tbli conference @booth/kellogg 2015: "creation investments social venture fund" by patrick fisher...

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    Introduction to Creation Investments

    This document does not constitute an offer to sell, or a solicitation of an offer to buy an interest in Creation Investments Social Ventures Fund I or Creation Investments Social Ventures Fund II (the Funds) described herein. No such offer or solicitation will be made prior to the delivery of an Offering Memorandum and other materials relating to the matters mentioned herein. This document contains a preliminary summary of the purpose of the Funds; this summary does not purport to be complete, is for discussion purposes only and is qualified in its entirety by reference to the more detailed discussion contained in the actual Offering Materials. No representation or warranty is made by Creation Investments, LLC or any of its affiliates or subsidiaries, including any of its agents or other representatives, or by the Funds as to the accuracy or completeness of the information contained herein. Only those particular representations and warranties which may be made in definitive agreements relating to the Funds, when, as and if executed, and subject to such limitations and restrictions as may be specified in such definitive agreements, shall have any legal effect. This document is being provided to you on a confidential basis, and upon the representation that you are an Eligible Investor. Accordingly, this document may not be reproduced in whole or in part, and may not be delivered to any person without the prior written consent of Creation Investments, LLC, Creation Investments Capital Management, LLC or the Funds. Copyright 2013.

    January 2015

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    Creation Investments is a Chicago-based private equity firm founded in 2007 Significant equity positions in high-growth, highly-profitable financial services

    businesses in core emerging markets that serve micro, small and medium businesses Commitment to bringing capital, governance and operational expertise to build

    sustainable financial institutions that contribute to economic development

    Successfully closed Creation Investments Social Ventures Fund I (2009 vintage) $32 million raised; fully invested

    Successfully closed Creation Investments Social Ventures Fund II (May 2013) $75 million raised; significant co-investment interest (additional $25+ mm co-

    investment capital raised to date) Substantial commitments from GP (10%), Institutions (Fortune 100 Bank, Insurance

    Company, Hedge Funds), & Fund I investors (90% re-up) >50% invested; sales of two portfolio companies within investment period

    Creation also manages impact investments in Health Care, Affordable Housing, Clean Energy, and Agriculture

    Creation partners with excellent management teams to help them Grow Assets, Build Relationships, and Pursue Strategic Opportunities

    Introduction

    2

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    Patrick Fisher, CEO & Founder JPMorgan Chase, International

    Banking Asia & Latin America Buy-side M&A, Fund Management,

    Interest Rate Derivatives, & Foreign Exchange background

    American National Bank, Credit Underwriting

    MBA, Kellogg/Northwestern; BA, University of Notre Dame, magna cum laude

    Experience in Financial Services, Emerging Markets, Private Equity and Microfinance

    Investment Team

    3

    Bryan Wagner, Director Morgan Stanley Latin America

    Investment Banking Federal Reserve Bank of New York,

    Emerging Markets Division Microfinance field experience with

    ACCION International MBA, Harvard Business School;

    MPA-ID, Harvard Kennedy School; BSBA, UNC-Chapel Hill

    Ken Vander Weele, CIO 20+ Years in Microfinance Opportunity International

    President Investment Services Head of Investment Banking MFI board member CEO of several MFIs

    Grew OI assets from $5 mil to $1.5+ bil Deep industry relationships CPA; Ph.D., Oxfords Open Program

    Adam Code, Vice President MBA, Kellogg/Northwestern;

    BA University of Colorado at Boulder William Blair, Investment Banking

    Operating Partners Full Biographies upon request Support Staff Full Biographies upon request

    Tyler Day, Senior Associate Houlihan Lokey, Investment Banking Technical & Finance Advisor, Five Talents

    MFI Uganda BBA, University of Texas

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    Creation Funds Portfolio & Pipeline

    4

    Pending

    Pipeline

    Sonata Finance

    Creations team has reviewed 250+ deals in 50 countries Complete

    Mexico

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    $3-$30 million per transaction Equity (preferred and common stock)

    Significant equity positions Board seats, customary

    shareholder rights

    Creation Investments Private Equity Focus

    5

    Investment Characteristics Transaction Characteristics

    Growth equity Expansion of geographic and

    product reach First institutional equity partner

    Buyout Early investors seeking liquidity NGO/social founder divestitures

    in mature markets

    Financial services to the under banked Located in core emerging markets Excellent management team and

    company culture Scalable business model and landscape Strong underwriting and risk

    management High borrowing capacity

    Target Company Characteristics

    Capitalize and support high-potential, high-growth institutions

    Track record of organic growth and growth through M&A

    Build value through active involvement Supporting local management Instituting best practices in

    underwriting, audit, and systems Optimizing capital structure

    Investment Thesis

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    We are building the next generation of top-tier Financial Services Providers for the Bottom of the Economic Pyramid

    We are pushing beyond traditional brick-and-mortar MFIs, building a strong financial services industry with high standards of excellence & ethics

    We add Operational Value, Secure Debt, & Support Strategic M&A

    Status of Our Funds

    6

    4,594,154 Clients 5.3 Mil Jobs Sustained 19.0 Mil Individuals Affected 12,957 Staff 71.4% Women Clients

    $1.16 Bil Loan Portfolio $265 Avg. Outstanding Loan Size $257 Mil Deposits $1+ Bil Remittances Processed 4.0x Debt / Equity 2.66% PAR > 30 days

    Note: Fund I & II Combined. Data as of June 30, 2014.

    FINANCIAL METRICS GEOGRAPHIC CONCENTRATIONS SOCIAL PERFORMANCE 5.0%

    20.4%

    19.3% 55.3%

    North America Latin America

    Eastern Europe Asia

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    Select Funding Relationships

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    A recognized industry leader in financial performance & social reporting (IRIS/GIIRS)

    Named Top Impact Investment Fund Manger in 2011

    8

  • CREATION INVESTMENTSSOCIAL VENTURE FUNDS

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    Portfolio Company Overview

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    Company Type Core Investment Company; NBFC Subsidiaries

    Lending Type 59% micro; 36% vehicle; 5% housing

    Gross Loan Portfolio $474 million

    # of Active Clients 1,953,196

    # of Staff 5,073

    PAR >30 0.08%

    Loan Size $200-$300 micro; $5,000-$35,000 vehicle; $4,000-$30,000 housing

    Original Investment Date: May 2014 Type of Investment: Growth Equity and Buyout Investment Amount: US $0.7mm invested and $5.5mm total commitment as part of first investment; additional $20.2mm pending follow-on investment

    10 Note: Data as of June 30, 2014.

    Headquarters: Chennai, India

    Diversified product base across 9 states Capital deployed to fund expansion of core microfinance

    portfolio and growth of newer product lines (vehicle, housing and SME)

    Powerful technology as the backbone of growth and scale Strong and capable management team Recognized as the most Fair and Transparent organization Planned path to IPO supported