Alternative Finance for Affluent and Wealthy Clients Paul Aitken - - PowerPoint PPT Presentation

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Paul Aitken – Founder and CEO

April 2016

Alternative Finance for Affluent and Wealthy Clients

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• Database with 10+ million records; 75% of loans completed within 24 hours

Fast and data-driven credit decisions

• Loans from $5,000 to $5,000,000 to affluent and wealthy clients

Scalable and flexible platform Proven track-record in UK and USA

• $300M originated since 2011; business is break-even for last 3 quarters

Dedicated to secured loans

• Ability to lend against property, fine art, antiques, classic cars, jewelry, watches, wine…
• 133% average recovery rate over principal for liquidations; investors advance 100%

Exceptionally high recovery ratios

Platform for secured loans with 5 years’ track-record

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Borro has a unique profile and targets affluent and wealthy clients who seek secured credit

Unsecured Secured Niche

SME Students Self-employed Consumer Invoices Classic cars Commercial Jewellery Watches Antiques Wine Residential

Collateral Type Average loan amount

$5,000,000 $500,000 $50,000 $0

Fine Art Buy-to-Let

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Borro has gradually diversified its asset portfolio while increasing transaction size. The business will continue to do so

2009 2017 2011 2013 2015 2019

Cars Jewelry Antiques Fine Wine Regulated <$1m <$150k Watches Fine Art Classic Cars <$250k <$3m Unregulated Fixed Term Development Car Leasing Commercial Margin Loan <$5m

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Attractive financial performance of luxury assets and property drives growth in client demand

Fine Art, Fine Wine, Other* UK Property** Jewellery and Watches* Classic Cars*

10% 2% 10% 8% 8% 19% 13% 5%

Annual return Standard deviation

• f annual returns %

* – Source: Knight Frank, Residential Research, 2014: “Slaying the Competition?” Luxury Investment Index ** – Source: Land Registry House Price Index (HPI) for Greater London, Accessed 16-Dec-2015

Luxury assets and property have yielded high returns over the last 10 years at moderate levels of volatility

Q4 2004 to Q4 2014

Conservative loan-to-value guidelines reflect expected volatility and time to liquidation for the asset class

Loan book, as at 26 February 2016 Fine Art, Fine Wine, Other UK Property Jewellery and Watches Classic Cars 53% 71% 70% 75% 59% 70% 55% 67% Current Avg. Net LTV Guideline LTV Average net LTV

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Sale Advance Acquisition Finance Property Finance Mortgage Delay

Landlord: Borrowed $1.4m to purchase a new rental property using another property in his portfolio as security Male, 42 years old, London Channel: Wealth Manager

International Sales

Jewelry business: $58k advanced to client throughout 2014, Borro’s international network maximised return on inventory Female, 44 years old, London Channel: Direct

Rare Opportunity

Art Collector: Borrowed $75k to finance the purchase of a new piece for his collection Male, 42 years old, California Channel: Leading Auction House

Credit Line Emergency Cash-Flow

Lawyer: Needed $633k to pay business tax bill. Secured money against fine art collection. Male, 49 years old, Guilford Channel: Accountant

Clients who use Borro require FAST and FLEXIBLE liquidity

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Data

▪ Real-time access to data: 20 years history for every category – millions of rows ▪ Detailed records for 50k+ assets: photographed and physically inspected ▪ Efficient tracking system: unique ID for every contract and asset; team conducts a inventory audit quarterly

Know-How

▪ Credit decision based on 300 data points, such as condition and time to sale ▪ Seasoned in-house team with on average 15 years experience will underwrite each loan ▪ Strong network with 400+ experts who are leaders in their field/niche. Only work with RICS certified property surveyors

Speed

▪ Streamlined application process: on average less than 3 minutes ▪ Accelerated funding of loans: for luxury assets regularly within 24 hours; property loan on average closed within 10 days ▪ Automation drives CX: easy-to-use online portal for partners and borrowers

Scalable platform built on data and know-how create barriers to entry: Borro can provide funds faster than its competitors

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Borro has been break-even for the last three quarters and expects growth to accelerate

Loan book and financial growth over the next three years (USD Millions)

Note – As of 31 March 2016.

2017E 2016E 2015 2018E 33 331 19 191 109 51 27 11 20 5 41 60 Revenue Profit Pre Cost of Funds Loan Book

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• Database with 10+ million records; 75% of loans completed within 24 hours

Fast and data-driven credit decisions

• Loans from $5,000 to $5,000,000 to affluent and wealthy clients

Scalable and flexible platform Proven track-record in UK and USA

• $300M originated since 2011; business is break-even for last 3 quarters

Dedicated to secured loans

• Ability to lend against property, fine art, antiques, classic cars, jewelry, watches, wine…
• 133% average recovery rate over principal for liquidations; investors advance 100%

Exceptionally high recovery ratios

Platform for secured loans with 5 years’ track-record

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Contact Details

London • New York • Los Angeles

Paul Aitken

Founder and CEO +44 7880 523 745 paul.aitken@borro.com