EFTA02617450

From: Paul Barrett Sent: Wednesday, October 24, 2018 3:41 PM To: Subject: RE: Media fund bridge loan The purpose of the investment is to act as a warehouse facility before the LP money is raised for the fund. For this you get paid 12%. The warehouse is $50MM. Once they raise the $50MM from LPs, your investment is repaid and you get to keep a 20% interest in the GP of the fund. The eventual GP profit share could be quite substantial. Wouldn't that be a nice GRAT outcome? The GP payout could be 10 years though. Not sure what the maximum life of a GRAT is. Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor, New York, NY 10019 From: J <[email protected]> Sent: Wednesday, October 24, 2018 7:20 AM To: Paul Barrett Subject: Re: Media fund bridge loan why/ a grat. not sure what you mean? > On Tue, Oct 23, 2018 at 6:24 PM Paul Barrett < <mailto > wrote: Do you think this would work for a GRAT? EFTA_R1_01819522 EFTA02617450 Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor, New York, NY 10019 On Oct 19, 2018, at 11:38 AM, Paul Barrett > wrote: Jeffrey Passing this along from MS: MS looking for what is effectively a bridge loan before closing their media/licensing fund. They are paying 12% for what will likely be a 12 month loan (it does have 2x 6 month extensions). After repayment you get a pro- rata 20% of the fund's 20% performance fees. Target size for the fund is $350MM. They are looking for $50MM for this loan. For $5MM loan: Assuming you get repaid on the loan, the fund ends up at $175MM and they achieve 10% IRRs you would be entitled to "$650K payout at the end (assumed 7 years) Assuming you get repaid on the loan, the fund ends up at $350MM and they achieve 15% IRRs you would be entitled to -$2.49MM payout at the end (assumed 7 years) If they can't raise $50MM from L.Ps for the fund after 2 years, the loan converts into equity and you own the assets that will be managed by the same G.P. So risk is they can't raise sufficient L.P interests. They plan on raising the fund through their Wealth Management division. Paul 2 EFTA_R1_01819523 EFTA02617451 Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor, New York, NY 10019 Begin forwarded message: From: "Atlas, Andrew 5" Date: October 15, 2018 at 5:03:45 PM EDT To: "Paul Barre Subject: Warehouse Outreac Hi Paul, Morgan Stanley has been engaged by EIIV Group, a newly formed fund manager to structure and syndicate a $50MM warehouse facility. The $50MM warehouse will be used to finance the acquisition of a music catalogue and a minority interest in a production company. Please see below for investment highlights. Short-dated warehouse facility offers attractive annual cash yield of 12% Equity interest in proposed fund through retained ownership stake in EIIV GP (i.e., carry) Financing the acquisition of: • The music catalogue of Jeff Bhasker, a well-known songwriter / producer of numerous #1 hits (e.g., Uptown Funk, Girl on Fire) • Minority stake in an independent film and television production company backed by high quality strategic and financial investors, including AMC and the Emerson Collective * EIIV is pursuing a strategic partnership with one of the largest music groups in the world offers strong source of continued music catalogue supply and expertise for fund to leverage television * Best-in-class management team with longstanding relationships across music, film and 3 EFTA_R1_01819524 EFTA02617452 Andrew S. 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