Atalaya Risk Management Overview

Specialty Finance: Underwriting & Asset Management Atalaya specialty finance investments typically incorporate monthly monitoring of financial covenant protections, which are established as an integral component of the underwriting process and are designed to mitigate downside risk. Analysis of historic data pools contributes to underwriting process and monitoring of specialty finance investments (% of Original Loan Balance) Cumulative Charge-Offs 40% 35% 30% 25% 20% 15% 10% 5% 0% 0 2 Underwritten Base Case Historic performance analysis helps Atalaya establish appropriate covenants set at "early warning" levels -Atalaya Breakeven - Covenant Trigger Level 4 6 8 10 Atalaya tracks cash flows monthly and typically reconciles with back up servicer Monthly Covenant Tracking Example 12 14 16 18 20 22 Tranche Age (month since inception) 24 PRESENTATION TO RHODE ISLAND STATE INVESTMENT COMMISSION | JANUARY 2021 26 Atalaya generally has the contractual ability to cease fundings if applicable covenant levels are breached 28 30 ATALAYA 32 34 36 Historic Vintages 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 underwriting, asset management 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. 19

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