EFTA02518594

From: Paul Barrett Sent: Wednesday, February 28, 2018 11:09 PM To: Jeffrey E. Subject: RE: Amazon business Let me know when you can discuss. $2.4MM is available in this round. Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor, New York, NY 10019 (o) (c) From: Jeffrey E. [mailto:jeevacation@gmail.com) Sent: Friday, February 16, 2018 8:53 PM To: Paul Barrett Subject: Re: Amazon business lets talk On Fri, Feb 16, 2018 at 8:11 PM, Paul Barrett wrote: Jeffrey 1 EFTA_R1_01654300 EFTA02518594 The Amazon lending business I invested in is looking to raise one year money at 12%. They are looking for $3- 4mm as part of this first debt raise. There is a 15% equity first loss tranche beneath the 12% Notes. Assuming you get 2 quarterly coupons you need a lyr cumulative loss of 21% before you lose any principal which is highly unlikely given the underlying loan book. They are forecasting 5-6% cumulative annual losses. Given the amount of data we have from Amazon, their credit underwriting makes me comfortable with this estimate. Recall they are making 3-9 month loans in the 20%-25% range. Average size of around $25K. Repayment of principal and interest (via ACH debit) begins after 1-3 months. So effective duration is very short. We can discuss more if you like but at 12% I want you to have first look. For full disclosure I own 3% of the company and have money in the first loss equity tranche (along with Anthony and John). Down the road as they develop a longer default history the equity tranche could be very interesting. Let me know. Paul Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor, New York, NY 10019 ctel: - (o) (c) 2 EFTA_R1_01654301 EFTA02518595 please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of _WE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 3 EFTA_R1_01654302 EFTA02518596