I. Executive Summary
This Section's Contents
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[Company Name] specializes in alternative investing using money and assets pooled from accredited investors, with the goal of maximizing returns and minimizing risk. [Company Name] employs fund managers experienced in using a range of strategies to earn above-average returns. Generating superior, risk-adjusted investment returns is the main driving factor for the success of [Company Name].
[Company Name] will provide pooled fund investment services that seek to make high returns, using the following techniques:
- Rapid price discovery
- Mathematical and statistical processing
- Risk measurement and control
- Active trading
[Company Name] will primarily serve high net worth individuals in the [location] metro area. The demographics of these customers are as follows:
- 345,600 high net worth individuals
- 7.52% of households in the state are accredited investors
[Company Name] is headed by its founder, [Founder’s Name] who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an investment manager for [x] years at an investment firm where he was able to learn the ins and outs of the investment industry. This experience will be the company’s most valuable asset.
[Company Name] is uniquely qualified to succeed for the following reasons:
- [Company Name] will fill a specific market niche, providing investment options for the large population of high net worth individuals in the area.
- In addition, we have surveyed the target market and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- The management team has a track record of success in investment services.
[Company Name] is seeking a total funding of $250,000 of debt capital to open its hedge fund business. The capital will be used for location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Headquarters design/build: $50,000
- Working capital: $200,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Pre Tax Income||$63,291||$661,962||$866,694||$1,112,661||$1,394,972|
|Income Tax Expense||$22,152||$231,687||$303,343||$389,431||$488,240|