EFTA01375237.pdf

Home Partners of America Area of expertise: Private markets Theme: Hard assets as inflation protection/sources of current income . II # r= ew — Home Partners of America ("HPA," formerly Hyperion homes) is a single-family housing investment platform launched in November 2012 with the goal of providing responsible households that cannot access mortgage credit a new path to ownership — The program is built on a resident led model: approved clients are allowed to find a home from all available housing stock in agreed communities; HPA purchases the home, leases it and provides a purchase right to the client — DB and other institutional investors like BlackRock and KKR have committed to invest an aggregate of more than $480mm in HPA — Target unlevered cash on cash returns above 6%, leveraged gross IRRs between 14-23%, and five year total returns in excess of 2x capital Market opportunity — HPA believes that the current lending environment has created an attractive opportunity to invest in single-family homes — Compared to the market pre-housing crisis, significant numbers of middle class American households cannot obtain mortgage credit — Access to middle market mortgage credit is almost exclusively driven by government programs which may not be sustainable. Government sponsored enterprises are currently responsible for 93% of all mortgage credit — Strict lending standard across all credit sources now require FICO scores that are well above the national average, creating a need for alternative methods of financing — Risks: potential loss of full investment, lack of operating history, limited liquidity GSA and FHA Credit Scores at Underwriting' $50 I d M Ginnie Mae Permanent, with investors holding a specific percentage of Term shares having ability to seek certain liquidity events beginning after two years Investment period 18 months Management fee None — the company is internally managed and will bear its G&A load 650 Minimum commitment 55mm, though the Company reserves the right to accept subscriptions of lesser amounts 600 Distributions Required to distribute to its stockholders each year at 41 ‘ 4 1th 41 ' ..4." ji .3" ..71 41 0, sit azr; elmCs'4s: 4$'%."• least 90% of taxable income (1) Citioroup Deutsche Asset We3ith Manaoenc: For U.S. Key Client Partners (KCP) Clients Only 16 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0070518 CONFIDENTIAL SDNY_GM_00216702 EFTA01375237