Escolar Documentos
Profissional Documentos
Cultura Documentos
May2016
PrimeMeridianIncomeFundLP-Objectives&Strategy
KeyInvestmentTerms
TheobjectiveofPMIistoachievesuperiorrisk-adjustedreturnsrelativetotraditionalfixedincomeinvestmentswhilealsoprovidingreasonableliquiditytoinvestors.PMIinvestsincredit
instruments,specificallyprimeMarketplace/P2P("PeertoPeer")loansoriginatedbyInternet
lendingplatformsProsperandLendingClub.PrimeMarketplaceloansofferacombinationof
attractiveyield,strongcreditquality,andrelativelyshortdurationwhileminimizingvolatilityof
returnsandcorrelationtootherassetclasses.
StartDate
May2012
MinInvestment
$500,000
ManagementFee
0.75%
PerformanceFee
10%
Lock-up
Additions
N/A,earlyredemptionfeesmay
apply
Monthlyofprincipaland/or
interest
Monthly
Currency
USDollar
Domicile
US
Liquidity
Duration:1.83years
Averageloansize:$14,346
Numberofactiveloansheld:15,000+
Loanterm:36-60months
Medianborrowerincome:$70,000+
AverageFICOscore:692+Prime
Proprietaryloanselectionmodel(API)
ValueAddedMonthlyIndex(VAMI)
PMI
BarclaysUSAggregateBond
HighYieldBond
OrchardUSConsumer
1,500
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
YTD
1,400
1,300
1,200
1,100
1,000
6
1
ay
M
ov
1
5
1
ay
M
ov
1
4
1
ay
M
ov
1
3
M
ay
2
ov
1
N
ay
900
2016
0.62
0.60
0.59
0.60
0.59
2015
0.64
0.59
0.69
0.62
0.64
0.59
0.66
0.69
0.61
0.59
0.54
0.61
3.02 7.74
2014
0.69
0.65
0.70
0.67
0.71
0.68
0.71
0.67
0.67
0.76
0.61
0.66
8.51
2013
0.87
0.72
0.85
0.80
0.82
0.75
0.84
0.83
0.77
0.80
0.72
0.70
9.89
2012
0.69
0.96
0.84
0.89
0.72
0.81
0.75
0.90
6.75
*ThemostrecentOrchardUSConsumerreturnsareestimates.
PortfolioComposition
FirmAUM
ProsperGrades
PerformanceAnalysis
$175,680,618
LendingClubGrades
RETURNSUMMARY
PMI
RISKSUMMARY
PMI
NumberofPeriods
49
AnnualizedSharpeRatio
24.63
TotalReturn
41.29%
WorstMonthlyLoss
AverageGain
0.71%
AnnualizedStandardDeviation
CompoundAnnualizedROR
8.83%
MaxDrawdown
Last12Months
7.53%
Delinquency(31+DaysLate)
N/A
0.34%
N/A
2.32%
KeyServiceProviders
A/AA-7%
B-15%
C-43%
D-20%
E-13%
HR-2%
A/B-8%
C-34%
D-35%
E-17%
F-5%
G-1%
Auditor
BDOUSA
Accounting/Admin
AbacoFSC
Custodian
WellsFargo/Prosper/LendingClub
OutsideLegalCounsel
Howard&HowardChicago
Reporting
MonthlyStatements,providedbyadministrator
FundStructure
3(c)(1)NevadaLimitedPatnership
PrimeMeridianCapitalManagement,LLC|IncomeFundLP|PASTPERFORMANCEISNOTNECESSARILYINDICATIVEOFFUTURERESULTS.
PrimeMeridianIncomeFundLP
May2016
ContactInformation
AboutPrimeMeridian
PrimeMeridianCapitalManagementisaninvestmentmanagementfirmspecializingin
online/Peer-to-Peer(P2P)MarketplaceLendingstrategies.
Ourfundsprovideinvestorswithlowcostaccesstoshort-duration,highyieldloanportfoliosby
takingadvantageoftheefficienciesintheburgeoningP2Plendingspace.Loansinclude
consumerdebtconsolidation,smallbusinessfinancing,realestate,autofinancing,andmore.
Weselectloansusingarisk-basedpricingapproachthatfocusesonyield,duration,andcredit
qualitywiththeobjectiveofachievingconsistentreturnsthathavelowvolatilityandlow
correlationtootherassetclasses.
Theconstructionofourfundsisdesignedtocreateadiversifiedloanportfolioineachof
P2P/MarketplaceLendingverticals:consumerloans(PrimeMeridianIncomeFund),small
businessloans(PrimeMeridianSmallBusinessLendingFund),leveragedconsumerloans
(PoiseLendingFund),andrealestateloans(PrimeMeridianRealEstateLendingFund).
PrimeMeridianCapitalManagement,LLC
2121N.CaliforniaBlvd.,Suite830
WalnutCreek,CA94596
DonDavis,PortfolioManager
Direct:925-362-8510
ddavis@pmifunds.com
www.pmifunds.com
AboutProsper
ProsperisAmericasfirstpeer-to-peerlendingmarketplace,withmorethan2millionmembersandover$6billioninfundedloans.InSeptemberof
2013,SequoiaCapitalandBlackrockmadea$25millionequityinvestmentinProsper.Prospermaintainsstrictcreditselectionstandardswhich
employtheuseofproprietarysoftwaretoscreenoutborrowersandonlyapproximately10%ofloanapplicantsareacceptedtoutilizetheplatform.The
Prosperplatformusesadatadrivencreditmodelwithknowledgebasedauthenticationandfraudriskscoring.LearnmoreatProsper.com.
AboutLendingClub
Untilrecently,themassive$3trillionconsumerlendingmarketremainedlargelyuntransformedbytechnologicalinnovation.Mostpeoplereceived
theircreditfromtraditionalfinancialinstitutionssuchasbanks,creditcardcompanies,andcreditunions,andinvestedintraditionalvehicleslike
stocksandbonds.LendingClub'sinnovationwastoofferasimple,convenientandbeneficialalternativetobothsides.Fueledbythevaluethey
deliver,LendingClubhasconsistentlygrownatmorethan100%peryeareachofthelastfewyears.Sinceinception,theyhavefacilitatedmorethan
$15billioninloans,whilepayingmorethan$1.6billionininteresttoinvestors.LearnmoreatLendingClub.com.
ImportantDisclosures
ThisfactsheetforPrimeMeridianIncomeFund,LP(the"Fund"),furnishedonaconfidentialbasistotherecipient,isneitheranoffertosellnora
solicitationofanyoffertobuyanysecurities,investmentproductorinvestmentadvisoryservices,includinginterestsintheFund.Thisfactsheetis
subjecttoamorecompletedescriptionanddoesnotcontainalloftheinformationnecessarytomakeaninvestmentdecision,including,butnot
limitedto,therisks,feesandinvestmentstrategiesoftheFund.Anyofferingmaybemadeonlypursuanttotherelevantmemorandumandrelevant
subscriptiondocuments,allofwhichmustbereadintheirentirety.Nooffertopurchaseinterestswillbemadeoracceptedpriortoreceiptbya
prospectiveinvestorofthesedocumentsandthecompletionofallappropriatedocumentation.Allinvestorsmustbe"accreditedinvestors"and
"qualifiedclients"asdefinedinthesecuritieslawsbeforetheycaninvestintheFund.AninvestmentintheFundisspeculativeandinvolves
substantialrisks.TherecanbenoguaranteethattheFundwillachieveitsinvestmentobjectives.Thisdocumentisnot,andmaynotberelieduponin
anymanneraslegal,taxorinvestmentadvice.
AssetsundermanagementincludeSMAaccounts.ThenetfundreturnsshowninthetableontheprecedingpagearecalculatedbasedonPrime
Meridian'svaluationoftheunderlyingloansandtheamountofinterestincomegeneratedbythoseloans,lesscertainfeesandexpenses.The
performancedatarepresentscompositefundreturns,andindividualinvestorreturnsmayvaryhigherorlowerfromthecompositereturnduetotiming
ofaninvestmentandactualfeesbeingcharged.Whilemonthlynetreturnsandresultingstatisticsareasofthemonthnoted,portfoliocharacteristics
andassociatedinformationareasoftheendofthemostrecentcalendarquarter.Delinquencyistheestimatedpercentageofthecurrentportfolio
thatis31to120dayslate,andpriortodefaultand/orchargeoff.HistoricaldataforBarclaysAggregateBondIndexandHighYieldBondCategoryare
frommorningstar.com.TheOrchardUSConsumerMarketplaceLendingIndexanddataisfromorchardindexes.com.
PASTPERFORMANCEISNOTNECESSARILYINDICATIVEOFFUTURERESULTS.Thepotentialforprofitisaccompaniedbythepossibilityof
loss,includingthepossibilityofatotalloss.Performanceinformationispresentednetofallexpenses,includingmanagementfees,performancefees
andotherexpensesincludingportfolio-relatedexpenses.
CurrentorfuturecharacteristicsandotherinformationmayvarysignificantlyfromthoseprovidedhereinandPrimeMeridianCapitalManagementLLC
("PrimeMeridian")undertakesnoobligationtonotifyrecipientsofanysuchvariances.
Thisfactsheetisnotanadvertisementandisnotintendedforpublicuseordistributionandisintendedexclusivelyfortheuseofthepersontowhom
ithasbeendeliveredbyPrimeMeridian.ThisfactsheetisnottobereproducedorredistributedtoanyotherpersonwithoutthepriorconsentofPrime
Meridian.
PleasenotethatuponadecisiontosubscribetoPrimeMeridianIncomeFund,LP,theinvestormustverifyAccreditedInvestorstatusviasubmission
ofcertainsupportingdocumentation.ThisisrequiredbylawpriortothedateofinvestmentintheFund.
PrimeMeridianCapitalManagement,LLC|IncomeFundLP|PASTPERFORMANCEISNOTNECESSARILYINDICATIVEOFFUTURERESULTS.