DreamerTopia Investments, LP

Business Plan

Contact:
Donald Kernan, Jr.
414-469-8914
info@dreamertopisinvestments.com

Mission Statement
DreamerTopia Capital Management was created to help clients preserve
and enhance their wealth over the long term. With a concentrated focus on
investment management, DreamerTopia Capital Management provides
clients with professional and objective expertise, attentive service, and
premier access to top investment opportunities.

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Table of Contents
MISSION STATEMENT ................................................................................................................................... 2
TABLE OF CONTENTS.................................................................................................................................... 3
EXECUTIVE SUMMARY .................................................................................................................................. 4
EXECUTIVE SUMMARY .................................................................................................................................. 4
Fund Key Features .......................................................................................................................................................................... 5
Fund Structure .................................................................................................................................................................................. 6
Fund Location ................................................................................................................................................................................... 6

FUND DESCRIPTION ...................................................................................................................................... 7

Investment Approach .................................................................................................................................................................... 8
Investment Property ...................................................................................................................................................................... 9

MARKET ANALYSIS SUMMARY .................................................................................................................10

STRATEGY AND IMPLEMENTATION SUMMARY ..................................................................................15
Operational and Due Diligence Strategy .............................................................................................................................. 15
Strategic Partners .......................................................................................................................................................................... 16
Risk Mitigation ................................................................................................................................................................................ 17

MANAGEMENT SUMMARY .........................................................................................................................18

FINANCIAL FORECAST ................................................................................................................................19

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Executive Summary
With a unique investment approach and carefully honed strategy, DreamerTopia Capital Management, LLC
is proud to launch DreamerTopia Investments, LP (also referred to as the Fund), a private equity fund for
accredited investors. In October 2012, DreamerTopia Investments received a Commitment Approval for
the purchase and placement of Certificates of Deposit in the amount of $500,000 to facilitate a Direct Loan
from World Bank. The Fund will provide an opportunity for limited partners to preserve and enhance
wealth through investments in domestic business opportunities with high growth potential. DreamerTopia
Investments will specifically seek to invest in businesses in early to late stage of start-up in growing
American industries, such as gold mining, oil, and technology. DreamerTopia Investments will allow each
of the businesses it funds to operate as an independent entity, using the same internal operational
strategies that initially fueled its early success. The Fund is currently seeking participation from Limited
Partners to begin its first round of investments.
The past five years have been difficult for American industries; the economic recession caused lending to
slow and consumers to be increasingly wary of making expenditures. Today, the economy is showing
increasing strength. Between July and September 2012 alone, the U.S. economy grew by 2%. The energy,
technology, and other industries are recovering and attracting interest from investors. In 2011, more than
$28 billion was invested in biotechnology and software. DreamerTopia Investments private equity fund
will provide an opportunity for investors to earn substantial rewards by investing in American businesses
in a carefully selected mix of these growing industries.
DreamerTopia Investments investment philosophy and strategies distinguish it from traditional private
equity funds. The Fund features well-reasoned due diligence practices designed to thoroughly evaluate any
company that DreamerTopia Investments is considering acquiring. DreamerTopia Investments also is
committed to investing in domestic companies, which supports job growth while stimulating the U.S.
economy. Through its calculated approach, as well as its elevated level of investor servicing and ongoing
investor education endeavors, DreamerTopia Investments intends to develop a strong reputation and
generate long-term capital appreciation.

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Donald Alan Kernan Jr. will serve as the Funds General Partner. Mr. Kernan is the founder of
DreamerTopia, a social media platform, and is also the founder of Banner Broker, Inc., an online banner ad
and profit sharing platform. He completed coursework at Marquette University and DeVry University. Mr.
Kernan is also a graduate of Wealth Masters training, and holds Six Sigma certification.
DreamerTopia Investments, LP seeks accredited investors that will invest $100,000 minimum into the
private equity fund.

Fund Key Features

Investor Eligibility
Industries
Management Fee
Preferred Return
Performance Fee
Term
Clawback

Investor Liquidity

Minimum Investment
Estimated Capacity
Currency
Service Providers

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Accredited Investors
Broad and varied; domestic companies
10% management fee
8% per annum
35% incentive fee
10th anniversary of final closing
Yes
An investment in the Fund requires a long term
commitment, with no certainty of return. There
most likely will be little or no near-term cash flow
available to Limited Partners. Many of the Funds
investments will be highly illiquid, and there can be
no assurance that the Fund will be able to realize on
such investments in a timely manner.
$100,000
$10 million
USD
Administration: Strategic Asset Management, LLC
Legal Counsel: Riveles Law Group
Auditors: ACSB

Fund Structure
DreamerTopia Investments structure will be similar to that of a traditional private equity firm, which is
detailed below. DreamerTopia Capital Management, LLC will be the Funds General Partner.

Fund Location
DreamerTopia Investments, LP will be headquartered in Milwaukee, Wisconsin.

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Fund Description
While the economy is beginning to recover, the need for investment has never been greater among U.S.
private business entities. Bank loans to small businesses declined by more than $19 billion in the past year,
making it difficult for many smaller companies to expand operations. DreamerTopia Capital Management
is proud to introduce a private equity fund, DreamerTopia Investments, which will serve as a benefactor for
American businesses in high-growth industries. The
Fund will specifically target early to late stage start-up
companies operating in technology and natural resource
extraction, such as gold mining and oil drilling. Through
the Fund, investors will have the opportunity to not only
facilitate American industry growth, but also earn
substantial returns.
DreamerTopia Investments employs proven strategies, as
well as a thorough due diligence process, when selecting target businesses for investment. The Fund will
use a combination of investment strategies to achieve dynamic performance for Limited Partners. As a
capital management firm, DreamerTopia will offer investors the opportunity to work closely with a
financial advisor to create a customized financial plan.
The Fund strives to help its investors and the businesses it invests in accomplish financial goals.
DreamerTopia Investments allows these businesses to thrive independently, maintaining the operational
autonomy that provided these companies early success. The fund will invest in a broad and varied range of
industries operating throughout the United States, allowing for increased diversification and protecting
against risk. The Fund will assess the following before investing its private equity fund into a business:

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Investment Approach
In an effort to achieve dynamic investment results, DreamerTopia will leverage CDs as collateral to secure
loans. The Fund will invest assets into CDs with two or ten year terms. The Fund will then pursue loans
from financial institutions, such as Wells Fargo or Chase JP Morgan, that provide loans at a 2:1 basis when
collateralized by CDs. DreamerTopia Investments will use these loans to purchase existing companies with
mid to high-range Paydex credit scores. As of October 2012, DreamerTopia has been approved for a Bank
Commitment from World Bank for the purchase and placement of Certificate of Deposits in the aggregate
amount of $500,000 into the Companys account.
DreamerTopia will invest in companies from a variety of high-growth industries. The Fund will allow these
businesses to remain autonomous and maintain independent operations. DreamerTopia will maintain a
controlling interest in each of these businesses and will hold a note on the loan. DreamerTopia will take
dividends and profit sharing from the businesses in which its investment, which it will use to pay back the
loan and earn additional returns. Each investor will realize a return after their investment period of two or
10 years through the interest earned on the CD, as well as the return from the DreamTopia Investment.

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Investment Property
The Fund will also purchase a commercial office
building to serve as the DreamerTopia Capital
Investment headquarters. Located on historic Mason
Street, this 9,410 square foot building is just a block
from Milwaukees city hall, the Pabst Theater, and is
on the National Register of Historic Places. The
property will serve as an additional asset, which will
add value to the fund. The following is an image of
the Mason Street property.

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Market Analysis Summary

DreamerTopia Investments will operate in the $75.7 billion Private Equity, Hedge Funds, and Investment
Vehicle industry. While hard hit during the recession, this industry began to experience recovery in 2010
and is expected to grow at an estimated 4.4% in 2012. Private equity deals volume will be the chief driver
of growth. Within the next five years, the industry is expected to see sales increase at an average rate of
3.5% annually. Private equity funds make up 56% of the sales in this industry. The following chart
provides an overview for Private Equity, Hedge Funds, and Investment Vehicle industry.1

Private Equity, Hedge Funds, & Investment Vehicles IBISWorld. Obtained at: www.ibisworld.com

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Buoyed by an uptick in consumer spending and a burst of government spending, U.S. economy grew at a
2% annual growth rate from July through September 2012.2 As the economy improves, more businesses
will have the opportunity to expand. Investors have the rare opportunity to continue to support the
growth of the economy by providing necessary capital to fledgling businesses. The Fund will target
businesses operating in areas of the economy that are not only rapidly growing but also highly attractive to
investors, such as technology, oil drilling, and gold mining.
Software, biotechnology, IT services, and energy industries are paving the way towards financial stability
for the United States. In 2011, venture capital firms provided $28.4 billion through a total of 3,673
investments in software and biotechnology industries.3 In the third quarter of 2012, software alone had
received a total of $2 billion in investment from venture capitalists. The following chart provides an
overview from PriceWaterhouse Coopers of what industries are attracting investments.4

DreamerTopia Investments will also fund businesses operating in the gold mining industry, which has seen
tremendous growth in the last few years. While the price of gold remained stagnant for much of the late
20th century, the economic climate of late 2003 and onwards proved to be an ideal time for people to take

Rugaber, Christopher. U.S. Economic Growth Improves to 2 pct. Rate in Q3 Yahoo. October 26, 2012. Obtained at:
http://finance.yahoo.com/news/us-economic-growth-improves-2-123154242.html
3 Nasri, Grace. Venture Capitalists Favor Silicon Valley, but Silicon Alley is Rising Fast Venture Beat. February 7, 2012. Obtained
at: http://venturebeat.com/2012/02/07/venture-capitalists-favor-silicon-valley-but-silicon-alley-is-rising-fast/
4 Money Tree Report. PriceWaterhouse Coopers. Obtained at:
https://www.pwcmoneytree.com/MTPublic/ns/nav.jsp?page=industry
2

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refuge in its security. Golds historical relevance as a currency provides it a more significant value than
other precious metals and low interest rates have also supported the rise of gold prices. The following
chart indicates the growth of gold in price between 1998 and 2011.5

According to IBISWorld, a market research firm, gold is more

resilient and less risky than world currencies. The recent
recession is no exception: the average price of gold jumped
25.2% in 2008, 11.4% in 2009, and a further 26.1% in 2010. As
the global economy recovers, the price of gold is expected to
stabilize somewhat, but an annual growth rate of nearly 5% is
still expected between 2012 and 2016. In 2012, the Gold & Silver
Ore Mine industry will earn $14 billion in revenue in the United
States. The table at right provides a more detailed overview of
the price of gold per troy ounce and the annual percentage
change between 1999 and 2017:6
Further, DreamerTopia Investments will fund businesses in the Oil Drilling and Gas Extraction industry.
While other industries suffered setbacks during the economic recession, the global demand for oil has not

5
6

World Gold Council. Investment: Prices Obtained at: http://www.gold.org/investment/statistics/prices/

Ibid.

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slowed, causing Oil Drilling businesses based in the U.S. to turn sizeable profits. Moreover, political
tensions in the Middle East have led to a sharp growth in crude-oil prices. The increase in crude oil prices
will feed into overall industry revenue growth as higher prices are realized for the industrys output.
During the next five years, the industry will experience a 6.6% growth. It is projected that the number of
businesses operating in this industry will increase by 100 new firms and more than 7,000 employees by
2017. The following chart provides an overview for the Oil Drilling and Gas Extraction industry from
market research firm IBISWorld.7

Oil Drilling and Gas Extraction in the U.S. IBISWorld. September 2011. Obtained at: www.ibisworld.com

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Strategy and Implementation Summary

Like other successful private equity funds, DreamerTopia Investments will forge major connections with
businesses that could benefit from private equity and also demonstrate impressive growth potential. The
fund will make strategic, well-researched decisions about its investments, concentrating on companies
with which the General Partner has an established relationship. The Fund will focus on ensuring an
intimate understanding of each companys operations before considering acquisition. DreamerTopia
Investments will invest in specific segments, including technology, oil drilling, and gold mining. The Funds
additional advantages and distinguishing factors are as follows:
Invests in domestic companies to support job growth while stimulating the economy
Higher profit margins due to tax benefits associated with investing in domestic companies
Combines multiple investment strategies to achieve dynamic investment performance
Dedicated to delivering consistent, superior returns while minimizing risk
Committed to generating long-term capital appreciation by investing in private equity securities, or
other securities that provide equity-like returns
Invests in financially-stable companies with knowledgeable management teams and favorable
prospects for long-term growth

Operational and Due Diligence Strategy

Prior to acquiring a company to add to its fund portfolio, DreamerTopia Investments will engage in a
thorough due diligence process to assess the target companys feasibility and potential profitability. If
available, DreamerTopia Investments will review target companies business plans to compare projections
to current operations. Based on his experience reviewing dozens of business plans throughout his
investment career, YoungEntrepreneur.com contributor Peter S. Cohan notes that the business plans that
resulted in successful outcomes contained deep insights into the customers who ended up buying the
companys products. The ones that failed, did not.8
The Fund will assess multiple components of each target company to ensure that it is a sound choice.
DreamerTopia Investments may also outsource feasibility studies on prospective acquisitions, and will

Cohan, Peter. YoungEntrepreneur.com. 6 Key Elements of a Good Business Plan. August 8, 2012. Obtained at:
http://tinyurl.com/b5bs9ev
8

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consider hiring consultants who have expertise in the particular market served by businesses the Firm
intends to acquire. The Fund and its consultants will consider the following factors prior to acquiring any
company:
Industry trends and projections
Viability of the business model
Market relevance
A full internal analysis of market potential
Management team strength, industry experience, and past successes within the field
Feasibility of future projections and growth potential

Strategic Partners
DreamerTopia Investments has amassed several strategic partners, including some of the leading hedge
fund service providers. These include:
Strategic Asset Management
Strategic Asset Management, LLC is a full-service administration company that will serve as
DreamerTopia Investments Administrator. This firm will maintain the Funds books and provide
various administration services. The dedicated team of professionals at Strategic Asset
Management has an unsurpassed knowledge of the hedge fund industry, uses the latest technology,
and understands the specific needs of clients in this industry.
ACSB
ACSB will perform the annual audit of the Fund. The audit will review the accounting practices of
the Fund. ACSB and its affiliates provide a broad spectrum of services with a single focus: serving
clients and helping them solve their toughest problems. ACSB operates in four key business areas
audit, financial advisory, tax, and consulting.
Riveles Law Group
Riveles Law Group (RLG) will serve as Counsel for DreamerTopia Investments. This firm provides
specialized legal advice and guidance to the investment management industry. Riveles Law Group
will represent the Fund and the General Partner in connection with the organization of the Fund,
the offering of Interests, and certain other ongoing matters, at the request of the General Partner.
This firm does not represent the Limited Partners or any one Limited Partner in any capacity.

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World Bank
World Bank, an international lending institution, has recently issues a Bank Commitment for the
purchase and placement of $500,000 in Certificates of Deposit into the Funds account in order to
facilitate a Direct Loan. These funds will be used to collateralize loans from financial institutions
like Wells Fargo and J.P. Morgan Chase that will be used to purchase investments.

Risk Mitigation
DreamerTopia Investments will seek to mitigate risk in its investments by leveraging CDs and using owned
properties as collateral. The Fund is focused on maximizing security for investors, managers, and strategic
partners through a well-reasoned investment strategy that allows for cash leverage while securing the
principal of the investor. DreamerTopia Investments infrastructure will allow the investment team to
concentrate on making client investments at a time when legislators, regulators, and alternative asset class
investors are calling for improved controls, governance, and transparency. DreamerTopia Investments will
continually develop, fine-tune, and maintain an institutional grade investor relations infrastructure, and
will provide monthly portfolio reports. This infrastructure will be rooted the Funds commitment to
provide a higher level of investor servicing, as well as DreamerTopia Investments dedication to providing
ongoing education for current investors with regard to the Funds strategies.

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Management Summary
Donald Alan Kernan, Jr., General Partner
Donald Alan Kernan, Jr. is the Sole Principal of DreamerTopia Capital Management, LLC (the General
Partner of the Fund) and will be solely responsible for making all management and investment decisions
relating to the Fund. Mr. Kernan is also the sole owner of DreamerTopia, a social media platform startup.
Prior to these endeavors, Mr. Kernan created Banner Broker, Inc., a Toronto-based company that provided
an online banner ad and profit sharing platform for countless domestic and global accounts. There, he was
responsible for organizing and establishing the affiliate company and the holding company, and led the
company to achieve significant advertising growth and user growth.
Mr. Kernan completed coursework at DeVry University and Marquette University. He has completed
Wealth Masters training and is Six Sigma Certified.

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Financial Forecast
The Fund will seek to obtain up to 100 partners over the five year projection, and seek to earn those
partners an 8% return after fees.
Hypothetical Fund Size & Fees
Year 1
Starting Assets Under Management

Year 2

Year 3

Year 4

Year 5

$0

$1,082,000

$2,793,724

$5,186,809

Contributions

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Funds Invested

$1,000,000

$2,582,000

$4,793,724

$7,686,809

$11,317,128

Average Investment Size

Yearly New Investments

$8,317,128

$100,000
10

15

20

25

30

Target Return on Investments

Value of Investments

28%
$1,000,000

28%
$2,582,000

28%
$4,793,724

28%
$7,686,809

28%
$11,317,128

Ending Assets Under Management

$1,280,000

$3,304,960

$6,135,967

$9,839,116

$14,485,924

Less Management Fee (10%)

$100,000

$258,200

$479,372

$768,681

$1,131,713

Less Performance Fee (35%)

$98,000

$253,036

$469,785

$753,307

$1,109,079

$1,082,000

$2,793,724

$5,186,809

$8,317,128

$12,245,132

Ending AUM After Fees

Target Return After Fees

8.2%

8.2%

8.2%

8.2%

8.2%

Projected Admin Expenses

Marketing

$15,000

$22,500

$33,750

$50,625

$75,938

Rent

$24,000

$36,000

$54,000

$81,000

$121,500

Utilities

$4,000

$6,000

$9,000

$13,500

$20,250

Travel

$5,000

$7,500

$11,250

$16,875

$25,313

Consultants

$10,000

$15,000

$22,500

$33,750

$50,625

Payroll Taxes & Benefits

$15,000

$22,500

$33,750

$50,625

$75,938

$100,000
$173,000

$150,000
$259,500

$225,000
$389,250

$337,500
$583,875

$506,250
$875,813

Total Personnel
Total Admin Expenses

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Absolute returns of these level offer investors considerably higher returns over a five or ten year horizon
than traditional investment methodologies.

Comparisons of Returns
$1,600
$1,400

Stock Market 20062010

$1,200
$1,000
$800

8% Absolute Return

$600

$400
10 Year US Bonds

$200
$0
Year 1

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Year 2

Year 3

Year 4

Year 5

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