Aventura Equities Inc (AVNE): WNSH*2nd Thought from $125 Million Deal...

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stervc

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Monday, 08/20/2007 5:59:47 PM

Monday, August 20, 2007 5:59:47 PM

WNSH*2nd Thought from $125 Million Deal Pending…

Appletree Capital/WNSH will receive two types of payments from the closure of the $125 Million deal:
a. The Carry
b. The Management Fee

Zhemian Ventures is responsible for getting Appletree Capital/WNSH’s highly established Institutions as their clients for raising the $125 million in Venture Capital. These Institutions are willing to give them capital because of their proven track record for guaranteeing these Institutions a return in the area of 25% or so through a group of already proven and existing profitable private companies with proven business plans currently existing. The founder of Zhemian Ventures did tell me that they only deal with profitable companies to accomplish this.
http://zhemian.com/

The Carry is the amount that is paid back to Appletree Capital/WNSH after paying out in the area of 25% to the Institution. Appletree Capital/WNSH would be paying 25% to the Institution because they would have achieved enough profits to pay themselves first at least an equivalent 25% amount. I was told that usually the amount to be paid back to Appletree Capital/WNSH is more than what is to be paid out to the Institution. This is usually the bulk of the return.

Let’s figure Appletree Capital/WNSH had a bad year and could not give the Institutions the 25% return on their money, but instead was only able to pay the Institution and themselves a 20% return on their money from the private companies invested into. Consider this to remain conservative from my research in this business.

The Management Fee is a flat fee minimum of 2% up through a maximum 7% return on the deal closed and matured from the Institutional payment(s) that comes out of the $125 million raised.

The 2nd question to now answer is…

2. How much is Appletree Capital/WNSH going to generate as Revenues/Earnings/Profits from this $125 million deal from; “the Carry” and “the Management Fee?”

If no major and/or constructive disagreement is made, I will continue on.

v/r
Sterling

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