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AUTOMATION TIME TRACK RECORD ADVANTAGES ADVANTAGES of P2P Lending Fund WHAT IS A P2P LENDING FUND? Searching through thousands of borrowers online can be an extremely tedious process; P2P lending funds are a great alternative. These funds use a well-developed process and computerized algorithm designed to identify opportunities quickly, assess risk, and then capture attractive opportunities—attempting to spread risk and increase the possibility of returns. A BRIEF HISTORY OF P2P LENDING BANK BANK Direct lending is one of the oldest forms of financing in the world, dating back to ancient China. Mohammed Yunus, used his personal funds to start Grameen Bank in Bangledesh in 1983. The Grameen Bank helped thousands obtain the funds needed to start businesses and support their families. Today, online lending platforms connect lenders to borrowers helping facilitate the growth of the P2P lending industry. Enbles borrowers to attract lenders and investors to identify and purchase loans that meet their investment criteria. 15.00% 14.00% 13.00% 12.00% 11.00% 14.99% borrower weighted average interest rate 13.87% borrower weighted average interest rate *as of 4/21/14 *as of 4/21/14 44,059 new loans were issued in the past year totaling $486,262,886.54 * 169,166 new loans were issued in the past year totaling $2,378,580,350.00 * LENDING PLATFORM GROWTH Prime Meridian Capital Management is an investment management firm specializing in online peer-to-peer (P2P) lending strategies. Its flagship Prime Meridian Income Fund is designed to provide investors low cost access to short-duration, high yield loan portfolios by taking advantage of the efficiencies in the P2P lending market. direct: (925) 362-8510 [email protected] www.pmifunds.com SOURCES: [1] prosper.com — [2] lendingclub.com — [3] nickelsteamroller.com — [4] www.finaid.org This material is being provided for information and discussion purposes only and is qualified in its entirety by the information included in the confidential offering documents and supplements (collectively, the “Memorandum”) of Prime Meridian Income Fund, LP (the “Fund”) described herein, and is not intended to be, nor should it be construed or used as investment, tax or legal advice or an offer to sell, or a solicitation of an offer to buy, an interest in the Fund, or any other security. Any offer or solicitation of an investment in the Fund may be made only by delivery of the Memorandum. Before making any investment in the Fund, you should thoroughly review the Memorandum with your professional advisor(s) to determine whether an investment in a Fund is suitable for you in light of your investment objectives and financial situation. The Memorandum contains important information concerning risk factors, including a more comprehensive description of the risks and other material aspects of an investment in the Fund, and should be read carefully before any decision to invest is made. The Fund is only open investors fitting the definition of an “accredited investor” as that term is defined under Rule 501 of Regulation D of The Securities Act of 1933. This presentation may not be distributed without the consent of Prime Meridian Capital Management, LLC. The past performance is not indicative of future results. An investment in the Fund, like all investments, contains risk including the risk of total loss, and may not be appropriate for all investors. HOW DOES P2P LENDING WORK? BORROWERS POST LOANS LENDERS SEARCH FOR LOANS TO FUND LENDERS FUND MULTIPLE LOANS TO SPREAD RISK OF DEFAULT BORROWERS ACCEPT FUNDS LENDERS RECEIVE PAYMENTS BORROWERS POST LOANS LENDERS SEARCH FOR LOANS TO FUND LENDERS FUND MULTIPLE LOANS TO SPREAD RISK OF DEFAULT BORROWERS ACCEPT FUNDS LENDERS RECEIVE PAYMENTS WHAT IS P2P LENDING? P2P lending enables individuals to borrow and lend money without the use of a financial institution such as a bank. One of the many advantages of P2P Lending is that you spread out your investment through a variety of borrowers, greatly lowering the potential for losses. A Guide to P2P Lending REASONS WIN REASONS WIN Spread risk + Potential for consistent returns + Choose who you lend to + Ability to invest directly into loans + + Simple application + Lower interest rates + Quick funding + Transparent fees Benefits to P2P Lending Transparent, Ease-Of-Use, and Quick BANK A LOOK AT RISK A LOOK AT RISK Peer-to-Peer Lending AKA Marketplace Lending or Social Lending Combined Growth of Prosper & Lending Club (2009 - 2013) [3] 2.5 2 1.5 1 .5 TOTAL AMOUNT OF LOANS ISSUED (IN $BN) 2009 2010 2011 2012 2013 [4] $ 2,339,108,574
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