Equipment Leasing Income Fund ATEL 16, LLC. Seeking Protection in Uncertain Times

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1 Equipment Leasing Income Fund ATEL 16, LLC Seeking Protection in Uncertain Times

2 ATEL 16, LLC Investors are encouraged to read the Prospectus for ATEL 16, LLC carefully. The Prospectus has been provided in conjunction with this presentation. This presentation constitutes neither an offer to sell nor a solicitation of an offer to buy the securities described herein. The offering is made only by the means of the Prospectus delivered prior to, or at the time of this presentation. An investment in the Fund is not suitable for all investors. See the Prospectus under Who Should Invest for detailed information on applicable Fund and state suitability standards. RISK FACTORS* Investors are advised that there are significant risks associated with an investment in the Fund, including: most of the Fund s distributions will be, and most of the prior ATEL programs distributions have been, a return of capital Economic recession and changes in general economic conditions, including fluctuations in demand for equipment, lease rates, and interest rates may, and in certain past programs have, resulted in delays in investment and reinvestment, delays in leasing, re-leasing and disposition of its investments, and reduced returns on invested capital The Fund s performance is subject to risks relating to lessee and borrower defaults The Fund s performance is subject to risks relating to the value of its investments when it seeks to sell them in its liquidation phase the Fund will borrow to buy some of its investments and, if Fund revenues are insufficient to repay borrowed Funds, the Fund will incur a loss of assets used as collateral No market exists for the units, and an investor may be unable to sell the units or able to sell the units only at a significant discount Except as may be set forth in a supplement to the prospectus, the Fund has not specified any of its investments, so that investors cannot evaluate the risks or potential returns from such investments Investors must rely on ATEL to manage the Fund; the Fund will pay ATEL substantial fees which may result in conflicts of interest The Fund does not guarantee its distributions or the return of investors capital. The Fund may be harmed if a lessee or borrower defaults and the Fund is unable to collect the revenue anticipated from the defaulted investment. The Fund cannot assure that its value assumptions will be accurate or that the leased assets will not lose value more rapidly than anticipated. Investors should consider an investment in the Fund as a long term investment. At ATEL, we currently lease equipment on behalf of our investors to some of the best-known companies in the world. Equipment lessees, manufacturers and borrowers depicted and identified herein are from prior ATEL Funds. Although representative of the types of equipment, lessees, manufacturers and loans intended to be acquired by the Fund, investors in the Fund will not acquire an interest in any of the equipment or transactions described herein. 2

3 ATEL 16 FINANCING AMERICA ATEL leases the equipment that harvest its crops. uses to grow and then transports the grain in railcars leased by ATEL to for processing on equipment leased by ATEL. Which is then transported to market in trailers leased from ATEL. tractor * Equipment types, lessees and manufacturers depicted and identified in this presentation are from prior ATEL programs, and, while representative of the types of equipment, lessees and manufacturers intended to be in the portfolio acquired by the Fund, investors in the Fund will not acquire an interest in any of the prior program transactions, and there is no assurance as to the composition or diversification of the Fund s portfolio. 3

4 ATEL S FOUNDATION The Three Pillars of ATEL 16 I. Select the right companies II. III. Lease the right equipment Structure the lease to protect investors 4

5 ATEL ADVANTAGE REPRESENTATIVE CUSTOMERS * Equipment types, lessees and manufacturers depicted and identified in this presentation are from prior ATEL programs, and, while representative of the types of equipment, lessees and manufacturers intended to be in the portfolio acquired by the Fund, investors in the Fund will not acquire an interest in any of the prior program transactions, and there is no assurance as to the composition or diversification of the Fund s portfolio. 5

6 EQUIPMENT TYPE IS VERY IMPORTANT Equipment type is an important determinant of a client s overall investment experience: We lease : Business necessary, Low obsolesce, Low technology Equipment Diversified by Industry, Geography, Cost and Type We don t lease : High technology equipment (computers, commercial aircraft, other assets with high obsolescence) 6

7 SECURITY IN THE CAPITAL STRUCTURE Bankruptcy Protection is Greatest at the top of the Capital Structure Position in the capital structure can be an important determinant of investment outcomes. 7

8 ALL ALTERNATIVES ARE NOT CREATED EQUAL ATEL Fund 16 s Potential Benefits What we do: Equipment leasing is at the top of the Capital Structure Asset depreciation passed through to investors Hard asset backed Why its good for you: Protection of Capital Tax Advantaged Cash Flow Inflation Protection Market-rate lease pricing Interest Rate Hedge 26 years managing equipment leasing portfolios Experience Matters 8

9 ATEL ADVANTAGE EXPERIENCE MATTERS 27 years in public partnership syndicate business with almost 50,000 investors, 14 public funds and 8 private funds 9

10 ATEL ADVANTAGE MANAGEMENT STABILITY Experience Matters: ATEL Experience Industry Experience Dean L. Cash Chairman of the Board of Directors, President and CEO, ATEL Capital Group ( ACG ) and Affiliates Paritosh K. Choksi Board Director, EVP, Chief Operating Officer and Chief Financial Officer, ACG and Affiliates Vasco Morais EVP, General Counsel, ACG and Affiliates Russell Wilder EVP and Chief Credit Officer, ATEL Leasing Corp ( ALC ) Ken Fosina 1 25 SVP, National Sales Manager, ALC Steve Rea EVP, ATEL Ventures Thomas Monroe SVP, ATEL Equipment Corp Samuel Schussler 5 37 VP and Chief Account Officer, ACG and Affiliates 10

11 ATEL ADVANTAGE REPRESENTATIVE CUSTOMERS * Equipment types, lessees and manufacturers depicted and identified in this presentation are from prior ATEL programs, and, while representative of the types of equipment, lessees and manufacturers intended to be in the portfolio acquired by the Fund, investors in the Fund will not acquire an interest in any of the prior program transactions, and there is no assurance as to the composition or diversification of the Fund s portfolio. 11