Atalaya Risk Management Overview

Structural Protections in Specialty Finance: Cash Controls & Monitoring Atalaya generally employs structural protections designed to mitigate downside risk in specialty finance investments. 8 © Atalaya Cash Controls Cash Flows from Assets Segregation of financed assets from "operating business" via bankruptcy remote SPV borrower structures Atalaya Lock Box Control of cash in collection/ collateral accounts via lockboxes and DACAS (deposit account control agreements) Borrower Operating Account Atalaya monitors (and takes security interest in and springing control over) borrower operating account Investment Monitoring Third party asset verification & collateral custodian services Back-up servicers PRESENTATION TO RHODE ISLAND STATE INVESTMENT COMMISSION | JANUARY 2021 ATALAYA Atalaya Investment Typically monthly financial and asset performance covenant tracking Periodic field exams Characteristics are general and indicative only, and there can be no guarantee or assurance that Atalaya investments in specialty finance will contain any or all such characteristics. There can be no guarantee or assurance that investment monitoring practices and/or structural protections will achieve their objectives (as described above), or that they will cause investments to be less risky or perform as underwritten. 18

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