COMPANY OVERVIEW

At The Paragon Group (TPG), we seek to provide above average returns to investors through identifying projects that are prepared to increase substantially in value through the execution of innovative strategies. We believe that minority and woman-owned businesses have been historically undervalued by the investment community and that a lack of access to investment capital has limited the opportunities for growth by these businesses. Through filling this gap in access, TPG invests not only in businesses, but also in their founders and the underserved communities in which they live.

Another key component of TPG’s approach is the willful sharing of our information and experiences with founders in which we invest. This relationship is integral to the success of our investment philosophy. Filling the financial gap through investment is only one of the necessary components for minority and woman-owned businesses to realize their potential. The other major component is providing a robust support system. As such, we have designed a mentoring program that will change the old approach to investing in small businesses. We share all of our knowledge and experiences with our founders, and in return, we require that any founder in which we invest serve as a mentor to other founders in their local community. This is not an optional part of working with TPG. It is a requirement. We must continue to pay forward the shared benefits of our experiences. The Paragon Group is committed to forging a path for founders to unlock their potential.

 INVESTMENT PHILOSOPHY

ENTERPRISE INVESTMENT

While we believe that investing in minority and woman-owned enterprises is the right thing to do, we also believe that there is a strong business case for allocating funding to these enterprises. Our investment philosophy is simple. We believe that when adequately funded, minority and woman-owned businesses provide above average returns relative to the market in general. At The Paragon Group, we don’t take a passive approach to investments. We actively participate in the formulation of strategies as well as the execution of the growth plan. We have access to resources and expertise that most founders do not have, and we bring all of our resources to the table to help realize the growth objectives that have been established.

We seek to primarily invest in businesses with less than $10 million in revenue. We feel that the great gap in funding is most felt in businesses of this size. Our initial investments are typically between $100,000 and $500,000. Subsequent investments can be larger, depending on the needs of the company to achieve its growth objectives. We seek to exit our investments within 3-5 years.