Pender Capital Asset-Based Lending Fund I, LP KEY FUND TERMS Fund Term Evergreen Target Annual Yield 8.5% per annum Minimum LP Investment $100,000 (Accredited investors only) $5,000,000 (Institutional investors*) Investor Lock-Up Period One-year (see PPM for full details) Cash Flow to Fund (a) 100% of interest income (b) 50% of all origination, exit, and extension fees (c) Proceeds from sale of foreclosed property GP Fees (a) Management fee: 1.5% per annum of deployed capital (b) Servicing fees: .25% per annum on outstanding loans (c) 50% of all origination, exit, and extension fees (d) Underwriting fees Distribution Split 80% LP; 20% GP split after 7% hurdle is achieved Pender Capital Asset-Based Lending Fund I, LP (the “Fund”) is a direct commercial bridge lending company with an emphasis on originating and servicing short-term commercial real estate (CRE) loans secured by first lien positions of the underlying real estate as collateral. The goal of the Fund is to provide our investors a transparent, risk-adjusted fixed income alternative product that further diversifies their investment portfolios. FUND OVERVIEW Based on the proven expertise of the Fund’s principals in asset management and commercial bridge lending, the Fund’s principals believe the small balance CRE bridge loan segment of the market is underserved, and that their long-standing relationships within the marketplace will give the Fund a strategic advantage. The Fund has been designed to provide investors with the following benefits: • Security with a focus on preservation of capital, collateral and diversification. • Steady current income, significant yield and overall returns with mitigated risk. • Portfolio diversification to complement investments in equities and bond markets. • Reduced volatility in yields and income protection through significant equity positions secured by tangible real property. INVESTMENT OPPORTUNITY Market Opportunity: Due to the lingering turmoil and increased scrutiny in the commercial lending market, even financially sound borrowers who have substantial equity positions face difficulty obtaining financing in a timely manner, resulting in lost acquisition opportunities. Equity Protection: • Lending in first lien position only to sponsors with significant equity positions in primarily cash-producing assets. • Target LTV ratio of the Fund’s portfolio is 60-65%. Maximum LTV ratio of portfolio not to exceed 65% LTV at present valuations. Exit LTV ratios are significantly lower. No single loan to exceed 70% LTV. • The Fund’s principals perform significant underwriting diligence on each qualified loan, including valuation, credit, market demographics, and a physical site review. Loan Terms: Generally 12 months with optional extensions; allowing management to reallocate funds to another region if a market shows signs of overheating. Geographical Diversification: Nationwide lending. *Please see the private placement memorandum for additional information on fees paid by institutional investors. FUND PERFORMANCE (NET) Jan Feb March April May June July Aug Sept Oct Nov Dec YTD Annualized 2019 0.77% 0.76% 0.77% 2.30% 9.20% 2018 0.77% 0.79% 0.78% 0.78% 0.78% 0.79% 0.79% 0.78% 0.78% 0.78% 0.77% 0.77% 9.36% 9.36% 2017 0.79% 0.78% 0.79% 0.79% 0.78% 0.79% 0.79% 0.79% 0.79% 0.78% 0.78% 0.79% 9.44% 9.44% 2016 0.79% 0.79% 0.80% 0.80% 0.79% 0.80% 0.79% 0.80% 0.79% 0.79% 0.80% 0.79% 9.53% 9.53% 2015 0.85% 0.86% 0.84% 0.85% 0.82% 4.22% 10.12%