Carpathian Capital is raising up to $10mn for a USA multi-strategy residential real estate fund to take advantage of continued distressed asset prices in certain geographies, improving markets and low interest rates. With leverage, fund will own up to 4x the amount of equity raised (25% equity, 75% debt capital structure).

1. Carpathian Capital
REAL ESTATE OPPORTUNITIES FUND II
Presented By
Ian Colville

2. EXECUTIVE SUMMARY
Carpathian Capital is raising up to $10mn for a USA multi-strategy residential real estate fund
to take advantage of continued distressed asset prices in certain geographies, improving
markets and low interest rates. With leverage, fund will own up to 4x the amount of equity
raised (25% equity, 75% debt capital structure).
OPPORTUNITY
Existing single family homes remain cheap in certain regions while rents continue to climb.
Significant under-building of new homes will lead to a shortage of homes in the next few
years.
Interest rates remain near historical lows. Manager’s existing fund has borrowed $13mn
at average interest rate of 4.28% (fixed for 5 years) to date.
The Fund will focus on property markets where rental yields are still strong in certain
markets and Manager has strong market knowledge. This is primarily, but not exclusively,
in the Mid-western USA.
Manager’s existing fund reached stabilized state in 3Q14. Cash ROE was 10% in 2H14 with
estimated additional 10% unrealized capital gains embedded in portfolio.
2

3. STRATEGIES SUMMARY
MAIN STRATEGIES
Buy and hold residential rental
properties (5-8 yr. hold period)
Buy and hold “lease-option” (rent-to-
own) residential properties – up to
25% of portfolio
Fix and Flip – both debt and equity –
up to 25% of portfolio
ALTERNATIVE STRATEGIES
Wholesaling
Commercial
3

4. 4
OUTPERFORMING THE COMPETITION
Average Cost
Basis per Home
Average
Monthly
Rent
Gross
Rental Yield
(annualized)
ROE
(annualized
based
on 1H14)
TOTAL
PROPERTY
ASSETS
American Homes 4 Rent $165,746 $1,125 8.10% 3.2% $5,117,743,000
Silver Bay Realty Trust Corp $139,050 $1,183 10.20% 1.9% $878,793,000
American Residential Properties $144,151 $1,236 10.30% 2.6% $1,185,351,000
Carpathian Capital Fund I LLC $84,541 $1,096 15.60% 10%* $17,220,949
SOURCES
http://investors.ah4r.com/file.aspx?IID=4392539&FID=1500064899
http://investors.silverbayrealtytrustcorp.com/Cache/1001191885.PDF?Y=&O=PDF&D=&FID=1001191885&T=&IID=4335231
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjU4MDExfENoaWxkSUQ9LTF8VHlwZT0z&t=1
*Cash ROE does not include any embedded appreciation in value of property. Any capital gains on sale of properties will further boost returns.
Annualizing 2H14 numbers is most accurate indication of stabilized performance as fund was not fully invested in 1H14.

5. EXAMPLES OF WHAT WE DO
5

6. BUY and HOLD RESIDENTIAL
DEAL HIGHLIGHTS
Purchase of 11 homes in Minneapolis, MN
from a rehab group that had invested
heavily in quality renovations pre-crisis and
were unable to sell homes to retail buyers.
DEAL SIZE
$990,000
The properties were listed for $1.27mn before crisis.
GROSS ANNUAL RENTS
$136,560
14% Gross Yield.
6

7. FIX and FLIP
DEAL HIGHLIGHTS
2219 Wolter Ave, St. Louis, MO 63114
PURCHASED
August 20th, 2013
SOLD
December 21st, 2013
TOTAL COST
$46,686
(home plus renovation)
TOTAL PROFIT
$12,362 – 26% ROI
(79% annualized)
7

8. Ordinary Income 1H 2014 3Q 2014 4Q 2014 TOTAL
4000 · Rental Income 608,774.37 503,510.05 620,884.15 1,733,168.57
Other Income 10,592.32 9,158.16 2,591.93 22,342.41
TOTAL INCOME 619,366.69 512,668.21 623,476.08 1,755,510.98
GROSS PROFIT 619,366.69 512,668.21 623,476.08 1,755,510.98
Ordinary Expense 1H 2014 3Q 2014 4Q 2014 TOTAL
5060 · Interest Expense Mortgages 116,336.26 119,590.75 132,821.52 368,748.53
5000 · Repairs & Maintenance 72,837.25 69,093.54 97,025.09 238,955.88
5020 · Utilities & Association Fees 80,364.23 36,328.98 47,901.87 164,595.08
5040 · Property Tax Expense -2,347.57 54,960.39 79,466.98 132,079.80
5010 · Property Management Fees 53,610.96 35,397.74 39,708.20 128,716.90
6670 · Professional Fees 57,524.36 35,087.49 25,249.00 117,860.85
6040 · Bank Service Charges 58,712.04 3,598.87 11,841.41 74,152.32
5050 · Property Insurance Expense 38,176.49 5,242.17 17,693.99 61,112.65
6710 · Appraisal / Inspection Expense 28,435.20 7,245.00 6,260.95 41,941.15
5030 · Tax / Licenses & Insurance 1,998.89 15,487.04 6,942.25 24,428.18
6330 · Insurance Expense 122.38 156.25 16,985.00 17,263.63
Other Expenses 55,031.54 40,234.91 31,398.34 126,664.79
TOTAL EXPENSES 560,802.03 422,423.13 513,294.60 1,496,519.76
NET ORDINARY INCOME 58,564.66 90,245.08 110,181.48 258,991.22
(Earnings before Depreciation and Amortization) EBDA 58,564.66 90,245.08 110,181.48 258,991.22
Adjusted EBDA* 145,711.90 101,088.95 128,283.84 375,084.69
*Adjusted to remove 1-off origination & acquisition fees and distortions from temporary property tax credits.
8
Carpathian Capital Fund I LLC Profit and Loss
January through December 2014
Equity Invested
4,731,000
FY2014
Net Income 387,722
ROE 8%
Annualized Based on 2H14
Net Income 513,135
ROE 10%**
**Cash ROE does not include
any assumed appreciation in
value of property. Any capital
gain on sale will further boost
returns.
Annualizing 2H14 numbers is
most accurate indication of
stabilized performance as fund
was not fully invested in 1H14.
FUND I REFERENCE PORTFOLIO RETURNS

9. 9
BOTTINEAU ON THE RIVER*
FY2014
Net Income 35,202.79
Average Equity 99,636.36
ROE 35%
Bottineau On the River Profit and Loss
January through December 2014
Operating Income Jan - Dec 14
Less: Concession -160.00
Rental Income 120,052.80
Laundry Income 2,846.77
Late Fee/NSF/Buyout Fee 1,360.50
Admin Fee224 525.00
Move Out Charges 160.00
Application Fee 35.00
TOTAL OPERATING INCOME 124,820.07
Operating Expense Jan - Dec 14
Interest Expense Mortgages 32,437.24
Repairs & Maintenance 9,378.22
Utilities & Association Fee 8,767.58
Direct Labor 8,480.94
Property Tax Expense 7,714.48
Property Management Fee 6,236.16
Asset Management Fee 4,125.00
Maintenance Supplies 2,841.34
Advertising & Promotion 1,822.38
Property Insurance Expense 3,034.29
Partnership Taxes $ License 1,500.00
Other Expenses 3,279.65
TOTAL OPERATING EXPENSE 89,617.28
NET INCOME 35,202.79
*Bottineau on The River is a 12-unit apartment building in its own LLC (separate from Fund I). It was purchased at the
end of 2012. Financials are provided here as further illustration of the Manager’s track record.

10. 10
Ian Alliott Capital LLC Profit and Loss
January through December 2014
IAN ALLIOTT CAPITAL*
Ordinary Income Jan - Dec 14
Late Fees 0.10
4000 · Rental Income 145,037.39
4001 · Laundry Income 579.01
TOTAL INCOME 145,616.50
GROSS PROFIT 145,616.50
Ordinary Expense Jan - Dec 14
Leasing Fees 1,200.00
5000 · Repairs & Maintenance 12,557.48
5010 · Management Fee 13,884.54
5020 · Utilities & Association Fees 12,800.99
5030 · Tax / Licenses & Insurance 22,428.76
5050 · Interest Expense Mortgages 32,420.32
5060 · Legal Fees 659.83
Other Expenses 4,218.33
TOTAL EXPENSE 100,170.25
NET ORDINARY INCOME 45,446.25
NET INCOME 45,446.25
FY2014
Net Income 45,446.25
Average Equity
(For the period)
116,814.00
ROE 39%
*Ian Alliott Capital LLC owns a total of 6 properties (separate from
Fund I). Financials are provided here as further illustration of the
Manager’s track record.

11. DEBT REFINANCING POTENTIAL TO BOOST ROE
11
* Ian Alliott Capital returned 60% of initial equity to investors in Year 1 followed by additional 7% in Yr 2 (total 67%)
** Bottineau returned 12% of initial equity to investors in Year 1 followed by additional 50% in Yr 2 (total 62%)
ROE PROGRESSION OVER TIME
(YEARS AFTER FUNDS FULLY INVESTED)

12. THE OPPORTUNITY
12

13. THE OPPORTUNITY - RENTAL YIELDS STILL HIGH
13
RENTAL YIELDS IN TOP 25 LOW UNEMPLOYMENT MARKETS*
*Markets with unemployment below 4.5% in 2Q14 (vs 6.3% National Average). Some metro areas appear
to be repeated in chart above. Analysis is done on a county by county basis. Apparent repeats are
actually separate counties within the same metro area.

14. THE OPPORTUNITY
14
*http://www.federalreserve.gov/pubs/feds/2013/201326/201326pap.pdf
IMPENDING SHORTAGE
Historical household formation rate is 1.1mn – 1.5mn new households annually while
house starts are running at about half that rate currently. Recent study by the Fed
predicts rapid return to household formation rate trend over next few years*.

15. THE OPPORTUNITY
15
STATES WITH 5% RENT GROWTH YOY IN 3Q14
RISING RENTS: Rental rates continue to climb in many markets as a result.
Source: www.Zillow.com

16. THE OPPORTUNITY
16
EXISTING HOMES STILL CHEAP
Existing homes are still selling at a large discount to new homes.
This gap will ultimately revert to historical average.

17. 17
UNTAXED CASHFLOW*
FUND FROM OPERATIONS (FFO)
FFO is much larger than Net Income (used for calculating tax) in real estate investment.
Balance Sheet, Assets Year 1 Year 2 Year 3
Real Estate (Gross Assets) 1,000,000 1,000,000 1,000,000
(-) Minus Accumulated Depreciation 36,363 72,726 109,089
(Net Assets) NET REAL ESTATE 963,637 927,274 890,911
Income Statement Year 1 Year 2 Year 3
Revenues 120,000 120,000 120,000
Expenses Year 1 Year 2 Year 3
Operating Expenses 60,000 60,000 60,000
Interest Expense 31,875 31,875 31,875
Annual Depreciation 36,364 36,364 36,364
Total Expenses 128,239 128,239 128,239
(Revenue - Expense) NET INCOME (8,239) (8,239) (8,239)
(FFO) FUNDS FROM OPERATING 28,125 28,125 28,125
(FFO = Net Income + Depreciation)
*More accurately, taxes are deferred until all available depreciation is used (27.5 years) or
property is sold.

18. INVESTMENT STRATEGIES
18

19. BUY and HOLD RESIDENTIAL
19
STRATEGY
Acquire properties for below market value
Rehab properties as necessary
Rent to good quality tenants
Hold properties for 5+ years while
collecting tax-shielded income
(ROE 10%+ just from cash)
Sell at end of holding period and realize
capital gains
ACQUISITION CRITERIA
Strict attention to cash flows. Properties
must generate free cash flows. No betting
just on capital gains
Analyze submarket rental supply / demand
fundamentals
Rents reasonable relative to median income
levels for given area
Light-to-moderate restoration needs (typically
5% to 15% of purchase price)
School scores
Crime levels

20. BULK BUYING ADVANTAGE
BUY and HOLD RESIDENTIAL
20
STRATEGY
IDENTIFY HOMEOWNERS WHO:
Paid cash for properties between 2008 –
2011. Cash buyers more likely to be
“investors”.
Purchased more than 5 properties
during that time. Again, indication that
buyer is an investor.
Contact identified owners with offer to
buy some/all of their investment
properties.
RESULTS FROM FUND I
$5mn of homes purchased in
2Q14 vs $2.3mn in 1Q14
We identified several investors that,
despite having bought at the right
time, had financial difficulties or were
overwhelmed by management
challenges and were willing to sell at
below-market prices as we were only
buyer in market capable of buying 5+
home packages.

21. BUY and HOLD RESIDENTIAL
DEAL HIGHLIGHTS
Purchase of 11 homes in Minneapolis,
MN from veteran property investor who
recently declared bankruptcy. Package
purchased at ~15% discount to market as
a result.
DEAL SIZE
$932,000
GROSS ANNUAL RENTS
$136,560
16.6% Gross Yield
21

22. BULK BUYING ADVANTAGE
BUY and HOLD RESIDENTIAL
DEAL HIGHLIGHTS
Purchase of 8 homes in Minneapolis, MN
from local businessman who found
managing properties as a “hobby” was
distracting him from his other main business.
22
DEAL SIZE
$670,000
GROSS ANNUAL RENTS
$97,800
14.6% Gross Yield

23. RENTAL PROPERTY INVESTMENT WITHOUT VOLATILITY OF UNEXPECTED MAINTENANCE
LEASE – OPTION RESIDENTIAL
23
Triple net lease where tenant responsible for most maintenance expense. Some portion
of rent is credited towards eventual purchase of property. Tenant-buyer pays 3%-5%
option premium to acquire property on or before a future date at a pre-determined
price.
TENANT – BUYER:
Ability to use rent credits to off-set
purchase price
Exposure to upside in event of
property price appreciation
Rent payments reported to credit
bureaus which helps to re-build credit
history
LESSOR – SELLER:
Receipt of option premium
Dramatic reduction in maintenance
costs
Tenant that is genuinely interested in
maintaining and enhancing property
Some visibility on ultimate ROI. Not all
tenants exercise their buying option.
However, in a rising market, this is still a
positive outcome given that capital
gains revert to the seller.
BENEFITS
STRATEGY

24. FIX and FLIP
24
STRATEGY
Identify home with strong potential for
capital appreciation post-rehab
These properties are frequently in nicer
neighborhoods where price/rent ratio
makes them less attractive buy and hold
candidates.
Complete renovations and sell home in 4-
6 months.
RESULTS FROM FUND I
27% return on investment on two
properties in just 3-4 months
(annualized return: 99%)

25. DEAL HIGHLIGHTS
315 4th St W Andalusia, IL 61232
PURCHASED
September 25th, 2013
SOLD
December 23rd, 2013
TOTAL COST
$46,686
(home plus renovation)
TOTAL PROFIT
$12,782.49 – 28% ROI
(114% annualized)
FIX and FLIP – SAMPLE DEAL
25

26. WHOLESALING PROPERTIES WITH LITTLE OR NO MONEY DOWN
WHOLESALING / QUICK FLIP
26
STRATEGY
Sign a purchase agreement on one or more properties with deal closing date 30-45 days
from date of signing.
Begin immediately marketing properties at a higher price to outside buyers at a small
(5%-10%) mark up. Require interested buyers to close on purchase within timeframe
specified in contract with original seller.
Buy property(s) from original seller and resell to follow-on buyer all in one day (“back to
back closings”) resulting in zero use of own cash.
ROI is essentially infinite as no capital is used in the process.
SIMPLE STRATEGY THAT WORKS WELL WHEN EITHER:
Selling a few homes out of a larger package (package bought at a discount due to bulk
purchase). Buy wholesale and sell retail.
Original seller needs to move quickly and doesn’t have time or ability to market
property effectively.

27. FIX and FLIP – DEBT
27
TYPICAL INVESTMENT AND PAYOUT STRUCTURE WITH JV PARTNER
Acquisition Cost
SALE PRICE SALE COST TOTAL SALE PROCEEDS GROSS PROFIT HOLD TIME
$240,000 $14,000 $226,000 $26,000 90 Days
RETURN ON INVESTMENT (ROI)
ANNUALIZED ROI (AROI)
JV (10%)Carpathian Capital (90%)
Rehab Cost JV (10%)Carpathian Capital (90%)
Total Investment JV (10%)Carpathian Capital (90%)
12% Interest Expense JV (10%)Carpathian Capital (90%)
Profit Allocation
(Gross profit less interest)
JV (50%)Carpathian Capital (50%)
Carpathian Capital (90%)
$144,000
JV (10%)
$16,000JVCarpathian Capital
8.5%
35%
53.2%
216%
$36,000
$180,000
$144,000
$10,041
$15,367
$5,326
$40,000
$200,000
$160,000
$20,082
Net Profit
$5,918
$4,000
$20,000
$16,000
$10,041
$10,633
$592

28. MANAGER PROFILE
28
IAN COLVILLE
Ian Colville is the Managing Partner of Carpathian Capital
Management. Mr. Colville is a native of Minnesota (born in
Rochester). He has a BA in Economics from Carleton College in
Northfield, MN and an MBA from the Wharton School at the
University of Pennsylvania and has 10 years of investment
banking experience as well as 7 years of management
consulting experience. Mr. Colville’s prior positions include
Managing Director with Citibank – Head Equity Sales
Moscow, Russia; Managing Director with Deutsche Bank –
Head Equity Sales Moscow, Russia; Partner/CEO Dream
House Ukraine – The largest manufacturer and builder of
wood-frame structures (homes, condos, mid-sized commercial
buildings) in Ukraine.
http://ru.linkedin.com/pub/m-ian-colville/0/227/831

29. MANAGER PROFILE
29
MATT FORSTER
Matt Forster is the COO of Carpathian Capital Management.
He has over 20 years of operations and execution leadership
experience. Matt has held executive positions with 3 startups
the most recent of which was sold to Pearson in 2010 for
whom he recently served as Director, Client Services. Matt is
a PMI certified project manager and has a BA in Chemistry
from Carleton College in Northfield MN.
http://www.linkedin.com/pub/matt-forster/4/628/865/

30. REPUTABLE SERVICE PROVIDERS
LEGAL | MONROE MOXNESS BERG
The law firm of Monroe Moxness Berg has
been a trusted advisor to businesses in
the Midwestern USA for over 40 years.
FURTHER INFORMATION
http://mmblawfirm.com/
ACCOUNTING | OLSEN THIELEN
Olsen Thielen has been one of the leading
tax and accounting advisors in the Upper
Midwest USA for over 90 years.
FURTHER INFORMATION
http://www.otcpas.com/
30

31. TERMS
Fund Type:
Fund Size:
Minimum:
Management Fee:
Performance Fee:
Hurdle Rate:
Dividends:
Anticipated Fund Life:
Closed-end
$3MN – $10MN
Fund will have a “drawdown” structure. Investors will deposit
25% of their capital commitment up front and the rest will be
called over time as Manager makes additional investments
$25,000 Can be reduced in select instances
2% p.a.
20%
5%
Quarterly To be paid once capital is fully deployed
Indefinite
31
Units can be redeemed at any time
after 4 year lockup

32. GET IN TOUCH

33. DISCLAIMER
THIS PRESENTATION IS NOT AN OFFERING DOCUMENT. This Presentation is provided for informational
purposes only and is being furnished on a confidential basis only to accredited investors who have
expressed an interest in Carpathian Capital Fund II. It does not constitute an offer to sell nor a solicitation
of an offer to buy any security. Such offers can be made only by the Private Placement Memorandum
(“PPM”) and related subscription documents. Please be aware that this Presentation cannot and does not
replace the PPM. It is qualified in its entirety by the PPM. The PPM is the document that you must read
and rely on in its entirety in order to make an investment decision.
This Presentation may contain forward-looking statements, including the future plans, objectives,
assumptions, estimates and projections of the management of Carpathian Capital Management. Such
statements are subject to a variety of known and unknown risks, uncertainties and other factors. There
can be no assurance that certain cash flows, profits or returns will be generated and you could lose all or
part of your investment. Please refer to the risk factors set forth in the “Investment Considerations”
section of the PPM.