ACUMEN

June 2013 Amon Anderson

ACUMEN

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+ Investing in game-changing companies

+ Investing in leaders

+ Investing in ideas that change how the world tackles poverty

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INDIA

PAKISTAN

EAST AFRICA

LATIN AMERICA

WEST AFRICA

+ 5 local offices source and diligence deals + 24 investment professionals + In-country advisory boards

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WE WORK IN LOW-INCOME, EMERGING MARKETS

CREATING ACCESS TO BASIC SERVICES

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HEALTH

ENERGY

HOUSING

EDUCATION

AGRICULTURE

WATER

SINCE 2001

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INVESTED $82M

COMPANIES 73

LIVES REACHED 100M

JOBS CREATED, SUPPORTED 58K

PORTFOLIO GROWTH

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4 8 15

26

37 43

54

72 82 $82M

INVESTED

$368M FOLLOW-ON

$13M RETURNED

FINANCIAL RETURN OBJECTIVE

NO RETURN

TRADITIONAL VENTURE CAPITAL Maximize financial return MAXIMIZE

SOCIAL IMPACT OBJECTIVE

NONE MAXIMIZE

TRADITIONAL PHILANTHROPY Maximize social impact

PATIENT CAPITAL Blending social and financial returns for long-term impact

0%

PATIENT CAPITAL FOR LONG-TERM SOCIAL IMPACT

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7-10 YEARS

SCALING IMPACT, RECYCLING RETURNS

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1

INVEST FUNDS In equity or debt in early stage enterprises

SCALE UP Focused on social impact and sustainability

EXIT AND RECYCLE Returns into more enterprises

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“PIONEER GAP”

BLUEPRINT VALIDATE PREPARE SCALE UP

MONITOR INCLUSIVE MARKETS, FROM BLUEPRINT TO SCALE: THE CASE FOR PHILANTROPY IN IMPACT INVESTING, APRIL 2012 9

BUSINESS MODEL PIONEERS FACE A CRITICAL FUNDING GAP

WHAT MAKES AN INVESTMENT?

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+ Potential for large-scale social impact: 10x growth or 1m+ customers

+ Enterprises that have the potential to be financially self-sustaining

+ Potential “game changers” – new global models for fighting poverty

+ World-class team deeply committed to solving problems for the poor

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+ Sector mapping: detailed exercises to scope out areas of opportunity and strategic outreach

+ Field Visits: Building an understanding of the customer and which enterprises are already active

+ Conferences, tradeshows and workshops: Focus on sector-specific events with strong enterprise participation

+ Local advisors: strong connections to deal flow in each geography

FINDING DEALS

+ Portfolio companies and co-investors: often aligned in mission and connected in sector

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DUE DILIGENCE, STRUCTURE & VALUATION

• Industry, sector, and country research

• Source pipeline through networks, meetings, conferences, etc.

• Meet / speak with entrepreneur

• Review business plan

• List deal strengths / weaknesses

• Draft PIM

• Present to PLT for approval

• Conduct formal DD

• Update PIM memo / iterate with PLT

• Prepare DD report

• Present to PLT for approval

• Draft official IM

• IM reviewed by internal senior personnel

• Submit and present to IC for approval

• Continue legal DD

• Complete documentation to effect transaction

• Disbursement

Initial DD

Preliminary Investment

Memo

Final DD IC Meeting Closing Research

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+ Structure: debt, equity, quasi-equity − Developed based on risk assessment, return expectation, and need

of the business + Valuation: developed based on several sources including DCF

analysis, previous financing rounds, and comprobables; negotiated with co-investors and investee

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+ Active Relationship Management: board participation, weekly calls, monthly visits opportunity and strategic outreach

+ Grant Funding: Pilot facilities available in certain geographies and sectors

+ Strategic Partnerships: Connecting multinationals with portfolio companies

+ POST Plan: Defined engagement strategy for each portfolio company

TECHNICAL ASSISTANCE

+ Local Service Providers: Databases rolled out in each geography

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+ CIO Dashboard: Tool to track overall portfolio health—new deals, diligence, closing, performance, exit

+ Annual Review: Financial metrics, operational achievements and social impact evaluated

+ PULSE: Key financial, operational and impact metrics identified at investment, tracked monthly, and compared globally

MONITORING, EVALUATION, EXIT

+ Impact Studies: Company-by-company; RCT’s, other tools

+ Exits: $13M returned to-date through debt service, company buy-back; significant appreciation in valuation

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EQUITY INVESTMENT IN SPROXIL IN 2010 $1.8M

NUMBER OF COUNTRIES SERVICED 17

TEXTS RECEIVED 2M

COMBATING COUNTERFEIT MEDICINE

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DEBT & EQUITY INVESTED IN WESTERN SEED IN 2009 $2.1M

FARMERS USING WESTERN SEED’S HYBRID

SEEDS 533K

KILOGRAMS OF HYBRID MAIZE SEEDS SOLD 4M+

IMPROVING CROP YIELDS IN EAST AFRICA

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DEBT INVESTMENT IN MEDEEM IN 2012 $1M

COMPLETED PARCELCERTS* 1,500

* PACKETS OF EVIDENCE DOCUMENTING LAND OWNERSHIP

FORMALIZING LAND RIGHTS IN GHANA

THANK YOU