Valuation Analysis &
Capitalization Memorandum

Executive Summary

The opportunity is a technology-enabled platform that operates the portfolio infrastructure of private-market investors — emerging funds and high-net-worth families — without taking on the regulated activities that slow traditional managers down. The model earns recurring platform and AUM fees while capturing performance economics through carry and transaction participation.

We value the business at its 12-month operating point — the moment the recurring revenue, AUM, and transaction model are demonstrably live — rather than at inception. On conservative assumptions, the company is worth $35M pre-money and $41M on a fully-diluted, post-money basis at that point. The initial capitalization is deliberately lean: a single $2M operating-capital raise, equivalent to a 15% investor pool, funding roughly twenty months of runway at the modeled $100K/month burn.

The regulatory structure is the quiet strength of the thesis: the company provides portfolio expertise, enterprise systems, analytics, and operational infrastructure, while licensed partners execute the regulated transaction activity. This removes the heaviest constraint on scale — the company is not an RIA and does not execute securities transactions itself — enabling international reach and a cleaner path to compounding AUM without a major architecture rebuild (the system is already scoped to 500+ assets and $1B+ in AUM).

The Business & Model

What the company does

The platform sits between the investor and the regulated world. It provides the operational, analytical, and systems layer that private investors — emerging funds and high-net-worth families — would otherwise staff internally or forgo entirely. Its initial addressable market is concentrated on emerging funds and HNW clients holding under roughly $10M in private assets.

The economics, by stream

The recurring streams (service + AUM fees) form the valuation base. Carry and transaction participation are modeled as a performance kicker — real, but episodic, and therefore excluded from the core multiple and treated conservatively.

The Team

The company is assumed to be built correctly from inception by operators who have lived the institution they are serving — not outsiders importing a template.

Two consequences follow from the team's profile, and both bear on valuation. First, it defends the multiple: a team of this caliber substantiates a mid-range recurring-revenue multiple rather than being discounted as unproven. Second, it accelerates the path: the month-12 targets are reached primarily through existing relationships, referrals, and strategic partners — with limited marketing spend — which is a capital-efficiency signal investors weigh heavily.

The 12-Month Operating Plan

The model targets $500K in monthly recurring revenue and $70–100M in AUM by month 12, with a revenue mix spanning service fees, AUM fees, carry/performance economics, and transaction participation.

Month-12 revenue architecture

The $500K monthly run-rate is the recurring core; carry and transaction participation are episodic and are therefore treated as a kicker rather than capitalized at the core multiple.

Capitalization & runway

The round is sized for runway, not growth spend — the raise covers build, launch, and scale through the first 12 months with a comfortable buffer, and deliberately avoids overcapitalizing the company. A single outside round is contemplated, reserved for value-added members who bring capital relationships, distribution, clients, or strategic access.

Valuation Methodology

The company is a hybrid — a technology-enabled platform earning recurring fees, with asset-linked AUM fees and episodic performance economics layered on top. No single comp class captures it cleanly, so the valuation blends three reference sets and discounts conservatively.

Blended approach (conservative)

We capitalize only the recurring revenue base and exclude carry/transaction from the core multiple. On the recurring $6.0M ARR, a conservative blended multiple of ~5.8× yields a $35M pre-money value. The $70–100M of AUM is not separately multiplied into the value — it validates the fee, carry, and transaction thesis and supports (rather than inflates) the recurring multiple.

Two valuation anchors, stated clearly

The seed is priced at the pre-execution value ($13.3M post), reflecting the risk carried into the build. Successful execution de-risks the company to $41M by month 12 — a 3.1× appreciation that rewards the value-added investor without over-diluting the founders.

Capitalization & Ownership

Ownership structure

Performance participation beyond equity

The co-founder economics are deliberately not limited to the 30% pool. Co-founders also participate in a share of the performance-related carry and profit economics, aligning their upside with realized outcomes on the transaction and carry streams. This is the mechanism that attracts operating talent who are indifferent to a larger equity slice and motivated by deal performance.

The single round — scarcity by design

The company contemplates one outside round, reserved for value-added members who can bring capital relationships, distribution, clients, strategic access, or other meaningful contributions. The 15% pool is deliberately scarce; the valuation is kept conservative and defensible so that the round prices the risk fairly without inflating expectations. The $2M raise is sized to fund the first 12 months without overcapitalizing.

Key Risks & Mitigants

The most material risks are concentrated in episodic performance economics and client concentration — both of which are addressed by the conservative valuation approach rather than by optimistic assumptions.

Prepared by Disciplined Hustle — Strategy & Capital Formation · September 2026

Confidential. Not an offer or solicitation. Illustrative forward-looking figures only.