This presentation demonstrates the benefits of the Elcano Franchise Fund's Clearing Pool Class Units for Significant Investor Visa applicants seeking VCPE category investment under their terms.

1. SIV VC/PE COMPLIANT
CLEARING POOL UNITS

2. Commercial-In-Confidence
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Ltd
SIV Investment Problem
Std VC/PE Products
• SIV 4 yrs VC/PE 10 yrs;
• No early exit;
• High risk;
• Return at end;
• No Investment selection;
• Few complying funds;
• Complicated & difficult entry;
• High Fees;
• Questionable Team credibility.
Complying Investment
Framework

3. Commercial-In-Confidence
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Ltd
SIV Investment Solution
Elcano Franchise Fund 1 –
Clearing Pool Class Units
• 4 yr term;
• Unit resale;
• Moderate risk;
• 9% ROI*
• Quarterly payments;
• Simple & easy entry;
• Low Fees;
• High Team credibility.
* Projected

4. Commercial-In-Confidence
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Ltd
Elcano Vs. Other VCPE
Low: where debt is able to
convert to SPV units.
Very High: of 10 – 6 fail, 3
break-even, 1 success
Yield: paying quarterly
On exit (towards end of
life)
Quasi Fixed Interest Capital Gains
Moderate: via residual
capital holding (not in
projected return)
Moderate
4 Years 10 - 12 Years
Fund Manager makes all
investment decisions
Fund Manager makes all
investment decisions
1. With the ability to extend to 5.5 years.

5. Commercial-In-Confidence
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Ltd
Genuine VC/PE
Elcano Franchise Fund
Elcano Vs. Other VCPE

6. Commercial-In-Confidence
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Ltd
Low to High: the pool will
vary but may be across
industries, geography, and
franchise system
Low: Australian VC/PE
products mostly focus
on a single industry and
will have less than 10
investees
Low: 1% Entry, 1%
Facilitation, and 1.25% -
2.5% RCH
High: Management Fee
2% p.a. Carried Interest
20%
Low: this is a once-off
investment pool
with only 10 million units
Low: Short capital
raising window
Moderate: unit basis ability
to on-sell
Low: no ability to exit
early
Elcano Vs. Other VCPE

7. Commercial-In-Confidence
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Ltd
Full model, notes and assumptions should be considered and are available from Elcano Capital
Elcano Franchise Fund 1 Year 1 Year 2 Year 3 Year 4 Year 5
INCOME
Investment 1,000,000-
Principal 165,830 181,386 198,401 217,013 218,392
Interest 83,270 67,714 50,699 32,088 9,950
Residual Capital Holding - - - - 30,000
Total Income 249,100 249,100 249,100 249,100 258,342 1,254,743
EXPENSE
Entry Fee 10,000 - - - -
Facilitation Fee 9,252 7,524 5,633 3,565 1,106
Residual Capital Hoding Fee - - - - 15,000
Total Fees 19,252 7,524 5,633 3,565 16,106 52,080
1,202,663
VC Industry Std
INCOME
Investment 1,000,000- - - - -
Interest - - - - -
Sale - - - - 1,275,389
Total Income - - - - 1,275,389 1,275,389
EXPENSE
Management Fee 20,000 20,000 20,000 20,000 20,000
Carried Interest - - - - 55,078
Total Fees 20,000 20,000 20,000 20,000 75,078 155,078
1,120,311
Elcano Vs. Other VCPE

8. Commercial-In-Confidence
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Ltd
Directors
Graham Hart AM
Chairman
Darren Lelliott
Managing Director
Stephen Rasmussen
Director
Nicole Ott
Marketing & Sales
Director
Elcano Vs. Other VCPE
David Gow
Director

9. Commercial-In-Confidence
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Ltd
Elcano Franchise Fund 1 LP
• Elcano Capital LP – Australian domiciled
fund manager;
• Operated by Elcano Pty Ltd - AFS licence
462624;
• EFF1 is conditionally registered VCLP with
AusIndustry;
• Compliant to receive mandatory $500K
VC/PE investment for SIV.
Elcano Franchise Fund 1

10. Commercial-In-Confidence
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Ltd
Elcano Franchise Fund 1
10 Million Clearing
Pool Units
500,000 Franchisee
A class Units
Franchisee A
P & I @10%
SIV
Investor
P & I @ 9%
Buy debt (as units)
@ 3.25% discount

11. Commercial-In-Confidence
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Ltd
• 1,160 Franchise Systems;
• $144 billion sales turnover;
• 14% GDP;
• Employ 461,000 people;
• Only 1.5% (av) of franchisees in dispute with
franchisor;
• Sector average growth 7.79% p.a.;
• 16 industry categories;
• Franchisees outperform company stores 5 – 15%
revenue, 10% lower wage costs*.
Aust Franchise Sector
* Business Review Weekly, Franchisees trounce company-owned stores in major study,
28/3/14

12. Commercial-In-Confidence
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Ltd
• Funding
• 2nd largest industry challenge
• 5% (app. 60) bank funding arrangement
Aust Franchise Sector

13. Commercial-In-Confidence
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Ltd
Franchise Systems
Franchisee
Assessment 30%
•Track record
•Net asset position
•Training/education
Franchise System
Assessment 70%
•Only Tier 1 & 2
Franchisors
•Proven business
model, adequate
funding coverage
•Robust franchisee
assessment,
training, support.

14. Commercial-In-Confidence
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Ltd
Franchise Systems
Expressions of interest held, no Listed Franchise Systems appointed until Clearing Pool un

15. Commercial-In-Confidence
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Ltd
• Minimum $500k – Maximum $3 million
• 5% draw-down on application
• Residual draw-down ASAP
• Information Memorandum with Application Form
SIV Applications
CLEARING POOL CLASS UNITS
Information Memorandum
& Application

16. For further information please contact:
Darren Lelliott (Managing Director)
Mobile: 0431 775 252 darren@elcano.com.au
www.elcano.com.au