EFTA00772488.pdf

From: "Ronnie Carey" To: "Jeff Epstein" [email protected]> Subject: Fw: Pavisier - Shielding Investors with Superior Information Date: Thu, 02 Jul 2009 03:17:20 +0000 Dear Jeff, Again, many thanks for the wonderful Ranch tour-your property is incredible. My fiancee, Marty Goodman, has a cousin who is very smart and well experienced in the ways of Wall Street. He is actually a pretty brillant guy who is in the process of setting up a new organization and had sent Marty a general outline of the concept which I'm taking the liberty of forwarding to you. In all of the years you've been in business I have never sent you any ideas, but I thought you might possibly have an interest in this unusual venture. Hope your well and thanks for any thoughts or suggestions you might have. Love, Ronnie -- Original Message -- From: Daniel Schwartz To: Ronnie Carey Sent: Tuesday, June 30, 2009 2:58 PM Subject: Pavisier - Shielding Investors with Superior Information Ronnie / Marty, Great to catch up last week. As mentioned, my business partner, Michael Hedges, and I are working on a new business opportunity which seems to be the right idea at the right time. In short, we have started a company which will provide investors (high net worth and institutional) risk ratings for their investments in hedge funds. This venture is based upon experience developed while at Citi where we were responsible for the development and implementation of risk management systems. From both Michael's perspective as a trader and my perspective as the CTO for the Fixed Income division, we observed that investors have been exposed to risks due to the potential for fraud, position concentrations, leverage and other factors which were neither understood nor reported by their investment advisors. Upon careful review of the methodologies and approaches taken by the firms currently offering risk reporting services to investors, we quickly concluded that there were material shortcomings which we could address by developing our proprietary Risk Ratings Framework. Our ratings will be available on a subscription basis and provide investors the information they need to protect themselves from destruction of value and to align investment allocations in accordance with their preferred risk profile. By way of background, both Michael and I have substantial financial markets experience covering the full spectrum of activities including trading, providing advisory services to different tiers of clients, business strategy, risk management, technology and operations. For both of us, this experience includes successfully executing complex cross-industry programs. Michael joined Citigroup in 2003 with the responsibility for developing a marketing and trading platform for credit exotics and hybrids with specific emphasis on Latin American clients and credits. Prior to Citi he led Deutsche Bank's e-commerce marketing for the Americas rising to assume a global role as head of proprietary strategy and platform development. In 1998 and 1999, while also at DB, Michael was the de-facto Chairman of the Group of 19 Banks as well as a lead negotiator in the Moscow Club negotiating with the Russian Federation subsequent to their default on their sovereign treasury EFTA00772488 bills. I joined Citigroup in 2005 rising to the in-business CTO for the Fixed Income division where I led "in- house" business, operations and technology strategy with oversight of the division's front and middle office technology projects. Reporting to the group" s COO and with a global staff, I was responsible for defining and executing upon opportunities to deliver real value from the division' s $900MM technology, market data and communications budget. My entrepreneurial experience includes founding a technology software developer and consultancy called RomeBlack. That company created a shrink-wrapped software package for PCs running Windows and provided Internet consulting services to Fortune 1000 clients such as IBM, Dow Jones and AVON Products and startup companies. I began my career at Salomon Brothers and rose to become a portfolio manager in the Fixed Income Arbitrage department where I generated more than $325 MM cumulative profits over three years. In order to realize our plans, we have begun fundraising activities with the intention of raising one half million dollars to build the product prototype and begin signing clients. Once the prototype is completed, we anticipate needing additional in Series "A" capital to fully build out the Risk Ratings Framework and reporting products potentially acquiring an independent firm to expedite execution. Our execution approach is designed to speed time to market, enhance brand equity and provide initial client and revenue benefits. We estimate that this company can reasonably be expected to gain 3 percent or more of the $2.7 billion aggregate total annual revenues of our fragmented competition. With an expected EBITDA margin of 35 percent of revenues, valuation and cash dividend projections suggest that this is an exceptional investment opportunity. As with any early stage investment, there are risks but we believe that our execution strategy will help mitigate these concerns and that the opportunity remains substantial. Should you be aware of a potential strategic investor who might have interest please let me know. We would be happy to provide additional information and / or arrange a meeting to review the opportunity. Thanks again and I look forward to seeing you both the next time you pass through NY. Best regards, Daniel Schwartz Pavisier LLC email: voice: http://www.pavisiennet No virus found in this incoming message. Checked by AVG - www.avg.com Version: 8.5.375 / Virus Database: 270.13.112211 - Release Date: 06/30/09 11:37:00 EFTA00772489