Investor FAQ

TMEH is raising $300 million to build America's premier country music and western lifestyle platform. The investment consolidates Tim McGraw's entertainment interests—including Music City Rodeo events, Draft House venues, Down Home Media, and his personal brand rights—into a vertically integrated company headquartered in Nashville.

The raise is structured as 50% from equity investors (family offices, institutions) and 50% from a strategic infrastructure partner.

We target 12-15% IRR with a 1.0-1.5x MOIC over a 7-year hold period. This is achieved through:

• Current Yield: Distributions starting Year 3 (40% of EBITDA), increasing to 60% by Year 5+
• Capital Appreciation: Exit at 10x EBITDA (conservative vs. 17-18x Nashville comps)

Most celebrity investments are tied to a single revenue stream (touring, endorsements) that ends when the celebrity stops performing. TMEH is building permanent infrastructure:

• Owned Venues: Draft House locations generate revenue independent of Tim's schedule
• Event Franchises: MCR can operate with different headliners
• Content Libraries: Down Home and EMCo catalogs appreciate over time
• Music Rights: Catalog royalties are perpetual and countercyclical

Tim is the founder and brand, but the business is designed to operate and grow beyond his personal involvement.

Key person risk is the most significant risk and we've structured comprehensive protections:

• Key Person Insurance: $25-50M life and disability coverage
• Time Commitment: 100 days/year minimum contractually required
• Health Notification: Board notified within 72 hours of material health events
• Succession Plan: Formal plan developed within 12 months of close
• Infrastructure Focus: Draft House, MCR events, and Down Home operate independently

Importantly, the hard asset floor ($130M in catalogs and real estate) provides value protection regardless of Tim's involvement.

Multiple layers of protection:

Additionally, distributions (starting Year 3) return capital throughout the hold period, reducing at-risk capital over time.

At $200M pre-money, we're valuing the platform conservatively relative to Nashville entertainment benchmarks:

We model exit at 10x EBITDA—a significant discount to Nashville precedents—providing margin of safety. The $200M pre-money values Tim's brand contribution, existing operations, and strategic relationships.

Nashville entertainment assets consistently trade at premium multiples due to scarcity, tourism tailwinds, and cultural significance. Ryman Hospitality trades at 17-18x EBITDA. Our 10x base case assumption provides:

• 40-45% discount to current Nashville trading multiples
• Upside optionality if we achieve Nashville-level premiums
• Realistic floor given diversified entertainment platform

Tim McGraw contributes his name, image, and likeness (NIL) rights to TMEH in exchange for equity. This includes:

• Touring Revenue: Concert earnings flow through TMEH
• Endorsements: Brand partnerships and appearances
• Catalog Royalties: Publishing and masters income (50% of catalog)

The NIL segment operates at 70% EBITDA margins—the highest in the portfolio—and provides stable, high-margin cash flow that de-risks growth investments in other segments.

Draft House is our scalable hospitality concept—entertainment venues combining live music, gaming, and premium F&B. Unit economics:

Comparable entertainment venues (Topgolf, Dave & Buster's) trade at 4-8x revenue. Nashville flagship proves the concept before expansion.

MCI is an optionality component—a proposed major entertainment venue development in Nashville. We've reserved $50M for potential participation if the project proceeds on attractive terms.

If MCI doesn't proceed, this capital deploys to platform acceleration (additional Draft House locations, MCR expansion, or opportunistic M&A).

All Investors:

• Quarterly financial statements, annual audited (Big 4)
• Board observer rights (non-voting)
• Anti-dilution protection (weighted average)
• Pro-rata participation in future rounds
• Tag-along rights

Investors at $50M+:

• Voting board seat (7-member board)
• Consent on M&A >$25M, debt >2x EBITDA
• C-suite hire approval
• Exit veto on sub-1x returns

Distributions paid quarterly, pro-rata by ownership. Your 60% collective ownership receives 60% of all distributions.

1. Initial Meeting: Management presentation, Q&A
2. NDA Execution: Access to virtual data room
3. Due Diligence: Financial review, site visits, management sessions
4. Term Sheet: Non-binding terms negotiation
5. Documentation: Operating agreement, subscription documents
6. Closing: Funding, board formation

The target minimum is $5,000,000, though we have flexibility for the right strategic investors. Board seat threshold is $50M.