2018 Annual Report

Annual Report

for the year ended 31 Dec 2018

Letter From Our Chief Executive offered by banks to deliver the capi- tal they need to experience growth, stay competitive, and to retain tal- ent. consistently communicated to me that we are different simply because we do what we say we are going to do.

It is in this trend and struggle that NAC finds both purpose and op- portunity. 2018 saw our team sur- pass over $100 million in cumulative funding to rural businesses in the form of affordably priced long term loans. In doing so, NAC has helped create or save over 1,200 jobs. There are companies, jobs, and growth that would not be here today with- out the important work done by the men and women at NAC. The direct correlation between the success of our economic develop- ment efforts and our shareholder value is a dream come true for many of us. How rare is it to find a legiti- mate opportunity where purpose and profits align? And behind each of these loans are real people and real stories of the American entrepreneur some- times fighting to grow and other times dreaming to launch their busi- nesses. These proprietors and their companies provide opportunity, livelihood, optimism, and hope to real people, real employees, and real communities. Hopefully, the re- lationships we have formed and the manner in which we serve has led to positive influence in real lives. I personally like to step back and reflect on NAC’s mission statement at the end of each year as both a guardrail and measuring stick of the Company’s success. It’s easy for us to see the growth in numbers, but most rewarding to me has been the feedback we receive from our cli- ents, NAC’s borrowers, who have

The character, integrity, and the pursuit of excellence are embod- ied by all 16 members of our team. Purposeful people do purposeful things and I believe that through these people, NAC has been faith- ful in stewarding the resources it has been given: capital, influence, and people. Thanks to 2018’s earnings, new term debt recently issued by our senior lender, and a substantial cash posi- tion, NAC begins 2019 with a strong balance sheet and all the capital it needs to achieve its objective for 2019: $100 million in originations. We know that 2019 will bring its chal- lenges, just as we are already expe- riencing early headwinds due to the federal government shutdown. However, I’m optimistic as to what 2019 holds, thanks to the incred- ible support NAC receives from our teammates, investors, lenders, bor- rowers, and partners at the USDA. We remain grateful for the trust you have placed in us and hopeful that we can continue our work in a man- ner that is profitable, purposeful, and, most importantly, faithful to our mission and Calling. With Gratitude,

2018 was truly a breakout year for NAC and our team. Coming off of meaning- ful growth in 2017, we set out to stretch ourselves with objectives targeting 100% top and bottom line growth. Not only did the team exceed these objectives, but NAC was able to post financial numbers well beyond any of our expectations for the year with 129% revenue growth, 179% EBITDA growth, and 158% Net Income growth. This growth was largely driven by a three-fold increase in year over year originations. Thanks to a strong secondary market, lower cost of capital, and fiscal discipline the Company was able to achieve EBIT- DA margins that exceeded 50%. While shareholder value creation is one of the hallmarks of our respon- sibility as stewards of capital, NAC looks far beyond that in measuring success. We hold the fundamental belief that access to properly priced capital is the lifeblood of a free mar- ket system. 2018 saw America’s economy continue its trend of trans- ferring wealth and resources, includ- ing both people and capital, from rural to urban markets. Many of Amer- ica’s rural areas can no longer rely on conventional resources and loans

Florida | Georgia | Nevada | North Carolina | Texas www.northavenue.com | info@northavenue.com Contents Letter from Our Chief Executive 3 Stewards of Capital, Influence & People 4 NAC Portfolio 6 In Their Words 8 Employee Spotlight 10 Borrower Spotlight 12 NAC Leadership & Team 14 NAC Advisory Board 16 A Year of Growth 18 Nationwide Reach 20

Ben Chatraw Chief Executive

NAC Mission Statement

North Avenue Capital exists to honor God through excellence, integrity, and growth as stewards of capital, influence, and people.


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