“INNOVATION, INDEPENDENCE, INTEGRITY” Presented by: Berisford Grey CEO Sygnus Capital Ltd Non-Traditional Financing - The Case for Private Credit Investments

Private Market and Private Credit Investments (PCI): Definitions The Private Market is defined as closed-end funds investing in private equity, real estate, private credit / private debt, infrastructure, and natural resources. It excludes Hedge Funds and publicly traded open-end funds. 01 Private Credit / Debt Debt financing and bilateral credit from non-banks: direct lending, distressed debt, mezzanine debt, special situations & venture debt 02 Infrastructure Closed-end funds that invest in large-scale projects, excluding investments in public-infrastructure firms and listed funds 03 Real Estate Closed-end funds that invest in property, excluding: direct holdings, listed real estate (REITS) and open ended funds 04 Natural Resources Closed-end funds that invest in real assets such as energy, agriculture/farmland, metals and mining, timberland, and water Private Equity is 2.4 Trn, Real Estate ius 795 Bn, Private Debt 595B, Natural Resources 455Bn, Infrastructure 373 Bn 05 Private Equity Buyouts, Venture Capital, Turnaround and Growth Equity Source: :Prequin Global Private Debt Report

Global PCI Ecosystem 01 02 03 04 05 07 08 06 Record $595 bn AUM Private Credit has the third largest AUM at a record $595bn (12.7%) within the $4.7 Tn Private Market, which is lead by Private Equity with $2.5Tn (53%) followed by Real Estate with $795bn (17%). 01 Record $595 bn AUM Private Credit AUM @ Jun ’16 $93 Bn raised in capital 02 11.4% CAGR Growth Dec ‘10 to June ‘16 03 Record $130bn Raised Through 3Q of 2017 04 Record $100bn Capital distributed (dividends etc.) back to investors in ‘16 05 4x AUM has quadrupled since $147bn in ’06 06 10 Consecutive Years Unbroken AUM growth since 2006, even during global credit crisis in ’08 (up 20%) and ’09 (up 14%) 07 Investor Location North America @58%, Europe @25%, Asia@ 9% 08 Source of Investments Pension Funds @30%, Foundations @13%, Endowments @9%, Insurance Companies @9% Investors: Pension Funds, Foudations at 13%, Endowments at 9%, Insurance Company 9%, Source: Prequin Global Private Debt Reports; Prequin Alternative Assets Performance Monitor

01 02 03 04 Why Companies Are Attracted TO PCI? Top four characteristics of private credit that firms value most: 01 02 03 04 Complex Deal Structures Flexibility of Terms Speed and Agility Partnership Model Speed combined with rigor and ability to finance in size; reduced layers of management structure and decision making for approval Long term relationship model to foster repeated business; board observation rights or board seats Investments are Structured to match business strategy; Use of customized structures - profit sharing, flexible amortization, higher LTV etc Ability to put together package that works in best interest of borrower as well as safeguard long term future of business; vs template structuring of traditional financing Anything complex will attract higher risk weighting on bank balance sheet Source: Financing the Economy 2016 – The Role of alternative asset managers in the non-bank lending environment – Deloitte and AIMA. org

Why PCI is an Attractive Asset Class? The growth in Private Credit has been explosive due to the following reasons: 1 Attractive Risk Adjusted Target Returns with Downside Protection Attractive stable spreads above corporate, sovereign and high yield bonds; pays an “illiquidity premium”. US Private credit currently yields 8%+ currently, with 90% payout of earnings as distributions on a quarterly basis. 2 Low Correlation with other Asset Classes Generates positive alpha due to low correlation with traditional asset classes. Diversification across sectors, industries, strategies, and geographies. 3 Risk Reduction Generally stable performance across all market cycles. E.g. many US private credit managers are primed to benefit from gradually rising US interest rates due to underlying variable rate credit investments. Historically lower default rates and higher recovery rates than EM debt and bank loans. Golub Capital Article 4 Well established Asset Class Highly experienced fund managers with a wide menu of fund strategies and differentiated approaches. Viable alternative to traditional fixed income for fund managers seeking consistent stream of cash flow.

Sygnus Credit Investments PCI Case Studies – Sygnus Credit Investments Background placeholder: After choosing your image, Right click on the image -> Send to back -> Click on send to back

CONVERTIBLE PREF. SHARE WITH PAYMENT-IN-KIND (PIK) Case Study I: Sygnus Credit Investments CONVERTIBLE PREF. SHARE WITH PAYMENT-IN-KIND (PIK) Investment Size: J$580 Million Term: 5-years Date Closed: August 2017 Industry: Manufacturing Proceeds used to refinance debt & expansion Issuer benefited from increased cash flow due to interest only payments PIK feature enabled lower interest payments to boost profitability from higher cashflow reinvestment. Utilized Co-investor participation Double digit return to SCI and Co-investor

INVENTORY LINKED REPO NOTE FINANCING Case Study 2: Sygnus Credit Investments INVENTORY LINKED REPO NOTE FINANCING Investment Size: US$3.0 Million Date Closed: September 2017 Industry: Distribution & Manufacturing Proceeds used to fund working capital using Inventory Repurchase Agreement between SCI and Company Issuer monetized its inventory and improved its cash flow This innovative structure improved leverage ratios and profitability for the issuer Double digit return to SCI

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