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Symcredit performing auto loans - P2P income

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P2P loans to well established auto finance companies, backed by performing auto loans and recourse to the borrower. An innovation in P2P lending, brought by Symfonie.

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Symcredit performing auto loans - P2P income

  1. 1. 1Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC P2B Performing Auto Loans Secured Lending to Professional Borrowers October, 2015
  2. 2. 2Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC Contact US: +1 646 863 9450 UK: +44 20 7339 3127 CZ: +420 227 023 999 msonenshine@symfoniecapital.com 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
  3. 3. 3Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC How it Works • SymCredit originated loans to US registered and regulated auto finance companies • Performing collateral – Finance company provides pool of performing auto loans to cover 100% of the amount borrowed. • Collateral substitution rule – the company must replace loans that become non- performing with performing loan • Recourse beyond the collateral - Additional security provided by full recourse to the auto finance company with general lien on all company assets. • Transparency - auto finance company provides its financial operating statements, credit metrics of the collateral pool, names and background of owners and managers. • Loan Servicing – SymCredit handles all administration and payment servicing for life of the loan.
  4. 4. 4Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC Loan Listing – FF Credit Corp • New York State licensed sales finance company. • Operating since 2001. • Owner managed. • 4 employees • $3 - $5 mn of loans owned and/or serviced each year. • $450,000 annual revenues • Use of proceeds is to grown loan book • 20% of borrowers are repeat business • Up to $1 mn • Continuous book build with closing every $100,000. • 9.5%, 3 years, monthly principal and interest. • Collateral pool – 100% coverage with performing loans. • Recourse to company with general lien on all assets. • 5X EBITDA / Interest • 3X Debt/Equity. • Loans secured with registered lien on cars. • Maximum loan to value ratio 80% • Maximum borrower income / monthly payment 20% • Verifiable employment, income, assets owned • Loan co-signed • Min. FICO 550 • Interest rates 12% - 24% • Losses on loan portfolio less than 5% overall. About the LoanAbout the Borrower About the Business
  5. 5. 5Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC Platform Structure Geared for Investor Needs • SymCredit is agent and originator • Professionally serviced • Collateral administered • Borrower monitoring and reporting • Managed loan recovery process • Direct recourse to borrower • Purchase a share of the loan • Professionally serviced • Collateral administered • Borrower monitoring and reporting • Managed loan recovery process • Direct recourse to borrower • Borrower dependent, asset backed note • Professionally serviced • Collateral administered • Borrower monitoring and reporting • Managed loan recovery process • Transparent write-off process Join the SyndicateWhole Loans Purchase a Note
  6. 6. 6Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC Loan Syndication Structure Borrower Symfonie P2P Investments, , LLCLenders • Take assignment of receivables from the Loan Contract • Direct recourse to borrowers in case of default or failure of loan agent. • Loan originator and arranger • Manages the loan as lender and as agent for all the Lenders • Prepares due diligence file • Collateral admin and borrower monitoring • Auto finance company • Provides collateral pool of performing loans • Substitutes performing loans for non-performing loans • Accepts general recourse in addition to posting collateral
  7. 7. 7Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC Borrower Dependent Notes Structure Symfonie Auto Lending Trust Symfonie P2P Investments, , LLCNoteholders • Noteholders purchase loan notes – for Whole or Fractional Loans, receive principal and interest payments • Loan originator and arranger • Manages Trust Asset • Prepares due diligence file • Collateral admin and borrower monitoring • Bankruptcy protected investment trust • Subject to law of Delaware, USA • Legal owner of all loans • Issues notes to investors who purchase loans
  8. 8. 8Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC Origination Process – Credit Driven Borrower Assessment Evaluation of each borrower’s business as a whole Credit Rating Scoring based on borrower financial statements Due Diligence Verification of facts presented by borrower. Credit and UCC filing checks Monitoring On-going review of loan performance Reporting to investors Restructuring loans and taking legal action to recover if necessary. Site Listing SymCredit credit committee approves or rejects each borrower. Materials package prepared for site and distribution to investors
  9. 9. 9Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC Ideal Investor Profile • Investors seeking relatively stable returns over time • Investors who understand Peer to Peer lending and are looking for diversification from their existing P2P investments • 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 loan • Invest must be “accredited” or “qualified” according to SEC definitions
  10. 10. 10Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC Key Risks • Collateral pool defaults • Deterioration of borrower’s credit quality • Missed/late borrower payments • Loans may need to be restructured • Borrower defaults • Liquidity • Limited transferability 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.
  11. 11. 11Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC SymCredit Investor Fee Structure • Loan servicing fee 1% - 1.5% of loan value, collected from each interest payment – means zero fee for principal collection. • No collection charges for chasing late payments. 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.
  12. 12. 12Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC When Things Go Wrong….. • Keep lenders informed • Work with co-operative borrowers to achieve full loan performance • Obtain judgements in accelerated process under arbitration • Exercise rights under UCC • Initiate legal process at SymCredit’s own cost and risk • Enable lenders to have direct legal recourse if they so choose • Clear, transparent, time driven process enables investors a contractual write-off for tax purposes • Pass 90% of net collection proceeds back to investors
  13. 13. 13Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC How to Invest • Only available to accredited and qualified investors. • Open account with SymCredit • Select Notes or Syndication • Read and agree to terms and conditions • Fund your SymCredit account Warning: Peer to Peer loans involve risks. There can be no guarantee or promise that any level of return will be achieved. Part or all of any principal invested can be lost. Neither Symfonie nor its affiliates offer any warrantee or guarantee. Each investor is responsible for evaluating the risks and the potential returns to its own satsisfaction and without relying on Symfonie.
  14. 14. 14Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC Symfonie Track Record May, 2015
  15. 15. 15Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 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 %.
  16. 16. 16Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC Symfonie Performance by Site Performance by Site Statistics up to 04/2015 Lending Club Prosper Funding Circle Bondora Average Gross Yield to Maturity 12.6% 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-
  17. 17. 17Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 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 M ar-05M ay-05 Jul-05 Sep-05 N ov-05 Jan-06 M ar-06M ay-06 Jul-06 Sep-06 N ov-06 Jan-07 M ar-07M ay-07 Jul-07 Sep-07 N ov-07 Jan-08 M ar-08M ay-08 Jul-08 Base=1 Hedged WE XOVER Hedged EEI Hedged EMCI USDLIBOR 1M Symfonie HEDGED WE HY
  18. 18. 18Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 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-0831-Dec-08 28-Feb-0930-Apr-0930-Jun-0931-Aug-0931-O ct-0931-Dec-09 28-Feb-1030-Apr-1030-Jun-1031-Aug-1031-O ct-1031-Dec-10 28-Feb-1130-Apr-1130-Jun-1131-Aug-1131-O ct-1131-Dec-1129-Feb-1230-Apr-1230-Jun-1231-Aug-1231-O ct-1231-Dec-12 IndexNov1=100 ML WE HY SYMFONIE EU XOVER EMCI
  19. 19. 19Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC SymCredit Team October, 2015
  20. 20. 20Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC • One of the first platforms in CE market • Launched in 2015 • Focus on Business Loans About SymCredit
  21. 21. 21Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 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
  22. 22. 22Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 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
  23. 23. 23Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 23 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
  24. 24. 24Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 24 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
  25. 25. 25Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 25 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
  26. 26. 26Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 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
  27. 27. 27Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 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 Symfonie Advisory Board
  28. 28. 28Private and conditional. Unauthorised distribution strictly prohibited. © 2015 Symfonie Capital LLC 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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