CBC Partners Fund I I I Lorem ipsum Building a Legacy Not for Public or Private Distribution in the USA or Canada Only for International Institutional, Professional, Qualified and/or Wholesale Investor Use Only in Permitted Jurisdictions as defined by local aws and regulations. Investor Presentation, Q1 2023 Contents Letter from the Management 3 Market Research and Trends 4 Fund Investment Philosophy 6 Fund Structure and Financial Model 8 Our Team, Approval Process 11 Our Track 1 4 We are living in a macroeconomic environment marked by highly volatile public markets and unpredict- able interest rate movements. This is certainly challenging for investors, but it also creates opportunities for active portfolio management to mitigate the impacts of market volatility and deliver strong returns. Private credit is an asset class that can provide durable income, tax efficiency and inflation hedge, as well as limited exposure to volatile public markets. We at CBC Partners have been operating in the private credit market since 2007, providing innovative investments that deliver on all these fronts and provide our investors strong risk-adjusted returns. Our third fund, CBC Partner Fund III, will maintain our unwavering commitment to investment perfor- mance, deliver durable income and protect and preserve investor capital. Our hand-picked investment team is ready to get started on an exciting line-up of investment deals. In addition to overseeing our fund’s development, I communicate directly with the shareholders and institutional partners we serve. Thus, you can expect to hear from me every six months. Thank you for your trust in advance. John Otter Chief Executive Officer and General Partner Letter from the Management Market Research and Trends Lorem ipsum Market Research and Trends Powerful macroeconomic forces — soaring inflation, rising interest rates and the war in Ukraine — have hit the public equity and debt markets over the last year. Private markets are largely insulated from this volatility, which has attracted a growing number of institutional investors eager to diversify their portfolio and achieve strong risk-ad- justed returns. The direct lending market is a subset of the private market that has achieved a 21% compound annual growth rate since 2014. By contrast, high-yield and leveraged loans have only grown 6-7% during that same period. This growth in direct lending is driven largely by institutional investors who allocate 15 times more capital to private credit today than they did just a decade ago. The U.S. middle market is vast – if it were its own economy, it would be the third largest in the world. It includes more than 220,000 companies, and countless transactions. With the tightening of banking regulations post-2008, middle market companies have looked to private lenders for financing. And with the potential these loans have for yield, diversification and downside protection, it is no wonder investors are climbing on board. Growth of $100 Source: Marcer Insights Source: Pensions & Investments Source: BofA Securities, Bloomberg Finance L.P., Clarkson, Cliffwater, Drewry Maritime Consultants, Federal Reserve, FTSE, MSCI Historically higher returns The Fund : CBC Partners is raising additional capital to help meet financing demand from high-growth, USbased companies, continuing our successful 14-year track record in senior secured lending - Generate risk adjusted net investor returns approximating 15%, with quarterly distributions of cash from interest and fees. - Founded in 2007, we have acquired over 20 companies and successfully exited 11 with a 12th exit planned for 2023. Investment Strategy We provide debt capital to US-based middle market companies largely unserved by banks. We lend to companies with: - high growth - no distress: (we are is not an “opportunity” fund) - industry agnostic - average loan size between $1 and $5 million - less than $10 million in annual cash flow - substantial collateral: minimum 2X coverage of loan principal - secondary coverage via personal guarantors - use leverage to enhance return, targeted below 1:1 Fund I Results - 11 years (Launched Oct 2011): - 8.5% total net investor return (after management fees) without leverage - Approximately $30 million lent across 20 transactions - Senior secured, short-term lending - Survived and thrived during the ‘08 financial crisis and current pandemic - Fund is closed to new investment and is in process of returning capital to original investors Fund Investment Philosophy What are Senior Secured Loans? Senior Secured Loans (SSL) – commonly referred to as bank loans – are a type of term debt obligation issued to credit rated companies by banks and private corporations. SSL loans are commonly used to finance an expansion or acqui- sition, or for ‘recapitalization’ (the stabilization of a company’s capital structure via a restructuring of its debt and equity mixture). SSL loans typically mature in 1-5 years, but can extend up to 8 years. Borrowers can repay a loan prior to maturity. The institutional market for SSLs developed post-1980 due to increased loan trading transparency. In the 1990s, banks began to reduce their exposure to leveraged loans and tightened their regulatory capital requirements with Basel II. The transfer of loan ownership was accompanied by widening institutional investor appetite for the asset class, which resulted in greater transparency, data standardization and secondary liquidity. This created a substantial shift in the ownership profile of SSLs towards mutual funds, separate managed accounts (SMAs), commingled funds and, most notably, CLOs. In 1992, Credit Suisse provided a benchmark in the form of Credit Suisse Leveraged Loan Index to track the perfor- mance of floating rate loans. Since the 1990’s, new originations and secondary market trading of leveraged loans has significantly increased among many of the larger investment banks and money managers. The market of institutional loans outstand- ing stood at approximately USD 955 billion in December 2017 with average issuance of USD 375 billion per year since 2007. CBC: Dynamic in Uncertain Times CBC issues SSLs to US middle market companies looking to grow their businesses. Having thrived the 2008-2010 recession, CBC has continued to grow and execute its mandate through the pandemic recovery and beyond. Its loans are secured by several sources of collateral (all borrower assets) in conjunction with personal guarantees, providing a critical layer of protection. We anticipate a post-pandemic recovery curve that resembles 2008-2010. We will likely adjust our sector targets during the earliest phases of recovery, with additional emphasis on technology companies that have a low correlation to those sectors most impacted by Covid.. US Middle Market Corporate Direct Lending Breakdown of the $10 trillion US corporate debt market Assets Outstanding ($B) Source: Bloomberg Finance L.P. Fund Structure and Financial Model “The combination of high interest rates and equity exposure to high growth businesses makes the US private debt market in USA as one of the most attractive investment opportunities today” Financial Structure Financial Model “Credit funds are counter-cyclical and actually support strong new business opportunities in an economic downturn.” Our : o Team o Approval Process o Achievements Brad Harlo w Chairman and Head of Credit Committee Brad Harlow is founder and Chairman of CBC Partners where he oversees board governance, loan approval and financing. Brad is an entrepreneur with over 40 years of medical-technical experience, including four successful start-ups. He sold his most recent venture, Cardiac Insight Inc. – a cardiac monitoring products company of which he was co-founder and CEO – to a Korean company in 2022. Brad is also head of B. Harlow & Associates, LLC, a firm that has raised over U$ 300 million in funding for technology companies and multi-family real estate development in the northwest USA. Brad has taught at the USC School of Business, and is currently an instructor a nd Executive-in-Residence at Seattle University’s MBA program. He holds an MBA in Finance from Seattle University, and a BS in Accounting from Oregon State University. He and his wife live on Lake Washington where he water skis, plays golf and spends time with his six children and seven grandsons. John Otter President and Chief Executive Officer John Otter grew up in rural Idaho in a family with deep entrepreneur- ial roots. His maternal grandfather was self-made billionaire J.R. Simplot who transformed a small hog farm into a global agricultural operation that produces McDonald’s iconic French fries and surpasses U$ 10 billion in sales each year. John’s father also rose from humble beginnings to become a successful politician and businessman who served three terms as the governor of Idaho and expanded the J.R. Simplot Company to 40 markets worldwide. John spent much of his childhood learning the family business driving tractors and caring for farm animals. While attending universi- ty, he spent his summers fighting forest fires throughout the Western US. As a teenager John travelled to the former USSR and saw the realities of life behind the Iron Curtain, which solidified his entrepre- neurial spirit and ignited a lifelong passion for the free market econo- my. Since 2009 John has sat on the board of the Washington Policy Center, a think-tank focused on preserving and enhancing the free market in Washington State. In 2022, he helped launch the Mountain States Policy Center with the same goal for the State of Idaho. John is an innovative entrepreneur with twenty-eight years of business leadership and development experience. He has co-found- ed and operated several SMEs, including S-Sixteen LP, a holding company with more than U$200 million in real estate interests, where he is currently President and Chair of the Board. As Director of Chan- nel Development at Campbells Soup Company, John opened new distribution channels and grew his area of company sales by 37% in just two years. He has become a prominent figure at the J.R. Simplot Company, managing overseas operations, heading international business devel- opment, and now sitting on its Board of Directors. John decided to turn his attention to the private credit market in 2008, with the belief that credit markets would tighten for SMEs in response to the financial crisis. John serves as President and CEO of CBC Partners, where he leads business development and capital raising. John executes CBC’s lending strategy with the help of a core team of 5 partners and employees and 7 advisors, all hand-picked for their expertise, creativity and vision. As a seasoned businessman, John understands the opportunities and dangers of investing in small companies, and wants to lead the industry in re-writing how early-stage companies are funded through debt. At his core, John is a passionate problem solver, authentic and globally-minded with a disciplined focus on executing CBC’s strategy. John holds a B.A. in Politics with a minor in Economics and an MBA from the University of Washington. He is a qualified pilot who spends his free time enjoying the great outdoors with his wife, three young children and three Labrador retrievers. Senior Management Team Senior Management Team Ne il l Wright Principal and Credit Committee Member * CBC is supported by a team of analysts, loan officers, accountants and admin officials. Alan Hallberg Chief Credit Officer and Head of Investments Alan was born in Seattle, Washington but lived in various cities in the United States as the son of a computer engineer who helped design some of IBM’s mainframe technology during the Cold War. Growing up in the shadow of Boeing in Seattle, Alan dreamed of becoming a pilot, but also had a growing interest in corporate finance and the impact it had on the trajectories of men like JP Morgan and John D. Rockefeller. When poor eyesight derailed his aviation prospects, Alan chose to study finance instead. He excelled in his collegiate studies and was recruited by Irving Trust (now Bank of New York) where he successfully completed a gruelling top tier credit training program before becoming one of the youngest officers in the corporate banking group. In this role Alan lent over US 1B to public utility and telecom companies, agented a US 75M corporate credit facility, and partnered with Citibank to increase lending commitments to over US 1B in commer- cial paper backup lending facilities. In 1996 Alan was appoint- ed Vice President of Bank of America in Seattle, where he lent over US 100M to privately-held middle market companies and tripled his portfolio holdings in just three years. Alan transitioned out of banking after nearly a decade to work in corporate development after Bank of America de-empha- sized its lending business. Alan led M&As, international development and joint ventures for an ultra-high net worth family office involved in the telecommunications industry, and doubled the company’s size when he managed the acquisition of a competitor. In 2001, Alan negotiated the first joint venture between a Nordic telecom company and a US-based fixed wireless company, and also negotiated a record-setting deal involving Cable and Wireless. Alan founded CBC Partners in 2007 in order to fill a growing void in the market for loans of US 1-5M. Increasing regulation and the onset of the 2008 financial crisis dried up traditional sources of middle market loans, and CBC Partners filled the void by providing loans in this range that were structured substantially similar to bank loans. CBC Partners was able to capture high yields through its loan structuring because there was – and still is – an absence of competition in the arena due to widespread banking regulations that make it uneconomic for banks to lend to this sector. As CBC Partner’s Chief Credit Officer, Alan loves providing fuel to smaller companies to help them achieve their objectives. Operating outside the highly regulated banking system allows Alan more creativity in restructur- ing than one would see in a traditional bank, and allows him to use decades of lending experience to maximize return and minimize the chance of loss for investors. As well, Alan’s experience, education and credit training enable him to follow time-tested routines for due diligence as well as a “sixth sense” for the intangibles that could signal a future troubled loan. Alan maintains a passion for aviation to this day, and enjoys travelling. Alan holds a Bachelor of Science from Georgetown University with a major in Finance and minor in Government. In his spare time he provides counselling to young professionals encountering obstacles he has successfully overcome. On retirement, he plans to move to a vineyard where he can perfect the production of myriad red wine varietals. Niell S. Wright is a Principal and Credit Committee member at CBC Partners. Niell is an experienced investor, banker, entrepreneur and operating executive whose career spans more than three decades. Niell is Founder, President and CEO of a technology and innovation venture fund, and Founder and General Partner of a seed stage venture fund. He has served as Chairman, President and CEO of First Tuskegee Bank, where he established a Capital Markets division that executed over $5 billion of debt issuance. He has founded and operated an investment banking consul- tancy, and has worked in corporate finance at Citigroup and JP Morgan. Niell joined CBC Partners after long-time friend and CBC Chief Credit Officer Alan Hallberg recognized that Niell’s extensive career in transactional finance and debt would be an asset to CBC’s direct lending platform. Niell is actively involved with numerous community and philanthropic endeavours. In 2016 he founded the James W. Wright Leadership Development Institute for millennials of colour, which he named after his father, one of the first African American banking Presidents. Niell currently serves on several boards, including the Alabama Innovation Commission and the Economic Development Partnership of Alabama. He is a graduate of the College of William & Mary, and lives in Birming- ham, Alabama. Loan Approval Process Deal Pipeline Pre-Due Diligence/ Screening Term Sheet Negotiation / Due Diligence Final Negotiation/Loan Documents & Closing Post Closing Monitoring and Follow On Financing • Direct Networking • Conferences • Inbound Calls and Emails from Website/ Online Presence • Professional Referrals • (Bankers, CPA’s, Attorneys, Family Offices, PE firms) • Screening of potential transaction • Management team interview • Terms discussion- • Pricing (Fees and Interest) • 1-2 years • Obtain initial Documents • Loan Tape • 3 years of financials (B/S + I/S) • Interim F/S, B/S, I/S • Debt Schedule • Use of Proceeds • Projections • DD Checklist • Term sheet draft • Management discussions • Supplemental documents • Copies of loan documents and key agreements • UCC filing search • Credit Committee discussion and decision • Signed term sheet • Law firm draft loan docs • Collateral review and protection process • Management interviews and negotiations • Finalize terms • Closing documents • Loan closing checklist • Legal review • Fund Transaction Monitoring • 1-2 years of monitoring • Data reconciliation • Loan covenants review • Monthly F/S review • Monthly Mgt calls/ review of current state • Value add strategic relationship • Follow On Financing • Post closing follow on financing opportunities Lending Track Record CBC Loan Tape A d etailed lending track record shall be provided on request can be requested and will be included in Fund documents . The below table is hyperlinked to Borrower abstracts with deal summary Rating N o t R e c o m m e n d e d I n v e s t m e n t G r a d e R e c o m m e n d e d R e c o m m e n d e d + H i g h l y R e c o m m e n d e d Mission Pledge CBC Partners believes that the social fabric of value investing is in small and medium enterprises; If responsibly undertaken it will fully produce superior returns in our investments, and adhere to principles of the sound impact and, in turn, spawn and develop the ecology for financing.” CBC Partners Fund III will provide SSLs to the US middle-market, targeting those companies best positioned to use financing to create operating leverage, boost cash flows, and increase earnings and equity valuations. The Fund will target viable dis- tressed assets or healthy assets trading at distressed prices. This will provide investors with equity-like returns, with the added down- side protection of a debt fund. From inception, the Fund’s dynamic team will raise U$150mn which it will then distribute in U$2-5mn loans to attractive credit investment opportunities in the US. Today, the United States still stands at the vanguard of the developed world, with a voracious appetite for financial investments into a myriad of ongoing projects. This makes it the quintessential target for investors looking to channel their funds into projects that have significant growth potentia l. Debt Securities U$D 2mn -- 5mn Instrument Type Senior Debt Interest R ates Tenure 12 - 24 months Qua r terly Interes t 1 1 - 15 % Fund II I Terms Lorem ipsum DISCLAIMER THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION NECESSARY TO EVALUATE THE BUSINESS OF CBC PARTNERS FUND III, LLC (THE “COMPANY”). THE COMPANY DISCLAIMS ANY AND ALL LIABILITY WHICH MAY BE BASED ON THE PRESENTATION OR ANY OF ITS CONTENTS. FORWARD LOOKING STATEMENTS: THIS PRESENTATION INCLUDES STATEMENTS, APPROXIMATIONS, ESTIMATES, AND PROJECTIONS REGARDING THE ANTICIPATED FUTURE PERFORMANCE OF THE COMPANY AND THE INDUSTRY WITHIN WHICH IT OPERATES (“FORWARD-LOOKING STATEMENTS”). THESE FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND UNCERTAINTIES, INCLUDING WITHOUT LIMITATION RISKS AND UNCERTAINTIES ASSOCIATED WITH GENERAL MARKET CONDITIONS, COMPETITION, REGULATION, AND PRICING. RISKS, UNCERTAINTIES AND OTHER FACTORS MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THE FORWARD LOOKING STATEMENTS. THE PRESENTATION IS CURRENT AS OF THE DATE SET FORTH ON THE COVER, AND THE COMPANY ASSUMES NO RESPONSIBILITY TO UPDATE THE INFORMATION. IN ACCEPTING RECEIPT OF THIS PRESENTATION, YOU AGREE TO THE BASIS ON WHICH THIS INFORMATION IS PROVIDED TO YOU, AS FOLLOWS: CONFIDENTIALITY: YOU AGREE TO TREAT AS CONFIDENTIAL THE CONTENTS OF THIS DOCUMENT AND ANY DISCUSSIONS ARISING THEREFROM, AND NOT TO DISTRIBUTE, REPRODUCE OR USE THIS DOCUMENT WITHOUT THE EXPRESS CONSENT OF THE COMPANY OR TO USE IT FOR ANY PURPOSE OTHER THAN TO EVALUATE THE OPPORTUNITY DESCRIBED HEREIN. NO GUARANTEE: THE PURPOSE OF THIS DOCUMENT IS TO ASSIST THE RECIPIENT IN UNDERSTANDING THE COMPANY’S PROPOSED STRATEGY AND THIS INVESTMENT OPPORTUNITY. THIS DOCUMENT DOES NOT GUARANTEE THE COMMERCIAL OR FINANCIAL RESULTS OF THE STRATEGY OR THE INVESTMENT OPPORTUNITY. INFORMATION CONTAINED HEREIN MAY INCLUDE INFORMATION RESPECTING PRIOR INVESTMENT PERFORMANCE OF ONE OR MORE THE COMPANY’S AFFILIATED ENTITIES INCLUDING GROSS AND NET RETURNS. INFORMATION RESPECTING PRIOR PERFORMANCE, WHILE A USEFUL TOOL IN EVALUATING AN INVESTMENT, IS NOT NECESSARILY INDICATIVE OF ACTUAL RESULTS TO BE ACHIEVED FOR UNREALIZED INVESTMENTS, THE REALIZATION OF WHICH IS DEPENDENT UPON MANY FACTORS, MANY OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY AND ITS MANAGEMENT. ILLUSTRATIVE INFORMATION: THE INFORMATION CONTAINED IN THIS PRESENTATION, INCLUDING MARKET DATA AND FINANCIAL PERFORMANCE, HAS BEEN PROVIDED FOR ILLUSTRATIVE PURPOSES AND HAS NOT BEEN AUDITED OR INDEPENDENTLY VERIFIED. WE DO NOT MAKE ANY REPRESENTATION OR WARRANTY AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTNESS OF THE INFORMATION, THE OPINIONS, OR THE ESTIMATES CONTAINED IN THE PRESENTATION. THIS PRESENTATION IS NOT INTENDED TO BE RELIED UPON AS THE BASIS FOR AN INVESTMENT DECISION, AND IS NOT, AND SHOULD NOT BE ASSUMED TO BE, COMPLETE. THE CONTENTS HEREIN ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS, OR TAX ADVICE, AND EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN ATTORNEY, BUSINESS ADVISOR, AND TAX ADVISOR AS TO LEGAL, BUSINESS, AND TAX ADVICE. THIS PRESENTATION IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. OFFERS ARE MADE ONLY THROUGH THE COMPANY’S DEFINITIVE SUBSCRIPTION MATERIALS AND ALL ADDENDUM THERETO, WHICH INCLUDES DISCUSSION OF THE KNOWN RISK FACTORS THAT MAY AFFECT THE COMPANY. ANY INVESTMENT IN THE COMPANY IS VERY SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. 16 • Target Size: U $100mn – H ard C ap of U $150mn • Leverage: up to 70% • Management Fee: 1.65% • Target Returns: 8% preferred return with a 80:20 split - After the Investment Period, investment proceeds distributions (based on actual realizations) in the following order of priority: (1) return of principal, (2) 80% to investors and 20% Carried Interest to the GP • Term: 5 years close ended • Regulated: CIMA(Cayman Islands) • Distributions: Half Yearly • Investment Period: 1 years after Final Closing • Initial Closing: June 202 3 CSC CBCPartners@LSM-management.com +65 6994 1050 Our Strategic Partners • Legal : • Offshore Legal : • Administrator: • Bank/Custodian: • Strategic Advisor and Placement :