L Capital

L Capital Direct Lending Offering Investor Memorandum

Q4 2020 Asset Managment: Eden Investment Managers

Private & Confidential Not for Distribution in United States of America The 'L Capital' Private Program is one of the most sophisticated and well accredited private debt programs in Mid Western America To Our Valued Investors

This is my first letter to you in my capacity Overall risk/return profile of the as CEO of Eden Investment Managers, L portfolio. Capital was founded upon the concept of We believe that private debt is a vital bringing cutting-edge portfolio element of virtually every investment management to fixed income private debt portfolio allocation. Investors need markets. We strive to build our investment carefully structured investment programs by acquiring investment-grade solutions to provide them durable credit transactions supported by strong high income, tax efficiency, inflation hedge, and reduced exposure to the volatility of current , by reducing traditional equity markets. volatility, and by offering investors a vehicle with minimal correlation to publicly-traded L Capital will maintain its unwavering securities. commitment to investment The COVID-19 pandemic, and its knock-on performance, provide low risk, resilient disruption is changing the global economy as returns, and capital preservation. we speak. Unlike banks, which predominantly depend In addition to my responsibility for on short term deposits, closed-end credit overseeing the development of the funds enjoy investors’ commitment without offering, I also directly contribute in redemptions. This allows them to provide communications to our investors and consistent to SMEs. Even in times of institutional partners we serve. As an crisis, investors have to rely on fund managers investor, you may anticipate hearing to steer the fund in troubled waters. In such from me on a quarterly basis. L Cap away, credit funds can have counter-cyclical seeks to put the investor first, provide investment behavior, and in a market innovative investment solutions, protect downturn they keep supporting strong new investment capital, maintain tax efficiency, and deliver strong risk- business opportunities. L Capital is adjusted returns. The portfolio dedicated to designing and building managers at L Cap have a solid history investment solutions that are constructed to of performance and a strong line-up of generatedurableincome, and high yielding investment deals that L protect and preserve capital. Thus, in these Cap believes are expected to deliver challenging geopolitical times, marked by strong risk-adjusted returns. volatile securities and commodities markets and unpredictable rate movements, the L Capital offering enhance the investor’s portfolio allocation. Thank you for your trust in advance.

Jason Roberts Chief Executive Officer Managing Partner

iii L Cap Direct Lending Offering Contents

A Letter from the Management 3

1. Executive Summary 5

2. The Manager 7

3. Investment Process 8

4. Key Features 9

5. Private Debt-Direct Lending 10

6. Case Studies, New Prospects 13

7. Why Us 15

16 Corporate Directory

iv| L Capital Credit Fixed Income Executive 1 Summary

A. Introduction B. Investor Suitability C. Investment Criteria

The L Capital Direct Lending Offering is The genesis of the investment strategy came Put simply, the Fund's approach to credit is an emerging American Credit Vehicle that about as a solution for the increasing pool of that it does not want to lose either investor's provides its investors with exposure to a borrowers seeking funding outside the trust or money. And to that end, L Capital diversified portfolio of credit investments traditional banking sources tighter macro- ensures it is very defensively positioned to ensure consistency and resilience of income in a unique structure. The portfolio will prudential pressures. and to preserve capital. The Offering is very comprise a mix of commercial, accounts In this post-Covid environment, the need for focused on ensuring that the structures, receivable and consumer lending products specialty or alternative lending has increased to documents, processes, analysis of risks and diversified by market segments, borrowers, service a growing supply-demand gap. In this returns, and the ongoing monitoring of industries, credit qualities and origination environment, and based on a competitive edge loans and portfolios are thoroughly channels. These loan categories may assessed. that partly stems from a market leading include inventory funding (accounts The philosophy incorporates three key position in advising on a range of transactions receivable), specialised debtors tenets; low risk, resilient returns, and capital and work-out situations and its DNA in credit (commercial), and, to a lesser degree preservation. investing. L Capital is particularly well placed senior, secured financing to identify, pursue, manage and deliver on property loans (real estate). specific credit investment initiatives, and is highly capable of delivering attractive through- The Offering is structured to prioritise cycle, risk-adjusted returns with strong investor returns and significantly reduce downside protection. investor risk while providing the investor with a capital buffer and income priority The addition of the credit enhancement Rating through what is referred to as a credit structure, prioritising income and capital to Recommended enhancement structure. Specifically (i) L e Rec investors by creating a significant downside rad om t G m en en Capital capital will first absorb any realised m de buffer to both, forms a very low risk st d ve + In losses, providing a buffer to protect H investment vehicle characterised by an ig d h e ly d investor capital, (ii) There is strong n R expectation of consistent income and strong e e c m o m m alignment of interest between investors and o m capital downside protection. c e e n

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e

L Capital. d

FUND TERMS

Management Company L Capital Direct Lending Offering

Advisor L Capital Fixed Return 8% Net p.a. Minimum Investment USD $5,000,000 Distributions Bi annual Investment Pool Details (P&I from Loan Pool) Targeted $100 Million comprised of Liquidity No Withdrawals or Investment Size multiple transactions Redemptions Prepayment Penalties Yes: First Three Years 0.% of Adjusted Net Asset PG and Hard Assets Values +- or 1.5% Average Underlying Loan $2,000,000-$5,000,000 30% subject to 8%Hurdle Size Rate, with full catch up Diversification Varies by both Industry and Geography Typical Yield to Maturity 15-16% Maturity Additional Terms Equity, Warrants, or a convertible hybrid feature

L Capital Direct Lending Offering 05 Executive Cont. Summary

D. Filtering with Effect F. Minimum Investment G. The Investment Manager

Overview: A potential investor must subscribe for a Has a long and tenured track record of • Top down industry analysis used to minimum Committed Capital of generating current income from senior identify favorable sectors based on present i secured loans to businesses five years or macro themes U$D5000000 (Five Million US dollars more. With a 20+ year successful track • Senior secured convertible loans with the unless otherwise approved by the Parent record in the Midwest USA, and regarded ability to convert to preferred equity at a Company. For further information see as a reliable and trusted network source discount section 5 Key Features of the Offering. of finance in the absence of traditional • Generate synergies and value by assisting finance. However, prospective investors borrowers on growth and acquisition plans should not place undue reliance on the prior experience or past performance of the Capital Protection: senior management of L Capital. • Fully supported by sufficient collateral and senior liens on critical assets of the H. The Opportunity in Credit borrower with a preference for self liquidating collateral • Disciplined and Several years ago L Capital was quick to identify a monitoring process to ensure capital trend for an increasing pool of borrowers seeking protection funding outside the traditional banking sources. • Additional loan security including Specifically, it witnessed an increasing flow of corporate/personal guarantees, potential lending opportunities and recognised that and blocked accounts. the more onerous lending requirements provided it the ability to be selective about which loans and credit Equity Upside & Downside Protection: products to proceed with. The market dynamics • Convertible loans allow for investors to participate on upside to growing industries in rising markets • Investors Protect their principal and receive interest on loans in falling markets • Bonus equity, warrants and revenue participation

Market Opportunity – Issuance and Maturities

Primary Middle Market Leverage Loan Market Middle Market Loan Maturities 100% $140

31% $120 80% $100

60% 83% 86% $80

$60 40% 69% $40 20% $20 17% 14%

ISSUANCE (%) 0% FUNDING ($ BILLIONS) $0 2002 2015 Banks 1Q15 2016 2017 2018 2019

(U.S. and non-U.S.) Non-banks Non-Sponsored Sponsored Notes: Middle market is defined as issuers with EBITDA of $50 million or less. Data reflects share of non-bank investors in middle market leveraged loans. Source: “1Q 2020 High-End Middle Market Lending Review,” S&P 500 LCD, March 2020; First Avenue. 2 The Manager

The Investment Manager Jason Roberts Mark Meyerdirk Managing Partner Legal Counsel L Capital Ltd, its related entities Portfolio Manager and the Portfolio Manager (the 'Eden Investment Managers') A serial entrepreneur, Jason grew his first business a real have been operating and Mark is CEO of Meyerdirk Consulting Group, Inc., estate company - into a multi million-dollar enterprize. implementing comparable and brings with him 42 years of experience as Jason has served as the Director of Structured Investments internal counsel in the finance sector. He founded investment strategies to the for Gruene Capital and Windemere Investments, which and operated a 14 office 120 employee title Eden Investment Managers collectively manage more than 300 portfolio private debt agency that he sold in YEAR, and also program over the past decade, and loan investments backed by hard assets, and have a founded Collaborative Capital LLC, a Midwestern successful track record of producing consistent financial and the investment team has investment group of 50 ,f amily offices and high net returns. Jason has worked in the Texas shale oil segment, as worth investors investing in Series A and over a 100years of relevant work Series B well as the financial markets of the midwestern USA, with a entrepreneurial strategies. Over the last decade experience. To date it has focus on , , hedge funds Mark has acted as advisor, attorney and investor in managed approximately U and private debt.Jason has 16 years experience as a partner more than 30 private placements in the Midwest and at Sunvail Ltd, a Note Receivable Management $230million of commitments West Coast U.S. He has created an investment group Company that manages in excess of 700 investment notes into a diverse pool of that has invested more than $20,000,000 in over 10 receivable and averages up to 200 new notes each year. early-stage (Series A and B) venture investments. investments in buy-out, and Sunvail's return on individual real estate notes receivable credit strategies. average 12% , and are valued up to U$200,000 each.

Years of Relevant Years Education and Name Position Experience with Firm Prior Employment Don Russell Head of Investments 25 1 MBA

Jason Roberts Portfolio Manager 13 1 BA

Mark Meyerdirk Legal Counsel 23 1 B.Eng, LLB

The executive team is supported by finance & administration teams comprising of 6 people

Eden Investment Managers has sourced, invested, and managed more than $230 million of private capital since 2007 Investment 3 Process

A. Investment Objective C. Involvement with Co-investments

The Fund's investment objective is to generate 8% p.a. (post-tax and The Offering may to diversify its exposure by expenses) Fixed Income Returns over the life of the Offering. very selectively funding direct loan book tiers The investment objective of the Offering is to generate 12-14%p.a(pre-tax from and managed by established credit and post management, Fees and Expenses) IRR over the life of the platforms with long track records of Offering. performance. As a 3rd party credit platform, L Capital Asset Management seeks to B. Investment Process capitalise on the current trend towards non- The key steps of the Manager’s investment process are outlined below sponsor lending, as specialty and alternative Step 1 - Professional referral sources: banks, accounting firms, law firms, family offices, lending grows to service an increasing Initial Contact technology debt platform and Eden Investment Managers Propeitary Algorithm demand for credit. This vehicle has the ability to provide warehousing facilities to non banks Step 2 - Preliminary screening of Qualified Lead -- calls and pre-screening, due Qualifications diligence document review by Investment Advisor in order to fund a lower . In the absence of these warehousing facilities, a 3rd party credit platform would either have to Step 3- Solutions Peer screening by senior investment committee team member, management interviews, discussion over terms of solutions and value add services reduce the amount it lends or charge a higher interest rate to borrowers. Step 4- Commercial due diligence and investment proposal. Once completed to the Any directly -- funded loan books (or in Term Sheet Manager’s satisfaction, the proposal is formally presented to Investment Committee certain specialised cases, loan book tiers) from a managed exposure will be based on Step 5 -- Investment Committee approval Sought due diligence incorporating the lending Due Diligence platform’s processes, procedures, data integrity, (amongst other factors) to derive a Step 6- On Approval of IC, Legal and tax review, Documentation and execution of the final Loan Docsuments determination of credit quality and, consequently, the risk-return equation of the Step 7 - Monitoring and review. Active Investment Management loan book. Closing -- Quarterly Tracking and Investor Reports The Manager stipulates the composition of Step 8 - Add on Monitoring and review. Active Investment Management its loan book exposure to any given lending Services -- Quarterly Tracking and Investor Reports platform, as well as to mitigate counter party risk by investing no more than 5% of Step 8 - Exit Loan Closures, Amortization Review and Re negoagtiations Management the total 3rd party platform portfolio in any one given lending platform.

Preferences for Investment -- As per the charter of the of the Offering

Investment are not restricted to a particular industry. Mezzanine capital investments are considered for expansion and later stage companies that possess following characteristics:

In operation for three(3) years or above Revenues of U$5 million+ EBITDA between U$1,000,000 and U$2.5+ million Stable or growing, and predictable cash flow for minimum of 12 months Cash Flow Leverage (total debt-to-EBITDA) does not exceed 4x Strong Management team Private, closely held, and often family owned companies Business and/or ownership groups located only in the continental USA Business strategies and objectives are goal orientied Positive industry and business trends

* Notwithstanding the list of characteristics, the management team expects that few, companies will match the entire profile, and therefore 7 of the above 10 are necessary to proceed. The final investment decisions is made with unanimous approval from the Credit Committee.

L Capital Direct Lending Offering 08 4 Key Features

Pipeline of Investments Sourcing of deals is a difficult, lengthy, and increasingly competitive. The offering may be unable to fully invest its Committed Capital at acceptable prices, the Manager may face unfavourable or low volume of which may affect its ability to implement the Fund’s investment strategy. Leverage The Fund’s portfolio may include companies which have significant debt in their capital structures. Underlying investments with a leveraged have increased exposure to rising interest rates, refinance risk, economic downturns and deteriorations in the financial performance of the company. Leverage may also exacerbate losses. Investment Parameters No single investment to be greater than 10% of the total Committed Capital No use of derivatives other than for currency hedging purposes or where the investment into private equity is structured as a derivative (for example, an option or ). Any excess cash held by the Vehicle from time to time may be invested in short-term money markets.

Borrowings The offering may borrow for liquidity reasons, including facilitating the making of investments pending receipt of Capital Contributions from Overseas Lenders. The Manager will not cause the offering to borrow amounts in excess of 55% of the total offering Committed Capital.

Hedging It is not expected that the offering will actively hedge its foreign currency exposures. However, the offering may make use of foreign exchange hedging where the Manager considers it advantageous to reduce the effects of currency movements on the investment returns of the offering. This may include, but is not limited to, entering into options, forward foreign exchange contracts and/or various derivative contracts to implement a currency hedge.

Minimum Committed U$D 5000000 ( Five Million United States Dollars or Equivalent ) Capital of Unitholders Investment Period The Investment Period commences on the First Closing Date. It will take approx. 12months to invest the complete capital

Termination Date for Is five years after the end of the Investment Period. Therefore, the anticipated term of the offering is 6 years. the Offering

Target Size $100 million, although the offering may proceed on a smaller amount and the Trustee may accept subscriptions in excess of this amount in its absolute discretion. Performance The Manager does not guarantee any level of return to Investors and cannot guarantee that the historic performance of investments managed by the Manager or associate companies will be repeated and thus cannot be relied upon

Investment Liquidity An investment in the Offering is illiquid and committed for the long term and is unlikely to be redeemed during the life of the Offering. There is no, nor is there likely to be, any established secondary market for in the offering. An investment in the offering is therefore only appropriate for persons who do not have a need to liquidity in respect of any amounts invested in the Fund. Fund Liquidity An investment by the offering may not be listed on a financial market, or if listed, may not be actively traded. There can be no assurance that the offering will be able to realise an investment in a timely manner nor at a suitable price. The realisation of investments may be subject to a number of factors such as general economic conditions and private equity markets. Borrowing The offering may borrow for liquidity reasons, including facilitating the making of investments pending receipt of Capital Contributions from Unitholders. Borrowings involve a degree of financial risk and may increase the exposure of the offering to factors such as rising interest rates, downturns in the economy or deterioration in the conditions of the assets underlying its investments. The availability of credit may be limited and borrowing costs may increase in coming years. The assets of the offering, including undrawn Committed Capital, may be, in whole or in part, offered as security for such borrowings. Lenders may also withdraw funding and require onerous borrowing covenants including the ability to call on note holders where the offering is in of certain obligations under any bridge facility.

Unaudited statement of the Within 60 days after each month. monthly net asset value of the offering at the end of specific month Quarterly report about the The first quarterly report will be sent to each Unitholder within 30 days of the end of the first quarter after the general performance of the first investment has been made by the Offering and thereafter within 30 days after the end of each quarter. Offering and its activities

Accounts for the Financial At the end of the Financial Year. Year which have been audited by the Auditor.

L Capital Private Debt 5 Why -- Direct Lending

Direct Lending Key Advantages

Reduced Competition Negotiation Leverage Tighter banking regulations have created Direct contact with the borrower provides the opportunities for non-bank lenders opportunity to structure deals with tailored covenant packages Middle market deal sourcing is highly relationship driven, creating a barrier to entry for those Minimum return thresholds can be achieved without contracts through favorable call protection

Direct Lending

Strong Deal Flow Strong Risk-Adjusted Returns A strong supply of middle market debt opportunities Significant yield premium relative to broadly is expected from the combination of numerous syndicated loans, even with lower leverage levels forthcoming debt maturities and significant strategic funding needs Historically lower default rates and higher recovery rates relative to large corporate loans

The loan assets in direct lending and mezzanine debt portfolios are originated by the asset manager directly with a middle- market company borrower, and are illiquid. Generally speaking, the loans are held to maturity or until they are refinanced. The difference between direct lending and mezzanine debt is that direct lending is secured by the assets of the borrowing company, such as plant, property, equipment, inventory and/or accounts receivable, while mezzanine debt is unsecured. The corollary of direct lending as a secured asset and mezzanine debt as an unsecured asset for the public markets is bank loans and high yield bonds. Similar to direct lending, bank loans are secured by the assets of the borrowing company, and high yield bonds (like mezzannine debt are unsecured. However, bank loans and high yield bonds are considered tradable credit, while direct lending and mezzanine debt are directly originated. Bank loans and high yield bonds are syndicated, underwritten and structured by an investment bank and purchased by a large number of investors. Hence, bank loans and high yield bonds are by definition liquid instruments and usually not held to maturity, as the asset manager typically aims to sell when a target price is reached. The direct lender has significant negotiation leverage in structuring terms with a direct borrower. Often, the borrower does not wish to source financing from a large number of lenders, preferring the private nature of the deal, and/or needing to obtain quicker financing in order to make a time-sensitive acquisition. Also, direct lending provides a substantial yield premium to the broadly syndicated bank loan asset class.

Comparison of Typical Sponsored vs. Non-Sponsored Transactions

Direct Lending Large, Syndicated Loans Direct Lending "Sponsored" "Non-Sponsored" Large banks, regional banks, Regional banks, Finance Companies, Primary Regional banks, Private Funds CLOs, Mutual Funds, ETFs BDCs*, Mezzanine Funds Participants Typical Number of Primary 50+ 5 - 15 1 - 5 Participants Contacted

Number of Lenders in the Tranche 10 - 50+ 3 - 5 1 - 3

Financing for sponsor backed Family owned, , Examples Bank loans, high-yield bonds , late venture

Traditional maintenance and Covenants Limited / covenant-lite Traditional maintenance covenants bespoke covenants

Scope of Due Diligence Limited Moderate (1 month) High (3 months)

Source: Marquette Research, First Avenue 5 Cont. - Private Debt Why--Direct Lending

A New World: the new normal An investment in the Offering is speculative and entails a degree of risk. Investors should consider an investment in the Offering as supplemental to a balanced investment portfolio and should invest only if they are willing to undertake the risks involved and are able to sustain the loss of the capital invested in the Offering. The debt markets encouraged GPs to keep doing deals through much of 2018. Despite the rise in US interest rates, the updraft was slow to be felt in loan pricing. Lenders, meanwhile, were competing aggressively to extend credit on easy terms. So-called covenant-lite loans have become increasingly common in lending markets in the second half of this cycle, and debt multiples have entered territory not seen since the peak of the last cycle. In the years following the global financial crisis, regulators discouraged multiples of six times earnings before interest, taxes, depreciation and amortization (EBITDA). Yet in the Trump era’s more relaxed regulatory environment, the share of deals with multiples of greater than seven times EBITDA rose to almost 40% of the total, according to Loan Pricing Corp. (LPC), which tracks the market.

Private multiples are ascendant by default

Valuation multiples, or the price paid per dollar of EBITDA, move up and down. Yet for the past 30 years, the average multiples investors have paid for public assets have almost always topped those paid for private assets, usually by as much as one to two times EBITDA. There have been periods when the gap has widened out in favor of public assets— the best example being the late-1990s tech boom, when everybody and their brother was piling into the market, driving up public valuations and making IPOs the easy exit for PE investors. As for periods when private multiples generally exceed the public average, there have been exactly three: during the “Barbarians at the Gate” era of the mid-1980s, during the exuberant run-up to the recent 2007 financial crisis post, and now the COVID 19 post world The Barbarians era and the precrisis boom were short lived. There’s no single reason why multiples quickly reverted to normal, but one contributor was that the arbitrage opportunity dried up quickly. Both eras were marked by heavy activity in public-to-private deals, driven by investors’ belief that companies would be worth more in private hands than the public markets were giving them credit for. L Capital believes the current downsturn shall be no different.

Geographic Capital flows from Transatlantic Europe then Asia & finally the Middle East into USA

Investor Capital Invested inn markets in North America North America Western Asia Global Other Europ Pacific- e

First wave 83%

2% 3 8 %0 %2% %2% Second 11% wave 25% 13%

39% 4% 8% 0% Share of capital raised before the financial crisis Note: Based on a sample of 171 funds, raised between 1998 and 2018, that expanded inflow to include foreign capital Source: Preqin 5 Cont. - Private Debt Why--Direct Lending

Fixed Income Spectrum

Historical Returns

20%

Distressed Debt Private Credit 15% Unsecured Mezzanine Secured 10-12% Direct Lending 6% Unsecured Directly Originated High Originated by asset manager Secured Yield Tradable Issued by mid-market company 4% Bank Syndicated, underwritten, Loans structured by investment banks Illiquid, usually held to maturity UST, IG, RMBS/ Liquid, usually not held to maturity Volatility CMBS/ABS

Downturns inevitably create opportunities as markets stall and target company performance weakens. Historically, this brings valuations down, but only temporarily. In the past two downturns,the average LBO purchase price multiple dropped about 20% from its peak but then recovered most of that within two years as per our reaserach partner Debtwire. It pays to be ready to pounce when the downturn arrives, developing a clear understanding of where the most attractive targets are in a given asset class or sector and striking aggressively as the cycle plays out. {L Capital Fixed Income answers this}

That also applies to distressed situations. Recognizing that downturns create real opportunity for those prepared to invest across the capital structure, firms have developed the capabilities to pivot quickly to buying debt or other distressed credits {L Capital Convertible Option answers this}

The industry’s structural challenges of high prices and fierce competition combined with macro-uncertainty and accelerating digital innovation across sectors are forcing behavior change among PE firms. {L Capital Investment Pooling answers this} The most effective funds adapt are building new capabilities, like advanced analytics, or are reinforcing existing ones, such as investment management and integration. They are also underwriting new and different kinds of risk. {L Capital Filteration and Process Management answer this}

The median holding period is falling as GPs exit a increasing percentage of companies in less than five years Distribution of global instirutional -backed investments exited, by length of time held in fund portfolio 100%

100%

80 More than 5 years 60

40 3–5 years

20 0–3 years

0 2004 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Year of exit Median holding 4.2 3.8 3.8 3.6 3.2 3.6 4.4 4.8 5.2 5.7 5.9 5.2 5.1 5.0 4.5 period (years) Source: Preqin

L Capital Direct Lending Offering 12 6 Case Studies

Portfolio Financing Highlights:

Deal Negotiated Compelling Business Fundamentals Company Overview Driving our Investment Decision

RJ Construction (rj-construction.com) a Provided a $2.25 million promissory Increasing year-over-year growth in revenue and cashflow commercial and residential roofing note financing to RJ Construction for contractor with experience in multi- growth of the business, receivables and  2019 – In excess of $9+ million in revenue and family apartment complexes, new forward customer contracts. The note construction home developments, retail has an 18.25% interest rate and 36- $585,000+ in EBITDA  2020 – Projected $8.4 and industrial centers. RJ Construction month term with principal and serves the Dallas Fort Worth Metroplex interest paid monthly plus termination million in revenue and $1.1 million in EBITDA and Kansas City markets specializing in fees and/or PIK payments. working with local communities for storm damage roofs, flat roofs, rile roofs, and other complicated roofing projects.

Provided $4.3 million of equipment Increasing year-over-year Yaana Technologies (yaanatech.com) financing to Yaana Technologies for growth in revenue and cashflow is a Silicon Valley, California based growth of the business, equipment  2019 – Projected leading global provider of a wide purchases and receivables. The revenues in excess of range of intelligent compliance financing includes financial returns $34.8 million and solutions including lawful in excess of 18% with direct EBITDA of $7.8 million interception, accurate data retention, customer equipment financing  2020 – Projected big-data search and disclosure, repayments within a period of less revenues in excess of advanced security and application than twelve months with $40.5 million and specific analytics. termination fees and/or PIK EBITDA of $13.6 million payments.

Increasing year-over-year growth JCAC Technologies “3D-P Technology” Provided a $2 million promissory in revenue and cashflow www.3d-p.com) is a mine, oil and gas and note financing to 3D-P Technology  2018 – In excess of $6 million in industrial environment industry for growth of the business, revenue and $1 million in manufacturing company with offices in receivables and forward customer EBITDA Safford, AZ, Calgary, Alberta Canada and contracts. The note has an 18.00%  2019 – Projected $7+ million in Sydney, Australia with a majority of their interest rate and 36-month term revenue and $2+ million in operations in the United States. 3D-P with principal and interest paid EBITDA Technology provides wireless monthly plus termination fees and/  New customer sales contracts in communication and edge computing or PIK payments. excess of $5 million solutions for outdoor industrial  Collateral of equipment, accounts environments that includes technology receivable, inventory in excess of devices and solutions for monitoring $2 million heavy machinery equipment.

Note: The verifiable completed loan packets of the above representative investments are available through the data room setup on our website

L Capital Direct Lending Offering 13

a division of ����Asset Management Limited 6 C ont. New Prospects

To identify prospective investments, our research includes a variety of applied methods, including management team interviews, industry peer comparisons and intelligence data.

The research helps us identify the most attractive prospects that we believe represent quality underlying, strong management teams with the ability to effectively manage capital structure decisions and attractive valuation comparable investment choices

Business Fundamentals The Prospect Company Suggestive Deal Terms to help our Investment Decision

Targeting a $5,000,000 promissory note A full-service environmental consulting Increasing year-over-year financing to the company with an initial * firm with expertise in all aspects of growth in revenue and cash flow draw funding up to $1,000,000 and the environmental consulting, including:  2019 – In excess of $7.9 million environmental due diligence, balance of the funding in additional in revenue and $365,000 in draws as approved by the lender for environmental engineering, site assessment EBITDA and remediation, environmental health and  growth of the business, receivables . The 2020 – Projected $14.6 million note would have he note have an approx safety (EH&S), industrial hygiene, in revenue and $1.2 Million in 15-17% interest rate and 48-month term hazardous building material assessments, EBITDA with principal and interest paid monthly emergency response, and multi-media plus termination fees up to 5% and/or sampling and related field services. PIK payments or equity warrants. Headquarterd in MidWest USA

Targeting a $2,500,000 promissory note The Company provides consumer credit Increasing year-over-year growth financing to the company with an initial *and identity solutions, both direct-to- in revenue and cash flow draw funding up to $1,500,000 and the consumers as well as to enterprise clients.  2019 – In excess of $3.3 million in balance of the funding in additional Its consumer services include subscription- revenue and $(570,000) in EBITDA draws as approved by the lender for based identity theft protection services,  2020 – Projected $5.6 million in receivables and forward customer credit reports and scores, and rental revenue and $606,000 in EBITDA contracts. The note could have he note reporting. The company's enterprise  2020 – Projected $8.2 million in have an approx. 14-16% interest rate and solutions include Credit Pre-Screening, revenue and $1.6 million in EBITDA 30-month term with principal and Loan PreQualification, credit software interest paid monthly plus termination development, and EI3PA hosting services. fees up to 4% and/or PIK payments.

* The company based in the Great Lakes region Increasing year-over-year growth Targeting a $1,500,000 promissory note of U.S. Provides full national institutional sales in revenue and cash flow financing to the company with an initial support for elite Emerging Alternatives  2019 – In excess of $1.5 million draw funding up to $500,000 and the Managers. It provides professional investment in revenue and 118,200 in balance of the funding in additional management support and guidance, EBITDA draws as approved by the lender for performance assessment and asset allocations  2020 – Projected $2.8 million in growth of the business, receivables and for institutions, corporations, retirement revenue and $426,000 in EBITDA forward customer contracts. The approx plans, non-profits, foundations, endowments, note could have an 15-17%. interest rate professional advisors, RIA’s, Broker Dealers and a 36-month term with principal and and Family Offices with distribution contracts interest paid monthly plus termination that includes two top-tier asset managers. fees up to 3% and/or equity warrants.

* Note: Complete details of above are available through the data room in our website. The pipeline is indicative and shall periodically change as per availability and suitability to the Offering.

L Capital Direct Lending Offering 14

a division of ����Asset Management Limited 7 Why L Capital

“The Offering" provides low risk, resilient This means that if a business goes bankrupt, returns, and capital preservation by targeting the senior lender recovers dues first, followed companies where mezzanine finance (debt- by the mezzanine provider and finally the dominated instruments with an equity promoter/equity provider. Obviously, ‘sweetener,’ providing short to medium- term since the risk is higher in mezzanine capital to proprietors without significant instruments, the cost of funds tends to be ownership dilution) will produce enormous higher. Mezzanine financing, while more operating leverage, which in turn boosts free expensive than , also poses certain cash flows, earnings and equity valuations of the advantages to non-bank originators that company. The goal of the offering will be to balances the cost of raising capital - provide investors with equity-like returns with 1. Mezzanine funds, due to their high interest income or an attractive fixed innovative structure are classified under Tier income model, along with the downside II capital. Non-bank originators can leverage protection of a debt offering. this capital with banks to raise additional Mission Pledge funds. This effectively reduces the total cost Mezzanine Financing of funds. For example, Tier II capital can be The lack of a high-yield global market option “L Capital used to leverage bank finance up to 5 times. has created the perfect environment for Asset Management believes Hence for every 1 dollar of mezzanine debt mezzanine financing. The combination of high that the social fabric of raised, a maximum of U$5 can be raised as interest rates along with equity exposure to high value investing is in small senior debt from a bank. If the interest rate growth businesses has made the US mezzanine and medium enterprises; for the mezzanine debt is 30% and the market one of the most attractive pre-virus as If responsibly undertaken interest rate for the senior debt is 12%, the stated by Debtwire (report shared via website), it will fully produce total interest paid would be 90cents of total and will make it one of the most resilient superior returns in our debt of U$6. This is 15% of the loan amount sectors post virus. USA credit markets will investments, and adhere and only 3% more than the cost of debt from explosively grow post virus, and a well- to principles of the sound banks. positioned offering can take full advantage of impact and, in turn, Mezzanine funds help SME's this opportunity. This offering (a direct lending 2. spawn and develop the adhere to capital adequacy norms. For vehicle) to be launched in Q4 2020 will address ecology for financing.” instance, if the total risk weighted assets of a the pent-up demand for high-yield capital from non-bank originator are valued at U$100 US companies post virus. The objective of the and its net worth is U$10, then the CRAR offering is to provide investors superior equity- (Capital to Risk weighted assets Ratio) is like returns while providing a cushion on 10% which is below the prescribed norm of downside risk. The portfolio manager targets 15% (effective from April 2020). If the non- viable distressed assets or healthy assets trading bank originator were to go for an alternate at distressed prices. These include convertible capital structure with U$ 10 equity and U$D bonds and restructured equities issued by US 5 worth sub-debt then the CRAR would companies. From the inception of the offering, a become 15%, which is the prescribed, small and dynamic team will raise U$ 100mn minimum CRAR. and then distribute in credit and distressed investment opportunities in the US across listed Today, the United States stands at the and unlisted US companies focusing on vanguard of the developed world, with a bandwidths between U$2-5mn. Mezzanine voracious appetite for financial finance often bridges the financing gap in a investments into a myriad of ongoing company's capital structure and occupies a place projects. This makes it the quintessential between senior debt and equity, both in security target for the innumerable global and total returns. It offers flexibility to meet investors across looking to channel funds both the investor's and company's into projects that have significant requirements and also provides medium to long growth potential. Apropos the protean term capital without significant ownership advantages offered by it, the amelioration dilution. Mezzanine debt is subordinate to of the US debt markets through the senior, unsubordinate debt capital but ranks introduction of mezzanine financing will ahead of equity in the capital structure. well prove to be an epochal step towards The subordination to senior debt happens in expediting the economic reconstruction of two ways. First, Senior lenders are usually the post virus economy! secured, and subordinate mezzanine debt is unsecured. Second, the tenure of subordinate mezzanine funds is longer, which provides a cushion to senior debt.

L Capital Direct Lending Offering 15 L Capital Corporate Directory

Asset Management Eden Investment Managers

Inquiries Phone: +1 Email: [email protected] Online: www.edenmanagers.com Post: Houston Texas

Strategic Advisor & Placement LSM Managment

Administrator & Investor Reporting MUFG Investor Services

On Shore Legal Counsel King & Spalding

Auditor & Tax advisers

CBIZ (Mayer Hoffman McCann)

Custodian MUFG + US BANK

DISCLAIMER: This presentation is provided for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy, securities in any existing or to-be-formed issuer. Such offer or solicitation will only be made by means of definitive offering materials and definitive documentation in a transaction exempt from the registration requirements of the U.S. Securities Act of 1933, as amended (the “Securities Act”). The confidential memorandum (the “Memorandum”), which will be subsequently provided, will describe the risks related to an investment in [L Capital Capital Direct Lending Offering LP] (the “offering”), as well as other important information about the offering and its sponsor. The information contained in this presentation does not purport to be complete and is qualified in its entirety by reference to, and will be superseded by, the information set forth in the Memorandum, including, without limitation, the information therein describing risk factors and potential conflicts of interest. Prospective investors should carefully review the Memorandum in its entirety prior to investing in the offering. This presentation is for distribution only to prospective investors who meet statutory qualifications as “accredited investors” and “qualified purchasers” under the Securities Act and the U.S. Investment Company Act of 1940, as amended, respectively. An investment in the offering is speculative and involves substantial risks, including risks related to conflicts of interest and the use of leverage. The performance of the offering and its assets may be volatile. An investor may lose all or a significant amount of its investment in the Fund. It is anticipated that there will be no secondary market for interests in the Fund and the interests will be illiquid. Further, interests in the Fund will be subject to legal and contractual restrictions on transfer. Investment in the Fund is suitable only for sophisticated investors and requires the financial ability and willingness to accept the high risk and lack of liquidity inherent in the investment. Further, this presentation does not take into account the investment objectives, financial situation or particular needs of any prospective investor. In addition, each prospective investor should conduct its own independent investigation and assessment of the contents of this presentation and make such additional inquiries as it deems necessary or appropriate. Statements regarding anticipated returns, forecasts and projections rely on a number of economic and financial variables and are inherently speculative. Forecasts relating to market conditions, returns and other performance indicators are not guaranteed and are subject to change without notice. Forecasts are based on complex calculations and formulas that contain substantial subjectivity and no express or implied prediction is made hereby with respect to the Fund. There can be no assurance that market conditions will perform according to any forecast or that the offering will be able to implement its investment strategy or achieve its investment objective. Actual returns on investments will depend on, among other factors, interest ates, capitalization rates, availability of financing, market conditions and any related transaction costs. In considering any performance data contained herein, each recipient should bear in mind that past performance is not indicative of future results, and there can be no assurance that an investment program will achieve comparable results or will achieve any projected, estimated or target results. While L Capital believes the estimates and assumptions to be reasonable and sound under the current circumstances, actual returns will depend on, among other factors, future operating results, pace of investment and income, terms of such investments, leverage, investment hold periods, market conditions and related transaction costs, all of which may differ materially from the assumptions and circumstances on which the estimates are based. [The Fund’s target return stated herein is an aggregate, annual compounded, net IRR after the effects of debt financing and any fees at the asset level are taken over the life of the offering. Additionally, the targeted return is calculated using assumptions and estimates regarding the Fund’s size, rate of investment and income. Net returns are presented on a net basis, after deductions for investment management fees and performance fees,] which in the aggregate may be substantial. Nothing contained herein should be deemed to be a prediction or projection of future performance of the offering. Statements contained in this presentation that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of the sponsor. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Additionally, this presentation contains “forward-looking statements.” Actual events or results or the actual performance of the offering may differ materially from those reflected or contemplated in such forward- looking statements. Certain economic and market information contained herein has been obtained from published sources prepared by third parties and in certain cases has not been updated through the date hereof. While such sources are believed to be reliable, neither the offering, its sponsor or its advisors, nor their respective affiliates, officers, employees, agents and consultants, assume any responsibility for the accuracy or completeness of such information. Unless stated otherwise, all information in this presentation is as of [August] 2020. Except as required by law, neither the offering, its sponsor or its advisors, nor their respective affiliates, officers, employees, agents and consultants, make any representation or warranty as to the accuracy or completeness of the contents of this presentation or take any responsibility for any loss or damage suffered as a result of any omission, inadequacy or inaccuracy herein. Recipients acknowledge that circumstances may change and the contents of this document may become outdated as a result. The information contained in this presentation is highly confidential. Except as required by law or regulatory requirements, by participating in or accepting this presentation, you agree to maintain the confidentiality of the information contained herein and agree that you will not reproduce or distribute such information to any other person or use such information for any purpose other than to evaluate your potential participation in an offering of the securities described herein. xvi L Capital Direct Lending Offering

a division of ����Asset Management Limited

xx Leawood Credit Fixed Income Fund I