Executive Summary Safe Harbor Equity is a leading private equity firm - - PowerPoint PPT Presentation

Executive Summary Safe Harbor Equity is a leading private equity firm

specializing in distressed real estate debt aiming to generate superior returns for our limited partners

• The firm to date has launched three funds and its

principals have acquired more than half a billion dollars in assets

• Focus on commercial real estate market

inefficiencies combined with detailed underwriting to unlock value

• Strategic acquisition, origination, management and

repositioning of nonperforming asset-backed real estate mortgages targeted up to $20 million

• Safe Harbor Equity seeks to preserve investor capital

while targeting IRR’s of 20% on a risk adjusted basis*

* Refer to slide 18 for specific fund IRR performance

Barriers to Entry Litigation Mgmt. Value Extraction Execution

Competitive Advantage

Consistent record of execution provides confidence to traditional lenders

• Certainty to close a transaction highly valued by banks
• Local knowledge and relationships in the financial community

Superior underwriting process identifies value extraction and optimization of

• pportunities where others don’t
• In depth financial, borrower and collateral analysis
• Strict adherence to value parameters and lending guidelines
• High touch loan servicing establishes relationships and provides opportunity for payoff

Excellence in litigation management, increasing likelihood of desired outcomes

• Detailed legal analysis to define litigation strategy and restructuring
• Detailed analysis of borrower and opposing counsel
• Deep understanding of judiciary at local and appellate level
• Policing of each individual investment
• Rapid response to changes in legal circumstances
• Game theoretic analytics approach and competitive intelligence analysis

Market Opportunity

• Mid-Market banks have the highest ratio of CRE

loans/Total Assets

• Banks with assets between $1B - $10B have the

fastest growing CRE loans/Total Asset ratio

CRE Loans / Total Assets (%)

Source: FDIC Data, Safe Harbor Equity estimates

25.9% 32.9% 25.8% 28.4% 5 10 15 20 25 30 35 2013 2014 2015 2016 2017 2018 2019 (%)

CRE Mortgage Debt Outstanding

2014 2015 2016 2017 2018

$4.3T $3.4T

Banks/Finance GSE/GSE-backed REITs ABS Issuers Miscellaneous Life Ins./Pension Co. Government