THE CARTEL BUSINESS MODEL

CARTEL INVESTS IN QUALIFYING PRIVATE COMPANIES ("EQUITIES" OR "ACQUISITIONS") FOR THE BENEFIT OF TAKING THEM PUBLIC (AN IPO); MERGER, OR; ACQUISITION.

CARTEL'S CAPITAL SOURCES

CARTEL'S CLASS "A" INVESTORS

CARTEL'S PRINCIPALS
CONTRIBUTE
THE FIRST 20% TO 100%

CARTEL'S CLASS "B" INVESTORS

INSTITUTIONAL AND PENSION FUNDS
ALLOCATED: FROM 40% TO 65%

SMALL INVESTORS
ALLOCATED: FROM 5% TO 80%

Every Cartel Equity Fund LLC Investor is understood to be a Partner, and as such, will recieve yearly K1 Reports that address write-offs. Write-Offs will continue until an Investor/Partner exits the fund. At the time an acquistion achieves "Exit Strategy" status, Investor/Partner will be issued stock in said acquisition based on, and equal to, Investor/Partner's original dollar invested, and, at which time, following the Aquisition's exit strategy, an Investor/Partner has the ability to Cash-Out.

HOW CARTEL EQUITY QUALIFIES ACQUISITIONS ("TARGET COMPANIES") IN THE FUND

THE BASICS BEGIN WITH IDENTIFYING SPECIFICALLY QUALIFIYING "TARGET COMPANIES":

• Companies that have been successfully in business for a minimum of from five to seven years, NO START UPS;
• Companies that have a WORLD-WIDE market potential;
• Companies that have the potential to develop an UNFAIR COMPETITIVE ADVANTAGE over their competitors;
• Companies that have the ability to demonstrate dividend and monthly sales potentials in excess of $1,000,000;
• Companies whose Management Team possesses a proven track record with impeccable credentials.

CARTEL THEN MOVES ITS TARGETS ALONG A "CRITICAL PATH" VIA ITS "THREE M" STRATEGY:

• Cartel's Principals put their MONEY where their mouth is, investing personally prior to inviting potential partners to join;
• Cartel's Principals meticulously qualify aggressive MANAGEMENT to be placed into each Target Company investment;
• Cartel's Principals determine and implement consistent , aggressive and strategic MARKETING techniques from inception to IPO!

Venture Capital Investing Isn't New.

The Private-Money World Opens Up...

"The hottest sector around: PRIVATE MONEY, that which usually takes a minimum investment of hundreds of thousands of dollars, and out of reach for other than The Whole Investor, has now opened up to The Small Investor. The amount of money pouring into Venture Capital investment is staggering. More than $2 trillion world-wide."

Small Investors Can Now Win Like the Bigwigs Do By Investing with Venture Capital In Pre-IPO's:

Successful emerging private growth companies that allow early investors to purchase an interest in their company before they go public! Buying into a Pre-IPO at pennies on the dollar as an early investor, and cashing-out after the company's IPO, has made millionaires of small investors!

PRE-IPO’S ARE VERY SUCCESSFUL, EMERGING PRIVATE GROWTH COMPANIES

THAT ALLOW INVESTORS TO PURCHASE AN INTEREST IN THEIR COMPANY.

WE ALL KNOW HOW PROFITABLE INVESTING IN AN IPO CAN BE.

BUT, INVESTING IN PRE-IPO’S BEFORE THEY GO PUBLIC CAN BE EVEN MORE

PROFITABLE, INSIDERS HAVING ACCESS TO STOCK AT PENNIES ON THE DOLLAR.

Of the millions of private companies operating today, only a very few would qualify to become a Pre-IPO. Here are the five generally accepted qualifications that the professional financial community uses to distinguish the average private company from the Pre-IPO:

TOM TAULLI

Prolific Author, Lecturer & IPO Authority

From his Book "Investing in IPO's" Says:

"Successful technology companies can make you rich. The reason for the tremendous gains is that the industry has a low cost structure...and it's not uncommon to see gross profit margins of 90%."

HERE ARE THE FIVE MAJOR ELEMENTS TO LOOK FOR IN A SUCCESSFUL TECHNOLOGY IPO:

1. Cost Cutting: Technology that allows the end user company to reduce costs;
2. Flexibility: Technology tailored to specific needs, easy to install and change;
3. World Wide Use: Foreign as well as U.S. market capabilities… simplicity of use;
4. Multimarket: Technology that can be used for many different applications within the specific industry;
5. Strong Marketing Focus: Specific industry targets identified, educated and sold.

CARTEL LOOKS FOR ALL FIVE

The Cartel Business Model, and momentum for long term wealth, centers on the Cartel Partnership investing -as “early investors”- in emerging nationally and internationally oriented private companies whose goals center on "going public"...