It means what it says. At the time the S-1 filing

It means what it says.

At the time the S-1 filing is completed, $BCAP can exit its position as part of the selling group.

Basically under this business model $BCAP will fund the company through IPO, but at IPO time can sell its equity stake -- i.e. it will not be required to hold a long-term position (debt (convertible or straight) or shares).

My assumption is that the registration of the equity position would start either 6 months to one-year prior to the IPO, so by IPO time there wouldn't be any restrictions on exiting the position whenever the company wants.  If the two companies that just signed consulting agreements were the same two companies mentioned in the 02/14/2012 PR, the timeline fits for an exit strategy in February - April 2013.

Baron Capital is pleased to announce that it is currently working with two privately held companies that will each seek to go public this year .  Each company will use Baron's transfer agency once they begin offering shares to the public .  Baron has begun funding one of the companies recently while each company is seeking $250,000 prior to filing an S1 registration to go public.

http://ih.advfn.com/p.php?pid=nmona&article=51180038

FT. LAUDERDALE, Fla. , Nov. 15, 2012 /PRNewswire/ -- Baron Capital Enterprises, Inc. is pleased to announce the Company has executed two separate consulting agreements in excess of $350,000 .

http://ih.advfn.com/p.php?pid=nmona&article=55046140

$BCAP is a professional services company. It takes a long time to generate revenue with relatively few clients. As opposed to a FMCG company which takes a short amount of time to generate revenues with lots of clients.

 We'll see what happens when we learn more about the two companies.