Angel Investing for Impact 17 th June 2011 Seoul Doug (Duckjun) Lee

Table of Content I.Impact Investing - an Emerging Industry II.Introduction of D 3 Jubilee Holdings(on-screen only) 2

Impact Investments: An Emerging Asset Class Impact Investing is actively placing capital in businesses and funds that generate social and/or environmental good and at least return nominal principal to the investor. (Monitor Institue) 3 Impact Principles of Investment Warren Buffett’s rule #1: Don’t lose money. #2: Don’t forget rule #1.

Impact Investments: Opportunities and Challenges Impact Investing has the potential to grow to about 1% of total managed assets, which would result in about $500B of capital channeled toward social and environmental impact (Monitor Institute) 4 Growing interest among capital providers Greater recognition of the need for effective solutions to social and environmental challenges A steadily developing track record with early successes A flock of talent Opportunities Lack of efficient intermediation Lack of enabling infrastructure Lack of sufficient absorptive capacity for capital Challenges

Impact Investing: Where to Go? 5 A Periphery of Activist Investors The Core of Mainstream Financial Institutions With increasing numbers of investors rejecting the notion that they face a binary choice between investing for maximum risk-adjusted returns or donating for social purpose, the impact investment market is now at a significant turning point as it enters the mainstream. (J.P.Morgan)

Social Bank Fund of funds Reporting & Measurement Patient Capital Intermediaries Marketpalce Research Industry Ecosystem being built 6 Social Enterprise Impact Investor Sustainabilit y Ratings, Certificates Foundations, Family Offices

Triodos Bank Elevar Equity GIIN (IRIS) Accumen Fund Imprint Capital MM, Asia IIX, SSE Research Players on the Map 7 Social Enterprise Investors’ Circle Sustainabilit y B Corp, Trucost Foundations, Family Office

Impact Investing Cases Social Enterprises + Financing (Investing) 8 “Root Capital is a nonprofit social investment fund that is pioneering finance for grassroots businesses in rural areas of developing countries. We provide capital, deliver financial training, and strengthen market connections for small and growing businesses that build sustainable livelihoods and transform rural communities in poor, environmentally vulnerable places. Since our launch in 1999, we have provided $256 million in credit to 320 small and growing businesses in 30 countries, maintaining a 99% repayment rate from our borrowers and a 100% repayment rate to our investors. ”

9 “Our Goal is One million people investing 1% of their money in local food enterprises, within a decade. 15,000 people have signed the Slow Money Principles. 2,000 have become members of the Slow Money Alliance, including over 220 Founding Members—many leaders in social investing and sustainable agriculture.Slow Money PrinciplesSlow Money AllianceFounding Members 1,000 people have attended our first two national gatherings, and 16 of the small food enterprises that made presentations there have received $4.25 million. Since mid-2010, local Slow Money groups have begun investing in 10 locales.” national gatheringssmall food enterprises Impact Investing Cases Social Enterprises + Financing (Investing)

10 “Farmland LP, a U.S. private equity fund, was created to deliver superior returns for its investors by acquiring conventional farmland and converting it to high-value organic farmland using sustainable agriculture best- practices. As an investment, farmland has historically delivered attractive, diversified, secure, inflation-hedged returns with both current cash flow and long term capital appreciation.” Impact Investing Cases Social Enterprises + Financing (Investing)

11 “Lumni currently operates both for-profit and non-profit funds in Chile, Colombia, Mexico and the United States, where it has raised and obtained commitments of more than $15 million from over 100 investors. Lumni has financed nearly 2,000 students to date, nearly all from low or very low-income backgrounds where funding recipients are the first family members to attend college.” Impact Investing Cases Social Enterprises + Financing (Investing)