Global E-Commerce Market → $8.1T by 2026TikTok Shop GMV Growing 300% Year-on-YearAI-Native Brands: 40% Lower Customer Acquisition CostDTC Brand Exit Multiples: 4–8× Annual RevenueFamily Offices Collectively Manage $6.4 TrillionPE Fund Average IRR Compressed to 12–14%Direct Investment Allocations Up 34% YoYSocial Commerce CAGR: 28% Through 2028Shopify GMV on Pace to Surpass $300B in 2026AI Supply Chain Optimization: 30% Cost ReductionGlobal E-Commerce Market → $8.1T by 2026TikTok Shop GMV Growing 300% Year-on-YearAI-Native Brands: 40% Lower Customer Acquisition CostDTC Brand Exit Multiples: 4–8× Annual RevenueFamily Offices Collectively Manage $6.4 TrillionPE Fund Average IRR Compressed to 12–14%Direct Investment Allocations Up 34% YoYSocial Commerce CAGR: 28% Through 2028Shopify GMV on Pace to Surpass $300B in 2026AI Supply Chain Optimization: 30% Cost Reduction
Client Reference Document · Confidential

Capital & Profit Distribution Model

Transparent, performance-aligned, and built to compound your capital geometrically over a 5-year horizon. Model Version 2.0 · Minimum Engagement Period: 5 Years

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Capital in the hands of the usual suspects is safe. But that is not what capital is for. We leverage capital the way it was always meant to be leveraged: intelligently, systematically, and exponentially.

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Target MOIC
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Annual Distribution %
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Engagement Horizon
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Year 1 Distributions
Overview

Capital & Profit Distribution Flow

How your capital moves through the model, from deployment through compounding to exit.

Capital & Profit Distribution Flow

Scroll sideways to follow the full flow

YOUR CAPITAL
Deployed Into Your Entity
Year 1
Build Phase
20% Service Fee
¼ to referral
Our operating costs &
team time
Your Capital +
60% reinvested
80% Reinvested
Year 1 total
20% Our Share
Reinvested with you
We reinvest our share alongside your capital
95%
Deployed
Capital
Year 2+
Returns Phase
50% Reinvested
¼ to referral
Compound flywheel continues
50% Distributed
20% Us
30% You
Option to
Reinvest
Your choice
Upon Sale or Liquidation

We receive a commission equal to 20% of net exit value at time of sale.

Minimum Engagement Period = 5 Years
Referral = strategic affiliates and intermediaries who refer clients to us. Receive ¼ of our reinvested share, paid from our share only.
Key Terms at a Glance

The Model Summary

Minimum Capital per Engagement
10 Brands ($100,000 per brand = $1,000,000 minimum recommended)
Engagement Period
Minimum 5 Years
Year 1 Distribution to You
No distributions. Full reinvestment for compounding.
Year 2+ Distribution to You
30% of annual profit (or option to reinvest)
Year 1 Service Fee
20% of Year 1 profit
Our Reinvested Share (Year 1)
20% reinvested alongside your capital
Success Fee on Exit
20% of net exit value upon sale or liquidation
Referral Commission
¼ of our reinvested share, paid from our share only
Engagement Structure

The Block System

Investment is structured in "Blocks" to create clarity, scalability, and tiered incentives. Each Block represents a single e-commerce brand operation.

5 Brands
$500,000
5 Brands
Entry Tier
Minimum
10 Brands (minimum recommended)
$1,000,000
10 Brands
Growth Tier
15 Brands
$1,500,000
15 Brands
Scale Tier
20+ Brands
$2,000,000+
20+ Brands
Portfolio Tier

Higher block counts unlock enhanced reporting, additional support layers, and strategic partner referral benefits.

Profit Allocation

Year by Year Breakdown

Year 1: Foundation
Build Phase
Service Fee20%
Covers brand management, team & platform
Our Reinvested Share20%
We reinvest alongside your capital
Your Capital + Profit60%
Returned to you, then reinvested
Your Distribution0%
No Year 1 distribution. Maximises compounding.
Strategic Note: We reinvest our 20% share alongside your capital in Year 1, a direct alignment of incentives. Both parties build the same asset and benefit from the same outcome.
Year 2+: Returns
Compounding Phase
Profit Reinvested50%
Automatically reinvested to maintain growth
Your Distribution30%
Paid to you, with option to reinvest
Operator Share20%
¼ of this (5%) allocated to Strategic Partners
Reinvestment Option: You may reinvest some or all of your 30% distribution back into the portfolio, entirely at your discretion. Consistent reinvestors benefit from the full geometric compounding effect, modelled to deliver a 4x return over 3 years.
The Compounding Principle

5-Year Growth Trajectory

Target: 4x your capital over a 3–5 year horizon through geometric compounding of reinvested profits, brand acquisition, and portfolio exits.

Year 1
Starting Capital$1,000,000
Reinvested80% of profit
Your PayoutN/A
Year 2
Starting Capital$1,000,000 + compounded
Reinvested50% of profit
Your Payout30% of profit
Year 3
Starting CapitalCompounded portfolio
Reinvested50% of profit
Your Payout30% + exit proceeds
Year 4–5
Starting CapitalScaled portfolio
ReinvestedReinvest or exit
Your Payout~4.7x principal target
Strategic Roadmap

5-Year Strategic Plan

1

Build

Year 1–2
Activities

Launch brands from scratch. Test products. Establish supply chain. Build operational systems.

Your Outcome

No distributions. Full reinvestment. Principal compounding.

2

Assess & Pivot

Year 3
Activities

Assess portfolio performance. Sell top brands at premium multiples. Acquire already-profitable brands.

Your Outcome

First significant distributions + exit proceeds. M&A framework activated.

3

Acquire & Scale

Year 3–5
Activities

Acquire profitable brands. Optimise operations. Scale revenue. Exit at higher multiples. Repeat.

Your Outcome

Compounding exits. 30% annual profit + exit multiples. ~4.7x target MOIC.

4

Portfolio Exit

Year 5+
Activities

Hold highest-potential brands for unicorn-level exits. Full portfolio review.

Your Outcome

Maximum return realisation. Option to exit or compound into next cycle.

Risk Architecture

The Two-Sided Risk Framework

Most investment models address risk from one direction. We address it from both. Our approach combines a proven methodology for limiting downside with a structural mechanism for capturing unlimited upside at the same time.

Downside Protection

Mitigated Risk

We do not invent. We do not guess. We do not experiment blindly with your capital. Every brand we build is a validated clone of a model that already has proven demand, proven margins, and proven market fit.

The Samwer Brothers Blueprint

Oliver, Marc & Alexander Samwer built a $3B+ empire (Rocket Internet) without inventing a single product. They cloned proven US businesses: eBay, Airbnb, Zappos. Then executed them in new markets at speed. The result: Zalando IPO'd at €5.7B. Alando sold to eBay in 100 days.

"We are not inventors. We are engineers of proven models."

AI validates demand before a single dollar is spent. 40+ data points per product.

We reverse-engineer the top 1% of e-commerce brands and rebuild with improvements.

AI execution compresses years of brand learning into weeks of optimised output.

Upside Potential

Shared Risk

A portfolio of 5–15 brands means no single outcome defines your return. One brand breaking even is offset by two brands growing 3x. And one unicorn, just one, can return the entire portfolio. This is the shared risk principle: the portfolio absorbs the variance while the upside remains uncapped.

The Unicorn Principle

Gymshark started with £1,000 and reached a £1.45B valuation in 8 years. MVMT launched with $300K and exited at $300M in 4 years. The block system ensures you have exposure to the one that breaks out.

Portfolio of 5 to 15 brands: one underperforms, another outperforms. The net is positive.

Operator reinvests 20% alongside you in Year 1. We win when you win.

Year 5+ exit potential: hold the highest-growth brands for unicorn-level multiples.

Mitigated Risk protects your capital. Shared Risk multiplies it.

No other direct investing model offers both simultaneously. This is the structural advantage of our model. That is why this is not a fund, not a startup, and not a passive allocation. It is a new asset class.

Risk Mitigation

Every Risk Addressed

We do not guess. Every brand is backed by validated data, proven market demand, and replicable operational systems.

Product Risk

We clone proven winners. Products already validated by the market. No guessing.

Execution Risk

AI-powered automation reduces human error. Autonomous supply chain, dynamic ad optimisation.

Acquisition Risk

From Year 3, we acquire brands with proven P&L history. Full asset transfer including trademarks.

Capital Risk

Portfolio diversification across 5–15 brands. Underperforming assets managed or exited early.

Transparency Risk

Real-time client dashboard. Monthly reporting. Separate operations account. You retain full LLC ownership at all times.

Capacity Risk

Max 20 to 30 brands in Year 1 across all clients. Quality delivery before scaling, capped to what our team can properly operate.

Family Office Alignment

Why This Model Works for Family Offices

What Family Offices Want
What This Model Delivers
Consistent, predictable returns
Conservative projections. Under-promise, over-deliver philosophy.
Transparency and control
Full dashboard. Separate accounts. Legal ownership retained.
Long-term compounding
5-year horizon with geometric growth. Reinvestment options at every stage.
Reduced operational burden
We manage everything. LLC, accounts, operations, reporting.
Clear exit pathways
Individual brand exits from Year 3. Portfolio exits at Year 5.
Aligned incentives
We reinvest our share alongside your capital. We win when you win.
Operational Transparency

Capital Structure & Transparency

Dedicated Operations Account

Your capital is held and deployed from a dedicated operations account inside your own entity. Never co-mingled with our capital or with other clients' capital.

Separate Fee Account

Our fees and profit share are held entirely separately from your capital. Each brand operates under a separate LLC registered in your name, not ours.

Live Dashboard Reporting

Full monthly reporting via live dashboard: cash flows, ad performance, revenue, and profit by brand in real time.

We handle everything. You own everything. You watch everything.

That is the transparency standard we hold ourselves to.

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This page is confidential and intended solely for prospective clients evaluating an engagement. Projections are indicative and based on current operational models, not guarantees.

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