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FEBRUARY 2018

BRYANT PARK CAPITAL

SPECIALTY FINANCE MARKET UPDATE Q4 2017

FIXED INCOME

MARKET OBSERVATIONS:

■ After declining for three consecutive years, the issuance in the high-yield corporate bond market increased 24% YoY to

$281 billion in 2017.

■ U.S. high-yield bond market issuance for Q4 2017 stands at $68 billion, an increase of 11% over Q3 2017 and 41% over

Q4 2016.

Sources: Thomson Reuters, SIFMA

1

Inside this issue:Fixed Income p.1

Interest Rates p.2

M&A p.3

Private Placements p.5

Public Comps p.7

Fixed Income Overview:

■ Asset-Backed Securities

□ Issuance of asset-backed securities increased by approximately 10.9% to $84.1 billion in Q4 2017 from $75.8

billion in Q3 2017.

Auto sector led total issuances with $25.9 billion in Q4 2017, followed by CDO: $25.6 billion; other:

$11.5 billion; credit cards: $9.5 billion; equipment: $6.9 billion; student loans: $4.6 billion.

MARKET VIEW: As a result of December’s massive overhaul of the U.S. tax code,

reducing the corporate tax rate from 35% to 21%, the U.S. remains poised for continued

economic growth, as the IMF forecasts 2.7% U.S. GDP growth in 2018. In light of these

bullish expectations, the Fed announced in December that it will increase the target federal

funds rate from 1.25% to 1.50%, marking the fifth time the Fed has raised interest rates

since the 2008 financial crisis. The U.S. equity markets continue to reach record levels, with

the Dow Jones and S&P 500 returning 25% and 19%, respectively, over the course of 2017.

The labor market remains robust, with the unemployment rate declining to 4.1% and

employees enjoying end-of-year bonuses as the result of increased corporate cash reserves.

inance M&A saw a drop in closedConsequently, consumer spending continues to increase, with market analysts forecasting an acceleration of this trend due to

greater take-home pay resulting from lower personal taxes. As new leadership at the CFPB continues to signal deregulation in

the specialty finance sector, M&A and private placement activity in the sector remained active, with deal counts for the fourth

quarter remaining in line with those of the third quarter of 2017. We expect that favorable economic trends will continue to

support financing and M&A activity within specialty finance as these businesses reach scale and seek further consolidation

opportunity.

MERGERS & ACQUISITIONS CAPITAL RAISING ADVISORY VALUATION

0

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100,000

120,000

140,000

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180,000

Q1 Q2 Q3 Q4

2017 2017 2017 2017

$ i

n M

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U.S. Asset-Backed Securities Issuance

Auto CDO Credit Cards Equipment Other Student Loans

Fixed Rate Swaps occur between two parties exchanging a set of fixed-rate payments and floating-rate payments based on LIBOR as a reference

rate. The rate is the percentage over LIBOR that one side agrees to pay.

LIBOR is the most used benchmark for short-term interest rates and is derived from an average of the most creditworthy banks’ interbank

deposit rates.

Prime Rate is the rate that creditworthy customers receive from commercial banks and is largely determined by the federal funds rate.


Sources: Federal Reserve, SIFMA, U.S. BLS, U.S. BEA, and ICE

INTEREST RATES

MARKET OBSERVATIONS:

The Federal Open Markets Committee (“The Committee”) met most recently on December 12, 2017. The Committee stance on

monetary policy remained accommodative due to a sustained inflation rate of less than 2.0%. Labor market conditions have

continued to strengthen, with the unemployment rate declining to 4.1%. Declining unemployment and payroll gains were well

above a pace consistent with maintaining a stable unemployment rate over time. Consumer spending has continued to increase at

a healthy rate, increasing by 0.6% in November. Business fixed investment has increased as well and consumer and business

investment spending could increase further due to President Trump’s new tax cut package. The Committee decided to raise the

target for the federal funds rate by 25 basis points, to between 1.25% and 1.50%. This is the fifth time the Fed has raised interest

rates since the 2008 financial crisis.

2

Rate as of 01/29/2018

1 Year 2.07%

5 year 2.57%

10 year 2.73%

30 year 2.82%

LIBOR –

1 month1.57%

Prime Rate 4.50%

FEBRUARY 2018

Historical U.S. Prime, LIBOR, and Swap Rates

BRYANT PARK CAPITAL


FIXED INCOME

0.00

1.00

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4.00

5.00

6.00

7.00

8.00

9.00

Interest Rate Swaps - USD - 1 Year - Rate Value Interest Rate Swaps - USD - 10 Year - Rate Value

Interest Rate Swaps - USD - 5 Year - Rate Value Interest Rate Swaps - USD - 30 Year - Rate Value

ICE LIBOR - USD - 1 Month - Rate Value United States Prime Rate - Rate Value

MERGERS AND ACQUISITIONS

OVERALL MARKET OBSERVATIONS:

■ U.S. M&A deal activity decreased in December by 18.8% with 776 announcements compared to 956 in November.

Aggregate M&A spending decreased as well; in December, 15.8% less was spent on deals compared to November.

■ Globally, there were a total of 18,443 deals valued at US$3.2 trillion in 2017. Compared to the totals at the end of 2016,

value decreased by 3.0% while the total number of deals increased by 1,074.

■ Although there was a decrease in global M&A value, which was primarily driven by a decrease in activity within the North

American market, the U.S. had the three largest deals of the year through the purchases of Twenty-First Century Fox, Aetna,

and Reynolds American.

RECENT SPECIALTY FINANCE & CONSUMER M&A TRANSACTIONS:

January 24th – Armanda Group USA, Inc. acquired a 30.0% interest in Oxygen Funding, Inc. Oxygen Funding, Inc., a

factoring company, provides accounts receivable financing services to large corporations and small business startups in the

United Sates. The company was founded in 2007 and based in Lake Forest, CA.

January 19th – ONEBio Corp (OTCPK: ONBI) acquired Paragon Financial Group, Inc. for an undisclosed amount.

Paragon Financial Group operates as an invoice-based finance company providing working capital solutions for growing

companies. The company was founded in 1994 and is based in Fort Lauderdale, Florida.

January 1st – Atlantic Community Bancshares, Inc. acquired BBN Financial Corporation for $17.0 million. BBN

Financial Corporation operates as a financial holding company which, through its subsidiary, provides lending services to

financial institutions. The company was incorporated in 2016 and is based in Glastonbury, Connecticut.

December 29th – PDX Partners, Inc. (OTCPK: PDXP) acquired AMC Financial Group for an undisclosed amount. AMC

Financial Group provides alternative lending options to small and midsize businesses. The company is headquartered in

Elmwood Park, Illinois.

Sources: Factset, Mergermarket, and CapIQ

(a) Consumer refers to companies which operate consumer loan, personal credit agencies, and offer fund transfers clearance and exchange services.

3


FEBRUARY 2018

BRYANT PARK CAPITAL


RECENT SPECIALTY FINANCE & CONSUMER M&A TRANSACTIONS:

December 22nd – Arnhold and S. Bleichroeder Holdings, Inc. acquired NewStar Financial, Inc. for approximately $517.3

million. NewStar Financial, Inc. operates as a commercial finance company in the United States. The company operates

through two segments, Commercial Lending and Asset Management. The company was founded in 2004 and is based in

Boston, Massachusetts.

December 8th – Gulf Coast SBA Lending acquired American Business Lending, Inc. for an undisclosed amount.

American Business Lending, Inc. operates as a federally regulated non-bank direct SBA lender in the United States. It serves

the small business market by providing commercial finance for real estate, expansion, construction, refinance, business

acquisition, and working capital projects. The company was founded in 2006 and is based in Dallas, Texas.

December 5th – Bain Capital Ventures and Silversmith Capital Partners have acquired Swift Prepaid Solutions, Inc. for

an undisclosed amount. Swift Prepaid Solutions provides prepaid bankcard products. The company focuses on

incentive/promotion, rebate, gift card, agent banking, payroll, restricted spend, and pharma programs. The company was

founded in 1996 and is based in Buffalo Grove, IL.

December 1st – IPFS Corporation acquired Premium Assignment Corporation for an undisclosed amount. Premium

Assignment Corporation operates as a commercial lines insurance premium finance company in the United States. The

company was founded in 1961 and is based in Tallahassee, Florida.

November 13th – Värde Partners, Inc. acquired Credit Shop, Inc. for an undisclosed amount. Credit Shop, Inc. provides

personal loans to the underserved for emergency and everyday needs. The company,formerly known as Americas Equitable

Lending, Inc. Credit Shop, Inc., was founded in 2013 and is based in Austin, Texas.

November 7th – The Loan Companies acquired Chicago Loan Company for an undisclosed amount. Chicago Loan

Company provides pawn loans against diamonds, gold, and platinum jewelry; high-end watches; modern and contemporary

art; and unique memorabilia. The company was founded in 1881 and is based in Chicago, Illinois.

November 3rd - Navient Corporation (NasdaqGS: NAVI) acquired Earnest Operations LLC for approximately $155.0

million. Earnest Operations LLC refinances and consolidates student loans. It also offers personal loans and parent loan

refinancing services. The company was incorporated in 2013 and is based in San Francisco, California.

October 27th – Accord Financial Corp. (TSX: ACD) acquired CapX Partners for $9.0 million. CapX Partners, a specialty

finance company, provides capital to middle market companies, private equity sponsored firms, and venture capital backed

firms throughout the United States. It offers middle market lending capital for plant expansion, antiquated fixed asset

replacement, and new customer acquisition. The company was founded in 1999 and is based in Chicago, Illinois.

October 26th – Parkinson’s Foundation, Inc. acquired Melvin Yahr International Parkinson’s Disease Foundation for

an undisclosed amount. Melvin Yahr International Parkinson’s Disease Foundation provides financial support to junior

physicians and neuroscientists for professional and intellectual development. The institution was founded in 1979 and is

based in Chappaqua, New York..

Sources: Cap IQ

4


FEBRUARY 2018

MERGERS AND ACQUISITIONS

BRYANT PARK CAPITAL


RECENT PRIVATE PLACEMENT TRANSACTIONS:

January 23rd – Coinme Inc. has received $0.2 million in funding from undisclosed investors. Coinme Inc. operates Bitcoin

ATM kiosks. Its kiosks allow users to buy, sell, transfer, or turn their Bitcoin into cash. The company, formerly known as

Western Coin LLC, was founded in 2014 and is based in Seattle, Washington.

January 19th – Afterpay US, Inc. has received $0.1 million in unsecured, convertible notes from Matrix Partners. Afterpay

US, Inc. operates as a debt issuing vehicle. It also intends to offers payment processing services in the United States. The

company was incorporated in 2017 and is based in the United States.

January 18th – Petros Pace Finance, LLC received $10.0 million in an equity round of funding from A-ROD CORP.

Petros Pace Finance, LLC provides long-term financing for energy retrofits to commercial properties. The company also

provides loans to owners of industrial, multi-family, and non-profit properties to modernize their buildings with energy-

efficient systems. The company is based in Austin, Texas.

January 18th – Fundation Group LLC entered in a private placement of subordinated debt facility from an undisclosed

investor. Fundation Group LLC provides online business loans in the United States. It offers term loans for expansion,

equipment, and capital improvements; and lines of credit for working capital and short-term cash flow issues. The

company was founded in 2011 and is based in New York, New York.

January 10th – Petal Card, Inc. has received $13.0 million in a round of funding led by Valar Ventures LP. Petal Card,

Inc. issues credit cards to people who do not have traditional credit history, which may include students, and immigrants.

The company, formerly known as CreditBridge, was founded in 2015 and is based in New York, New York.

January 10th – Capital Pawn Holdings, LLC has received a first lien term loan for an undisclosed amount by new investor

Capital Southwest Corporation. Capital Pawn Holdings LLC provides loans for short-term cash needs for consumers in

the southeastern United States. The company is based in Greenville, South Carolina.

January 2nd – North Avenue Capital, LLC has received $3.1 million in funding from undisclosed investors. North Avenue

Capital, LLC, a specialized commercial lender, is focused on USDA Rural Development programs in the United States. It

originates, underwrites, funds, and services qualifying commercial loans under the USDA Business & Industry, Renewable

Energy for America, and Community Facility programs. The company was founded in 2012 and is based in Dallas, Texas.

December 28th – GreenSky, LLC has received $200.0 million in funding from Pacific Investment Management

Company. GreenSky, LLC operates as a third party service provider and program administrator for federally insured,

federal, and state chartered banks that provide consumer loans. It helps businesses to offer credit to their customers. The

company was founded in 2006 and is based in Atlanta, Georgia.

December 26th – Cerberus Business Finance, LLC has received an undisclosed amount of equity financing from new

investor Byal Capital Partners. Cerberus Business Finance, LLC offers commercial lending services to middle market

companies. It provides acquisition, working capital, recapitalization, debtor-in-possession financing, and bridge loans. The

company was founded in 1992 and is based in New York, New York.

December 11th – Affirm, Inc. has received $200.0 million in a round of funding led by investor GIC Pte. Affirm, Inc.

Affirm, Inc. provides Buy with Affirm, a closed-end installment loan product through a platform. The company’s product

allows users to buy goods or services offered by online merchants and pay off those purchase in fixed monthly payments.

The company was founded in 2012 and is based in San Francisco, California.

December 6th – A leading firm in the consumer lending space secured a $50 million senior credit facility with a $50

million accordion. The company provides flexible term installment loans to underbanked consumers with limited

access to traditional financing sources. Bryant Park Capital acted as exclusive financial advisor in connection with this

transaction.

Sources: Cap IQ

5


FEBRUARY 2018

PRIVATE PLACEMENTS

BRYANT PARK CAPITAL


RECENT PRIVATE PLACEMENT TRANSACTIONS:

December 4th – BlockFi Inc. has received an equity round of financing from investor ConsenSys Ventures. BlockFi Inc.

offers financial loans for cryptoasset owners. The company provides USD denominated loan backed by Bitcoin or Ether

as collateral. The company was founded in 2017 and is headquartered in New York, New York.

December 4th – Applied Data Finance, LLC has received approximately $20.0 million in a round of funding from

Redpoint Capital Group. Applied Data Finance, LLC provides loans to less-than-prime borrowers in the United

States. Applied Data Finance, LLC was incorporated in 2014 and is based in San Diego, California. Bryant Park

Capital acted as co-advisor in connection with this transaction.

November 16th – Thrivest Legal Funding closed a new senior structured credit facility of up to $50.0 million with

a leading alternative asset lender. The company is an established pre-settlement legal funder with approximately

$35 million in advances. Bryant Park Capital acted as exclusive financial advisor in connection with this transaction.

November 16th – i3 Verticals, LLC has received $200,000 in a round of funding from undisclosed investors. i3 Verticals,

LLC provides technology-enabled payment processing solutions. The company offers point-of-sale/mobile point-of-sale

solutions, gift and loyalty programs, merchant financing solutions, security solutions, and reporting tools. The company

was founded in 2012 and is based in Nashville, Tennessee.

November 14th – Clearinghouse Community Development Financial Institution has received $2.0 million from

Western Alliance Bancorporation (NYSE: WAL). CCDFI offers financial lending for projects that include community

facilities, affordable housing, commercial real estate, new markets tax credits, and small businesses. The company was

founded in 1996 and is based in Lake Forest, California.

November 6th - PayForward LLC has received approximately $5.0 million in funding from undisclosed investors.

PayForward LLC operates a social financial network that enables users to earn cash back and pay it forward. The company

also offers PayForward, a prepaid debit card that provides rebates from various merchants, including restaurants, retailers,

etc. in the United States. The company was incorporated in 2013 and is based in Valencia, California.

October 31st – PayQuick, Inc. has received approximately $2.9 million in a round of funding from undisclosed investors.

The company engages in money service business for the recreational marijuana industry. It allows consumers to pay with a

smart phone application or with the PayQuick card for the recreational marijuana. The company was founded in

Calabasas, California.

Sources: Cap IQ

6


FEBRUARY 2018

PRIVATE PLACEMENTS

BRYANT PARK CAPITAL


Specialty Finance Market Update

Analysis of Comparable Publicly Traded Financial Services Companies (as of 2/6/2018)(US$ in millions, except per share data)

Sales EV / Sales

Mkt Cap Enterprise

Company Ticker 2/6/18 Value LTM LTM Margin 2018 E LTM 2018 E 2019 E LTM LTM 2018 E 2019 E LTM 2018 E 2019 E Price / BV(a)

Specialty Finance - Other

Asta Funding, Inc. ASFI $67.9 $137.3 $48.0 $2.4 5.0% NA ($2.5) NA NA 2.9x NM NA NA NM NA NA 0.6x

Encore Capital Group, Inc. ECPG $1,013.1 $4,122.4 $1,140.9 $367.7 32.2% $403.3 $92.9 $100.9 $110.1 3.6x 11.2x 10.2x 9.2x 10.9x 10.0x 9.2x 1.8x

GWG Holdings, Inc. GWGH $51.7 $711.6 $63.3 NA NA NA ($12.0) ($21.7) ($18.4) NM NA NA NA NM NM NM (1.8x)

Medallion Financial Corp. MFIN $107.6 $426.3 $18.7 NA NA NA ($5.7) NA NA NM NA NA NA NM NA NA 0.4x

On Deck Capital, Inc. ONDK $316.6 $977.3 $169.9 NA NA $5.4 ($31.1) ($4.8) $20.7 5.8x NA NM NM NM NM 15.3x 1.2x

PRA Group, Inc. PRAA $1,580.9 $3,493.0 $763.2 $263.8 34.6% $230.9 $85.2 $65.6 $79.0 4.6x 13.2x 15.1x 14.0x 18.6x 24.1x 20.0x 1.6x

Mean 23.9% 4.2x 12.2x 12.7x 11.6x 14.7x 17.1x 14.8x 0.6x

Median 32.2% 4.1x 12.2x 12.7x 11.6x 14.7x 17.1x 15.3x 0.9x

Leasing / Rental

Chesswood Group Limited TSX:CHW $144.1 $456.7 $46.2 NA NA $23.9 $13.4 $12.8 $15.1 9.9x NA 19.1x 16.4x 10.7x 11.3x 9.6x 1.3x

Element Fleet Management Corp. EFN $1,721.1 $12,799.5 $995.9 NA NA NA $166.6 $265.1 $236.0 NM NA NA NA 10.3x 6.5x 7.3x 0.7x

FLY Leasing Limited FLY $361.6 $2,676.8 $343.2 NA NA $296.6 $34.1 $54.3 $61.2 7.8x NA 9.0x 7.5x 10.6x 6.7x 5.9x 0.7x

Marlin Business Services Corp. MRLN $321.5 $246.3 $89.5 NA NA NA $14.8 $21.8 $27.9 2.8x NA NA NA 21.8x 14.7x 11.5x 1.8x

Mobile Mini, Inc. MINI $1,941.6 $2,861.1 $533.5 $178.7 33.5% $206.1 $49.8 $73.7 $83.7 5.4x 16.0x 13.9x 12.7x 39.0x 26.3x 23.2x 2.3x

Textainer Group Holdings Limited TGH $1,307.3 $4,062.6 $483.7 $281.3 58.2% $380.5 ($17.1) $19.3 $71.5 8.4x 14.4x 10.7x 9.2x NM NM 18.3x 1.2x

Mean 45.8% 6.8x 15.2x 13.2x 11.4x 18.5x 13.1x 12.6x 1.3x

Median 45.8% 7.8x 15.2x 12.3x 11.0x 10.7x 11.3x 10.5x 1.2x

Asset Based Lending

Accord Financial Corp. TSX:ACD $59.7 $177.9 $19.7 NA NA NA $3.2 NA NA 9.0x NA NA NA 18.6x NA NA 1.0x

Callidus Capital Corporation TSX:CBL $370.4 $673.4 ($10.4) NA NA NA ($50.0) ($36.7) $11.1 NM NA NA NA NM NM 33.4x 1.3x

CIT Group Inc. CIT $6,684.6 $15,671.4 $2,407.1 NA NA NA $470.3 $521.2 $623.0 6.5x NA NA NA 14.2x 12.8x 10.7x 1.0x

Newsphone Hellas SA NEWS $9.1 $10.5 $25.3 $2.4 9.6% NA $0.7 NA NA 0.4x 4.4x NA NA 13.5x NA NA 0.3x

Mean 9.6% 5.3x 4.4x NA NA 15.4x 12.8x 22.1x 0.9x

Median 9.6% 6.5x 4.4x NA NA 14.2x 12.8x 22.1x 1.0x

Consumer Finance

Atlanticus Holdings Corporation ATLC $31.9 $283.3 $49.7 NA NA NA ($19.2) NA NA 5.7x NA NA NA NM NA NA (1.9x)

CURO Group Holdings Corp. CURO $770.9 $1,317.1 $963.6 $217.4 22.6% $252.0 $72.4 $105.4 $143.3 1.4x 6.1x 5.2x 4.3x 10.6x 7.3x 5.4x 108.0x

Enova International, Inc. ENVA $658.4 $1,378.2 $769.7 NA NA $189.5 $38.0 $68.2 $82.8 1.8x NA 7.3x 6.6x 17.3x 9.7x 8.0x 2.3x

EZCORP, Inc. EZPW $713.5 $891.6 $759.8 $84.3 11.1% $113.9 $34.7 $47.4 $54.5 1.2x 10.6x 7.8x 6.9x 20.6x 15.1x 13.1x 1.1x

FirstCash, Inc. FCFS $3,454.1 $3,741.9 $1,779.8 $274.0 15.4% $283.1 $122.2 $155.4 $175.1 2.1x 13.7x 13.2x 12.1x 28.3x 22.2x 19.7x 2.3x

Green Dot Corporation GDOT $2,846.9 $2,202.5 $839.9 $127.3 15.2% $201.9 $58.7 $105.6 $127.9 2.6x 17.3x 10.9x 9.3x 48.5x 27.0x 22.3x 3.8x

LendingClub Corporation LC $1,522.6 $1,144.8 $558.3 NA NA $43.5 ($67.6) $4.7 $40.0 2.1x NA NM 13.7x NM NM 38.0x 1.5x

Regional Management Corp. RM $326.7 $854.6 $253.9 $68.5 27.0% $67.4 $24.6 $27.7 $37.0 3.4x 12.5x 12.7x 11.5x 13.3x 11.8x 8.8x 1.4x

World Acceptance Corporation WRLD $944.8 $1,296.6 $541.4 $128.6 23.7% $118.9 $63.3 $72.7 NA 2.4x 10.1x 10.9x NA 14.9x 13.0x NA 1.9x

Mean 19.2% 2.5x 11.7x 9.7x 9.2x 21.9x 15.1x 16.5x 13.4x

Median 19.0% 2.1x 11.5x 10.9x 9.3x 17.3x 13.0x 13.1x 1.9x

Market Statistics Valuation MetricsOperating Metrics

EV / EBITDA P / ENet IncomeEBITDA

7



Sales EV / Sales

Mkt Cap Enterprise




Automotive Financing

America's Car-Mart, Inc. CRMT $315.3 $456.3 $587.2 $42.1 7.2% $45.3 $20.8 $21.1 $27.8 0.8x 10.8x 10.1x 9.2x 15.2x 14.9x 11.3x 1.4x

Consumer Portfolio Services, Inc. CPSS $92.8 $2,307.2 $157.1 NA NA $124.2 $22.8 $14.5 $18.5 NM NA 18.6x 18.6x 4.1x 6.4x 5.0x 0.5x

Credit Acceptance Corporation CACC $6,117.0 $9,179.6 $860.5 NA NA NA $364.9 $506.2 $544.9 NM NA NA NA 16.8x 12.1x 11.2x 4.0x

Nicholas Financial, Inc. NICK $72.1 $247.0 $34.9 NA NA NA $0.8 NA NA 7.1x NA NA NA NM NA NA 0.7x

Mean 7.2% 3.9x 10.8x 14.3x 13.9x 12.0x 11.1x 9.2x 1.6x

Median 7.2% 3.9x 10.8x 14.3x 13.9x 15.2x 12.1x 11.2x 1.0x

eFinance

GAIN Capital Holdings, Inc. GCAP $303.4 ($746.9) $345.4 NA NA $36.4 $12.6 ($9.7) $32.5 (2.2x) NA (20.5x) (8.4x) 24.1x NM 9.3x 1.1x

Intercontinental Exchange, Inc. ICE $42,279.8 $47,856.8 $4,629.0 $2,945.7 63.6% $3,202.7 $1,567.6 $2,100.7 $2,349.3 NM 16.2x 14.9x 13.9x 27.0x 20.1x 18.0x 2.5x

Investment Technology Group, Inc. ITG $645.8 $442.7 $481.7 NA NA $117.9 $4.1 $34.9 $56.1 0.9x NA 3.8x 3.2x NM 18.5x 11.5x 1.8x

MarketAxess Holdings Inc. MKTX $7,329.5 $7,162.4 $397.5 $220.5 55.5% $254.8 $126.1 $177.8 $215.4 NM NM NM NM NM 41.2x 34.0x 14.2x

Nasdaq, Inc. NDAQ $12,919.1 $16,514.1 $3,965.0 $1,262.7 31.8% $1,315.4 $578.1 $795.1 $873.3 4.2x 13.1x 12.6x 11.7x 22.3x 16.2x 14.8x 2.2x

Mean 50.3% 1.0x 14.7x 2.7x 5.1x 24.5x 24.0x 17.5x 4.4x

Median 55.5% 0.9x 14.7x 8.2x 7.5x 24.1x 19.3x 14.8x 2.2x

Fin Tech

Broadridge Financial Solutions, Inc. BR $10,591.1 $11,594.6 $4,172.1 $733.1 17.6% $833.8 $313.5 $407.0 $454.4 2.8x 15.8x 13.9x 13.8x 33.8x 26.0x 23.3x 10.2x

CoreLogic, Inc. CLGX $3,733.2 $5,381.3 $1,871.9 $395.9 21.2% $473.5 $109.5 $190.9 $212.3 2.9x 13.6x 11.4x 11.1x 34.1x 19.6x 17.6x 3.7x

Fiserv, Inc. FISV $27,248.2 $32,034.2 $5,611.0 $1,763.0 31.4% $2,027.6 $839.4 $1,058.9 $1,219.5 5.7x 18.2x 15.8x 14.7x 32.5x 25.7x 22.3x 11.6x

MoneyGram International, Inc. MGI $626.0 $1,365.5 $1,610.1 $227.5 14.1% $275.9 $34.5 $54.0 $60.7 0.8x 6.0x 4.9x 4.8x 18.1x 11.6x 10.3x (3.4x)

The Western Union Company WU $9,098.6 $11,439.6 $5,457.7 $1,348.2 24.7% $1,366.7 $607.4 $840.4 $839.1 2.1x 8.5x 8.4x 8.4x 15.0x 10.8x 10.8x 12.8x

WEX Inc. WEX $6,260.1 $8,446.2 $1,210.1 $393.8 32.5% $488.9 $113.5 $230.8 $295.3 7.0x NM 17.3x 14.6x NM 27.1x 21.2x 3.9x

Mean 23.6% 3.5x 12.4x 11.9x 11.2x 26.7x 20.1x 17.6x 6.5x

Median 22.9% 2.8x 13.6x 12.6x 12.4x 32.5x 22.6x 19.4x 7.0x

8



Sales EV / Sales

Mkt Cap Enterprise




SBA Lending/ BDC

Ares Capital Corporation ARCC $6,620.4 $10,919.4 $1,113.0 $791.0 71.1% NA $344.4 $578.4 $669.5 9.8x 13.8x NA NA 19.2x 11.4x 9.9x 0.9x

FS Investment Corporation FSIC $1,842.9 $3,377.2 $417.4 NA NA NA $128.1 $199.0 $197.3 8.1x NA NA NA 14.4x 9.3x 9.3x 0.8x

Garrison Capital Inc. GARS $128.6 $315.0 $36.6 NA NA NA $11.2 $17.3 $16.6 8.6x NA NA NA 11.5x 7.4x 7.7x 0.7x

Hercules Capital, Inc. HTGC $1,056.2 $1,643.3 $188.2 $140.8 74.9% NA $60.7 $97.6 $110.3 8.7x 11.7x NA NA 17.4x 10.8x 9.6x 1.3x

KCAP Financial, Inc. KCAP $120.2 $219.6 $29.8 NA NA NA $7.8 $11.2 $13.6 7.4x NA NA NA 15.4x 10.7x 8.8x 0.7x

Main Street Capital Corporation MAIN $2,127.0 $2,983.6 $196.8 NA NA NA $80.2 $138.9 $139.8 NM NA NA NA 26.5x 15.3x 15.2x 1.6x

Medley Management Inc. MDLY $32.9 $112.9 $65.3 $32.3 49.5% $32.0 ($4.0) $3.4 $2.9 1.7x 3.5x 3.5x 2.9x NM 9.6x 11.4x (5.2x)

Monroe Capital Corporation MRCC $274.7 $419.1 $49.0 NA NA NA $15.4 $28.2 $29.8 8.6x NA NA NA 17.8x 9.7x 9.2x 1.0x

Newtek Business Services Corp. NEWT $300.3 $525.4 $37.6 $3.8 10.0% NA ($6.2) $32.1 $33.6 NM NM NA NA NM 9.4x 8.9x 1.2x

Oaktree Capital Group, LLC OAK $2,962.1 $5,238.9 $1,469.8 $457.6 31.1% $710.9 $60.4 $230.9 $267.4 3.6x 11.4x 7.4x 6.0x 49.0x 12.8x 11.1x 3.4x

Och-Ziff Capital Management Group LLC OZM $443.2 $1,375.5 $700.1 $92.4 13.2% $449.9 ($6.7) $93.6 $67.5 2.0x 14.9x 3.1x 3.7x NM 4.7x 6.6x (0.9x)

PennantPark Investment Corporation PNNT $459.1 $946.9 $124.5 NA NA NA $38.8 $54.0 $52.5 7.6x NA NA NA 11.8x 8.5x 8.8x 0.7x

Prospect Capital Corporation PSEC $2,266.9 $4,582.4 $679.8 NA NA NA $181.1 $268.9 $256.8 6.7x NA NA NA 12.5x 8.4x 8.8x 0.7x

Solar Capital Ltd. SLRC $854.5 $1,121.3 $141.1 NA NA NA $42.1 $67.8 $76.6 7.9x NA NA NA 20.3x 12.6x 11.2x 0.9x

TICC Capital Corp. TICC $279.5 $316.7 $66.8 NA NA NA $18.1 $29.6 $31.1 4.7x NA NA NA 15.5x 9.4x 9.0x 0.7x

Triangle Capital Corporation TCAP $505.6 $975.0 $122.5 $101.1 82.5% NA $44.8 $72.1 $63.7 8.0x 9.6x NA NA 11.3x 7.0x 7.9x 0.8x

Mean 47.5% 6.7x 10.8x 4.7x 4.2x 18.7x 9.8x 9.6x 0.6x

Median 49.5% 7.8x 11.6x 3.5x 3.7x 15.5x 9.5x 9.1x 0.8x

Real Estate Financing

ARMOUR Residential REIT, Inc. ARR $944.1 $8,059.6 $239.4 NA NA NA $129.2 $112.1 $101.2 NM NA NA NA 7.3x 8.4x 9.3x 0.8x

Fidelity National Financial, Inc. FNF $10,396.3 $7,038.3 $7,663.0 $1,353.3 17.7% $1,124.0 $523.3 $764.3 $838.0 0.9x 5.2x 6.3x 5.9x 19.9x 13.6x 12.4x 2.3x

First Acceptance Corporation FAC $45.3 $21.5 $353.3 $6.1 1.7% NA ($0.9) NA NA 0.1x 3.5x NA NA NM NA NA 0.6x

Meta Financial Group, Inc. CASH $1,065.1 $1,163.6 $270.9 NA NA NA $46.4 $80.5 NA 4.3x NA NA NA 23.0x 13.2x NA 2.4x

MFA Financial, Inc. MFA $2,754.8 $9,372.6 $361.0 NA NA NA $184.0 $265.2 $276.2 NM NA NA NA 15.0x 10.4x 10.0x 0.8x

Nationstar Mortgage Holdings Inc. NSM $1,659.4 $16,533.4 $1,273.0 NA NA $532.0 $233.4 $34.5 $233.1 NM NA NM NA 7.1x 48.1x 7.1x 1.0x

PHH Corporation PHH $269.5 $901.5 $657.0 NA NA NA ($207.5) ($144.8) ($81.5) 1.4x NA NA NA NM NM NM 0.5x

Walker & Dunlop, Inc. WD $1,408.8 $2,316.2 $702.4 NA NA $197.4 $145.3 $143.4 $155.3 3.3x NA 11.7x 11.1x 9.7x 9.8x 9.1x 1.7x

Mean 9.7% 2.0x 4.4x 9.0x 8.5x 13.7x 17.3x 9.6x 1.3x

Median 9.7% 1.4x 4.4x 9.0x 8.5x 12.3x 11.8x 9.3x 0.9x

Source: Cap IQ

(a) Price as of February 06, 2018 divided by the last reported book value

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SELECTED SPECIALTY FINANCE TRANSACTIONS

NEW YORK CITY

489 Fifth Avenue

16th Floor

New York, NY 10017

212-798-8200

PHILADELPHIA

Eight Tower Bridge

161 Washington Street

Suite 310

Conshohocken, PA 19428

484-586-8200

www.finra.org

www.sipc.org

www.bryantparkcapital.com

FEBRUARY 2018

BRYANT PARK CAPITAL

SPECIALTY FINANCE MARKET UPDATE

EXECUTIVES &

PRINCIPALS

Joel Magerman

Managing Partner

Dan Avnir

Managing Director

Matt Pennino

Managing Director

Raymond Kane

Managing Director

The information in this newsletter is believed by Bryant Park Capital to be accurate and current and comes from reliable sources. However, unintentional

errors may occur. With this being said the information is “as is” and without any representation or warranty of any kind, implied or expressed.

Reproduction, retransmission, republication, or use of any of this document is prohibited.

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