Post on 03-Aug-2015
Credit: Steven Feather, Flickr
NEW PARADIGMS OF EMERGING MARKET IMPACT INVESTING
Presentation to TBLI NOrdic June , 2015
awood@totalimpactcapital.com
Securities offered through Growth Capital Services, , SIPC. 582 Market Street, Suite 300, San Francisco, CA 94104
So where is the Money ?
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The profitable “new” blended impact investing v.1 and v.2
FOUNDATION CORE $1 Trillion > MRI
OUTCOME MODELS SIBs, DIB’s & SYN’s
$ Problem = $ Opportunity
SOUTH / SOUTH Ie PENSION FUNDS
Now $2.3 Trillion $17.4 Trillion in 2050
IMPACT INVESTMENT v.1a Multi Billion Models
GOVERNMENTTOP DOWN AID $135BN
FOUNDATIONS$45bn (US)
REMITTANCES $175bn
INDIVIDUALS (US)$290bn (Fragmented , 40% religious + 5% International)
IMPACT INVESTING v.1
MICRO FINANCE $50bn / $35bn
VENTURE CAPITAL & PE $45bn ($500bn -
$975bn )
= GRANT & AID FOR PROFITNOT FOR PROFIT
Sources: TIA, Hudson Institute, McKinsey, AMF, WHO, WSP MIX
SRI INVESTMENT $10 Trillion
GOVERNMENT DFIs $45bn
➢ $ 2.3 TRILLION IN LOCAL CURRENCY FUNDS – RISING TO $17.4 TRILLION BY 2050
➢ ESSENTIAL SUSTAINABLE DEVELOPMENT – SOCIAL MISSION HARD WIRED
➢ $10 BN PIPELINE AT GET GO
AMF / LOW CARBON CLIMATE RESILIENT CARBON FUND
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AMF (Bermuda)
10-year credit
line $100mm
Private sector investors
$525mm Equity
Latin American Development
Bank
German Development
Bank
$25mm
Global Development
Bank
Eastern European Development Bank
US Government Development
Institution
$25mm
$25mm
$25mm
AMF Re
(Bermuda)
Reinsurance agreement
$100mm Equity
$525mm Equity
Note: AMF will invest $25mm in AMF Reinsurer to ensure control. International Development Banks (DFIs) indications not a binding commitment. Africa Development Bank is likely to be an additional public sector investor in AMF.
$25mm investment by AMF
SYN (NORSK) WHERE SOCIAL EQUITY = FINANCE EQUITY
• Government • Corporate • Foundations • HNW/DAFs
CONTINGENT PAYERS PRINCIPAL
Hybrid LLP with social mission with Differing returns for: • Civil society • Corporates • Local govts. • Other Stakeholders
STANDARD LEGAL STRUCTURE (LLP + PRI + Structured Product) • OUTCOMES different over
economic / social cycle
• TRANSPARENT Creates Inter, Intra and cross border collaboration
• REGULATORY - Social mission hard wired in Product
• TAX Transparent – Look thru
STRUCTURER
BANKS
CREATES EQUITY
ie Securitize
= Innovation + Competition + Replicable + Modular
Standard Investment $ 1 trillon – MRIs +
Main stream investors
Standard Equity
ASETT MANAGERS / PRIVATE BANKS
MRI
CLASSES OF EQUITY ALLOWING • SECONDARY LIQUIDITY • INVESTOR DIFFERING
RISK / RETURNS • STAKEHOLDERS
DIFFERENT METRICS + INCENTIVES
MULTILATERAL
DisclaimerThis presentation is intended for information purposes and reference only and is not intended to be taken as the basis for an investment decision. By accepting this document, you agree that the information contained may not be used, reproduced or distributed to others, in whole or part, for any purpose without the prior written consent of TOTAL Impact Capital Partners, and that you will keep confidential all material contained herein that is otherwise not in the public domain. The contents of this document should not be construed as investment, legal, tax or other advice and you should consult your own legal and financial advisors as to legal, business, tax and other implications of an investment in TOTAL Impact Capital Partners.
This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities and may not be used or relied upon in evaluating the merits of investing in or with TOTAL Impact Capital Partners. Offers and sales will be made only pursuant to subsequent confidential agreements between TOTAL Impact Capital Partners and prospective investors.
An investment in a private investment partnership or company is speculative and involves significant risks. Investors should carefully review any information provided regarding such risk factors and understand them before making an investment.
Securities offered through Growth Capital Services, member FINRA, SIPC. 582 Market Street, Suite 300, San Francisco, CA 94104
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