Real Estate Bonds Opportunity

Type of Investment Security – The Company expects to invest its assets in interests of residential mortgage-backed securities.

2.    Investment in Single Issuer – The Company intends that no more than 25% of the Company’s capital available for investment will be invested in securities of any one issuer. However, the Company may exceed these guidelines should it determine that to do so would be in its best interests.

Discounts – The Company intends to only purchase securities that it believes are discounted from the then-current estimated liquidation value of the securities. The amount of this estimated discount, if any, will be determined on a case-by-case basis.

Seasoned Issuers – The Company will generally consider for investment, securities issued by entities that have, (i) completed the initial offering of their securities, and (ii) operated for a period of at least two years, and typically more than five years.

Mortgage Backed Securitiesto be acquired by the Company will generally consist of the following:

Securities Issued by Owners of Real Property – The Company may acquire securities issued by limited partnerships, real estate investment trusts, or other investment entities that have invested directly or indirectly in real property debt securities (the RMBS). The Company will buy securities whose underlying assets consist of residential mortgages.

Securities Issued in Private Transactions –  The Company may acquire securities that are or were privately placed by issuers that: (i) are limited partnerships, real estate investment trusts, or other real estate-related entities, and (ii) have sold their securities in private offerings.

Availability of Target Securities – The Company’s target securities will have been, in most cases, originally purchased by individuals, partnerships, trusts, corporations, funds, investment banks, insurance companies, hedge funds, or other entities who or which are generally unaffiliated with the issuers of the securities. These holders may wish to sell their securities for various reasons, including: (i) a change in investment goals, (ii) a change an investment portfolio composition, (iii) a need for cash arising as a result of operational demands, (iv) a margin call on leveraged assets, or (v) prior realization of all or substantially all of the anticipated tax benefits of the investment.  Often, the holders find it difficult to sell these securities because of: (a) the informality of the secondary market and the resulting difficulties in locating a buyer, and (b) the difficulties encountered in appraising or valuing these illiquid securities. Because of these difficulties, there are holders willing to sell target securities for a price representing a significant discount to the estimated value of the issuer’s underlying real estate assets.

The Company’s process for acquiring targeted mortgage backed securities typically involves the following steps: (i) identifying securities of the type the Company may be interested in acquiring, (ii) evaluating the securities to estimate their value to the Company, (iii) due diligence processing, and (iv) locating security holders who may be interested in selling such securities on the primary or secondary markets. Different circumstances may require different procedures, or different combinations of procedures, and the Company will adjust its acquisition strategy to fit the particular circumstances. Nonetheless, the typical acquisition steps are described in greater detail below.

Some of the more common ways in which securities will be identified and holders located are: (i) direct contact with security holders or their brokers, attorneys, and other agents and representatives; (ii); through various brokers or brokerage firms, investment advisers, attorneys, and other professionals; (iii) direct contact with sponsors which have issued securities and their agents and representatives; (iv) unsolicited offers to sell securities received by the Company through mail, telephone, and personal contact; and (v) tender offers by the Company, either alone or in cooperation with other buyers.

Once a security has been identified for possible acquisition, the Company will determine whether, in its opinion, the security is worth further consideration.

Once the decision is made on the potential worth of a security, the Company will perform a detailed analysis of the securities. This analysis will consist of reviewing information obtained from various sources which may include but not be limited to the seller, the issuer, real estate publications, SEC filings, state securities filings, the Trustee, the Servicer, Loan Performance, Hansen, Landmark and other materials. During the detailed evaluation, the Company may use a number of procedures, some of which are described below, although such procedures will not necessarily be followed in all cases.

The Company may estimate the current value of the real estate collateralizing the mortgages in the security based on (i) an estimation of the market value of the real estate (i.e. appraisals), and; (ii) any other evaluation method determined appropriate (AAVM, appraiser assisted valuation models).

The Company will purchase only seasoned bonds using the following analyses processes:

·         Collateral Information by Group

·         Bond Waterfall: including all the bonds in the structure

·         Collateral Stratification

·         Prepayments

·         Losses

·         Delinquencies

·         Security Information

·         Model Inputs

·         Results

·         Cash flow

·         Yield Analysis

·         OAS Analysis

·         Results for each model will be given

·         Detailed Waterfall for entire structure

After the valuation process has been completed, the Company will determine an acceptable price and payment terms to be offered for the securities.

In some cases, after the Company has determined the price and terms of payment to be offered, the Company, or its agent, will present an offer to potential sellers (in situations other than tender offers or market purchases). The price and terms of payment offered may be subject to negotiation.

In some cases, the Company will purchase securities on national markets when such securities trade at significant discounts to their net asset value.

The Company does not expect to borrow funds outside capital raised from the investors.

Once an agreement has been reached with a seller of a target security, the Company will work with the seller to transfer the securities to the Company.

Through its investments, the Company will target the following returns to the Investors:

The Company will target investments with operational and capital distribution rates that are expected to produce returns in excess of 20% per annum so that preferred interest payments of 8% can be made to the Investors and substantial additional profit participation will be available to the Investors with expected ROE to exceed 20% per year.

While the Company will focus on acquiring securities that generate distributions, the Company will also target securities that can be acquired for a price that is less than the estimated market value of the securities. By acquiring securities for a price that the Company believes is less than the estimated market value of these securities, the Company expects to “recapture” these discounts upon disposition or liquidation of the securities. The Company will attempt to purchase interests at discounts to estimated net asset value which average a rate in excess of the monthly cash distribution of 8% per year.  Assuming a 3-year holding period, and adjusting for offering expenses (if any), liquidating such assets will produce returns on investment, which are projected to be sufficient to enable the Company to repay the full outstanding Principal Amount of investment capital at maturity plus provide investors with distributions that will generate significant returns, as described above.

After the monthly payment of the 8% preferred return to Investors, and a 2% management fee, the excess monthly cash flow generated from the securities will be divided 50%/50% between the Investors and the Company. The Company will place 25% of its share into a reserve account for further credit enhancement. Upon liquidation of the securities, through mortgage principal balance pay down, the Investors will be paid 100% of the proceeds from such liquidation up to the outstanding principal balance of their investment capital account and the 8% preferred return. Thereafter, the remaining proceeds will be divided 50%/50% between the Investors and the Company. The Company will pay all the operational expenses from this excess monthly cash flow.   

The Company expects to hold its securities until the mortgages backing the securities pay down or pay off. Nevertheless, the Company is constantly “in the market” and if at any time the Company determines it to be in its best interests (where hurdle rates of returns are achieved), the Company may sell some of its securities.

The Company is a California limited liability Company that was formed to engage in the business described in this Executive Summary. Further, the Company recently formed a California limited partnership named Liquiddium Venture Fund I. The Company has limited operating history through its Liquiddium Venture Fund I (closed October, 2007).

The Company’s management will have broad discretion in the Company’s eventual utilization of the net proceeds received from investors. Investors will be relying on the judgment of the Company’s management regarding the application of the investment proceeds.

This Executive Summary contains certain forward-looking statements. Forward-looking statements deal with the Company’s current plans, intentions, beliefs and expectations and statements of future economic performance. Statements containing terms such as “believes,” “does not believe,” “plans,” “expects,” “intends,” “estimates,” “anticipates” and other phrases of similar meaning are considered to contain uncertainty and are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from what is currently anticipated. The Company makes cautionary statements in certain sections of this Executive Summary involving various risk factors. Any prospective investor should read these cautionary statements as being applicable to all related forward-looking statements wherever they appear in this Executive Summary, in the materials referred to in this Executive Summary, in the materials incorporated by reference into this Executive Summary, in any other materials provided to it, in Company’s press releases, and in discussions with it. No forward-looking statement is a guarantee of future performance and the investor should not place undue reliance on any forward-looking statement.

The securities in which the proceeds of this Offering will be invested have not yet been determined, and the Investors will have no opportunity to review potential Company investments, the prices to be paid, and other terms of investment.

The success of the business of the Company is dependent upon the management of the Company, including the determination as to what assets to purchase, and the Company is dependent to a substantial degree on their continued services. In the event of the dissolution, retirement or other incapacity of the management of the Company, the business and operations of the Company may be adversely affected.

The management and business practices of the Company are not supervised or regulated by any federal or state authority.

The ownership and operation of real properties involves a number of risks. The Company’s investments will be in mortgage backed securities. As a result, its investments will be subject to all of the risks inherent in real estate investments. Among these are the following:

The operations of each of the real properties will be subject to the general competitive conditions in the relevant real estate markets;

Downturns in local economies, overbuilding and other general economic conditions may adversely affect the operations of the real properties;

Indebtedness secured by a portfolio of real properties may bear a variable interest rate which could result in increased debt service payments and reduced cash flow if interest rates rise.

In an attempt to limit the disruption to the U. S. economy, the U.S. government is working on several initiatives to help distressed homeowners.  One initiative of the Federal Housing Administration is called “FHA Secure.”  It is designed to offer insurance for refinancing operations for eligible homeowners with Sub-prime Loans meeting certain qualifying standards.

Another initiative known as “Hope Now,” which involves the private mortgage industry and the U. S. Departments of Treasury and Housing, sets a range of industry standards to provide help to homeowners who will not be able to make higher mortgage payments on their Sub-prime Loans to be accomplished by (i) refinancing an existing loan into a new private mortgage, (ii) moving an existing loan into an FHA Secure loan, or (iii) freezing the current interest rate on an existing loan.

A third initiative involves the federal government taking regulatory action to set stronger lending standards, improving disclosure to homeowner borrowers, and pursuing wrongdoing in the banking and housing industries. Loans have been securitized in large groupings in which interests have then been sold to investors throughout the world. Loan modifications in securitized investment vehicles are typically governed by the pooling and servicing agreement with loan portfolio servicers.  These agreements require the servicers to follow accepted servicing protocols and procedures.  They allow servicers to modify loans that are either in default or for which default is imminent or reasonably foreseeable, if there is no material adverse impact to the interests of the mortgage investors.  These initiatives do provide the servicers the ability to engage in the most appropriate loss mitigation techniques with homeowners in danger of default.  However, it is unclear as to the extent of help these initiatives will provide, as the type and number of distressed homeowners eligible for the FHA Secure and Hope Now initiatives are anticipated to be only a small fraction of currently estimated six million outstanding Sub-prime Loans.

As a buyer of residential mortgage-backed securities, the Company will be faced with all these risks and uncertainties. The Company will attempt to acquire its investments based on pricing models that take into consideration not only increased delinquencies and loss severities, but also cash flow.

The Company will not participate in the management of the real estate represented by its securities. The issuers/trustees/servicers of the securities to be held by the Company will have exclusive management and control of the operation of the real estate portfolios, and the Company must rely exclusively on the management capabilities of such issuers/trustees/servicers, regardless of whether the Company agrees with the decisions of such responsible parties.

Accurate valuation of illiquid mortgage backed securities is difficult.  The Company’s techniques used to value its target securities necessarily involve reliance on both objective and subjective criteria and assumptions and predictions that may or may not be realized.

The Company will compete with other entities and persons to purchase mortgage backed securities. The market for the mortgage backed securities sought by the Company is limited and generally inefficient, which the Company believes may create investment opportunities.

All of the Company’s securities will be backed by residential mortgages, thus limiting the offering’s diversification among various asset classes; however, it will be diversified over many different securities, and thousands of individual mortgages.

Mortgage backed bonds purchased will be rated BBB or better.

Bonds purchased by the Company may have excess interest spread between the interest received from the mortgage notes and the interest paid on the bonds. This excess spread is often held in reserve as further credit enhancement to the bond holders.

Usually there are bonds subordinate to the investment grade bonds selected by the Company in the capital structure. Thus, the subordinate bonds will absorb any losses in the underlying security before any losses are taken by the bond in which the Company has selected.

The Company seeks to purchase bonds at 50% or less of their face value providing substantial over collateralization and credit enhancement

25% of the Company’s share of the proceeds is placed into a reserve account to provide further credit enhancement to the investor.

The Company management team has originated, bought, sold and/or invested in over $150 billion in mortgage loans since the early 1980’s. As well, we have structured, issued and managed over $100 billion of Mortgage-Backed Securities. In 1994, individuals of the management team began securitizing non-agency mortgage loans. As described in the executive summary, none of the investment grade bonds issued by this management team have taken a principal write-down.

We are life-long mortgage finance experts, with outstanding reputations as professionals and individuals. We are known for partnering with our investors, having “skin in the game” and enjoying the fruits of our labors together. 

The best measure of our performance in this new venture together is the return from the funds that we are creating today. Our most recent fund which closed in November of 2007 has a life-to-date ROE of 25.6% to our investors as of the March 2008 distribution.

Mark Bishop, President: Mark Bishop has 25 years of experience as a leader in the mortgage securitization markets. Previously, Mr. Bishop was president of Impac Mortgage Acceptance Corporation in Irvine, California. At Impac, Mr. Bishop serviced investment banking sector clients with the purchase of bulk whole-loans, and the subsequent pooling and securitization of non-conforming mortgage debt, with volume in excess of $10 billion annually. Mr. Bishop began his real estate career as Vice President at Drexel Burnham Lambert, where he advised institutional clients in the national secondary market, and purchased and sold fixed income products, high yield bonds, and large pools of commercial and residential loans. He later co-founded Brentwood Financial Group, managing the bulk purchase, and subsequent pooling and sales of conforming and non-conforming residential mortgage loans on a national scale. He is a resident of Rancho Santa Fe, California and earned a Bachelor of Arts degree in economics from the University of California, Los Angeles.   

Lisa Duehring, Managing Director, Capital Markets:Prior to joining ABSIG, Ms. Lisa Duehring was President/CEO of Alliance Bancorp, Brisbane, CA, where she was responsible for the vision, mission and culture of the company. In 2006 and 2007 Alliance Bancorp originated over $8 billion in high credit quality mortgage loans, generating approximately $40 million EBITDA. Previously, Ms. Duehring was EVP of Capital Markets and Asset Liability Manager of a public REIT, Impac Mortgage Holdings, in Newport Beach, CA where she was responsible for growing and managing the balance sheet, creating profitability, loan pricing, bulk purchase and sale execution, interest rate risk management, and analysis of the performance for all products, securitizations and balance sheet assets. For the five yearsRespond to this opportunity, she was responsible for the origination of $63 billion of high credit quality mortgage loans, generating over $700 million of net earnings. Ms. Duehring was also a member of the Strategic Planning, Asset Liability Management and Executive Committees.  

Brian Sewell, Managing Director, Investor Relations: Mr. Sewell is known for his vision and leadership in the banking industry. He is currently the founder and principal owner of Savers Community, Diversified Commerce Group and Savers Community related funds such as the Savers Community ABS Investment Fund. As CEO he oversees all operations, including bulk asset acquisitions, investor relations, special loan servicing, compliance, etc. Previous to this he was an executive for World Savings & Loan for 10 years. His knowledge of and experience regarding banking, macro and micro economics, technology, and work as an innovator has contributed to his successful career.

Craig Chang, Managing Director, Operations: Craig Chang is responsible for technology oversight. Before joining ABSIG, Mr. Chang was responsible for managing Quick REO Capital’s daily operations. Previously, Mr. Chang was Chief Technology Officer of Impac Mortgage Holdings, Inc. in Irvine, CA. At Impac, Mr. Chang was responsible for all technology operations and systems supporting Impac’s mortgage origination, acquisitions and securitization operations. Mr. Chang was also President and CEO of C.T. Exchanges Corporation which is a top five independent distributor of high-end telecommunication equipment.  

Mark Aarvig, Chief Investment Officer: Mark Aarvig brings a broad array of expertise through his vast experience in financial modeling and risk analysis. Mr. Aarvig joins ABSIG from Impac Companies where he was in charge of modeling securitizations and pricing, as well as managing prepayment, loss, and delinquency assumptions. Additionally, he conducted sensitivity analysis which he used in developing and managing pricing tools to facilitate the acquisition of bulk loan packages. Before joining Impac, Mr. Aarvig was a senior analyst with IndyMac Bank where he modeled sub prime, prime fixed, and prime arm securitizations, as well as modeled various risk assumptions related to those transactions. Prior to IndyMac, Mr. Aarvig worked for Aames Financial Corporation where he managed residual asset loan portfolios, loan securitizations, interest rate risk, and product pricing. Mr. Aarvig earned a BS in Economics from the University of Minnesota.  

Tom Epperson, Chief Financial Officer: Tom Epperson is a seasoned professional and a Certified Public Accountant. Previously, Mr. Epperson was CFO of Quick Loan Funding, a residential mortgage loan originator in Costa Mesa, CA, and CFO of Commercial Enterprises, a commercial construction company in Albuquerque, NM. In the early 80’s, Mr. Epperson was a Tax Partner at Price Waterhouse Coopers. Mr. Epperson brings a wealth of experience and knowledge to ABSIG. He is uniquely qualified with experience and skills in the fields of multi-state Federal and State taxes, mortgage loan origination operations, tax planning, tax consequences, and financial accounting and management. Mr. Epperson is a CPA and Real Estate Broker.   

Sagar Patel, Senior Analyst:Sagar Patel is currently a Senior Analyst of ABSIG. In this role, Mr. Patel is responsible for locating, analyzing and managing the bond pipeline, and developing and managing the data base for the firm. Prior to joining ABSIG, Mr. Patel was the structuring analyst for Alliance Bancorp, a mortgage conduit and securitizer in San Francisco, CA. Prior to that, he was the Senior Secondary Marketing Analyst for Impac Mortgage Holdings. At both firms Mr. Patel created, built, performed, and administered the analytics and processes involved in bidding and managing over $2 billion/month worth of bulks for the conduits, executed buy side whole loan trades with leading mortgage lenders, managed an analyst team, which performed tasks ranging from data entry and locking loans to analyzing bulk bid tapes, and performed stratification, S&P LEVELS, Moody’s, and Intex Prepay analysis for buy/sell transactions. Additionally, Mr. Patel worked for Countrywide Bank in Simi Valley, CA. At Countrywide, he created written step-by-step procedures for all secondary market departmental tasks, audited end of month department billing figures to submit to the customers, devised new procedures and methods to enhance departmental teamwork, which resulted in a significant increase in productivity.

Steve Bishop, Senior Analyst: Steve Bishop is currently a Senior Analyst of ABSIG. In this role, Mr. Bishop is responsible for locating, analyzing and managing the bond pipeline for the firm. Prior to joining ABSIG, Mr. Bishop was a financial analyst for Impac Mortgage Holdings, a publicly traded mortgage loan originator and securitizer, Novelle Financial, a mortgage loan originator, and Brentwood Financial, a bulk purchaser of residential whole loans in Newport Beach, CA. In those position, he analyzed and completed due diligence for approximately $200 million in whole loan trades monthly.

Purpose, Values, Method and Management; Our “Secret Sauce”

Asset Backed Securities Investment Group (ABSIG)

ABSIG Purpose, Values, Method and Management

Purpose

ABSIG was created for the purpose of enabling private investors to capitalize on an opportunity to profit from Investment Grade mortgage-backed assets. This is achieved by offering ownership in limited partnerships of residential mortgage backed securities, sub performing mortgage loans, and 1-4 family residential properties (REO). ABSIG clients invest either through separate accounts or in commingled funds in limited partnerships. The investment process includes both strategy formulation and execution: research, acquisition of assets, active portfolio management and eventual harvesting of assets.  During an investment’s holding period, investors typically receive a monthly return on principal in the form of cash flow distributions, and, upon liquidation of the investment position, a return of principal along with appreciation or gain on sale.

Values

ABSIG values our clients’ trust. We are engaged daily to maximize total return, and outperform passive strategies. We focus solely on the market sector that we know best, leveraging our experience, our talents, our long standing business relationships and our comprehensive knowledge of both the public and private markets. Every day as we select investments, we:

·         Obtain superior market intelligence using in-house and other private market real estate research;

·         Maintain a diversity of issuers, servicers, properties and geography;

·         Maximize return potential and risk elimination by allocating capital based on asset selection research;

·         Employ a disciplined approach to maximizing the value of the portfolio in ever changing economic environments.

Method

ABSIG employs a disciplined multi-step portfolio construction method that combines both a top-down bond selection process with a bottom-up security selection process, performing a rigorous fundamental analysis. In other words, we analyze the entire securitization structure which contains the offered bond, including the underlying loan collateral, not just the bond itself.  Our competitors typically employ a top-down approach only. 
ABSIG sets asset allocation targets by geography, credit grades, loan to value ratios, originators, underwriting guidelines and other collateral characteristics using our extensive knowledge of real estate market trends and conditions for both the public and private real estate securities markets.

Management

ABSIG’s real estate investment portfolios are managed by a team of investment professionals, lead by Chief Investment Officer, Mark Aarvig. Mark has modeled, analyzed and managed thousands of bond investments during the past 15+ years. ABSIG has a stable, reliable, and experienced investment team with a proven track record.

The Mortgage-Backed Securities (MBS) Market

The MBS market, with over $6 trillion of securities outstanding, is the largest fixed income market sector in the world. Because of the market’s size and its attractive combination of creditworthiness and excess yield, virtually every major fixed income investor (institutional investors including banks, insurance companies, hedge funds, REITS, etc) allocates a significant portion of their portfolio to MBS.

The MBS market is composed of three sectors, each distinguished by property type. The largest sector consists of loans backed by residential mortgages. The other sectors consist of multifamily MBS and commercial MBS (“CMBS”). Residential MBS are further categorized by; (1) issuer/guarantor (agency versus non-agency); (2) credit rating; and (3) structure (pass-through versus CMO). Roughly 75% of residential MBS are U.S. government agency issued/guaranteed and therefore triple-A rated. Most of these are issued and guaranteed by Ginnie Mae, Fannie Mae, and Freddie Mac. The other 25% of residential MBS are issued by a variety of private financial institutions and guaranteed either by the private institutions or through subordination and other credit enhancements. Finally, the residential MBS market is categorized by structure: pass-throughs have principal and interest cashflows that mirror those of the underlying loans, while CMOs use pass-throughs as collateral to create more complex securities, the cashflows of which are dependent on a number of variables.

The Management of ABSIG has successfully participated in all sectors of the MBS market. ABSIG possesses the essential elements necessary to invest profitably in mortgage-backed securities: risk analysis, trading expertise, systems and analytical capabilities.

Risk Analysis

Accurate portfolio risk analysis is crucial for the consistent creation of attractive risk-adjusted rates of return in the MBS market. ABSIG possesses both the quantitative capabilities and the comprehensive understanding of MBS necessary to implement effective risk analysis and asset selection. In addition, ABSIG’s senior Management has a proven track record in their ability to analyze, purchase and manage large and complex MBS portfolios through difficult and turbulent market environments.

Trading Expertise

Trading expertise is vital to long-term success in the inefficient and dynamic MBS market and related fixed income markets. ABSIG’s investment committee has extensive contacts throughout the market and a combined 50+ years of experience dealing with all major market participants. ABSIG’s widespread contacts (including all relevant financial institutions) provide asset flow, valuable insight into market trends, inventory levels, location of available products through reverse inquiry, etc. ABSIG has a thorough understanding of the analytical and trading strengths and weaknesses, as well as the strategies, of its counterparties and competitors. Together, these elements ensure broad access to market information and trading flows, while facilitating both reliable and advantageous executions of transactions. Our traders and research staff are among the most experienced and respected in their related specialties.

Proprietary Systems and Analytics

Successful investing in MBS requires the ability to identify and quantify all significant risks associated with securities. ABSIG appreciates the critical role that analytical systems play in managing large, complex fixed income portfolios. We utilize three pricing models when analyzing all bonds: a proprietary model, developed by ABSIG, and the most sophisticated mortgage and interest rate models (Bond Studio and Lehman Live). Management’s creative skills, advanced analytics and precise discipline enable ABSIG to capitalize on current and future opportunities in the MBS and fixed income markets.

Competition and Differentiation

Our competition consists of investment banking firms and hedge funds, each with dedicated funds publicly disclosed to be in excess of $1B to purchase distressed assets made up of mortgage backed securities, loans and REO. These firms include, but are not limited to:

To date, very little funds have been deployed in MBS among these firms. Our firm was created for this purpose solely. We are not distracted by other areas of our business as this is our only business. Furthermore, our competitions’ business plan focuses on bonds with average face values in excess of $10 to 20M, while ABSIG is able to cost effectively analyze bonds with significantly lower face values, thus creating a considerable competitive advantage. We are 100% focused on the MBS market and the opportunities it provides in various cycles.

Results

Savers Community/ABSIG’s management team has originated, bought, sold and/or invested in over $150 billion in mortgage loans since the early 1980’s. As well, we have structured, issued and managed over $100 billion of Mortgage-Backed Securities. In 1994, individuals of the management team began securitizing non-agency mortgage loans. As described in the executive summary, none of the investment grade bonds issued by this management team have taken a principal write-down.

We are life-long mortgage finance experts, with outstanding reputations as professionals and individuals. We are known for partnering with our investors, having “skin in the game” and enjoying the fruits of our labors together. 

The best measure of our performance in this new venture together is the return from the funds that we are creating today. Our most recent fund which closed in November of 2007, if structured as the Savers Community ABS Investment Fund is structured, would have a life-to-date ROE of 25.06% to our investors as of the March 2008 distribution. This provides the most relevant support above is effective.that our “Secret Sauce” as described