Arts Holdings Management, LLC Portfolio Manager

Arts Holdings Management, LLC

The appointed Manager of Arts Capital Holdings, LLC — responsible for identifying, acquiring, operating, and scaling the Series A portfolio of beauty and wellness businesses, and for executing the private equity exit strategy that delivers returns to Members.

A Nevada Limited Liability Company · Las Vegas, Nevada

Management mandate

Appointed by the holding company to lead every stage of the investment lifecycle

Arts Holdings Management, LLC was elected by Arts Capital Holdings, LLC to serve as its exclusive management arm under the Master Operating Agreement. The management mandate is comprehensive: Arts Holdings Management is responsible for the entire investment lifecycle from acquisition sourcing through portfolio exit — not merely advisory oversight, but direct operational control of every business in the portfolio.

This structure ensures that the entity making investment decisions is the same entity operating the businesses day to day. There is no separation between the investment committee and the operating team. The Manager who underwrites the acquisition is the Manager who runs the salon floor, implements the membership conversion, hires the staff, and prepares the business for institutional sale. This alignment of investment and operational accountability is foundational to the Series A thesis.


Operational scope

What Arts Holdings Management does

Acquisition sourcing and execution

Identifies acquisition targets through the exclusive advisory relationship with Transworld Business Advisors, conducts financial and operational due diligence, negotiates purchase terms, structures asset purchases to minimize FIRPTA exposure for non-U.S. investors, and closes transactions. The Manager personally selects every acquisition — no investment committee delegation, no external advisors making the final call.

Portfolio operations and management

Assumes direct operational control of each acquired business from day one. Manages staffing, vendor relationships, lease negotiations, equipment maintenance, inventory, and day-to-day business operations. Oversees the independent contractor workforce under the 60/40 commission model. Monitors KPIs across all portfolio locations and intervenes operationally when performance deviates from plan.

Revenue growth and membership conversion

Implements the proprietary 60/40 Membership Architecture at each acquired location — converting transactional, walk-in-dependent salon businesses into recurring-revenue membership platforms. Designs and deploys tiered membership programs, trains staff on membership enrollment, and manages the transition from transactional to contractually committed revenue over a 12-18 month conversion window per location.

Digital platform development

Develops and operates the ARTS Beauty digital platform — a mobile application and e-commerce ecosystem that enables membership registration, appointment booking, service history tracking, loyalty rewards, and online product purchasing. The digital platform creates additional revenue streams and deepens client engagement beyond the physical salon visit. Funded entirely by Arts Holdings Management from management fee revenue — not from Series A investor capital.

Financial management and investor reporting

Manages all fund-level financial operations including quarterly Net Portfolio Income calculation, Priority APR distribution processing, reserve facility contributions and monitoring, subscription tracking, capital account administration, and the preparation of quarterly investor statements. Coordinates with external tax advisors on Form 1065, Schedule K-1 preparation, and FATCA/CRS compliance.

Exit preparation and execution

Positions the portfolio for institutional private equity exit by building the operational, financial, and documentation infrastructure that PE acquirers require: auditable financials, recurring revenue metrics, scalable operating systems, and a management team capable of transitioning to new ownership. Engages M&A advisors, runs the formal sale process, and negotiates exit terms that maximize Member returns through the waterfall distribution.

Growth strategy

The 60/40 Membership Architecture

The Manager's primary value-creation strategy is the systematic conversion of acquired salon businesses from transactional revenue models to recurring-revenue membership platforms. This is not a theory — it is a defined operational playbook applied to each acquisition within the first 12-18 months of ownership.

Before conversion

100% transactional revenue. Clients visit when they choose. Revenue is unpredictable, weather-dependent, and seasonally volatile. Cash flow varies month to month. Business valuation: 2.0x-2.5x SDE — the commodity service model.

After 60/40 conversion

60% of revenue contractually committed through monthly membership fees. 40% capacity reserved for transactional walk-in clients. Revenue is stable and predictable. Cash flow is consistent. Business valuation: 4.5x-8.0x EBITDA — the subscription model premium.

This valuation transformation — from SDE multiples to EBITDA multiples — is the core economic engine of the Series A investment thesis. The Manager acquires businesses priced as transactional salons and exits them priced as recurring-revenue platforms. The difference between the acquisition multiple and the exit multiple is where the majority of investor returns are generated.

Technology

ARTS Beauty digital platform

Arts Holdings Management is developing a proprietary digital ecosystem that extends the physical salon experience into a fully integrated mobile and online platform. The ARTS Beauty platform is designed to deepen client engagement, create additional revenue channels, and further differentiate the portfolio from commodity salon operators at exit.

Mobile application

Membership registration, appointment booking, service history, loyalty points, push notifications for promotions and rebooking reminders.

E-commerce

Online product shop featuring professional-grade beauty products used in salon services. Members receive exclusive pricing. Shipped directly to client or available for in-salon pickup.

Business intelligence

Integrated analytics dashboard providing real-time visibility into membership conversion rates, average revenue per member, retention rates, and portfolio-wide KPIs for the Manager.

Important. The ARTS Beauty digital platform is funded entirely by Arts Holdings Management, LLC from management fee revenue. No Series A investor capital is used for technology development. This means the platform creates additional portfolio value at zero cost to investors — the digital revenue and the enhanced exit multiple it produces flow directly to Member returns.
European operations

Permanent European presence

Arts Holdings Management maintains a permanent European investor relations and distribution presence in Zurich, Switzerland, staffed by locally based professionals who serve as the primary point of contact for European Members and prospective investors.

Investor relations

Anila Aliaj, Investor Relations & Regulatory Affairs Director — Europe, manages all ongoing Member communications, documentation, quarterly distribution coordination, and regulatory compliance from the Zurich office. European Members have a dedicated, locally accessible contact for all fund-related matters.

Distribution and capital introduction

Francesco Elmi, Director of Strategic Partnerships — Europe, leads European investor relations and capital introduction activities across the DACH region. Francesco holds the FinSA/FIDLEG Certificate from IfFP Institut für Finanzplanung, Zurich, qualifying him for registration in the Swiss Client Adviser Register as a licensed financial professional.

The long-term European infrastructure plan includes the formation of a Swiss GmbH subsidiary in the Canton of Zug with VQF Self-Regulatory Organisation membership, followed by a Luxembourg S.à r.l. with CSSF registration and MiFID II passporting across all 27 EU member states. This phased buildout transitions the European operation from the current regulatory-light Structure C framework to a fully licensed institutional distribution platform — funded entirely from management fee revenue.

Alignment of interests

The Manager's capital is at risk alongside yours

Arts Holdings Management has committed its own capital as the foundational capitalization of Series A, including the initial seeding of both reserve facilities (Facility C — Member Capital Return Reserve and Facility D — Operating APR Backstop). The Manager's capital ranks structurally subordinated to investor Members in the distribution waterfall — meaning Members receive their full Priority APR and return of capital before the Manager receives any profit participation.

This structural subordination is deliberate. It ensures that the Manager's economic interests are aligned with Member outcomes: the Manager earns its carried interest only after Members have received a meaningful return on their investment. If the portfolio underperforms, the Manager's capital absorbs losses before investor capital is affected.

Learn more

Explore the Series A offering

Arts Holdings Management invites qualified non-U.S. professional and institutional investors to learn more about the Series A — Beauty & Wellness Portfolio. Complete offering details are available through the Private Placement Memorandum, distributed under separate confidentiality agreement.