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AUTOMATION TIMETRACK

RECORDADVANTAGESof 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 opportunitiesattempting to spread risk and

increase the possibility of returns.

A BRIEF HISTORY OF P2P LENDING

BANKBANK

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 inthe past year totaling$486,262,886.54 *

169,166 new loans were issuedin 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 theMemorandum 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

LENDERSRECEIVE

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 toP2P Lending

REASONS

WIN

REASONS

WINSpread 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 LendingTransparent, Ease-Of-Use, and Quick

A LOOK AT RISK

Peer-to-Peer LendingAKA Marketplace Lending

or Social Lending

Combined Growth of Prosper & Lending Club(2009 - 2013) [3]

2.5

2

1.5

1

.5

TOTAL

AMOUNTOFLOANSISSUED

(IN

$BN)

2009 2010 2011 2012 2013

[4]

$ 2,339,108,574

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