INVESTMENT STRATEGY

What Sets Summit Apart from the Competition?

Summit has a simplified business model that focuses on purchasing the most transparent and liquid portfolios of consumer loans.

Summit purchases consumer receivables portfolios from businesses:

• With current “seasoning” or in-depth credit underwriting of each debtor, allowing us to effectively predict aggregate payment performance
• Priced at a significant discount to current value (based on default risk, coupon and term)
• Favorable purchase terms often include “recourse” buy-back of individual non-performing contracts, mandatory ACH payments, and/or monthly processing fees
• Once purchased, portfolios are serviced more effectively through outsourcing of servicing and collections to specialist firms with knowledge of the products and services financed

Through this process Summit seeks to achieve extraordinary risk-adjusted returns through disciplined pricing, underwriting and servicing of loans.  Examples include:

• Disciplined implementation of Summit’s proprietary portfolio pricing methodology:
  
  • Several variables are analyzed using quantitative analysis and extensive experience
  • Portfolios are purchased at a discount to their par value
  • Hold receivables to maturity for protection of principal
  • Provide portfolio diversification across industry, geography, maturity and other factors
  • Provide steady returns in all market cycles
  • Minimal correlation to public equity and debt markets
  • Unsecured consumer paper default rates have historically varied by less than 6 points peak-to-trough since 1985
  • Target 15%+ annual returns net of all fees

  Investment structures include separate accounts and Hedge Funds.

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