-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GNzDXds7uJKO0+hsxGSxDJzQbcPXucx4S840hxD9hSvYwT8UDDLQ5g1TYFcIF4Sl I9QhN6fmR1NmSZ1PWhNY7g== 0000899140-00-000159.txt : 20000413 0000899140-00-000159.hdr.sgml : 20000413 ACCESSION NUMBER: 0000899140-00-000159 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000412 GROUP MEMBERS: CAPITAL Z FINANCIAL SERVICES FUND II LP GROUP MEMBERS: CAPITAL Z FINANCIAL SERVICES FUND II, L.P. GROUP MEMBERS: CAPITAL Z FINANCIAL SERVICES PRIVATE FUND II, L.P. GROUP MEMBERS: CAPITAL Z MANAGEMENT, LLC GROUP MEMBERS: CAPITAL Z PARTNERS, L.P. GROUP MEMBERS: CAPITAL Z PARTNERS, LTD. GROUP MEMBERS: EQUIFIN CAPITAL PARTNERS, LTD. GROUP MEMBERS: SPECIALTY FINANCE PARTNERS SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: AAMES FINANCIAL CORP/DE CENTRAL INDEX KEY: 0000879957 STANDARD INDUSTRIAL CLASSIFICATION: LOAN BROKERS [6163] IRS NUMBER: 95340340 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: SEC FILE NUMBER: 005-42024 FILM NUMBER: 599694 BUSINESS ADDRESS: STREET 1: 350 SOUTH GRAND AVENUE STREET 2: 52ND FLOOR CITY: LOS ANGELES STATE: CA ZIP: 90071-3459 BUSINESS PHONE: 3232105000 MAIL ADDRESS: STREET 1: 3731 WILSHIRE BLVD 10TH FLOOR CITY: LOS ANGELES STATE: CA ZIP: 90010 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: CAPITAL Z FINANCIAL SERVICES FUND II LP CENTRAL INDEX KEY: 0001075567 STANDARD INDUSTRIAL CLASSIFICATION: [] FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: ONE CHASE MANHATTAN PLAZA CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 2128988700 SC 13D/A 1 AMENDMENT NO. 3 TO SCHEDULE 13D SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. 3)* Aames Financial Corporation - -------------------------------------------------------------------------------- (Name of Issuer) Common Shares, par value $0.001 - -------------------------------------------------------------------------------- (Title of Class of Securities) 00253A 2 - -------------------------------------------------------------------------------- (CUSIP Number of Class of Securities) Capital Z Management, LLC 54 Thompson Street New York, NY 10012 Attention: Mr. David A. Spuria Tel. No. (212) 965-0800 Copy to : Thomas M. Cerabino, Esq. Willkie Farr & Gallagher 787 Seventh Avenue New York, New York 10019 (212) 728-8000 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) September 24, 1999 and October 27, 1999 - -------------------------------------------------------------------------------- (Date of Event which Requires Filing of this Schedule) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following: [ ] SCHEDULE 13D - ------------------ ------------------ CUSIP No. 00253A 2 Page 2 of 19 Pages - ------------------ ------------------ - ----------- -------------------------------------------------------------------- 1 NAME OF REPORT PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Specialty Finance Partners - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Bermuda - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER -0- --------- ------------------------------------------------ NUMBER OF SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY EACH REPORTING 122,090,734 PERSON WITH --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER -0- --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 122,090,734 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 122,090,734 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 79.72% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - ----------- -------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION SCHEDULE 13D - ------------------ ------------------ CUSIP No. 00253A 2 Page 3 of 19 Pages - ------------------ ------------------ - ----------- -------------------------------------------------------------------- 1 NAME OF REPORT PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Capital Z Financial Services Fund II, L.P. - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Bermuda - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER -0- --------- ------------------------------------------------ NUMBER OF SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY EACH REPORTING 122,090,734(1) PERSON WITH --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER -0- --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 122,090,734(1) - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 122,090,734 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 79.72% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - ----------- -------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 1(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. - ---------- (1) Solely in its capacity as a general partner of Specialty Finance Partners. SCHEDULE 13D - ------------------ ------------------ CUSIP No. 00253A 2 Page 4 of 19 Pages - ------------------ ------------------ - ----------- -------------------------------------------------------------------- 1 NAME OF REPORT PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Capital Z Financial Services Private Fund II, L.P. - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Bermuda - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER -0- --------- ------------------------------------------------ NUMBER OF SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY EACH REPORTING 122,090,734(2) PERSON WITH --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER -0- --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 122,090,734(2) - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 122,090,734 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 79.72% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - ----------- -------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 1(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. - ---------- (2) Solely in its capacity as a general partner of Specialty Finance Partners. SCHEDULE 13D - ------------------ ------------------ CUSIP No. 00253A 2 Page 5 of 19 Pages - ------------------ ------------------ - ----------- -------------------------------------------------------------------- 1 NAME OF REPORT PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Equifin Capital Partners, Ltd. - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER -0- --------- ------------------------------------------------ NUMBER OF SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY EACH REPORTING 122,090,734(3) PERSON WITH --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER -0- --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 122,090,734(3) - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 122,090,734 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 79.72% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - ----------- -------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 1(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. - ---------- (3) Solely in its capacity as a general partner of Specialty Finance Partners. SCHEDULE 13D - ------------------ ------------------ CUSIP No. 00253A 2 Page 6 of 19 Pages - ------------------ ------------------ - ----------- -------------------------------------------------------------------- 1 NAME OF REPORT PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Capital Z Partners, L.P. - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* Not Applicable - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Bermuda - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER -0- --------- ------------------------------------------------ NUMBER OF SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY EACH REPORTING 122,090,734(4) PERSON WITH --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER -0- --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 122,090,734(4) - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 122,090,734 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 79.72% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - ----------- -------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION - ---------- (4) Solely in its capacity as the sole general partner of Capital Z Financial Services Fund II, L.P. and Capital Z Financial Services Private Fund II, L.P. SCHEDULE 13D - ------------------ ------------------ CUSIP No. 00253A 2 Page 7 of 19 Pages - ------------------ ------------------ - ----------- -------------------------------------------------------------------- 1 NAME OF REPORT PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Capital Z Partners, Ltd. - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* Not Applicable - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Bermuda - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER -0- --------- ------------------------------------------------ NUMBER OF SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY EACH REPORTING 122,090,734(5) PERSON WITH --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER -0- --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 122,090,734(5) - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 122,090,734 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 79.72% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - ----------- -------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION - ---------- (5) Solely in its capacity as the sole general partner of Capital Z Partners, L.P., which is the sole general partner of Capital Z Financial Services Fund II, L.P. and Capital Z Financial Services Private Fund II, L.P. SCHEDULE 13D - ------------------ ------------------ CUSIP No. 00253A 2 Page 8 of 19 Pages - ------------------ ------------------ - ----------- -------------------------------------------------------------------- 1 NAME OF REPORT PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Capital Z Management, LLC - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* Not Applicable - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 1,250,000 --------- ------------------------------------------------ NUMBER OF SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY EACH REPORTING -0- PERSON WITH --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 1,250,000 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER -0- - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,250,000 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.9% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - ----------- -------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION This Amendment No. 3 to Schedule 13D with respect to Aames Financial Corporation is being filed by Capital Z Financial Services Fund II, L.P., Capital Z Partners, L.P., Capital Z Partners, Ltd., Capital Z Management, LLC, Specialty Finance Partners, Capital Z Financial Services Private Fund II, L.P., and Equifin Capital Partners, Ltd. (collectively, the "Reporting Persons") to amend the Schedule 13D (the "Schedule 13D") originally filed by certain of the Reporting Persons on December 23, 1998, as amended February 19, 1999 and August 11, 1999. Capitalized terms used but not defined herein have the meanings assigned to such terms in the Schedule 13D. Item 3. Source and Amount of Funds or Other Consideration. Item 3 of Schedule 13D is hereby amended by adding the before the last paragraph thereof: All purchases of Preferred Stock of the Company (as defined in Item 4) pursuant to the Preferred Stock Purchase Agreement, as amended, as described more fully in Item 4 below were made with funds representing capital contributions from Capital Z, Cap Z Private Fund and Equifin. Item 4. Purpose of Transaction. Item 4 of Schedule 13D is hereby amended by adding before the last paragraph thereof the following: On September 24, 1999 the Recapitalization was consummated pursuant to which all of the outstanding shares of Series B Convertible Preferred Stock and Series C Convertible Preferred Page 9 of 19 Stock of the Company (the "Preferred Stock") were split 1,000-for-1. On September 10, 1999 the Rights Offering was consummated. On October 27, 1999, pursuant to its standby commitment with respect to the Rights Offering, SFP purchased 20,840,734 shares of Series C Preferred Stock of the Company for $1.00 per share (the "Standby Commitment Purchase"). As a result of the completion of these transactions, SFP holds Preferred Stock representing 79.72% of the combined voting power of the Company (including 1,250,000 shares relating to the Warrant). Item 5. Interest in Securities of the Issuer. Item 5(a) and (b) of Schedule 13D is hereby amended and restated in its entirety by substituting the following in lieu thereof: (a) SFP As a result of the Recapitalization and the Standby Commitment Purchase, SFP has the right to acquire pursuant to Rule 13d-3 of the Exchange Act, and may be deemed to be the beneficial owner of, 122,090,734 shares of Common Stock, which, based on calculations made in accordance with Rule 13d-3(d) of the Exchange Act and there being 31,063,820 shares of Common Stock outstanding (as represented by the Company to the Reporting Page 10 of 19 Persons plus the 1,250,000 shares relating to the Warrant), represents approximately 79.72% of the outstanding shares of Common Stock (assuming conversion of all of the shares of Preferred Stock). CAPITAL Z In its capacity as a general partner of SFP, Capital Z may, pursuant to Rule 13d-3 of the Exchange Act, be deemed to be the beneficial owner of 122,090,734 shares of Common Stock, which, based on calculations made in accordance with Rule 13d-3(d) of the Exchange Act and there being 31,063,820 shares of Common Stock outstanding (as represented by the Company to the Reporting Persons plus the 1,250,000 shares relating to the Warrant), represents approximately 79.72% of the outstanding shares of Common Stock(assuming conversion of all of the shares of Preferred Stock). CAPITAL Z PRIVATE FUND In its capacity as a general partner of SFP, Capital Z Private Fund may, pursuant to Rule 13d-3 of the Exchange Act, be deemed to be the beneficial owner of 122,090,734 shares of Common Stock, which, based on calculations made in accordance with Rule 13d-3(d) of the Exchange Act and there being 31,063,820 shares of Common Stock outstanding (as represented by the Company to the Reporting Persons plus the 1,250,000 shares relating to the Warrant), represents approximately 79.72% of the outstanding shares of Common Stock(assuming conversion of all of the shares of Preferred Stock). Page 11 of 19 EQUIFIN In its capacity as a general partner of SFP, Equifin may, pursuant to Rule 13d-3 of the Exchange Act, be deemed to be the beneficial owner of 122,090,734 shares of Common Stock, which, based on calculations made in accordance with Rule 13d-3(d) of the Exchange Act and there being 31,063,820 shares of Common Stock outstanding as represented by the Company to the Reporting Persons plus the 1,250,000 shares relating to the Warrant), represents approximately 79.72% of the outstanding shares of Common Stock(assuming conversion of all of the shares of Preferred Stock). Page 12 of 19 CAP Z L.P. In its capacity as the sole general partner of Capital Z and Capital Z Private Fund, Cap Z L.P. may, pursuant to Rule 13d-3 of the Exchange Act, be deemed to be the beneficial owner of 122,090,734 shares of Common Stock, which, based on calculations made in accordance with Rule 13d-3(d) of the Exchange Act and there being 31,063,820 shares of Common Stock outstanding (as represented by the Company to the Reporting Persons plus the 1,250,000 shares relating to the Warrant), represents approximately 79.72% of the outstanding shares of Common Stock(assuming conversion of all of the shares of Preferred Stock). CAP Z LTD. In its capacity as the sole general partner of Cap Z L.P., which is the general partner of Capital Z and Capital Z Private Fund, Cap Z Ltd. may, pursuant to Rule 13d-3 of the Exchange Act, be deemed to be the beneficial owner of 122,090,734 shares of Common Stock, which, based on calculations made in accordance with Rule 13d-3(d) of the Exchange Act and there being 31,063,820 shares of Common Stock outstanding (as represented by the Company to the Reporting Persons plus the 1,250,000 shares relating to the Warrant), represents approximately 79.72% of the outstanding shares of Common Stock(assuming conversion of all of the shares of Preferred Stock). Page 13 of 19 CAP Z MANAGEMENT Capital Z Management may, pursuant to Rule 13d-3 of the Exchange Act, be deemed to be the beneficial owner of 1,250,000 shares of Common Stock, which based on calculations made in accordance with Rule 13d-3(d) of the Exchange Act and there being 31,063,820 shares of Common Stock outstanding (as represented by the Company to the Reporting Persons plus the 1,250,000 shares relating to the Warrant), represents approximately 0.008% of the outstanding shares of Common Stock(assuming conversion of all of the shares of Preferred Stock). (b) SFP 1. Sole power to vote or to direct -0- the vote 2. Shared power to vote or to direct 122,090,734 the vote 3. Sole power to dispose or to direct -0- the disposition 4. Shared power to dispose of or to 122,090,734 direct the disposition CAPITAL Z 1. Sole power to vote or to direct -0- the vote 2. Shared power to vote or to direct 122,090,734 the vote 3. Sole power to dispose or to direct -0- the disposition 4. Shared power to dispose of or to 122,090,734 direct the disposition Page 14 of 19 CAP Z PRIVATE FUND 1. Sole power to vote or to direct -0- the vote 2. Shared power to vote or to direct 122,090,734 the vote 3. Sole power to dispose or to direct -0- the disposition 4. Shared power to dispose of or to 122,090,734 direct the disposition EQUIFIN 1. Sole power to vote or to direct -0- the vote 2. Shared power to vote or to direct 122,090,734 the vote 3. Sole power to dispose or to direct -0- the disposition 4. Shared power to dispose of or to 122,090,734 direct the disposition CAP Z L.P. 1. Sole power to vote or to direct -0- the vote 2. Shared power to vote or to direct 122,090,734 the vote 3. Sole power to dispose or to direct -0- the disposition 4. Shared power to dispose of or to 122,090,734 direct the disposition Page 15 of 19 CAP Z LTD. 1. Sole power to vote or to direct -0- the vote 2. Shared power to vote or to direct 122,090,734 the vote 3. Sole power to dispose or to direct -0- the disposition 4. Shared power to dispose of or to 122,090,734 direct the disposition CAP Z MANAGEMENT 1. Sole power to vote or to direct -0- the vote 2. Shared power to vote or to direct 122,090,734 the vote 3. Sole power to dispose or to direct -0- the disposition 4. Shared power to dispose of or to 122,090,734 direct the disposition Item 7. Material to be Filed as Exhibits. None. Page 16 of 19 SIGNATURE After reasonable inquiry and to the best of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: April 12, 2000 CAPITAL Z FINANCIAL SERVICES FUND II, L.P., a Bermuda limited partnership By: Capital Z Partners, L.P., its General Partner By: Capital Z Partners, Ltd., its General Partner By: /s/ David A. Spuria ------------------------------ Name: David A. Spuria Title: General Counsel CAPITAL Z PARTNERS, L.P., a Bermuda limited partnership By: Capital Z Partners, Ltd., its General Partner By: /s/ David A. Spuria ------------------------------ Name: David A. Spuria Title: General Counsel CAPITAL Z PARTNERS, LTD., a Bermuda corporation By: /s/ David A. Spuria ------------------------------ Name: David A. Spuria Title: General Counsel CAPITAL Z MANAGEMENT, LLC, a Delaware limited liability company By: /s/ David A. Spuria ------------------------------ Name: David A. Spuria Title: General Counsel Page 17 of 19 SPECIALTY FINANCE PARTNERS, a Bermuda general partnership By: Capital Z Financial Services Fund II, L.P., its General Partner By: Capital Z Partners, L.P., its General Partner By: Capital Z Partners, Ltd., its General Partner By: /s/ David A. Spuria ------------------------------ Name: David A. Spuria Title: General Counsel CAPITAL Z FINANCIAL SERVICES PRIVATE FUND II, L.P., a Bermuda limited partnership By: Capital Z Partners, L.P., its General Partner By: Capital Z Partners, Ltd., its General Partner By: /s/ David A. Spuria ------------------------------ Name: David A. Spuria Title: General Counsel EQUIFIN CAPITAL PARTNERS, LTD., a Cayman Islands corporation By: /s/ Mani A. Sadeghi ------------------------------ Name: Mani A. Sadeghi Title: President, Chief Executive Officer and Director Page 18 of 19 -----END PRIVACY-ENHANCED MESSAGE-----