their portfolio companies in
real time. . .
Risk managementEmerging market company characteristics require
more unconventional risk management procedures; Our compensation is
significantly incentive-based; andWe have worked hard to establish
good reputations and to maintain them, we must show good
performance in our funds.Our approach to risk management starts
with a well thought-out process that includes setting policies and
risk tolerances, identifying and measuring risk, collecting the
proper data, and adjusting risk levels.. .
Exit strategies3d Party AuctionsStrategic SalesInitial Public
OfferingsLeveraged BuyoutsDividend RecapitalizationsSpecial
SituationsOur plan for an exit starts during the initial investment
stage as we negotiate the acquisition of the portfolio company or
property. That way, we can reasonably expect to exit our
investments at the time and in the manner we deem best through. .
.
Key biographiesExecutivesAdvisory Board
Thomas ElliottExperience:Mr. Elliott has 35 years experience in
organizing, planning and executing large-scale real estate projects
from conception through implementation. He has demonstrated a deep
understanding of the global economy and current investment climate,
extensive hospitality industry knowledge, and the ability to
perform comprehensive financial analyses of related business
trends. A former real estate attorney and private equity fund
advisor who has coordinated economic development activities for
developers, faith-based institutions, and other community
development organizations engaged in the development of over $150
million hotels, multi-family residential, elderly hi-rises,
regional shopping malls, urban strip centers, and low-rise office
complexes. Education:JD, IIT-Kent College of Law, Chicago, IL; MBA,
Finance, Keller Grad. School of MgmtBS, Bus. Admin/Economics,
Culver-Stockton College, Canton, MO
Managing DirectorChief Compliance Officer
Jean LeroyExperience:Mr. Leroys background includes extensive
experience as a management consultant for several Fortune 500
companies in the financial services, computing, and communication
industries. Over the past 17 years he has performed these services
for leaders in their respective industries including: Emc Corp.
(information technology); Adventis Corp. (management consulting);
3m Corp (manufacturing); Bellsouth Wireless (telecommunications),
and Reuters, Inc. (news and information services). Education:MBA,
Finance, DePaul University, Chicago, IL; BSEET, Devry University,
Chicago, IL
VP, Corporate Division
Craig sawyerExperience:Mr. Sawyers background includes 25 years
experience as an economic development and management consultant for
several government agencies and other community development
organizations. He and his staffare primarily responsible for
sourcing and analyzing real estate investment opportunities and
providing development services for the funds portfolio
properties.
Education:MBA, Finance, Rutgers University; BS, Business Admin.,
Rider University
VP, Real Estate Division
George Medellin, iiiExperience:Mr. Medellin has 20 years
experience as an executive recruiter and management consultant
specializing in outsourced human resources, staff augmentation,
recruitment process outsourcing, diversity recruitment &
consulting, human capital consulting,and workforce
management.Education:JD, Western New England College of Law,
Springfield, MA BS, Business Admin. Southern Illinois Univ.,
Carbondale, IL
Independent AdvisorExecutive Recruitment
CEO, Medellin & AssociatesChicago, IL
Shawn CarsonExperience:Mr. Carson is an expert in financing all
real estate property types, with 22 years experience in securing
funding for multifamily, mixed use, retail, and medical/medical
office properties. He has developed a niche in large-scale
townhouse, coop, and condominium lending and has structured deals
on transactions with loan amounts up to $5 million. Shawn also has
significant experience in securing capital for hospitality property
ventures as well as working with top hotel management companies,
developers, REITS, and hospitality-focused private equity funds
from around the United States.Education:MBA, Finance, University of
Rochester, NY; BA, Sociology, State University of New York
(SUNY)-Oswego
Independent AdvisorReal Estate Finance
Sr. Mortgage Loan OfficerQuontic BankBrooklyn, NY
Carl McFerrenExperience:Mr. McFerren has 34 years experience as
a leading expert on logistics and supply chain management for
several major product manufacturers and transportation companies
like Soft Sheen Products, Quaker Oats, Burlington Northern, and
United Airlines.
Education:BS, Bus. Admin., Chicago State University, Chicago,
IL
Independent AdvisorLogistics/Supply Chain Mgmt.
CEO, Aerospace Management Systems, LLCChicago, IL
Dr. will Foston, mdExperience:Dr. Foston has over 40 years
experience as an esteemed physician and health care administrator
at several health clinics and hospitals throughout the southeastern
U.S.Education:MD, Meharry Medical College, Nashville, TNBS, Pre
Med, Austin Peay University, Clarksville, TN
Independent AdvisorHealth Care
Physician, General SurgeonHuntingdon, TN
Mark KuceraExperience:Mr. Kucera has 24 years experience in
hospitality management, including corporate and property level
expertise in full service, extended stay, limited service and
independent hotel management, corporate branding, expansion and
training, capital planning, market development and information
technology selection and implementation. Mr. Kucera has served as
Regional Director of Operations - Midwest Region for Flagstone
Hotels and was responsible for Operations, Guest Satisfaction,
Finance, and Marketing at a 14-hotel portfolio. A member of the
Flagstone Executive Management Committee, he was also the corporate
representative for all Intercontinental Hotel Group properties
operated by Flagstone, and a member of the IAHI Central Regional
Committee. Education:BS, Hospitality Management, the Ohio State
University, Columbus, OH
Independent AdvisorLeisure/Hospitality
President, COO Presidian HotelsSan Antonio, TX
Hitesh AdhiaExperience:Mr. Adhia has 25 years experience as a
Certified Public Accountant and investment fund manager for Avatar
Insurance Co., WellSouth HMO, and the Florida Dept of Insurance.
Education:MBA, Finance, Univ. of South Florida, Tampa, FLBS
Accounting, University of South Florida;
Independent AdvisorRisk Management
CEO, Avatar Property & Casualty Insurance Co.Tampa, FL
Robert MaloyExperience:Mr. Maloy 35 has years experience as
leading expert and respected author on the subjects of teacher
education, curriculum development, and school reform.Education:EdD,
Boston University MA, Education, Univ. of Mass-Amherst BA,
Education, Univ. of Mass-AmherstIndependent AdvisorEducation
Sr. LecturerUniv. of MassachusettsAmherst, MA
appendixFund TermsPast PerformanceRisk Exposures
fund termsFund
Size:Target$200,000,000Minimum50,000,000Maximum/CapnoneGP
Commitment3,000,000Mgmt Fees (%):Investment
Period2.5Follow-On2.0Extension2.0Fund Term(yrs):Investment
Period10Follow-On3Remainder6Extension3Misc. Terms:Hurdle
Rate(%)8Carried Interest (%)10Catch-Up(%)50Carry Escrow(%)15
The key terms of our U.S. Social Impact Fund, LP are . . .
past performance*Company/ProjectSectorCash OutCash
InIRR(%)BenchMark***ExitMulti-Family (>20 units):St Stephens Sr.
AptsR/E3,500,0006,000,00019.68LBOTabernacle Baptist Sr.
AptsR/E3,500,0006,200,00015.37LBOEast End
ApartmentsR/E450,0001,200,00063.303d Party SaleGovernors Pointe
EstatesR/E10,000,0009,000,000(3.45)LBOHotels/Other Real
Estate:Wyndham Hotel **R/E2,450,000-0-(100.00)**Homewood Suites
HotelR/E6,800,00011,000,00027.193d Party SaleHoliday Inn Express
HotelR/E7,000,00011,000,00025.363d Party SaleSupreme Realty
Investments, Inc.R/E36,0003,000,000173.243d Party SaleFood
Processing:Baldwin Ice Cream, Inc.Mfg290,000350,00041.383d Party
SaleConstruction:Bonaparte Cable & Wire,
Inc.Con450,0001,000,000244.44LBOWeighted Average IRR18.967.88
* performance of combined predecessor funds during the 20-year
period from 1988-2008** Project abandoned during 2008 collapse of
the global financial markets*** Cambridge & Associates Global
ex U.S. Emerging Markets Private Equity & Venture Capital
Index-20 year IRR
Risk ExposuresMany investment risks exist, ranging from market,
credit, and liquidity risks to settlement, regulatory, legal,
accounting, and tax risks. To mitigate, . . .
The Fund expects to be diversified and balanced across a mix of
asset types operating within several different business sectors;Our
investment teams track record of investing and entrepreneurial
experience will provide guidance to portfolio company management
while keeping the business on track to achieve business milestones;
andOur investment committee keeps an eye on the portfolio and
selects the most appropriate timing and mode of exit.
ContactCautionary StatementThis Presentation is for
informational purposes only and does not constitute an offer to
sell the units of Supreme Capital Group, LP(the Fund) or an offer
to participate in any of the funds proposed to be sponsored by it.
This information profile has been provided to its recipient upon
the express understanding that the information contained herein, or
made available in connection with any further investigation, is
strictly confidential and is intended for the exclusive use of its
recipient. It shall not be photocopied, reproduced or distributed
to others at any time. This document is neither a prospectus nor an
invitation to subscribe to the units of the Fund. Nothing in this
document is intended to constitute legal, tax, securities or
investment advice, or opinion regarding the appropriateness of any
investment, or a solicitation for any product or service. The
information herein is subject to change without notice.Statements
in this Presentation describing the Funds objectives, projections,
estimates, expectations, or predictions may be forward looking
statements within the meaning of the applicable securities laws and
regulations. Actual results could differ materially from those
expressed or implied in this Presentation. Important factors that
could make a difference to the Funds operations include global
demand-supply conditions, finished goods prices, cyclical demand,
pricing in the Funds portfolio companies or properties principal
markets, changes in government regulations, tax regimes, economic
developments within the United States and the countries within
which the portfolio companies conduct business and other factors
such as litigation and labor negotiations.The information,
including facts and figures have been derived from public sources
and should be relied upon by the reader at his or her own risk and
the Fund, its directors or officers assume no responsibility,
expressed or implied, for the completeness or accuracy of the
information contained or views expressed herein or for any direct
or consequential loss arising from any use of this publication or
its contents.Thomas Elliott, Managing DirectorSupreme Advisory
Group, Inc.112 W. 34th St. 17th Fl.New York, NY 10120(212)
537-5071admin@supremeadvisorygroup.comwww.supremeadvisorygroup.com
