PrimeMeridianIncomeFundLP

May2016
PrimeMeridianIncomeFundLP-Objectives&Strategy

KeyInvestmentTerms

TheobjectiveofPMIistoachievesuperiorrisk-adjustedreturnsrelativetotraditionalfixedincomeinvestmentswhilealsoprovidingreasonableliquiditytoinvestors.PMIinvestsincredit
instruments,specificallyprimeMarketplace/P2P("PeertoPeer")loansoriginatedbyInternet
lendingplatformsProsperandLendingClub.PrimeMarketplaceloansofferacombinationof
attractiveyield,strongcreditquality,andrelativelyshortdurationwhileminimizingvolatilityof
returnsandcorrelationtootherassetclasses.

StartDate

May2012

MinInvestment

$500,000

ManagementFee

0.75%

PerformanceFee

10%

Lock-up

Additions

N/A,earlyredemptionfeesmay
apply
Monthlyofprincipaland/or
interest
Monthly

Currency

USDollar

Domicile

US

Liquidity

Duration:1.83years
Averageloansize:$14,346
Numberofactiveloansheld:15,000+
Loanterm:36-60months
Medianborrowerincome:$70,000+
AverageFICOscore:692+Prime
Proprietaryloanselectionmodel(API)

ValueAddedMonthlyIndex(VAMI)
PMI

BarclaysUSAggregateBond

HighYieldBond

OrchardUSConsumer

1,500

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
YTD

1,400
1,300
1,200
1,100
1,000

6
1
ay
M

ov
1

5
1
ay
M

ov
1

4
1
ay
M

ov
1

3
M

ay

2
ov
1
N

ay

900

2016
0.62
0.60
0.59
0.60
0.59

2015
0.64
0.59
0.69
0.62
0.64
0.59
0.66
0.69
0.61
0.59
0.54
0.61
3.02 7.74

2014
0.69
0.65
0.70
0.67
0.71
0.68
0.71
0.67
0.67
0.76
0.61
0.66
8.51

2013
0.87
0.72
0.85
0.80
0.82
0.75
0.84
0.83
0.77
0.80
0.72
0.70
9.89

2012

0.69
0.96
0.84
0.89
0.72
0.81
0.75
0.90
6.75

*ThemostrecentOrchardUSConsumerreturnsareestimates.

PortfolioComposition
FirmAUM
ProsperGrades

PerformanceAnalysis

$175,680,618
LendingClubGrades

RETURNSUMMARY

PMI

RISKSUMMARY

PMI

NumberofPeriods

49

AnnualizedSharpeRatio

24.63

TotalReturn

41.29%

WorstMonthlyLoss

AverageGain

0.71%

AnnualizedStandardDeviation

CompoundAnnualizedROR

8.83%

MaxDrawdown

Last12Months

7.53%

Delinquency(31+DaysLate)

N/A
0.34%
N/A
2.32%

KeyServiceProviders

A/AA-7%
B-15%
C-43%
D-20%
E-13%
HR-2%

A/B-8%
C-34%
D-35%
E-17%
F-5%
G-1%

Auditor

BDOUSA

Accounting/Admin

AbacoFSC

Custodian

WellsFargo/Prosper/LendingClub

OutsideLegalCounsel

Howard&HowardChicago

Reporting

MonthlyStatements,providedbyadministrator

FundStructure

3(c)(1)NevadaLimitedPatnership

PrimeMeridianCapitalManagement,LLC|IncomeFundLP|PASTPERFORMANCEISNOTNECESSARILYINDICATIVEOFFUTURERESULTS.

PrimeMeridianIncomeFundLP
May2016
ContactInformation

AboutPrimeMeridian
PrimeMeridianCapitalManagementisaninvestmentmanagementfirmspecializingin
online/Peer-to-Peer(P2P)MarketplaceLendingstrategies.
Ourfundsprovideinvestorswithlowcostaccesstoshort-duration,highyieldloanportfoliosby
takingadvantageoftheefficienciesintheburgeoningP2Plendingspace.Loansinclude
consumerdebtconsolidation,smallbusinessfinancing,realestate,autofinancing,andmore.
Weselectloansusingarisk-basedpricingapproachthatfocusesonyield,duration,andcredit
qualitywiththeobjectiveofachievingconsistentreturnsthathavelowvolatilityandlow
correlationtootherassetclasses.
Theconstructionofourfundsisdesignedtocreateadiversifiedloanportfolioineachof
P2P/MarketplaceLendingverticals:consumerloans(PrimeMeridianIncomeFund),small
businessloans(PrimeMeridianSmallBusinessLendingFund),leveragedconsumerloans
(PoiseLendingFund),andrealestateloans(PrimeMeridianRealEstateLendingFund).

PrimeMeridianCapitalManagement,LLC
2121N.CaliforniaBlvd.,Suite830
WalnutCreek,CA94596
DonDavis,PortfolioManager
Direct:925-362-8510
ddavis@pmifunds.com
www.pmifunds.com

AboutProsper
ProsperisAmericasfirstpeer-to-peerlendingmarketplace,withmorethan2millionmembersandover$6billioninfundedloans.InSeptemberof
2013,SequoiaCapitalandBlackrockmadea$25millionequityinvestmentinProsper.Prospermaintainsstrictcreditselectionstandardswhich
employtheuseofproprietarysoftwaretoscreenoutborrowersandonlyapproximately10%ofloanapplicantsareacceptedtoutilizetheplatform.The
Prosperplatformusesadatadrivencreditmodelwithknowledgebasedauthenticationandfraudriskscoring.LearnmoreatProsper.com.

AboutLendingClub
Untilrecently,themassive$3trillionconsumerlendingmarketremainedlargelyuntransformedbytechnologicalinnovation.Mostpeoplereceived
theircreditfromtraditionalfinancialinstitutionssuchasbanks,creditcardcompanies,andcreditunions,andinvestedintraditionalvehicleslike
stocksandbonds.LendingClub'sinnovationwastoofferasimple,convenientandbeneficialalternativetobothsides.Fueledbythevaluethey
deliver,LendingClubhasconsistentlygrownatmorethan100%peryeareachofthelastfewyears.Sinceinception,theyhavefacilitatedmorethan
$15billioninloans,whilepayingmorethan$1.6billionininteresttoinvestors.LearnmoreatLendingClub.com.

ImportantDisclosures
ThisfactsheetforPrimeMeridianIncomeFund,LP(the"Fund"),furnishedonaconfidentialbasistotherecipient,isneitheranoffertosellnora
solicitationofanyoffertobuyanysecurities,investmentproductorinvestmentadvisoryservices,includinginterestsintheFund.Thisfactsheetis
subjecttoamorecompletedescriptionanddoesnotcontainalloftheinformationnecessarytomakeaninvestmentdecision,including,butnot
limitedto,therisks,feesandinvestmentstrategiesoftheFund.Anyofferingmaybemadeonlypursuanttotherelevantmemorandumandrelevant
subscriptiondocuments,allofwhichmustbereadintheirentirety.Nooffertopurchaseinterestswillbemadeoracceptedpriortoreceiptbya
prospectiveinvestorofthesedocumentsandthecompletionofallappropriatedocumentation.Allinvestorsmustbe"accreditedinvestors"and
"qualifiedclients"asdefinedinthesecuritieslawsbeforetheycaninvestintheFund.AninvestmentintheFundisspeculativeandinvolves
substantialrisks.TherecanbenoguaranteethattheFundwillachieveitsinvestmentobjectives.Thisdocumentisnot,andmaynotberelieduponin
anymanneraslegal,taxorinvestmentadvice.
AssetsundermanagementincludeSMAaccounts.ThenetfundreturnsshowninthetableontheprecedingpagearecalculatedbasedonPrime
Meridian'svaluationoftheunderlyingloansandtheamountofinterestincomegeneratedbythoseloans,lesscertainfeesandexpenses.The
performancedatarepresentscompositefundreturns,andindividualinvestorreturnsmayvaryhigherorlowerfromthecompositereturnduetotiming
ofaninvestmentandactualfeesbeingcharged.Whilemonthlynetreturnsandresultingstatisticsareasofthemonthnoted,portfoliocharacteristics
andassociatedinformationareasoftheendofthemostrecentcalendarquarter.Delinquencyistheestimatedpercentageofthecurrentportfolio
thatis31to120dayslate,andpriortodefaultand/orchargeoff.HistoricaldataforBarclaysAggregateBondIndexandHighYieldBondCategoryare
frommorningstar.com.TheOrchardUSConsumerMarketplaceLendingIndexanddataisfromorchardindexes.com.
PASTPERFORMANCEISNOTNECESSARILYINDICATIVEOFFUTURERESULTS.Thepotentialforprofitisaccompaniedbythepossibilityof
loss,includingthepossibilityofatotalloss.Performanceinformationispresentednetofallexpenses,includingmanagementfees,performancefees
andotherexpensesincludingportfolio-relatedexpenses.
CurrentorfuturecharacteristicsandotherinformationmayvarysignificantlyfromthoseprovidedhereinandPrimeMeridianCapitalManagementLLC
("PrimeMeridian")undertakesnoobligationtonotifyrecipientsofanysuchvariances.
Thisfactsheetisnotanadvertisementandisnotintendedforpublicuseordistributionandisintendedexclusivelyfortheuseofthepersontowhom
ithasbeendeliveredbyPrimeMeridian.ThisfactsheetisnottobereproducedorredistributedtoanyotherpersonwithoutthepriorconsentofPrime
Meridian.
PleasenotethatuponadecisiontosubscribetoPrimeMeridianIncomeFund,LP,theinvestormustverifyAccreditedInvestorstatusviasubmission
ofcertainsupportingdocumentation.ThisisrequiredbylawpriortothedateofinvestmentintheFund.

PrimeMeridianCapitalManagement,LLC|IncomeFundLP|PASTPERFORMANCEISNOTNECESSARILYINDICATIVEOFFUTURERESULTS.