A visual guide to the exciting, fast-growing space of peer-to-peer lending.

1. AUTOMATION TIME
TRACK
RECORD
ADVANTAGESADVANTAGES
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
ddavis@pmifunds.com
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
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 RISKA 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
TOTALAMOUNTOFLOANSISSUED
(IN$BN)
2009 2010 2011 2012 2013
[4]
$ 2,339,108,574