symfone p2p ltd funding round presentation

1Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital

LLC

Symfonie P2P Ltd

Proprietary and Confidential

May, 2015


LLC

Contact

London:

16 High Holborn, London WC21V 6BX

T: +44 20 3287 2690 F: +44 20 8616 7499

Prague:

Na Pankráci 1062/58, 140 00 Praha 4

T: +420 227 023 999

Email:

[email protected]

This publication has been prepared by Symfonie Capital LLC (Symfonie) for

information purposes only. It is not an offer or solicitation for the purchase

or sale of any financial instrument. Reasonable care has been taken to

ensure that the information contained herein is not untrue or misleading, but

no representation is made as to its accuracy or completeness. This

document is confidential and proprietary to Symfonie. Transmission or

publication of this document without the express prior consent of Symfonie

is strictly prohibited. Symfonie reserves all legal rights in connection with the

publication of this document.

© 20015 Symfonie Capital LLC

mailto:[email protected]


LLC

P2P Loan Briefing

May, 2015

4Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC

Peer to peer lending concept

• Evaluates borrowers and assigns a

risk score

• Approves or rejects borrowers

• Verifies borrower data

• Posts borrower demand to website

• Matches lenders and borrowers

• Payment processing and loan

servicing

Peer to peer lending uses internet technology to create a marketplace of borrowers and lenders

• Lenders earn higher

rates of interest than

they could earn on

bank deposits

• Lenders can diversify

across many borrowers

• Borrowers save money

by borrowing at lower

rates than they would

pay to banks and

finance companies

Lenders /Investors P2P Internet Service Borrowers


Peer to Peer Lending Around the World

LendingClub

Prosper

Circleback

FairPlace

Cumplo

Prestadero

Zopa

FundingCircle

RateSetter

Smava

Auxmoney

Kokos

Isepankur

Lubbus

Comunitae

Babyloan

Friendsclear

ZltyMelon

Country / Name of website

NORTH & SOUTH AMERICA EUROPE ASIA


CreditEase

Ppdai

Aqush

Maneo

Zopa

DhanaX


More than 35 providers around the world, more than $12bn in loans annually, growing at least 50 %

per year.Source: Symfonie research


Illustration – Credit Rating vs. Interest Rate

Source: Lendingclub.com, Prosper.com, Fundingcircle.com and Bondora.com Annual Report data.


Stated Net Investor Returns

Source: Lendingclub.com, Prosper.com, Fundingcircle.com and Bondora.com Annual Report data.


Overview of P2P Lending Sites in Europe and the US

The range of lending opportunities is continually expanding.

Most sites offer both primary and secondary investment opportunities.

Most sites can setup accounts for legal entities.

Source: The websites and Symfonie. The list is illustrative only and is not intended to be a complete or authoritative listing of all P2P

marketplace providers. Terms, conditions and actual investment results may differ from those presented here. The Fund’s actual

investments might not include all the above providers and might also include others that are not presented here.

Country Website Type of LoansAnnual Loan

VolumeLoan Grades Tenor (Yrs)

Rates

Available

US Prosper.com Consumer USD 3 bln A-E+ 1,3,5 6%-30%

US Lendingclub.com Consumer USD 9.2 bln A-G 3,5 6%-25%

UK Zopa.co.uk Consumer GBP 670 mln A-B 3,5 5%-8%

UK Ratesetter.com Consumer GBP 600 mln A-B 0-5 3%-6%

UK Fundingcircle.com Business GBP 650 mln A-C 3,5 4%-10%

UK Thincats.com Business GBP 90 mln A-C 0-5 8%-11%

France Pret-dunion.fr Consumer EUR 180 mln A-B 2,5 4%-6%

Estonia Bondora.com Consumer EUR 48 mln A-G 0-5 15%-30%

Slovakia Zltymelon.sk Consumer EUR 2 mln A-D 1,2,3 5%28%

Spain Comunitae.com Consumer EUR 16 mln A-C 1,2,4 8%-12%

Germany Auxmoney.com Consumer EUR 240 mln A-C 1,2,3,4,5 6%-14%


Transparency & Lending Standards

P2P marketplace providers offer a diverse array of borrower risk classes also offer

comprehensive data on borrowers, made available in downloadable data format.

Data include:

• Income

• Job title

• Place of employment

• If a business loan, name of business, type of business, registration number, names of Directors

• If a business loan, financial history

• City/Region of residence

• Total consumer / business debt outstanding

• Total consumer line usage

• Delinquency history

• Debt/Income ratio

• Rent/Mortgage payment

• Stated purpose of loan

• Size, tenor of loan

• Number of lenders funding the loan

• Independent credit score

• P2P marketplace provider credit score


LLC

Business Opportunity

• Central and Eastern Europe – 92 mn

people, fast growing market

• EUR 877 bn in GDP

• Approximately EUR 50 bn in consumer

debt

• About EUR 600 bn in commercial debt

• Debt/GDP in Central and Eastern Europe

is about 50% of debt/GDP in Western

Europe

• GDP growth is generally higher than in

Western Europe while unemployment is

generally lower


LLC

Winning Strategy for P2P Business

Innovate – develop products that are more

attractive than what is available in traditional

distribution channels

Refinance – help credit worthy borrowers

refinance high interest rate loans

Find underserved segments – reach

borrowers who do not meet threshold

requirements in the banking sector, yet who are

credit worthy

Leverage core competence in credit –

segment borrowers into risk bands and work

with them to manage their borrowing needs

Restructure and recover – finding

restructuring and recovery solutions that

address lenders’ ultimate goal of generating a

favorable return/risk ratio

Develop scale and scope – address the needs

of

a wide range of borrowers

Cross Sell – identify other financial products

that can be sold to the customer base

Regional expansion – export good systems

and practices to enter other markets

Develop alliances – create synergies by

identifying good providers in other markets and

broadening platform access


LLC

Symfonie P2P Ltd

Capital Raising Round 2

May, 2015


LLC

Milestones

Seed capital – Done.

The company was seeded with GBP 100,000

from the founders and Symfonie Angel Venture

Fund, LP.

Round 1 – Done.

The company raised a further GBP 180,000

from early stage investors.

Management team – Done.

The company recruited a team of highly

experienced professionals to execute the

strategy.

Platform Development – Done.

Operating systems in place.

Credit Models – Done.

Credit scorecards for Consumer and SME loans

are in place. Additionally, we are contracting

with Experian for expert scoring models.

Open for Business – Done.

First loans booked, first investors on boarded.

Capital Raise Round 2 – Now Open.

13.7% of the Company (post-money

capitalisation GBP 1.5 mn).


LLC

Capital Structure

Shares outstanding

383,340

Capital contributed GBP

291,675

Preferred share

53.8%

Common shares

46.2%

Committed additional shares

246,500

Committed capital

GBP 319,750

Current share round

Type of shares

Common

Number of shares

100,000

% of company

21.5%

20.6%

57.9%

Angel Fund Individual Management

*Note – Preferred shares and common shares have

same voting rights. Preferred shares are entitled to 8%

dividend and have priority in sale or liquidation or

company.


Business Plan Overview

Data in GPB

Data are based on the current business plan and are subject to change.

Year of Operations - Loan products 1 2 3 4 5

Revenue Base

Deals Closed 29 206 595 1,498 2,016

Loans value originated 1,457,055 9,096,626 24,926,380 44,360,429 63,165,644

Year End Outstanding Loans 1,367,973 8,984,860 27,654,231 55,095,180 85,546,628

Total Year-End Headcount 10 11 12 17 20

Revenues - Loan products

Origination Fees - Total 43,712 272,899 747,791 1,330,813 1,894,969

Loan Service Fees - Total 2,371 38,394 158,429 418,077 792,301

PPI Fees - Total 21 334 1,425 4,944 11,116

Total Revenues 46,103 311,626 907,646 1,753,834 2,698,387

Net Income

Pre-tax Profits - Total (317,197) (240,102) 510,095 1,107,174 2,134,905

Corporate Tax - - 112,221 243,578 469,679

Net profits (317,197) (240,102) 397,874 863,596 1,665,226


Valuation

The business is valued with DCF (r=30%) and with an assumed earnings multiple of 15x earnings.

Once functioning and developing according to plan the business should have value in the near term of

GBP 8 mn. This valuation does not incorporate growth opportunities as the Company expands into

Poland and other countries.

Company Value Over Time

24 6 8 9 10 12

2

21 23

7

17

-

10

20

30

40

1 2 3 4 5 6 7

Year of Operations

mn

DCF PE 15 Capital Invested

Source: Symfonie Capital estimates, based on business plan targets.. DCF assumes r=30%. PE 15 assumes 15x earnings multiple.


LLC

Investor Terms – Round 2

Total Capital Raised Up to GBP 200,000

Total shares sold – 100,000 13.7% of the

Company, post money)

Preferred Shares

Voting

10% dividend, plus participation in overall

company dividend

CZK 75 / EUR 2.70 / GBP 2.40 / US$3.80 per

share

Common Shares

Voting

CZK 65 / EUR 2.40 / GBP 2.00 / US$3.10 per

share

Note: The company’s base currency is GBP, so the

price when translated into other currencies is

subject to change.


LLC

Growth Opportunities

SME lending in the Czech Republic

Build on success in the Czech Republic to

enter Poland and other Central/East

European markets

Tie to Angel Fund means add-on equity

funding platform

Source: Symfonie Capital forecasts.


A Region with Relatively Low Government Debt

Source: EU statistics database, Symfonie Capital estimates.


Relatively Low Private Debt Stock



Convergence Continues

The Czech Republic offers relatively strong growth and a generally healthier consumer than most

other peer countries in new Europe.



Convergence Continues

In Central and Eastern Europe consumer loans/capita is about 35% of the figure in Western Europe.



Czech Republic is Strategically Well Located

The Czech Republic offers a EUR 8 bn consumer finance market and borders on Poland, the region’s

largest market.



Bank Consumer Lending – EUR 7.2 bn Outstanding

• Volume of consumer

loans at banks is EUR

7.13 bn

• Net consumer loan

growth at banks has

been practically stagnant

last several years

Source: Czech National Bank, Symfonie Capital estimates. CZK translated into EUR at constant rates.

25Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC25

Non-Bank Consumer Lending – EUR 1.3 bn annually

• contracts in 2012:

931,752

• loans taken in 2012:

EUR 1.3 bn

• 2 mn active contracts:

EUR 2.2 bn

• 374,300 contracts in 2012 for

personal loans: EUR 400 mn

• 204,470 revolving loans in

2012:

EUR 455 mn

• 352,031 point of sale loans in

2012: EUR 386 mn

Source: Czech Leasing and Finance Association (www.clfa.cz). CZK translated into EUR at constant rates.


Polish Consumer Loans – EUR 30 bn Outstanding

Source: National Bank of Poland and Symfonie Capital Estimates. PLN translated into EUR at constant rates.


Bank Loans to Czech Businesses – EUR 5.7 bn

Source: Czech National Bank, Symfonie Capital estimates. CZK translated into EUR at constant rates.


Non-banking Sector Loans to Czech Businesses – EUR 1.2

bn

Source: Czech Leasing and Finance Association (www.clfa.cz). CZK translated into EUR at constant rates.


Lending to Polish SME Sector – EUR 40 bn

Source: National Bank of Poland and Symfonie Capital estimates. PLN translated into EUR at constant rates.


Interest Rates Provide Opportunity for P2P

Czech bank rates on consumer loans are about 12% while deposit rates are less than 2%.

Source: Czech National Bank, Symfonie Capital estimates.


Interest Rates Provide Opportunity for P2P

Polish deposit rates are less than 5% while base consumer lending rates are more than

15%

Source: National Bank of Poland, Symfonie Capital estimates.


What’s the Problem?

• Loan rates, especially non-bank loans, are 6%–20%.

• Banks often have collateral requirements businesses don’t meet.

• Banks can be difficult to deal with – bureaucracy, loan terms, lack of flexibility).

• Smaller loans and shorter term loans are much more expensive than bigger loans and longer term

loans.

• High equity requirements and low loan to value for collateralised loans.

• Loan pricing is not always transparent – non-interest charges plus terms and conditions increase

loan cost substantially.

• Many consumer lenders charge clients for early repayment – usually about 1% of the outstanding

amount of the loan.

• Many consumer lenders charge a monthly account fee in addition to the interest rate.

The window of opportunity is to identify credit worthy SME clients who are paying high interest rates

or not getting enough credit – finance them at same or lower rates with riendly terms, policies and

procedures.


Competitive Edge – Opportunities to Get Market Share

Lower costs – pass cost savings on to the

borrowers

Knowing the client better – understand the

borrowers to keep default rates low

Data gathering – gather data on customers so

and tailor products to meet their needs

Size doesn’t matter – Develop a lending

model that doesn’t automatically impose higher

base interest rates on smaller size loans

Flexible – we allow borrowers to easily shorten

or lengthen loan tenor

Proactive credit management – work with

clients to help them manage credit problems

before they turn into defaults

Source: Symfonie Capital. The above list is indicative and does not necessarily reflect final product features, terms and conditions.

Choice of flat or declining payment – offer

loans with declining monthly payment as an

alternative to the traditional flat payment

structure

Payment holidays – build one or two months

per year into the payment calendar where no

payment is due

Rising payment loans – offer loans that have

smaller payments on the front end and larger

payments on the back end.

Look-back rewards – reward consistent

payers with cash-back, credit toward principal

balance, step-down interest rates

Cross selling – cross sell customers into other

financial products besides lending and

borrowing


Czech Savings and Investment Base

Source: Czech National Bank, Symfonie Capital research and estimates. CZK translated into EUR at constnat rates.


Polish Savings and Investment

92.3100.6

113.7122.9

24.8

28.6

27.4

35.3

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

2009 2010 2011 2012

EU

R B

n

Bank Deposits Mutual Funds

Source: National Bank of Poland, Symfonie Capital research and estimates. PLN translated into EUR at constant rates.


Non-Performing Loans

Source: Czech National Bank and Symfonie Capital estimates.

• Bank non-performing

loans to households have

risen to around 6%.

• Among unsecured

consumer loans the non-

performing rate is

probably closer to 8%.

• Home Credit recently

reported about 8.5%.

• CNB bank lending survey

recently indicated banks

charge on average 17%

on their relatively risky

loans.

• Mortgage loans are

typically categorized as

low risk due to

collateralization.


Revenue Targets

Revenue & Net Profit Model

(2.0)

-

2.0

4.0

6.0

1 2 3 4 5 6 7

Year of Operationsm

nNet Profits Revenues

Source: Symfonie Capital, There is no assurance the targets will actually be achieved. Actual performance may differ depending on

market conditions and product terms and conditions. Revenue model is subject to change.

• The current plan targets

issuance of about GBP 2 mn

of loans in the first 12 months

following launch, rising to an

annual volume of GBP 65 mn

by the 5th year of operation.

• The revenue model assumes

an average loan tenor 3 years

and an average loan size GBP

20,000.

• Origination fees are expected

to average 3% of loan,

collected up front. A loan

servicing fee of 1% of the

monthly payment amount,

collected over tenor of the

loan is expected.


Expense Model

Expenses Year 3

Credit check fee

Office Rent

Office Supplies

IT Systems

Business admin &

analysis compensation

Management

compensation

Communication

Supervisory Board

Accounting

Legal

Travel

Marketing

Credit staff

compensation

Operating staff, management

and marketing are the largest

cost items, accounting for

nearly 80% of the expense

budget. The Company plans

to keep marketing costs

contained during the first 12–

18 months after start of

operations while it ensures

quality control and makes

initial product adjustments.

To date actual expenses have

been significantly below

budgeted numbers.

Source: Symfonie Capital. The cost model presented is indicative and subject to change without notice. Actual results may differ.


Incentivising Management & Employees

• Management and employees earn ownership in the Company.

• Management and employ ownership consists of options to buy shares in the Company,

vested over time and with cash payments in exchange for the shares. Vesting begins

after 18 months of service and takes place over an 18 month period. Managers

therefore must work for 36 months in order to become fully vested.

• Management buy-in is 23% of the Company on a fully diluted basis.

• Management and employees also have an incentive programme and can earn options

to buy shares in the Company. The incentive programme begins after three years and

is vested over a two year period, so management must stay with the Company for five

years in order to be fully vested.


Management Incentive Plan

• Management earns options on company equity depending on profits produced in year 4 and 5.

• Option plan is subject to adjustment by the Company’s directors and approval by shareholders.

Option Plan for Year 4 Earnings

0%

2%

4%

6%

8%

10%

12%

14%

85,98

5

171

,969

257

,954

343

,938

429

,923

515

,907

601

,892

687

,876

773

,861

859

,845

Year 4 Earnings (EUR)%

of

Co

mp

an

y E

arn

ed

Option Plan for Year 5 Earnings

0%

2%

4%

6%

8%

10%

12%

14%

149

,546

299

,092

448

,638

598

,183

747

,729

897

,275

1,046

,821

1,196

,367

1,345

,913

1,495

,459

Year 5 Earnings (EUR)

% o

f C

om

pa

ny

Ea

rne

d


Symfonie P2P: Michael Sonenshine – CEO

Michael Sonenshine, CFA – Investment Principal

Mr. Sonenshine has more than 20 years of experience in banking and investment

management. He specialises in credit investments. He founded the Symfonie

group of companies in 2012.

• MT Thaler, Prague/London: CEO/Partner, Head of Research. Investment

funds focused on central and eastern Europe and pan-European credit

markets

• CSFB, London: European High Yield Debt Research

• ING Bank, London: European High Yield Debt Research

• ING Investment Management, Prague: CEO, Czech Republic

• ING Bank, London: Analyst

• Driehaus Capital, Prague: Analyst

• Evrobank, Prague: Advisor

• MBA William Simon School, University of Rochester

• B.A., Tufts University


Symfonie P2P: Peter McGregor – Chief Operating Officer

Mr McGregor oversees all administrative and operational issues for

Symfonie in the P2P arena.

• More than 25 years experience in banking and operations management

• Banco Nacional de Guinea Ecuatorial, Malabo, Equatorial Guinea – Chief

Operations Officer

• MT Thaler Investment Management, Prague – Chief Operations Officer.

• ING Bank, Monaco, Budapest, Prague – Wholesale banking and wealth

management operations

• ABN AMRO, Geneva – wealth management operations and product

management

• PhD, Computer Science, Oxford University, England

• BSc (Hons) in Mathematics, Witwatersrand, Johannesburg, South Africa


Symfonie P2P: Stepan Alexa – Chief Technology Officer

Mr. Alexa is responsible for the architecture and implementation of the

company’s IT solutions.

• More than 15 years professional experience in systems development

• Implemented database systems in Central and Eastern Europe for T-Mobile,

Vodafone and MTS Russia

• Sales Director, Oracle, Central and East Europe

• MSc, Economics and Computer Science, Prague College of Economics


Symfonie P2P: Jitka Rombova – Chief Financial Officer

Ms. Rombova is responsible for overseeing and monitoring the

company’s finance.

• More than 20 years professional experience in managerial finance and

business development

• Partner, CQK Invest, providing financial and business support to innovative

startup companies

• 10 years experience in senior management positions in HBO Europe,

promoted to CFO

• MBA, University of Pittsburgh, Diploma, University of Chemical Technology,

Prague


Symfonie Advisory Board

The Symfonie Advisory Board is a group of highly experienced financial professionals. Symfonie has

regular meetings with the Advisory Board to discuss the Fund’s investments, strategy, research on

P2P providers. Advisory Board members are independent of Symfonie and do not have legal or

regulatory authority or status within Symfonie.

Willem Naves / Holland

• More than 25 years of experience in investment and corporate banking

• Banking advisory projects in Macedonia, Poland, El Salvador and Indonesia

• Twenty years experience in credit trading management positions in the ING Group, working in Amsterdam,

London and Sao Paolo

• Erasmus University degree in Law

Pavel Kohout / Czech Republic

• Fifteen years experience in economic analysis and investment management

• Director of Strategy at Partners Advisors, a leading Czech financial advisory firm

• Author of several books on economics

• Member of Czech National Economics Advisory Board

• Member, Expert Panel of Advisors to Czech Ministry of Finance


LLC

Symfonie P2P Ltd

Appendices

May, 2015


Symfonie P2P Structure

Seed investors own

Preferred shares

preferential rights to

dividends to 10% per

annum notional dividend

(when/if declared), pari-

passu with common

thereafter. Convertible to

common at any time.

Seed investment & Round 1

GBP 300,000 – CLOSED

Round 2: GBP 200,000 for

startup and launch of

operations – NOW OPEN

Symfonie P2P, LTD

100% ownership of operating subsidiarie

SymCredit &

SymVest Czech

Republic

Operating company in

the Czech Republic

SymCredit

Poland

Operating

company in Poland


Shareholding

Indicative shareholding structure, post money, assuming all authorised capital sold and

issued.


Key Corporate Governance Provisions

• New issuance of capital above authorised shares must be approved by at least 75% of

outstanding shares.

• The business may not incur debt totaling more than 20% of share capital without at

least 65% approval of outstanding shares.

• The business must payout at least 50% of net earnings as dividends unless at least

75% of shareholders approve otherwise.

• Drag provision to incorporated into the statutes. If at least 85% of shareholders agree

to sell their shares the other 15% are bound.

• Tag provision all shareholders are entitled to participate pro rata in any offer to buy

secondary shares.


Key Risks

• Underperformance – If the business plan is underperforming more capital will be

needed.

In this case the shareholders will decide whether to authorise additional capital or

decrease management incentive pool.

• Competition – other P2P operators may enter the markets faster than we do.

• Finance – the business is likely to need additional capital to expand into other markets.

There is no guarantee capital will be readily available on favourable terms and

conditions.

• Exit strategy – there is no guarantee the business or the shares will be readily

marketable when and exit is desired.

• Legislation – adverse legislation may prevent the business from developing or may

prohibit the business entirely

• New operations – all procedures, policies and systems will be new, untried and

untested.


Disclaimer

• This document has been prepared by Symfonie Capital LLC (“Symfonie Capital”) for persons reasonably believed by Symfonie

Capital to be persons of the categories to whom Symfonie Capital are permitted to communicate financial promotions. This document

does not constitute or form part of any offer or invitation to sell, or the solicitation of an offer to subscribe or purchase any investment.

Symfonie Capital believes that the information it provides is accurate as at the date of publication, but no warranty of its accuracy or

completeness is given and no liability in respect of errors or omissions is accepted by Symfonie Capital or any partner or employee of

Symfonie Capital. Past performance is not necessarily a guide to future performance.

• This presentation is for illustration and discussion purposes only and is not intended to be, neither should it be construed or used as,

financial, legal, tax or investment advice nor an offer to sell, nor a solicitation of any offer to buy, an interest in any of the funds

managed by Symfonie Capital (the “Funds”). None of the Funds have shares registered under the U.S. Securities Act of 1933, as

amended.

• This presentation is as of the date indicated and subject to change without notice.

• Any indications of interest from prospective investors in response to this material involves no obligation or commitment of any kind.

Subscriptions can be made only on the basis of a Confidential Offering Memorandum to qualified investors. The investment objectives

and methods summarized in this document represent our current focus and intentions.

• There is no assurance that Symfonie Capital or the Company will achieve its objectives. Investors may lose money upto the full value

of their investments. No representation is made that the Company will achieve its objectives or that any investor will or is likely to

achieve results comparable to any that may be shown. There can be no assurance that any investor will make any profit at all or will

be able to avoid incurring substantial losses. Past performance is no guarantee of future results.

• This presentation does not take into account the particular investment objectives or financial circumstances of any specific person

who may receive it. Before making any investment, you should thoroughly review the the Company’s Confidential Offering

Memorandum with your financial and tax advisor to determine whether an investment in the Company is suitable for you in light of

your financial situation.

• This presentation is subject to revision and updating. Certain information has been provided by third-party sources and, although

believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. This

presentation is confidential, is intended only for the person to whom it has been delivered and under no circumstance may a copy be

shown, copied, transmitted, or otherwise given to any person other than the authorized recipient. Symfonie Capital is solely

responsible for the content herein.


LLC

Symfonie P2P Investments

Product Portfolio

May, 2015


Symfonie P2P Key Investment Considerations

Step 1 – Provider selection

Ownership and management of the provider

Credit scoring process

Range and quality of borrower data gathered and

presented

Data presentation transparency

Provider practices, policies and procedures

Gross and net returns on loans originated

Loan recovery policy and process

Operating history to date

Step 2 – Loan selection

Verified income and employment

Borrower debt/income ratios

Borrower debt outstanding

History of responsible debt management

External credit scores

The goal is to choose good providers, understand how they classify

borrowers and then to filter the borrower pools to find loans that offer

the best reward/risk characteristics.


Smart Investing for High Income

• P2P loans and bonds offer steady returns and attractive yields

• Principal re-payments of consumer and business loans monthly mean overall lower

credit risk and more opportunities to re-invest cash flows

• Diversification across borrowers, countries, sectors, yields and maturities

• Research and risk management driven investment process

• Investors may select quarterly/annual principal/interest distributions

• Tax optimal zero coupon structure available

• Regular portfolio updates


Symfonie P2P Fund – Portfolio Overview

The Notes portfolio has similar objective and strategy as the Fund –

earn high steady returns with a diversified portfolio.

Key Portfolio Statistics up to 04/2015

Number of Loans 1,496

Average Gross Yield to Maturity 11.2%

Expected Net Yield to Maturity 8.9%

Average Time to Maturity (years) 3.5

Average Loan Age (years) 0.88

Number of Loans Defaulted to Date 40

Loan Loss Impact on Portfolio 0.19%

Overall Average Rating B-


Ideal Investor Profile

• Investors seeking relatively stable returns over time but who may not have sufficient credit expertise

• Investors who understand Peer to Peer lending and are looking for more diversification than they can achieve on their own

• Investors seeking a relatively high yield for savings and who are able to accept a moderate level of risk

• Investors willing to match the term of their investment to the underlying maturity of the portfolio


Key Risks for Noteholders

• Defaults – higher defaults can reduce

principal value of notes

• Liquidity – no secondary market for the

notes

Risk warning – the notes are not guaranteed. Investors may lose interest and principal in case there is a

high default rate among the loans in which the portfolio invests.


Notes Structure

Symfonie P2P Income Trust

Symfonie Capital, LLCNoteholders

• Noteholders lend money to the Trust,

receive principal and interest

payments

• Places equity capital into Trust

• Manages Trust Assets

• Bankruptcy protected investment

trust

• Subject to law of Delaware, USA

• Legal owner of all investment assets

• Invests in P2P loans and bonds only

• All assets are collateral for benefit of

noteholders

• Diversified International portfolio of

investments in P2P loans and bonds

• Principal and interest received

monthly


Cash Waterfall Puts Investors First


Step 1. Trust receives principal and interest

payments from loans

Step 2. Principal and stated interest payments

paid to Noteholders

Step 3. Next 1% interest from investments paid to

Trust equity holder (Symfonie)

Step 4. Reinvestment of excess interest back into

Trust increases collateral for Noteholders

75% of excess interest paid out to Noteholders

at maturity


Collateralisation Protects Investors


100 % proceeds from issuance of notes

+ equity capital reserve 3 % of notes outstanding

+ reinvestment of excess interest


Investment Process – Research Driven

Market Assessment

Evaluations of P2P services

Proprietary screening filters

Macro-economic research

Relative value comparisons

Loan Selection

Asset class selection

Risk/return analysis

Default rate modeling

Sizing and RiskDiversification of among loans,

service providers, loan markets

Monitoring

On-going review of loan

performance and service

provider activities.

Working with service providers to

restructuring loans if

necessary.

Investment Execution

CIO approves loan purchase

Trade Executed


LLC

Symfonie Track Record

May, 2015


Symfonie Lending Fund – Steady Returns

• 5 year P2P loan portfolio returns

approximately 8.5% annually

• 3 year P2P loan portfolio returns

approximately 6.5% annually

Source: Symfonie. Charts above reflect the performance of the 2019 (5 year) and 2017 (3 year) class of Symfonie Lending Fund, LP, net

of management and administrative fees. Management fees are 1.5 % and 1.25 % respectively. Administrative fees are 0.75 %.


Symfonie Performance by Site

Performance by Site

Statistics up to 04/2015 Lending Club Prosper Funding Circle Bondora

Average Gross Yield to

Maturity12.6% 12.5% 10.4% 26.5%

Target Net Yield to Maturity 8.7% 9.2% 8.3% 15.8%

Average Time to Maturity

(years)4.3 3.9 3.1 2.2

Average Loan Age (years) 1.16 0.8 1.2 1.3

Loan Loss Impact on Portfolio 0.3% 1.23% 0.3% 19%

Overall Average Rating B- B- B- C-


Symfonie EM Credit – Consistent Outperformance

Source: Symfonie. Chart above reflects the performance of the credit strategy implemented within the MT Thaler New Europe Fund

during the time Symfonie principal Michael Sonenshine was responsible for the Fund’s investments in credit instruments.

0.80

0.90

1.00

1.10

1.20

1.30

1.40

Jan-

05

Mar

-05

May

-05

Jul-0

5

Sep

-05

Nov

-05

Jan-

06

Mar

-06

May

-06

Jul-0

6

Sep

-06

Nov

-06

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep

-07

Nov

-07

Jan-

08

Mar

-08

May

-08

Jul-0

8

Bas

e =

1

Hedged WE XOVER

Hedged EEI

Hedged EMCI

USDLIBOR 1M

Symfonie

HEDGED WE HY


Symfonie Global High Yield – Successful Track Record

Source: Symfonie. Chart above reflects the performance of the Ceska Sporitelna High Yield Fund during the time Symfonie principal

Michael Sonenshine was responsible as investment advisor to the Fund.

Symfonie Global HY

90

105

120

135

150

165

180

195

210

225

240

31-O

ct-0

831

-Dec

-08

28-F

eb-0

930

-Apr

-09

30-Jun-

0931

-Aug

-09

31-O

ct-0

931

-Dec

-09

28-F

eb-1

030

-Apr

-10

30-Jun-

1031

-Aug

-10

31-O

ct-1

031

-Dec

-10

28-F

eb-1

130

-Apr

-11

30-Jun-

1131

-Aug

-11

31-O

ct-1

131

-Dec

-11

29-F

eb-1

230

-Apr

-12

30-Jun-

1231

-Aug

-12

31-O

ct-1

231

-Dec

-12

Ind

ex N

ov 1

= 1

00

ML WE HY SYMFONIE EU XOVER EMCI


LLC

Symfonie P2P Investment

Team

May, 2015


Symfonie Investment Team

Michael Sonenshine CFA – Investment Principal

Mr Sonenshine has more than 20 years of experience in banking and investment

management, specialising in credit investments. His investment process is research

driven with an emphasis on fundamental analysis. He founded Symfonie Capital LLC in

2012.

2003–2012 MT Thaler, Prague/London: CEO/Partner, Head of Research. Investment funds focused on

central and eastern Europe and pan-European credit markets

2000–2003 CSFB, London: European High Yield Debt Research

1998–2000 ING Bank, London: European High Yield Debt Research

1995–1998 ING Investment Management, Prague: CEO, Czech Republic

1994–1995 ING Bank, London: Analyst

1993–1994 Driehaus Capital, Prague: Analyst

1992–1993 Evrobank, Prague: Advisor

MBA William Simon School, University of Rochester

B.A., Tufts University


The Symfonie Advisory Board is a group of highly experienced financial professionals. Symfonie has regular

meetings with the Advisory Board to discuss the Fund’s investments, strategy, research on P2P providers. Advisory

Board members are independent of Symfonie and do not have legal or regulatory authority or status within Symfonie.

Willem Naves / The Netherlands

• More than 25 years of experience in investment and corporate banking

• Twenty years experience in credit trading management positions in the ING Group – Amsterdam, London, Sao Paolo

• Global co-Head of Fixed Income trading at ING

• Head of EMEA Equity and Fixed Income sales and trading product

• Banking advisory projects focusing on credit and risk management in Macedonia, Poland, El Salvador and Indonesia

• Erasmus University degree in Law

Pavel Kohout / Czech Republic

• Fifteen years experience in economic analysis and investment management

• Director of Strategy at Partners, a leading Czech financial advisory firm

• Author of several books on economics

• Member of Czech National Economics Advisory Board

• Member, Expert Panel of Advisors to Czech Ministry of Finance



The Symfonie Advisory Board is a group of highly experienced financial professionals. Symfonie has regular

meetings with the Advisory Board to discuss the Fund’s investments, strategy, research on P2P providers. Advisory

Board members are independent of Symfonie and do not have legal or regulatory authority or status within Symfonie.

Maarten van den Belt / UK

• More than twenty five years of experience in investment and corporate banking

• Credit risk management and loan officer positions at NMB Bank, the Netherlands

• Corporate high yield bond management during the formative years of the European high yield market

• Senior management positions in treasury and lending at ING Bank, Raiffeisen Bank and West LB

• Developed and managed capital markets trading and consumer banking businesses in Tokyo, Moscow and London

• Managing partner responsible for alternative asset manger with $400mn AUM focused on investments in Russia

• Non-Executive Directorships with TMM, a leading Ukrainian real estate developer and Pristav, one of Russia’s largest consumer debt

collection agencies

• University of Utrecht, Social and Business law

Charles Klein / China

• Twenty years experience in corporate finance and treasury management

• Management positions in General Motors with responsibility for currency portfolios, asset acquisition and disposition and financial

reporting systems

• Resident in China, fluent in German and Russian

• MBA, Wharton School of Management



Disclaimer

• This document has been prepared by Symfonie Capital LLC (“Symfonie”) for persons reasonably believed by Symfonie to be persons of the categories

to whom Symfonie are permitted to communicate financial promotions. This document does not constitute or form part of any offer or invitation to sell, or

the solicitation of an offer to subscribe or purchase any investment. Symfonie believes that the information it provides is accurate as at the date of

publication, but no warranty of its accuracy or completeness is given and no liability in respect of errors or omissions is accepted by Symfonie or any

partner or employee of Symfonie. Past performance is not necessarily a guide to future performance.

• This presentation is for illustration and discussion purposes only and is not intended to be, neither should it be construed or used as, financial, legal, tax

or investment advice nor an offer to sell, nor a solicitation of any offer to buy, an interest in any of the funds managed by Symfonie (the “Funds”). None

of the Funds have shares registered under the U.S. Securities Act of 1933, as amended. None of the Funds will be registered under the U.S. Investment

Company Act of 1940, as amended. Any offer or solicitation of an investment in any of the Funds may be made only by delivery of a respective fund’s

Confidential Offering Memorandum to qualified prospective investors.

• This presentation is as of the date indicated, is not complete, and does not contain certain material information about the Funds, including important

disclosures and risk factors associated with an investment in any of the Funds.

• Any indications of interest from prospective investors in response to this material involves no obligation or commitment of any kind. Subscriptions can be

made only on the basis of a Confidential Offering Memorandum to qualified investors. The investment objectives and methods summarized in this

document represent our current focus and intentions.

• There is no assurance that Symfonie will achieve its objectives or that its investment process or risk management will be successful. Investors may lose

money. No representation is made that any of the Funds will or are likely to achieve their respective objectives or that any investor will or is likely to

achieve results comparable to any that may be shown or will make any profit at all or will be able to avoid incurring substantial losses. Past performance

is no guarantee of future results.

• This presentation does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it.

Before making any investment, you should thoroughly review the particular fund’s Confidential Offering Memorandum with your financial and tax advisor

to determine whether an investment in the fund is suitable for you in light of your financial situation.

• This presentation is subject to revision and updating. Certain information has been provided by third-party sources and, although believed to be reliable,

it has not been independently verified and its accuracy or completeness cannot be guaranteed.

• This presentation is confidential, is intended only for the person to whom it has been delivered and under no circumstance may a copy be shown,

copied, transmitted, or otherwise given to any person other than the authorised recipient.

• Symfonie is solely responsible for the content herein.

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