Alternative Finance for Affluent and Wealthy Clients Paul Aitken – Founder and CEO April 2016 � 1
Platform for secured loans with 5 years’ track-record Proven track-record in UK and USA •$300M originated since 2011; business is break-even for last 3 quarters Scalable and flexible platform •Loans from $5,000 to $5,000,000 to affluent and wealthy clients Fast and data-driven credit decisions • Database with 10+ million records; 75% of loans completed within 24 hours Exceptionally high recovery ratios • 133% average recovery rate over principal for liquidations; investors advance 100% Dedicated to secured loans •Ability to lend against property, fine art, antiques, classic cars, jewelry, watches, wine… � 2
Borro has a unique profile and targets affluent and wealthy clients who seek secured credit Average loan amount Commercial $5,000,000 Residential Buy-to-Let Fine Art $500,000 SME Classic cars Invoices Jewellery Students Watches $50,000 Self-employed Wine Antiques Consumer Collateral $0 Type Unsecured Niche Secured � 3
Borro has gradually diversified its asset portfolio while increasing transaction size. The business will continue to do so Jewelry Antiques Development Car Leasing Classic Cars Unregulated Fixed Term Watches Fine Art Fine Wine Regulated Commercial Margin Loan Cars 2009 2011 2013 2015 2017 2019 <$150k <$250k <$1m <$3m <$5m � 4
Attractive financial performance of luxury assets and property drives growth in client demand Luxury assets and property have yielded high returns over the last 10 years at moderate levels of volatility Q4 2004 to Q4 2014 Standard deviation of annual returns % 19% Annual return 13% 10% 10% 8% 8% 5% 2% Fine Art, Fine Wine, Other* Jewellery and Watches* Classic Cars* UK Property** Conservative loan-to-value guidelines reflect expected volatility and time to liquidation for the asset class Loan book, as at 26 February 2016 Average net LTV 75% 71% 70% 70% Guideline LTV 67% 59% 55% 53% Current Avg. Net LTV Fine Art, Fine Wine, Other Jewellery and Watches Classic Cars UK Property * – Source: Knight Frank, Residential Research, 2014: “Slaying the Competition?” Luxury Investment Index � 5 ** – Source: Land Registry House Price Index (HPI) for Greater London, Accessed 16-Dec-2015
Clients who use Borro require FAST and FLEXIBLE liquidity Property Finance Acquisition Finance Mortgage Delay Rare Opportunity Landlord: Borrowed $1.4m to Art Collector: Borrowed $75k to purchase a new rental property finance the purchase of a new piece using another property in his for his collection portfolio as security Male, 42 years old, London Male, 42 years old, California Channel: Wealth Manager Channel: Leading Auction House Credit Line Sale Advance Emergency Cash-Flow International Sales Lawyer: Needed $633k to pay Jewelry business: $58k advanced business tax bill. Secured money to client throughout 2014, Borro’s against fine art collection. international network maximised return on inventory Male, 49 years old, Guilford Female, 44 years old, London Channel: Accountant Channel: Direct � 6
Scalable platform built on data and know-how create barriers to entry: Borro can provide funds faster than its competitors Data Know-How Speed ▪ Real-time access to data: 20 ▪ Credit decision based on ▪ Streamlined application years history for every 300 data points, such as process : on average less category – millions of rows condition and time to sale than 3 minutes ▪ Seasoned in-house team ▪ Detailed records for 50k+ ▪ Accelerated funding of with on average 15 years assets: photographed and loans: for luxury assets physically inspected experience will underwrite each loan regularly within 24 hours; property loan on average closed within 10 days ▪ Efficient tracking system: ▪ Strong network with 400+ unique ID for every contract experts who are leaders in ▪ Automation drives CX: and asset; team conducts a their field/niche. Only work inventory audit quarterly easy-to-use online portal for with RICS certified property partners and borrowers surveyors � 7
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) 331 Loan Book Revenue Profit Pre Cost of Funds 191 109 60 51 41 33 27 19 20 11 5 2015 2016E 2017E 2018E � 8 Note – As of 31 March 2016.
Platform for secured loans with 5 years’ track-record Proven track-record in UK and USA •$300M originated since 2011; business is break-even for last 3 quarters Scalable and flexible platform •Loans from $5,000 to $5,000,000 to affluent and wealthy clients Fast and data-driven credit decisions • Database with 10+ million records; 75% of loans completed within 24 hours Exceptionally high recovery ratios • 133% average recovery rate over principal for liquidations; investors advance 100% Dedicated to secured loans •Ability to lend against property, fine art, antiques, classic cars, jewelry, watches, wine… � 9
Contact Details Paul Aitken Founder and CEO +44 7880 523 745 paul.aitken@borro.com London • New York • Los Angeles � 10
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