For Sellers

Lead Capital’s preferred investment structure allows owners continued participation in the growth of their business both operationally and financially. By exclusively partnering with founders who retain meaningful equity alongside us, Lead Capital benefits form a self-selection screening process in terms of what businesses will qualify for investment. The implication of investing alongside founders and sharing economic risk as co-owners aligns all parties’ interests and enhances the odds of a successful transition. Additionally, the cultural implications of Lead Capital’s long-term orientation and the stability it yields improves employee and provider retention, which is highly correlated with improved business and financial performance.

Our investment allows sellers to:

• Diversify their net worth
• Participate in the long-term value creation through retained equity ownership
• Choose their on-going operating role
• Eliminate personal liability
• Benefit from a board of experienced partners with significant capital market resources

We offer owners a solution to the inherent challenges of operating a small business:

• Concentration of net worth
• Absolute management responsibility
• Personal liability
• Limited strategic partners
• Limited capital markets resources

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For Investors

Lead Capital’s investors are a group of high-net-worth individuals and families who have owned and operated businesses themselves. Our investors are attracted to Lead’s model relative to traditional private equity investing because it provides better access for the investor and stronger alignment between management, employees, investors and the investment management team.

Lead’s fee structure is dependent on each investment’s performance and success. Lead does not charge its investors fees prior to closing a transaction, and it offers cash returns immediately after investment. By focusing on holding investments for the long term, Lead offers a tax-efficient and low fee investment vehicle that reduces an investor’s transaction costs.

In our opinion, investors are best served by compounding equity returns in existing investments where transaction fees are minimized, taxes are deferred, and capital remains invested with trusted management.

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For Operators

Lead Capital seeks to partner with experienced operators who have a passion for business and a desire to participate in the value they create. We are committed to providing these managers the capital, strategic resources, ownership incentives and timeline they need to acquire businesses where their experience, relationships and talents can be applied.

With our investors’ aligned, long-term focus, Lead creates an attractive and differentiated environment for management and employees relative to traditional private equity. Our teams don’t have to worry about being constantly sold, merged, resold, consolidated, flipped, or divested by different owners every few years. In our opinion, that “churning” environment creates a tremendous amount of stress and distraction in an organization and prevents it from focusing on growing the business.

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For Advisors

Lead Capital works closely with advisors and intermediaries to close transactions as efficiently as possible and believes that the best transactions are those where there is a spirit of collaboration. We are committed to responsive and straightforward communication. Having completed over forty-five platform investments, the founders of Lead Capital have a refined investment decision and diligence process which allows us to give intermediary partners quick answers.

We believe buy side advisors bring value to our investors and expect to fairly compensate intermediaries for closed transactions. In fact, we view intermediaries as true partners in our deals and will consider allowing for participation in the equity of transactions where interest is expressed and the advisor can add value by continuing to advise the Company as it seeks to complete add-on acquisitions.

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