Directed Capital Executive Offering Summary - July 2017

DCR Mortgage Partners VII, L.P. Executive Offering Summary

SPONSOR:

DCR VII Investors, LLC (General Partner)

MANAGER:

Directed Capital Advisors, LLC (SEC Registered Investment Advisor)

NAME: COMPANY OVERVIEW:

DCR Mortgage Partners VII, L.P. (Limited Partnership) Directed Capital is a commercial distressed asset workout firm that provides investors with superior, risk-adjusted returns that are uncorrelated with the market.

STRATEGY:

Realize income from acquiring at a discount, servicing, and, as required, restructuring performing, sub-performing and non-performing mortgages secured primarily by income-producing commercial real estate, and seeking repayment or disposition at amounts above the original cost as soon as reasonably practicable and advisable; and acquiring or originating other loans (including, without limitation, commercial bridge loans and redevelopment financing) ; and acquiring, leasing or operating commercial real estate property.

OFFERING:

$100,000,000 Private Placement

MINIMUM INVESTMENT: CAPITAL CALLS: PRE-FUNDED LP EQUITY:

$250,000 (Qualified Clients) 25% upon subscription followed by three 25% installments 3% plus the 1-year US Treasury paid to Limited Partners

PARTNERS’ TARGET RETURNS:

12 - 15% Annual Net-in-Pocket Rate of Return

TARGETED RETURN MULTIPLE:

1.5x - 1.75x

CURRENT PAY: TARGETED PARTNERSHIP LIFE: INVESTOR PREFERRED RETURN: DISPOSITION PROCEEDS: MANAGEMENT FEE: AVERAGE LEVERAGE: LEGAL COUNSEL: TAX DISTRIBUTIONS:

D E S O CL 6 3/31/1

5% Annual, Paid Quarterly 6 Years (3 Years Acquisitions, 3 Years Resolutions) 8% Annual Accrual Priority Return to the Limited Partners

80% to the LPs in proportion to their respective interests and 20% to the GP as a carried interest 2% of Committed Capital 50% Loan-to-Value K&L Gates LLP Annual distribution to each Partner equal to the estimated federal income tax liability attributable to the profit of the Limited Partnership. Each prospective Investor is advised to consult its own tax advisors as to the income tax consequences of an investment in the Limited Partnership, including the application of foreign, federal, state and local tax laws.

333 Third Avenue North, Suite 400

|

St. Petersburg, FL 33701

|

(727) 341 - 8380

120 Birmingham Drive, Suite 140

|

Cardiff-by-the-Sea, CA 92007

|

(727) 341 - 8382

www.DirectedCapital.com

Fund Strategy

Fund Investment Highlights

DCR Mortgage Partners VII, L.P. (DCR VII) is the seventh Directed Capital fund since 2001. DCR VII is being created to provide investors with potentially superior returns primarily through the acquisition and management of performing, sub-performing, and non-performing loans secured by income-producing commercial real estate.

• Directed Capital Advisors, LLC is an SEC Registered Investment Advisor • Management Team with 13+ years average tenure at Directed Capital • 34 full-time professional team members • Deep, long-standing deal flow sources and relationships • Historically bid on over $4.5 billion in assets and over 4,000 loans • Blind pool capital available to respond to short acquisition cycles • Large credit facilities with several prime money center banks • Raise over $225 million in equity capital, closed 8 funds to date • Underwritten over $15 billion of commercial mortgage loan transactions

Asset Characteristics • Over $150 million in commercial real estate asset acquisitions annually • Loans and assets of $1 million to $15 million in size • Limited institutional competition in the sub-$15 million asset size • Income-producing commercial assets with positive cash flows • Strong collateral value vs. acquisition cost • Diversification by asset classes, geographies and timing of acquisitions

Management Team

Annualized Net-In-Pocket Return to Partners Acquisition Vintage

Number of Assets

Fund I

09/01 - 06/06

108

Fund II

10/02 - 04/05

90

Fund III

06/05 - 09/07

Fund IV Fund V

Investment Multiple (TVPI)

IRR

Status

5,201,533

1.86

32.3%

Completed

15,750,000

26,288,206

1.67

20.6%

Completed

162

35,000,000

31,068,517

0.89

-3.2%

Completed

11/07 - 12/10

153

35,000,000

52,917,493

1.51

8.0%

Completed

08/11 - 12/12

11

6,500,000

10,140,360

1.56

51.0%

Completed

Fund VI

04/12 - 06/15

223

50,000,000

82,404,462*

1.65

13.6%

Resolution

Fund VII

06/15 - 12/18

116

76,750,000

127,196,253*

1.65

12 -15%

Acquisition

Fund VIII

04/17 - 12/18

0

5,000,000

8,000,000*

1.60

12 -15%

Acquisition

863

$ 226,800,000

$ 343,216,824

Total

Committed Capital $

2,800,000

Distributions

$

Asset Cost

Assets Purchased $

40,982,663

$

Percentage Discount

32,440,842

79.2%

Investment Multiple (TVPI)

IRR

42,562,576

1.30

16.4%

Total Cash Return $

Fund II

126,761,594

108,297,522

85.4%

134,437,039

1.24

18.5%

Fund III

203,365,016

186,327,540

91.6%

209,748,442

1.14

6.9%

Fund IV

229,833,192

164,764,833

71.7%

231,830,708

1.41

12.2%

Fund V

39,579,962

31,287,251

79.0%

42,935,688

1.37

22.9%

Fund VI

313,651,496

255,798,155

81.6%

345,122,730*

1.35

19.0%

Fund VII & VIII**

215,549,259

188,967,097

87.7%

240,649,191*

1.27

16.0%

$ 1,169,723,182

$ 967,883,240

82.7%

$ 1,247,286,376

Total

Stacy J. Ames Chief Financial Officer Nick W. Griffin Managing Director - Capital Formation Michael P. McGinn Managing Director - Portfolio Management John W. Savage Managing Director - Senior Housing Lance B. Amano Managing Director - Asset Dispositions J. Cameron Childs Senior Vice President - Asset Acquisitions

Asset Level Returns

Fund I

Christopher S. Moench Chief Executive Officer

Directed Capital Resources, LLC 333 Third Avenue North, Suite 400 St. Petersburg, FL 33701 (727) 341-8380 120 Birmingham Drive, Suite 140 Cardiff-by-the-Sea, CA 92007 (727) 341-8382 www.DirectedCapital.com

Data as of 6/30/2017 *Projected **Co-invest Total Cash Return = Principal, interest and fees received Investment Multiple (TVPI) = Total value received / Total paid in

Important Disclosures: Not an Offer to Sell; Qualified by Private Placement Memorandum. This important legal information is an integral part of this presentation. This document shall not constitute an offer to sell or the solicitation of an offer to buy which may be made only at the time a qualified offeree receives a Private Placement Memorandum describing the offering and related subscription agreement for DCR VII. All information contained herein is qualified in its entirety by information contained in DCR VII’s Private Placement Memorandum. An investor should consider DCR VII’s investment objectives, risks, charges and expenses carefully before investing. This and other important information about DCR VII can be found in DCR VII’s Private Placement Memorandum. Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be relied on in making an investment or other decision.