Pyatt Broadmark Real Estate Lending

Fund I (“PBRELF I”)

October 2015

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Fund Summary

� PBRELF I invests in short-term, first lien notes

issued against real estate projects in the Pacific

Northwest (Washington, Oregon, Idaho) with

Seattle as the core market

� The goal of PBRELF I is to provide investors with a

high-yield debt investment while minimizing the risk

of principal loss and maintaining near-term liquidity

� Roughly $136.4M in assets under management

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Background

� Pyatt Broadmark Management, LLC (“PBM”) launched the

PBRELF I in August 2010 in partnership with Broadmark

Capital, LLC, a FINRA member broker-dealer established in

1987

� PBRELF I is satisfying an unmet need in the US credit market

by providing short-term loans secured by real estate to home

builders, developers, real estate investors and businesses looking

to expand real property facilities

� Since launch, PBRELF I has written 323 loans and has delivered

an annualized return since inception of 11.72% to investors

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Fund Advantage vs Individual Loans

� Provides a high benefit to cost way to invest in loans

� Investor avoids the hassle of qualifying loans

� Consistent and proven management team monitors eachloan and addresses defaults

� Offers a diversified loan portfolio with over 140 loans

� Measurable performance with a 5 year history

� Fund offers either monthly interest paid by ACH orautomatic reinvestment

� Audited financial statements and monthly reporting

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Why Pyatt Broadmark:

� Seasoned team with proven management structure

�No leverage

� First position, senior secured loans only

� Consistent Performance

� Personal guarantees required of borrowers

� Rigorous underwriting standards (see next page for specifics)�Max Loan to Value: 65%

� Regionally focused in the Pacific Northwest

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Underwriting Process

�Our team adheres to a strict underwriting process

�Documents necessary prior to underwriting

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From Borrower� Credit Application

� Operating Agreement

� Business Financials

� Business Tax Returns

� Guarantor Financials

� Guarantor Tax Returns

Collateral Confirmation:� Independent Appraisal Report

� Preliminary Title Report

� Purchase & Sale Agreement

� Itemized Budget Review

� Building Permit, Plans, Specs

� Borrower’s Marketing Plan & Material

� Tax Records & Property Info

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Investor Terms

� The Fund raises capital through the issuance of membershipinterests in a limited liability company

� $100,000 minimum investment with the current capacity toaccept up to $5M per month

� Investor return:

� Investors receive 20% of origination fee income, and 80% of

interest income (less direct fund expenses, e.g. taxes and audit). The

balance represents management fees and operating costs.

�Monthly cash distributions paid directly to investor’s bank account

� Redemption option after 1 year; then quarterly

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Monthly Cash Distributions

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Historical Cash Distributions through September 2015

Note: Return data as of September 30, 2015. Assumes reinvestment.

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Diversifying away from volatility

� Recently, the public stock and bond markets have become

increasingly volatile

� Additionally, with the Federal Reserve poised to raise interest

rates, financial markets may become even more volatile

� Since the fund’s inception, we have had a low correlation to both

stocks and bonds

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� This makes our fund a desirable

investment with which to diversify

a portfolio and potentially provide

protection against market shocks

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Consistent Performance

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� Historical returns have remained steady over time, even as AUM has increased

� November 2010 dip: due to excess cash on hand.

� December 2013 spike: due to accrued penalty interest recovered from a loan in default.

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Loan Economics

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� Loan economics:

� Avg. Life of Loan 8.6 months

� Avg. Origination fee 3.5%

� Avg. Interest rates 12.2%

� Annualized loan return target 18% to 20%

� Out of 378 loans written across both funds, only seven have been put intoforeclosure.

� Of these foreclosures, two have been completed with no loss of principal,and three are still being processed by management.

� One of the seven foreclosures, a strip center in Spokane, WA, is recentlyREO (real-estate owned). PBM has engaged a commercial real estatebrokerage firm to fill vacancies and sell the property. Principle owed at thetime of foreclosure was 64.3% of appraised value.

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Current Loan Portfolio: Snapshot

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� Current portfolio

� 141 loans

� Face value of $159.3M

� Appraised collateral of $275.3M

� Repaid portfolio

� 182 repaid loans

� Face value of $106.0M

� Appraised collateral of $180.9M

Max Loan to Value: (65%)

Current Portfolio Loan

to Value

58%

Borrower Equity 42%

PBRELF I

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Why does this opportunity exist?

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� Historically these types of loans were offered by regional banks“ … Private builders have traditionally relied on small or regional banks for funding. But many of those lendersstopped making loans for construction and development during the financial crisis and have been slow toresume…”

Robbie Whelan and Dawn Wotapka, WSJ, July 15, 2013

� As a result of the real estate downturn, the remaining regional banks

were left with too much real estate on their balance sheet

� Surviving regional banks have completely discontinued this type of

lending due to Dodd-Frank

“Community banks lost 6 per cent in market share between 2006 and mid-2010, during the worst of the crisis.But, since the passage of Dodd-Frank in early 2010, the decline in market share has doubled to more than 12per cent.”

Financial Times, February 8, 2015

� Traditional lenders have become strictly cash flow lenders as

opposed to asset based lenders.

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Why does this opportunity exist?

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� Equity partners take a big bite out of profits

� Outside equity partners demand to be paid first

� Outside equity partners still require coupon payments

� 50% or more of the profits

� Banks may not be able to lend in the future“Dodd-Frank’s regulatory burdens are driving consolidation, and could result in lending markets less able toserve core economic demands”

Marshall Lux, Boston Consulting Group, February 9, 2015

� The outlook on construction activity and demand for our loans

looks strong“Overall, forecast results on a construction spending basis is that overall activity for non-residential buildings is predicted to be up 7.7 percent in 2015 and 8.2 percent in 2016.”

Kermit Baker – American Institute of Architects, February 10, 2015

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Reporting and auditing

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� The Fund is valued and reported to investors monthly

� All sales through 25 year old FINRA broker-dealer

� Fund audited by Bader Martin P.S., Seattle, WA, a large regional CPA firm

�2014 audit is available for review

� Loan recording numbers available for independent review

� Loan files available for inspection in our office

� Multiple investor references

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Borrower Testimonials

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� Economics

“PBM has financed numerous development, construction, and rehab loans for us. Their

ability to close a loan quickly combined with their prompt draw funding has allowed us to

make bargain purchases and take advantage of vendor and subcontractor discounts.”

� Opportunity Cost

“I really appreciate all you did for us. Having our original construction loan mature before

we qualified for conventional financing could have cost us our business. You stepped up

and helped us. I would recommend you in the future without hesitation!”

� Customer Service

“Pyatt Broadmark separates themselves by doing what they say they are going to do. I have

worked with other private lenders and they do not compare to the service and execution that

Pyatt Broadmark delivers. They will always have a first right of refusal on my future projects.”

“Being a young developer/builder I encounter a lot of challenges. Pyatt Broadmark has been a

valuable business partner to have through the process of guidelines, budgeting, and

management. I know that I can pick up the phone and call these guys at a drop of a hat and

they will always respond and assist me with whatever I need .”

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Team Bios

Jeffrey Pyatt, Founder: Mr. Pyatt has served as Chairman, CEO, or President of several Northwest companiesover the last 22 years, in addition to leading in various capacities within the community.

Mr. Pyatt is an owner of Private Lenders Group, a private lending fund based in Bellevue, Washington. Mr. Pyattserved as President and CEO of Pacific Financial Services Corporation from July 1994 through March 1999. PacificFinancial was an asset-based lender located in Bellevue, Washington. Mr. Pyatt built Pacific from a start-up to beinga leader in its market, before orchestrating the successful sale of the company.

After receiving his undergraduate degree in accounting and a Master of Taxation degree from the University ofDenver, Mr. Pyatt joined the tax department of Moss Adams, a regional CPA firm in Seattle. After leaving publicaccounting, Mr. Pyatt was involved in a number of acquisitions, dispositions and turn-around of companies in theNorthwest. These companies had revenues ranging from less than $1 million to more than $700 million, bothprivately and publicly held.

He has also participated in the initial financing rounds of a number of telecommunications companies and currentlyserves as a Director of 911 ETC, Inc.

Mr. Pyatt is active in the community, both civically and politically. He has served on the boards of three Boys andGirls Clubs in King County since 1984 and other charitable boards. He is a past President of Park Hill Rotary ofSeattle and Eastside F.C. He currently serves on the board of directors of King County Sexual Assault ResourceCenter and is a founding member of Lake Washington Velo.

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Team Bios

Joseph Schocken, Founder Mr. Schocken is the founder and president of Broadmark Capital, LLC and itspredecessor, Broadmark Capital Corporation. He is an honors graduate of the University of Washington and holds anMBA from Harvard University. He holds Series 7, 24, 63 and 79 FINRA registrations.

With over 30 years as an investment banker, Mr. Schocken has extensive knowledge of the financial services industry andestablished relationships with both strategic and institutional investors in the United States and internationally. Theseprojects have included private placements, debt offerings, mergers, asset purchases and public offerings in a broad arrayof industries including technology, life science, broadcasting and travel. Prior to forming Broadmark Capital in 1987, Mr.Schocken was a partner in several private investment banking firms, including a small New York Stock Exchangemember firm where he managed the corporate finance and real estate departments.

Throughout his career as an investment banker, Mr. Schocken has also been an active private investor and has workedwith a number of exceptional entrepreneurs. As an investor, board member and mentor, Mr. Schocken has played apivotal role in the development of numerous significant enterprises. Notable examples include Bennett Environmental(AMEX: BEL), Optiva (acquired by Phillips) and Universal Access, Inc. (NASDAQ: UAXS), HipCricket, Inc., andOmeros Corporation (NASDAQ: OMER). In each case, Mr. Schocken served as an influential advisor to management inthe development of a capital formation strategy that positioned the company for growth. Broadmark Asset ManagementCompany, which he helped form, received both direct investment and a $100-million allocation from CALPERS in 2000.

In addition, Mr. Schocken is significantly involved in national economic policy development, playing a major role in the2012 JOBS Act. He is a member of the National Advisory Board of the Democratic National Committee and an avidcyclist.

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Team Bios

Adam Fountain, Managing Director Mr. Fountain graduated with a B.A. in International Relations from Stanford

University in 2001. He holds Series 7, Series 63, Series 66 and Series 79 FINRA registrations. Mr. Fountain's responsibilities

at Broadmark include investor and client sourcing, and transaction management across all of Broadmark's focus areas

including life sciences, technology, new media, middle market, real estate, telecommunications and financial services. His

current interests include life science companies that have demonstrated proof of concept, particularly drugs with clinical data

and devices with at least animal data, and some mitigation of risk, e.g. shortened regulatory paths, 505(b)2, etc. Areas of

interest in technology include SaaS, new media, and any revenue generating high growth companies. Responsibilities also

include all activities related to Broadmark's merchant banking function: identifying and qualifying potential direct investments

and producing Broadmark white papers. In addition to these responsibilities, Mr. Fountain is a part owner of Pyatt

Broadmark Management, LLC and responsible for their investor relations and fund management. He also has a significant

support role for Broadmark relating to regulatory compliance.

Prior to joining Broadmark, Mr. Fountain was an Associate at L.E.K. Consulting in Los Angeles, CA from 2001 through

2003, an international strategic consulting firm headquartered in London. While at L.E.K., he worked primarily in the life

sciences practice. Key projects included developing a product marketing and distribution strategy for an established European

pharmaceutical company, formulating a product development and partnering strategy for a start-up biotechnology company,

and preparing for the likely adoption of a new product in the medical device industry.

Outside of Broadmark, Mr. Fountain was a co-founder of WINGS: The Washington Medical Technology Angel Network,

and formerly served as a Director. In addition to his role at WINGS, he has served on the Executive Committee for the

WBBA’s annual life science conference for several years. He is active in his church and resides north of Seattle with his wife,

Emily, and their son, Samuel, and daughter, Stella. He enjoys riding his bike, cooking, brewing, fantasy baseball, and

beekeeping.

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Team Bios

Alan Seidner, Senior Consultant A graduate of University of Southern California School of Business, Seidner began his career with MerrillLynch and then joined Security Pacific Bank as a Trust Investment Officer responsible for several large investment advisory accounts.Thereafter, he served as the Senior Government Securities Sales Representative in the Investment Department of the Bank for NationalAccounts. In 1980, Seidner formed his own investment management and consulting firm, Seidner & Company, Pasadena, CA, managinginvestment portfolios in excess of $700 million. Seidner & Company’s client roster included healthcare organizations, high net worth privateinvestors, major corporations, non-profit institutions and municipalities. In 1998, Seidner & Company ceased and its clients were invited tobecome clients of Fiduciary Trust International of California (FTIC). From 1998 until 2002, Seidner was an independent consultant and aSenior Consultant to FTIC and its parent, Fiduciary Trust International, which merged with Franklin Resources, parent of FranklinTempleton. From October 2002 to June 2004 he served as a Senior Vice President with FTIC with business development and client serviceresponsibilities. From 2005 thru 2007, Seidner was a Senior Vice President at Denver Investment Advisors. Currently he is a SeniorConsultant for Client Development with the Pyatt Broadmark Real Estate Lending Funds. He holds Series 7 and Series 63 FINRAregistrations.

As an author, Seidner has written financial reference works, including: Corporate Investments Manual: Short & Intermediate Term FixedIncome Securities (Warren Gorham & Lamont Publishers, January 1989), which was used as a course text by the American ManagementAssociation. He co-authored with William O. Cleverley, Ph.D., Professor of Finance at Ohio State University, Cash and InvestmentManagement for the Healthcare Industry (Aspen Publishing, November, 1989). He co-authored, with John Zietlow, Ph.D., a formerProfessor of Finance at Indiana State University, and JoAnne Hankin, former Vice President, Finance at the UCLA Foundation, FinancialManagement for Nonprofit Organizations (John Wiley & Sons, Inc., May 1998) and Financial Management for Nonprofit Organizations:Policies & Practices (John Wiley & Sons January 2007). He also co-authored Cash & Investment Management for Nonprofit Organizationswith John Zietlow, Ph.D. (John Wiley & Sons April 2007).

He has served as a speaker on investment techniques and strategies at prominent financial conferences, such as those of The AmericanInstitute of Certified Public Accountants, as well as at the Graduate Schools of Business of Duke University, Ohio State University, theUniversity of California (Berkeley), the University of North Carolina and the University of Southern California. Seidner has also providedtestimony before Federal Government agencies on the measurement of pension fund investment performance.

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Team Bios

Geir Watland, Senior Consultant Mr. Watland is an independent contractor representing Broadmark Capital and the Broadmark Real Estate Fund family as a strategic marketing consultant and is an instrumental part of Broadmark’s business development efforts. Through his consulting firm, Viking Financial Consulting, Mr. Watland has assisted a number of asset managers including numerous hedge funds, fund of hedge funds and our own real estate lending practice and has provided consultancy to a number of institutional and individual investors.

Mr. Watland began his career with the National Association of Securities Dealers (Now FINRA). He has since worked with Canterbury Consulting, Bank of America/US Trust, BlackRock/Merrill Lynch Investment Managers, Russell/Mellon Analytical Services and Rainier Investment Management in a variety of capacities including sales, marketing, institutional client relations and consulting. In these roles Mr. Watland has built networks of investors and asset managers in multiple countries.

Mr. Watland holds dual degrees in Business Administration and Economics from the University of Washington. He also holds the Chartered Financial Analyst designation, the Chartered Alternative Investment Analyst designation and the Series 7, 63 and 65 securities licenses.

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Team Bios

Joanne Van Sickle, Controller Ms. Van Sickle has served as Controller for Private Lenders Group since 2005.Ms. Van Sickle began her career in 1983 as a CPA in the auditing department of Touche Ross.

Between 1991 and 2004, she maintained a private accounting practice, working with small companies, mainly in theconstruction, real estate, and retail industries.

She continues to act as the part time administrator for The Glaser Foundation, a local private foundation with $15million in assets, a position she has held since 1991. The foundation makes up to 100 grants each year to localcharitable organizations providing direct line services, primarily to children and the elderly in the Pacific Northwest.

Ms. Van Sickle has lived in Bellevue since 1985 with her husband and three sons. Her two older sons are nowserving in the US Navy.

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Team Bios

Bryan Graf was born and raised in Central Washington, surrounded by a family actively involved in the real estatebusiness there. At the University of Washington, he earned a Bachelor of Arts in Business Administration with afocus on finance and marketing. He also successfully completed a sales certificate program through the UW’sFoster School of Business and was part of the Undergraduate Management and Consulting Association. Bryan is analumni of University of Washington’s Beta Theta Pi fraternity.

Before joining Pyatt Broadmark Management, LLC, Bryan spent 3 years at Ewing and Clark, Inc., managing thepersonal real estate portfolio of the owner and specialized in leasing. This portfolio includes multi-family, mixed-use, and commercial buildings throughout the greater Seattle area.

Bryan is a licensed real estate broker in Washington State and is in the process of obtaining the CCIM (CertifiedCommercial Investment Member) designation. He currently lives in the Queen Anne neighborhood of Seattle andis a Tyee season ticket holder to University of Washington football. In his spare time he plays golf, basketball, andskis. Bryan recently joined the Board of Directors at the Wallingford Boys and Girls Club and will continuedeveloping the Club’s success and help it remain fiscally healthy.

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Sample Loan Profiles

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Type: Single Family Residence

Loan Size: $1,155,000

Date Funded: 8/1/15

Location: Seattle, WA

This loan was made for the acquisition and construction of two 2,500 square foot, modern style, single

family homes on Beacon Hill. PBM used land owned by the borrower as additional collateral to serve

as the borrower’s equity and down payment for the acquisition. The appraised completed value of the

project is $1.5M which would give our borrower a healthy profit with zero money down.

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Sample Loan Profiles cont.

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Type: Land

Loan Size: $5,760,000

Date Funded: 7/1/15

Location: Seattle, WA

This loan was made for a commercial refinance of 58,805 square feet of high-density land which

consists of 10 parcels located in the First/Yesler Terrace area of Seattle. The borrower plans to build a

large, mixed-use apartment project on the site which will provide easy access to Capital Hill, First Hill,

the International District, and the Central District.

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Sample Loan Profiles cont.

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Type: Townhomes

Loan Size: $2,161,000

Date Funded: 5/1/14

Location: Seattle, WA

In May 2014, PBM wrote an acquisition loan that

would be amended a few months later to a

construction loan in order to build five high-end

townhomes on Capital Hill. Our client was able to

acquire the land, complete construction, sell all five

units, and payoff the loan within a 14 month time

frame.

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Sample Loan Profiles cont.

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Type: Apartment

Loan Size: $8,300,000

Date Funded: 4/1/15

Location: Seattle, WA

This loan was made for the acquisition and

construction of a 158 unit micro housing apartment

complex on Yesler Terrace. PBM’s experienced

underwriters and project versatility enabled our

borrower to secure funding that provided a great

rental alternative. With rising rents and low vacancy,

the project is well positioned to be a great success.

The borrower is a long standing client of PBM and

currently has 8 additional projects underway.

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Risk Factors & Disclaimers

Prospective investors should be aware that an investment in PBRELF I is speculative and involves a high degree ofrisk. Identified risks include a dependence on senior management, the quality and quantity of potential loans availablegiven the Fund’s stated investment criteria, real estate valuations and market dynamics, borrower risks, interest rate risk,regulatory risk. Additional risks and uncertainties not presently known to Pyatt Broadmark Management, LLC (“PBM”),manager of PBRELF I, or to affiliate, Broadmark Real Estate Management (“BREM”), or which PBM currently deemimmaterial, may also have an adverse effect on the performance or success of PBRELF I. In particular, the Fund’sperformance may be affected by changes in market or economic conditions and in legal, regulatory and tax requirements.Loans in PBRELF I are considered Level III assets, meaning there is no active secondary market and no observablepricing mechanism. PBRELF I does not anticipate a secondary market for these loans developing. Thus, pricing of loansis at par unless the loan is impaired. An immediate 10% write down against all capital accounts is taken on any loan indefault. Income is distributed or reinvested monthly.

This material has been prepared as a matter of general information. It is not intended to be a complete description of anysecurity or Fund mentioned and is not an offer to buy or offer to sell any security. All facts and statistics are fromsources believed reliable, but are not guaranteed as to accuracy. Some of the information in this document may containprojections or other forward-looking statements regarding future events or the future financial performance of thePBRELF I. We wish to caution you that these statements are only estimates and that actual events or results may differmaterially. Broadmark Capital, LLC has been engaged by Pyatt Broadmark Management, LLC, manager of PBRELF I,to assist in raising capital for PBRELF I. Broadmark has also been engaged by Broadmark Real Estate Management(BREM) to assist in raising capital for Broadmark Real Estate Lending Fund II (Fund II). BREM manages Fund II in amanner similar to PBRELF I, with an exception being a focus on the Mountain West region. Broadmark will receive acash commission upon success. For further detail, please see the complete set of closing documents.

Broadmark Capital, LLC – October 201528

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Risk Factors & Disclaimers, cont.

The Pyatt Broadmark Real Estate Lending Fund I (“PBRELF I”) units may be sold only to “accredited investors,”which for natural persons are investors who meet certain minimum annual income or net worth thresholds; the unitsare being offered in reliance on an exemption from the registration requirements of the Securities Act and are notrequired to comply with specific disclosure requirements that apply to registration under the Securities Act; theSecurities and Exchange Commission has not passed upon the merits of or given its approval to the units, the termsof the offering, or the accuracy or completeness of any offering materials; the units are subject to legal restrictionson transfer and resale and investors should not assume they will be able to resell their units; investing in unitsinvolves risk, and investors should be able to bear the loss of their investment; the units offered are not subject tothe protections of the Investment Company Act; the performance data presented here represents past performance;past performance does not guarantee future results; current performance may be lower or higher than theperformance data presented; PBRELF I is not required by law to follow any standard methodology when calculatingand representing performance data; the performance data may not be directly comparable to the performance ofother funds or investment products; performance presented here are net of fees, assumes reinvestment, is current asof September 30, 2015, and is based on the Fund’s inception August 1, 2010.

Broadmark Capital, LLC – October 2015

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Contact Info

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Adam J. Fountain

Broadmark Capital, LLC

1800 One Union Square

600 University Street

Seattle, WA 98101

(206) 623-1200, x120

afountain@broadmark.com