Prime Meridian Capital Management, LLC

Important Notice
This overview is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any interests in Prime Meridian
Income Fund, LP (the “Fund”), or any other securities. Any such offer will be made only pursuant to the Fund’s Private Offering Memorandum. This
overview may include or be based in part on projections, valuations, estimates and other financial data supplied by third parties, which has not been
verified by Prime Meridian Capital Management, LLC. This information should not be relied upon for the purpose of investing in the Fund or for any other
purpose. Any information regarding projected or estimated investment returns are estimates only and should not be considered indicative of the actual
results that may be realized or predictive of the performance of the Fund. Past investment results of the Fund should not be viewed as indicative of future
performance of the Fund. Any such offering of the Fund will be made only in accordance with the terms and conditions set forth in the Fund’s Private
Offering Memorandum. Prior to investing, investors are strongly urged to review carefully the Private Offering Memorandum (including the risk factors
described therein), the Limited Partnership Agreement and the Subscription Documents, to ask such questions of the Investment Manager as they deem
appropriate, and to discuss any prospective investment in the Fund with their legal and tax advisers in order to make an independent determination of the
suitability and consequences of an investment. Investment in the Fund is suitable only for sophisticated investors for whom an investment in the Fund
does not constitute a complete investment program and who fully understand, and are willing to assume, the risks involved in an investment in the Fund.
No person has been authorized to give any information or to make any representation, warranty, statement or assurance may not be relied upon. The
offering of interests in the Fund will be made in reliance upon an exemption from registration under the United State Securities Act of 1933, as amended,
for offers and sales of securities that do not involve a public offering. No public or other market will develop for the interests, and the interests are not
generally otherwise transferable. The Fund will not be registered as an investment company under the U.S. Investment Company Act of 1940, as amended
(the “Investment Company Act”), and each purchaser of interests in the Fund must be an “accredited investor” as defined in the Investment Company Act.
Prospective investors should inform themselves and take appropriate advice as to any applicable legal requirements and any applicable taxation and
exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant to the purchase, holding or redemption of
interests. The information provided in this overview is not and should not be considered a recommendation to purchase or sell any particular security. Past
performance of the Fund is not a guide to future performance. Investors should be aware that a total loss of principal may occur. No part of this material
may be (i) copied, photocopied or duplicated in any form, by any means, or (ii) redistributed without Prime Meridian Capital Management, LLC’s prior
written consent.

Strictly Confidential – Not for Distribution or Duplication 1

Company Overview
Overview Five Funds Across Multiple Verticals
Ø Prime Meridian Capital Management is an alternative Prime Meridian Income Fund, LP
credit SEC Registered Investment Advisor based in the San •Prime Consumer Lending
Francisco Bay Area (Walnut Creek, CA) with ~$697 million •Inception: May 2012 • Returns: Over 7% annualized • Leverage: N/A
in assets under management as of March 31st, 2018.
Prime Meridian Small Business Lending Fund, LP
Ø Prime Meridian offers investors different short-duration, •Collateralized Small Business Lending
high yield marketplace lending funds with the following •Inception: July 2014 • Returns: Over 8% annualized • Leverage: N/A
verticals - consumer lending, collateralized small business
lending, secured real estate lending, litigation finance, life Poise Lending Fund, LP
settlements •Leveraged Consumer Lending
•Inception: July 2015 • Returns: Over 9% annualized • Leverage: Up to 70%
Ø Our objective is to achieve consistent positive returns and
outperform other debt/fixed income portfolios by selecting Prime Meridian Real Estate Lending Fund, LP
loans using a proprietary risk-based pricing approach that
•Short-term Secured Real Estate Lending
focuses on yield, duration, and credit quality with low •Inception: February 2016 • Returns: Over 8% annualized • Leverage: N/A
volatility and low correlation to other asset classes.
Prime Meridian Special Opportunities Fund, LP
Ø Each Fund is heavily diversified across prime borrowers and
•Litigation Finance, Life Settlements; Select High Yield Small
all hold a professionally managed pool of loans sourced •Business, Real Estate, & Consumer Lending
from multiple platforms. •Inception: June 2018 • Targeted Returns: 9-10% annualized • Leverage: N/A
Strictly Confidential – Not for Distribution or Duplication Past Performance does not guarantee future returns. 2
A Track Record of Success
Since inception in 2012, Prime Meridian Capital Management has built a successful proven track record of managing a
family of pure-play private debt income funds.

Institutions, Investment Managers, and Accredited Investors benefit from Prime Meridian’s segregated portfolios by
being able to control the amount of exposure across each lending vertical without the worry of style-drift. As a result,
investors are empowered with the option to be as diversified or concentrated as they see fit.

Novus Investments,
started by Don Davis, is Prime Meridian
2006 2012 2015 Prime Meridian Real 2018
formed specializing in Small Business
managed futures & other Estate Lending Fund, LP
Lending Club Lending Fund, LP
alternative programs

Prosper Funding Prime Meridian Capital Poise Lending Prime Meridian

2004 2007 Management is formed 2014 Fund, LP 2016 Special Opportunities
Prime Meridian Income Fund, LP
Fund, LP launches

Strictly Confidential – Not for Distribution or Duplication 3

Team

Don Davis, CEO and Portfolio Manager

Don Davis is a Managing Partner and the lead Portfolio Manager of Prime Meridian Capital Management, an investment management firm specializing
in online P2P/marketplace lending strategies. As a seasoned industry veteran and skilled portfolio manager, Mr. Davis applies his knowledge,
conservative management principles, and hands on expertise to the day-to-day management of the firm. Mr. Davis is also a principal of Novus
Investments, LLC (“Novus”), a boutique alternative investment management firm, and was previously a top ranked futures trader in the U.S. for risk
adjusted return over both a 5 and a 7 year period. Mr. Davis is a recognized speaker in the marketplace lending institutional investing space, being
recently featured in Bloomberg, LendIt, American Bankers Association, Forbes, IMN, Emerging Manager Forum, AltInvest, LendAcademy, the P2P
Lending Investing Summit, and John Lothian News. Mr. Davis resides in the San Francisco Bay area and is actively involved in local charities with a
special interest in assisting disadvantaged children, the disabled, and veterans.

Val Katayev, Managing Partner

Val Katayev is a Managing Partner of Prime Meridian Capital Management, assisting with strategy, product development, platform selection and
investor services. Mr. Katayev is a four-time tech entrepreneur who generated over $100 million in profits and exits before ever raising capital from
outside investors. He is also one of the most experienced P2P/Marketplace Lending investors in the United States, and was one of the very first lenders
at Prosper in early 2006. After seeing positive returns after the “Great Recession”, he has since invested substantially into the space, and is one of the
largest individual investor in the Prime Meridian funds.

Strictly Confidential – Not for Distribution or Duplication 4

Team
Peter Lowden, CFA, Managing Director and Portfolio Manager
Peter Lowden, CFA, is the Managing Director and Co-Portfolio Manager for Prime Meridian Capital Management. In these roles, he is instrumental in
the management of the lending funds for the firm, and its overall operations and direction. Mr. Lowden has been formulating and managing investment
strategies since 1993. His experience includes traditional equity and fixed income securities analysis, traditional and alternative investment manager
research, asset allocation, and portfolio management of equity, fixed income, mutual fund, fund of funds and hedge fund strategies. Mr. Lowden holds a
Bachelor of Science degree in Finance from the University of Colorado, Boulder, as well as the Chartered Financial Analyst (CFA) designation from the
CFA Institute. He is a past President of the CFA Miami Society, and is active in the community where he has helped guide multiple non-profit
organizations.

Jeremy Todd, CFA, Head of Capital Markets

Jeremy Todd has over 20 years of financial services experience in management, sales, and marketing covering asset managers, hedge funds,
institutional investors, broker dealers, and registered investment advisors. He is the Head of Capital Markets at Prime Meridian Capital Management.
Previously he was the Head of West Coast and Asia Regions at two different fintech startups dv01 and Orchard Platform. He also spent 17 years in
prime brokerage starting at Montgomery Securities, then was a managing director at Bear Stearns, started the prime brokerage division at The Bank of
New York Mellon, and lastly at Barclays managing the west coast business. Jeremy earned a B.A. in philosophy from the University of California,
Berkeley.

Sandra Garcia, Director of Operations

Mrs. Garcia is the Operations Manager for Prime Meridian Capital Management, and provides key functions in the Operations, Compliance, and
Investor Relations areas. She is responsible for managing future and existing client relationships and working directly custodians including Wells
Fargo, Fidelity, TD Ameritrade and Millennium Trust, etc. Prior to joining Prime Meridian/Novus Investments, Mrs. Garcia was a Senior Loan Processor
for the Equiprime Mortgage Group. Earlier in her career, she served in a similar function for the First Fidelity Funding and Mortgage Corporation. Mrs.
Garcia joined Prime Meridian/Novus in 2007, has a total of 13 years of experience in the finance industry and is Series 3 licensed.
Strictly Confidential – Not for Distribution or Duplication 5
Team
Matt Jennings, Business Development Manager
Matt Jennings is the Business Development Manager for Prime Meridian Capital Management assisting with procurement and servicing of investor
relationships. Mr. Jennings has been an active analyst and trader in the equities, futures and credit markets since 1999, and has also worked for affiliate
Novus Investments since 2005. Prior to joining Novus, Mr. Jennings founded J Financial Group for the purpose of consulting institutions and high net
worth clients with various private equity placements, research and analysis. Mr. Jennings has also served as Vice President of Business Development for
First Mercantile Trust Partnership, a division of the Mass Mutual Financial Group, where he marketed and distributed a proprietary, privately managed
collective trust platform, to Registered Investment Advisers and Broker Dealers nationally.

Jeffrey Ordoñez-Triana, Director of Marketing

Jeffrey serves as the Director of Marketing for Prime Meridian Capital Management LLC assisting with new business development and relationship
management. Previously, he assisted private companies in both the US and China raise over $300 million in capital through private placements as an
Institutional Salesperson at Kuhns Brothers Securities and JFP Holdings Ltd. Prior to Kuhns Brothers, he was a VP of Institutional Sales and Trading at
SecondMarket, which is the largest secondary marketplace for private company stock. Earlier in his career, he was a top producing wealth manager at
Morgan Stanley. Jeffrey graduated from Boston University with a BSBA in International Finance. He holds Series 7, 63, and 24 licenses.

Justin Small, Financial Analyst

Justin Small is a Financial Analyst for Prime Meridian Capital Management. In this role, Justin conducts research and analysis on the lending industry
and platforms, as well as assists in various operational aspect of the firm. Prior to joining Prime Meridian Capital Management, Mr. Small held various
roles in specialty investment management and banking. Mr. Small holds a Bachelor of Science in Finance from the University of San Francisco. In his free
time, he enjoys finding new investment ideas, attending keynote speeches relating to the financial markets and the economy, and participating in
several worthy programs such as after school tutoring for disadvantaged children.

Strictly Confidential – Not for Distribution or Duplication 6

Team
Ed Zimmermann, Operations Associate
Ed is the Operations Associate at Prime Meridian Capital Management where he shares a role in onboarding clients, reconciling client accounts, and
overseeing accounting functions. Ed works closely with other team members to target scalability in operations. Prior to joining Prime Meridian, Ed was
a Portfolio Administrator with AssetMark where he traded to several model allocations, ensured accurate pricing, computed portfolio returns and
corrected securities transactions. In his spare time, Ed enjoys reading, watching basketball and hiking. Ed graduated from University of California, San
Diego with B.A.s in Economics & History and is a CFA level II candidate.

Jolene Matthews, Administrative Assistant

Jolene has been an integral part of the Prime Meridian team since 2014, and brings fresh energy and perspective with her 11 years of administrative
experience. Jolene executes the daily back office procedures, client database and office schedules, all of which are important parts of the PMCM
customer care experience. Jolene is currently studying for her Salesforce Administration Certification. In her free time, she enjoys spending time with
her family and working on her latest art project.

Strictly Confidential – Not for Distribution or Duplication 7

Recognition

LendIt 2017 Top Fund Manager

Prime Meridian was presented the Leading Fund Manager award for
demonstrated vision and commitment to the online lending sector, while
delivering outstanding performance.

2017 Inc. 5000

Inc. Magazine ranked Prime Meridian Capital Management 554 on its
2017 Annual Inc. 5000 list, which ranks the fastest growing private US
companies in all industries.

San Francisco Business Times 2017 fast 100

Prime Meridian Capital Management has been ranked 14 by the San
Francisco Business Times on the 26th annual Fastest Growing Private
Companies.
For links to each award, please visit the Awards Page at www.pmifunds.com

Strictly Confidential – Not for Distribution or Duplication 8

Benefits of Investing with Prime Meridian
ü Top Tier Marketplace Lending Investor in AUM, Performance, & Track Record Length
“Since the inception of Prime
ü Experienced Investment Team with Over 90 Years Collective Experience Meridian, we have always
maintained a disciplined
ü Access to Multiple Vertical Marketplace Lending Funds Each With Own Credit Model investment focus in order to
provide investors access to
curated, short-duration,
ü Extensive Investments in over 12 Quality Lending Originators and 100,000+ Loans
high-yield income
generating products.
ü Low Volatility and Low Correlation Compared to other Investments
We committed to being a
ü Loans Structured Through Bankruptcy Remote Vehicles – Entirely Separate from client-centric organization
Lender Platforms with superior service and
attention to all our limited
ü Proven Risk Management Expertise Mitigating Counterparty, Credit, Portfolio partners."
Diversification, Leverage Risks, and Minimizing Cash Drag
- Don Davis, CEO &
ü Robust Institutional Quality Infrastructure Offering Better Safety and Soundness of Managing Partner
Assets Including Partnering with Prominent Third-Party Service Providers in All
Operational Aspects Including Administration, Custody, & Valuation Services
Strictly Confidential – Not for Distribution or Duplication 9
 Multiple Funds to Maximize Diversification
Unlike other asset management firms, Prime Meridian offers investment managers and accredited investors access to
short duration, high yield multiple portfolios for those looking for greater portfolio diversification and control over the
amount of exposure to each vertical.

Prime Meridian Special Opportunities Fund, L.P Prime Meridian Small Business Lending Fund, L.P
Litigation Finance, Life Settlements, Small business lending
& other niche opportunities

Prime Meridian Real Estate Lending Fund, L.P. Prime Meridian Income Fund, L.P.
First lien diversified bridge lending Consumer lending

Poise Lending Fund, L.P.

Consumer lending with leverage
Strictly Confidential – Not for Distribution or Duplication 10
Risk Management Process
§Step 1: Counterparty Risk Assessment on Lending Origination Platform
• Comprehensive due diligence with management teams, reviewing operational processes
• Analyzing financial stability of the firm

§Step 2: Thorough Analysis of Lending Origination Platform Credit Underwriting

• Deep understanding of credit underwriting practices
• Thorough review of historical loan performance and projected future performance

§Step 3: Build Proprietary PMCM Credit Model for Each Applicable Lending Origination Platform
• PMCM’s creates an overlay credit model on top the lending origination platforms to identify loans with the
lowest expected default rates
• Revise models on consistent basis using AI learning tools

§Step 4: Meticulous Portfolio Construction

• Construct portfolios per vertical across multiple lending origination platforms for maximum diversification
• Investments made through whole loan purchases, lines of credit, bond purchases, and secondary whole
loan transaction
• Minimize risk by diversifying loan characteristics across geographies, borrower, business, and property
types, and multiple other factors

Strictly Confidential – Not for Distribution or Duplication 11

Risk Management Process
Loan Origination Process Conducted By Lending
Origination Platforms Measure
Adjust Policy, Performance
§ Targeting and credit policy determine who is approved and at what expected loss Product,
vs.
Pricing
rate Expectations
§ Underwriting process verifies borrower information
§ Tracking and analysis of performance establishes feedback loop to improve Identify
Originate Segment
quality of models Loans Variances and
§ Continuously looking for arbitrage pockets and eliminating them Drivers

Inbound
Data Collection Credit Scoring Verification Servicing Collections
Inquiry

• Direct-to-site • Borrower data • Proprietary scorecard • Verify identity • Lender statements • 1-15 dpd: Internal
• Affiliates/partners • Bureau pull • Additional adjustments • Verify address • Payment processing • 16+ dpd: External
• Direct mail • Rating assigned • Fraud screen • Customer relations • 120 day charge-off
• Verify bank account policy
• Verify employment on • Post c/o: External
majority of loans
Strictly Confidential – Not for Distribution or Duplication 12
 The Value of Online Lending

Borrowers

Platforms

Consumer Loans
Small Business Loans Origination Servicing
Real Estate Loans Fees Fee Investors

Underserved markets Commercial Banks

accessing needs-based loans Pension & Endowments
• Instant Loan Approval / Rejection Independent Wealth Managers
• Consistent Underwriting Single and Multi-Family Offices
• Risk-Based Pricing Fund of Funds
• Little-to-No Operational Pain Points
• National vs. Regional Reach

Strictly Confidential – Not for Distribution or Duplication 13

Marketplace Lending Investors

Individual Investors
~ 30% of Loan Market*

- Self-Directed via Platform Access

Institutional Investors
~ 70% of Loan Market*
- Banks
- Hedge Funds
- Endowments & Pensions

• Source: Prime Meridian Estimate

Strictly Confidential – Not for Distribution or Duplication 14
 Appendix A: Consumer Lending
Prime Meridian Income Fund, LP
Prime Meridian Income QP Fund, LP
Poise Lending Fund, LP

Strictly Confidential – Not for Distribution or Duplication 15

The Consumer Lending Opportunity
Consumer credit has been a large, consistently profitable asset class - equivalent to the sixth-largest GDP in world. Investment
managers looking to take advantage of the benefits of technology and consistent positive returns observed in unsecured consumer
lending, Prime Meridian offers access to three private fund structures which are heavily diversified across prime-grade borrowers.

Current Market Size*

Addressable
$3.8 Trillion Market** Peer-to-Peer Lending
P2P Currently ~ $20 billion out of $995 billion
$995 Billion
• Well-established market. Consumer credit data starts in Q4 1945
• Current market size excludes home related debt
• Small loan size. Average loan is < $15K
• Primary demographic user of consumer credit is 30-44 years old

* Consists of consumer credit card debt and installment loans and does not include loans secured by real estate.
** Consists of revolving consumer debt outstanding
Source: Federal Reserve

Strictly Confidential – Not for Distribution or Duplication 16

Consumer Lending – A Historical Perspective
Credit Card Securitization Data – The Historical Experience

Strictly Confidential – Not for Distribution or Duplication © 2017 Prosper. All Rights Reserved. Proprietary and Confidential. 17
Solving the Central Problems
Investors face a difficult environment
• Likelihood of suppressed future economic growth
• Portends low returns and high volatility for most asset classes
• Fixed income offers little yield and a lot of duration risk
• Cash has a negative return
Borrowers face a difficult environment
• Uncooperative, archaic lending institutions
• Restricted, limited access to capital
• Slow decision making and inefficient user experience at
traditional brick-and-mortar banks
Strictly Confidential – Not for Distribution or Duplication
We are committed to only working with the
largest, most established, and well capitalized
online lenders in the industry such as Prosper
and Lending Club.
Because of our early adoption in the
marketplace lending space – investors benefit
from our deep longstanding relationships with
executive teams across all our partner platforms
and cumulative experience in risk-management.
18
About Prosper and Lending Club
Prosper launched America’s first peer-to-peer lending platform in 2006 with a simple mission - to provide an alternative to
traditional bank lending and to allow people to invest in each other, which is both financially and socially rewardin g

• Prosper pioneered the development of this asset class

• Prosper has over 2 million members and has funded over $10 billion in loans as of Q3 2017
• Prosper is backed by some of the world’s biggest investors including Blackrock, Sequoia Capital, Francisco Partners and Benchmark Capital
• Average Prosper borrower shows the following characteristics
˃ FICO Score: 705
˃ Personal Income: $80k+
˃ Interest Rate Range: 6.6% - 31.80%

Lending Club initially launched in 2007, first offering borrowers access to 36-month, fixed term fully amortizing loans followed by
access to 60-month term loans in 2010. The majority of borrowers come to Lending Club seeking loans for major purchases, debt
consolidation, and home improvements.
• Lending Club is publicly traded under symbol “LC”
• Average Lending Club borrower shows the following characteristics
˃ FICO Score: 680+
˃ Personal Income: $74k+
˃ Interest Rate Range: 5.3% - 30.99%

Strictly Confidential – Not for Distribution or Duplication 19

 Appendix B: Small Business Lending
Prime Meridian Small Business Lending Fund, LP

Strictly Confidential – Not for Distribution or Duplication 20

The Small Business Lending Opportunity
The Prime Meridian Small Business Lending Fund, LP (“SBL”) provides investors access to short duration, high-yield
small business loans while minimizing volatility of returns and correlation to other asset classes. The fund is diversified
across prime-grade borrowers geographically spread across the US.

• SBL was launched in July of 2014 and actively manages and invests in Marketplace small business loans

• SBL has loan purchase and servicing agreements in place with Funding Circle, Lending Club and Biz2credit, in
addition to access to all of the leading online lending small business loan origination platforms

• SBL has created a proprietary loan selection model (API) that scans all loans marketed by the platforms and
eliminates from consideration those loans that it believes have a higher likelihood of default

• Loan purchases are executed to create a broadly diversified portfolio comprising what we believe are the best
risk/reward loans

ü SBL is invested in thousands of small business loans with terms ranging from 6 to 60 months

Strictly Confidential – Not for Distribution or Duplication 21

 Small Business Lending
APR Commercial Banks have drastically decreased lending to small-to-mid sized
Alternative Lenders businesses (SMB’s). Archaic operational processes and high underwriting costs
make SMB loans unattractive for large traditional financial institutions. Therefore,
50% APR: ~ 55% banks remain largely focused on the $1mm (+) loan origination market. Today,
Terms: 6-12 months
SMB’s seek solutions to their financing needs via online lenders; thus, providing a
Loan: $30k
ripe investment opportunity for investors in the Addressable Market.
40%

30%
Addressable Market
20% Commercial Banking
Primary Use: Working Capital, CAPEX
Target Top-line Revenues: $200k-$2mm
10% APR: ~ 8%
Terms: 5-10 year
Loan: $500k (+)

$100k $250k $500k Loan Amount

Strictly Confidential – Not for Distribution or Duplication 22
Small Business Lending
Loan originations have been on the decline since the Great Recession. Today, traditional brick-and-mortar banks
continue to dominate business lending for the $1mm (+) market while turning their attention away from small
businesses. Because of this, online small business platforms have created opportunity for investors via seeking access
to this underserved market. Prime Meridian partners with some of the major small business lenders such as Funding
Circle, Lending Club Small Business, and Biz2Credit.

• Funding Circle is a Marketplace Lender for •
Small Businesses
• ~ $1bn originated globally since inception
• US loans range $25,000 to $500,000
• 1 to 5 year terms, 5.49% to 22.79%
• ~$373mm in equity capital raised
Target Market: $200k to $2mm revenue
• 6% to 26% annualized
• US loans range $5,000 to $300,000
• 1 to 5 year terms (majority 1 to 3 years)
• Risk based pricing – 9 subgrades
• $290 million in loans originated since moving
from brokerage to marketplace lender model
in 2014
• 2015 Revenues of $17.8mm
• Biz2Credit has used technology to build a
highly profitable rapidly growing marketplace
lending business
• Fully digital end-to-end SMB lending platform

Strictly Confidential – Not for Distribution or Duplication 23

 Appendix C: Real Estate Lending
Prime Meridian Real Estate Lending Fund, LP

Strictly Confidential – Not for Distribution or Duplication 24

The Real Estate Lending Opportunity
Private real estate lending is a $1.5 trillion market, dominated by
banks and private lenders.

• Banks - policies and regulations make borrowing harder,

and the associated pace can often hinders deals
• Hard Money Lenders – Small, obscure, private lenders
have historically been the predominate provider of
capital to the small and mid-sized borrowers

Source: MONEY360
Real Estate online marketplaces are a welcome funding solution
• More efficient underwriting than traditional banks
• Consistent, standardized, and repeatable quantitative underwriting
• Quick responses and Decision Making enabled
• Borrower friendly

Strictly Confidential – Not for Distribution or Duplication 25

Real Estate Lending – A Historical Perspective
Despite the 2001 Recession and 2008 Great Recession, real estate loan charge-offs remained relatively low. This
builds a strong case for taking advantage of the high rates observed in short-term bridge lending.

Charge-off Rate on Single Family Residential Mortgages, Booked in Domestic Offices, All Commercial Banks
Charge-off Rate on Commercial Real Estate Loans (Excluding Farmland), Booked in Domestic Offices, All Commercial Banks

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0%

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Source: Federal Reserve Board 2017

Strictly Confidential – Not for Distribution or Duplication 26

Traditional Real Estate Lending

Investor Pain-Points Archaic Lending Processes

MF’s, REITS (Public, • Opaque Commercial • Policy, Regulation Hurdles

Private) • High Fee Banks • Lengthy Decision Making
• Less Diversification • Fragmented Process
• Liquidity Constraints • Frictional Transaction Costs
• High Correlation to Public Markets
Hard Money • Small, Obscure Groups
Direct Investment • Requires Large Sums of Money Lenders • Fragmented Market
• Forces Regional Concentration • Geographic Constraints
• Requires Ongoing • Inconsistent Underwriting
Monitoring/Maintenance
(self-directed, outsourced)

Strictly Confidential – Not for Distribution or Duplication 27

Defining Objectives (Platform vs. Fund)

Real Estate Lending Platforms Prime Meridian Real Estate Lending Fund, LP

The Prime Meridian Real Estate Lending Fund remains true

Marketplace lending platforms, independent of their lending
to its investment objective and buy-box criteria.
vertical, are geared towards originating large scales of volume.
Buy-Box Criteria1:
In real estate, this could mean originating loans at 90% LTV, • 75% Max Loan-to-Value
taking 2nd lien positions, and/or granting loans to less qualified • 75% Max After-Repair-Value
borrowers. • 80% Max Loan-To-Cost
• 100% First-Lien notes only
• 100% Personal Guarantees
• Portfolio Average Loan-to-Value: 65%

ü Guidelines in place for proper portfolio diversification

such as geographic, property type, and individual loan
parameters

1 Subject to Change Without Notice

Strictly Confidential – Not for Distribution or Duplication 28

Platforms and Select Data
Platform: Patch of Land (as of 9/30/2017)
§ $432mm funded across 825 Loans, in 47 States
§ Strong underwriting - $0 net losses to date
Platform: Sharestates (as of 5/15/2018)
§ $1.01bn funded across 1,068 Loans, in 19 States
§ Strong underwriting - $0 net losses to date
Platform: Money360 (as of 4/30/2017)
§ $640mm funded as 96 loans, in 31 states
§ Strong underwriting - $0 losses to date
Platform: LendingHome (as of 3/31/2018)
§ $2.17bn funded across 10,605 Loans
§ $1.2bn of principal and interest returned to investors
§ Strong underwriting –Total portfolio principal loss is under .16%
Platform: Fund That Flip (as of 4/30/2018)
§ $105M funded across 18 state
§ $250K average loan size
§ Strong underwriting –$0 losses to date
Borrowers:
§ Professionals builders and developers, who operate a professional company
§ Long track records and experience in property rehabs and purchases
§ Local experts in their community and geographic area
§ Use of attorneys, contracts, etc.

Strictly Confidential – Not for Distribution or Duplication 29

Prime Meridian Special Opportunities Fund LP
Global Access for International Investors
Whether you’re allocating from the US or Internationally, Prime Meridian Capital Management
caters to investors from all ends of the globe via our onshore and offshore fund structures.

Prime Meridian Marketplace Lending SPC Limited

Cusip, ISIN, Bloomberg Data Service Providers
Prime Meridian Income Fund Feeder SP
Administrator: Opus Fund Services, Bermuda
•Cusip G72426110 ISIN VGG724261109
•Bloomberg: {PRIMERF KY Equity <GO>}
Auditor: BDO USA
Prime Meridian Small Business Lending Fund Feeder SP
Fund Custodian: Millennium Trust
•Cusip G72426102 ISIN VGG724261026
•Bloomberg: {PRMSBFF KY Equity <GO>}
Custodial Bank: Wells Fargo, San Francisco, CA
Prime Meridian Poise Lending Fund Feeder SP
Legal: Harneys, Tortola, BVI
•Cusip G72426128 ISIN VGG724261281
•Bloomberg: {PRMRPFF KY Equity <GO>}
Approved Banks: Credit Suisse, HSBC, Euroclear Bank,
Prime Meridian Real Estate Lending Fund Feeder SP Clearstream Banking, Bank Hapoalim,
•Cusip G72426136 ISIN VGG724261364 among others.
•Bloomberg: {PRMRREF KY Equity <GO>}

Strictly Confidential – Not for Distribution or Duplication 30

Contact
For more information regarding Prime Meridian Capital Management and to learn more about our suite of diversified
income strategies, we encourage you to contact us.

Prime Meridian Capital Management

2121 N. California Blvd. STE 830
Walnut Creek, CA 94596
1 + 415.235.5088
jtodd@pmifunds.com
www.pmifunds.com

Strictly Confidential – Not for Distribution or Duplication 31