CONTACT US

ADDRESS

DelCam Holdings, LLC

320 Nevada Street, Suite 301

Newton, MA 02460

Email: STrotta@DelCamHoldings.com

Tel: 617-281-7038

The information contained herein is confidential information regarding DelCam Holdings LLC (“DelCam”). By accepting this information, the recipient agrees that it will, and it will cause its directors, partners, officers, employees, attorney(s), agents and representatives, to use the information only to evaluate its potential interest in the investments and strategies described herein and for no other purpose and will not divulge any such information to any other party. Any reproduction of this information, in whole or in part, is prohibited. These contents are proprietary information of DelCam and may not be reproduced or disseminated in whole or part without the prior written consent of DelCam. Each person accepting this document hereby agrees to return it promptly upon request. General solicitations, prospecting by mail and advertising are strictly prohibited.

The information contained herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or to participate in any trading strategy or potential fund to be sponsored by DelCam. If any offer of securities is made, it will be pursuant to a definitive offering memorandum prepared by DelCam that contains material information not contained herein and which supersedes this information in its entirety. Any decision to invest in the strategy or fund managed by DelCam should be made after reviewing such definitive offering memorandum, conducting such investigations as the investor deems necessary and consulting the investor’s own investment, legal, accounting and tax advisors in order to make an independent determination of the suitability and consequences of an investment. An investment in DelCam’s strategy involves significant risks, including loss of the entire investment.

 

All performance and internal rates of return contained herein are subject to revision by DelCam and are provided solely as a guide to current performance expectations. Past performance does not guarantee future results. Actual results may vary. As of the date hereof, DelCam has not made any investments. There can be no assurance that DelCam’s strategy will achieve any targets or that there will be any return on capital. Historic performance is not necessarily indicative of future performance, which could vary substantially. The performance figures contained herein are provided on a net basis. The performance is calculated in U.S. dollars.

As used herein with respect to an individual investment, “IRR” is intended to represent the net compounded annual internal rate of return on the realized investment. The IRR is calculated from the time each investment is made until the date such investment was disposed of, fully or partially, and is based on the aggregate capital contributions made to, and on the aggregate realized proceeds (including all cash received from the disposition of the investment and any other cash received from the investment, including payments of principal, interest, dividends, if applicable) from, the respective realized investment.

The information presented herein, including, but not limited to, DelCam’s investment experience, returns or performance, investment strategies, risk management, market opportunity, representative strategies, portfolio construction, capitalizations, expectations, targets, parameters, guidelines, and positions may involve DelCam’s views, estimates, assumptions, facts and information from other sources that are believed to be accurate and reliable and are as of the date this information is presented—any of which may change without notice. DelCam has no obligation (express or implied) to update any or all of the information contained herein or to advise you of any changes; nor does DelCam make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. The information presented is for illustrative purposes only and does not constitute an exhaustive explanation of the investment process, investment strategies or risk management.

Certain information contained in the presentation constitutes forward looking statements which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue,” or “believe,” or the negative thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of DelCam may differ materially from those reflected or contemplated in such forward-looking statements.

Investments in DelCam’s strategy or fund are not deposits or obligations of, or guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other governmental agency.

No person (other than DelCam and its principals and employees) has been authorized to make any statement concerning DelCam and any such statements, if made, may not be relied upon.

PROCESS AND STRATEGIC INVESTMENTS TO CATALYZE GROWTH

DelCam Holdings focuses on the acquisition of and the investment in reputable micro manufacturing companies with revenue between $1M-$10M that are cash flow positive and have capacity in place to grow in their current location. In order to maximize tax benefits and investment appreciation, target companies will be located in Opportunity Zones.

By the end of year 3 the management company desires to secure between 4-7 acquisitions in complimentary businesses with a total revenue base of at least $30M. The management company expects to grow annual revenue of portfolio companies until year 10 at an average rate of 15%. The objective is to increase the net profit margin substantially from baseline levels at the time of acquisition, dramatically enhancing the combined value of the portfolio of companies. We will exit from the investments after year 10 to maximize tax benefits under the opportunity zone regulations. Distributions may be taken sooner than year 10, albeit the tax-free profit advantages afforded by the opportunity zone regulations will not be realized prior to year 10.

After an acquisition is made, a comprehensive review of the portfolio company will be completed by the management company and key consultants within the first three months after acquisition. The results of the review will be translated into a value creation plan of action to fuel growth in the immediate term (one year), intermediate term (3-5 years) and long term (10 years) to maximize the exit value of the company. With each subsequent acquisition we will look for synergies and opportunities to maximize the overall value of the portfolio. Some of the key investments that will be made are as follows:

 

Aerospace, Defense & Quality Certifications – Obtain certifications to increase portfolio company credibility and open the door to more sales opportunities.

 

Labor Bench & Training – Identify strategic sources of labor to ensure portfolio companies are staffed appropriately and have the right personnel depth to grow the businesses. Implement a portfolio wide apprentice program, lure high performing workers from competitors with incentives, and hire excellent leadership to drive exponential growth. Cross train employees to improve overall output and to protect against loss of resources.

 

Sales – Add sales staff in a balanced manner where needed to propel the top line growth of the companies. Many small manufacturing companies do not have a dedicated salesforce and can greatly benefit from the addition of key sales personnel. Cross-sell to other portfolio company customer bases where possible in order to drive growth from within while avoiding potential cannibalization with appropriate controls.

 

Technology – Software and systems will be a key tenet of DelCam’s strategic investments. Ensuring portfolio companies are using the most up to date ERP, CRM, Accounting, Design and Costing software and also investing in technology to integrate the portfolio companies on to a consistent platform across the board.

 

Equipment – Automation will be a key factor that will enable our portfolio companies to generate scale and to enhance the net profit. We will invest in modern machinery, and ensure employees are appropriately trained on how to use the equipment.

 

Operational Optimization for Maximum Capacity – Evaluate and invest in improvements around the efficiencies of day to day operations in the manufacturing plant. Ensure optimal set up utilizing best practices and methodologies to maximize capacity.

 

Real Estate – Acquire real estate to serve as a consolidation landing ground for the portfolio companies over time. Potentially leverage opportunity zone real estate vacated via consolidation for other development projects.

 

Research and Development – Produce higher value and higher margin product to increase value to customers so they become stickier. Develop new products and services to help drive growth and increase sales.