1. THE SYNEIDESIS GROUP
Spring 2014

2. Impact Investing’s 40 Year Evolution
1st Wave
SRI
2nd Wave
Blended Return
3rd Wave
Impact Drives Returns
1970’s – 1990’s: SRI…Religion as innovator, Vietnam, apartheid, environment
“NO”
Significant innovation
SRI funds & shareholder activism
Microfinance
CRA
Community banking & CDFIs
Clean Air Act
Clean Water Act
SOX & NOX cap & trade
Labeled with underperformance
The 2000’s
“IMPACT AND/OR RETURNS”
Awareness, debate, and education
Network: GiiN
Metrics: IRIS/GiiRs
JPM report
Kyoto carbon credits
MFI Nobel Prize & IPOs
Social enterprise & VC model dominate
More than Mission
Today
“RETURNS FROM IMPACT”
Recognize the breadth of “impactful” strategies and asset classes
Scale and big levers
Transition from “ideal” to reality …

3. 4 Billion MORE People Eating Meat and Driving Cars
Global macro trends:
Developing world population & middle class
Natural resource consumption
Pollution and climate change costs
Income disparity and inequality
Massive market shifts = new risks, opportunities, and value
It’s “just” smart macro-trends investing
Confidential

4. Drivers from Macrotrends
Duration: Sustainability, resource constraints of fundamental importance in long-lived assets (real assets)
Integration: risk allocation, risk appropriate returns, and risk management are about sustainability factors. ESG, Benefit Companies
Opportunity: Community and environmental problems are opportunities for financial innovation at scale
Performance: Sustainability is a performance driver…in the long term
Institutional Quality: Institutions are entering.
Resources
CALPERS ESG research database:
CALPERS Protocol (September 2013):
Equilibrium Forum – Alan Emkin (Pension Consulting Alliance):
WEF Report:

5. Institutional Impact investing is a new discipline and model:
Emergent Themes
Institutional Impact investing is a new discipline and model:
The lessons of impact
applied to deliver
Sustainable Alpha at
institutional scale.
“The mission investors know the right words, but often are unclear how they apply.
The financial investor knows the right words, know what they mean, but don’t know how they are applied”.
Long duration vs short term
Long term capital vs patient capital
Strategies executed in public policy, public interest, and regulation
Monetization of trust and authenticity
With…
Additionality
Intentionality
Permanence
This is about cash flows, finding value differences, understanding motivations
Examples of currency?

6. Thesis: Sustainability-driven Real Assets Strategies
Higher resource productivity
Convert waste into value
Create higher value outputs
Stewardship management
Dynamic operating execution
Think long term
Consider the whole system
Externalities matter
Asset Thrives
Higher Current Yield
Long Term Value
Confidential

7. Equilibrium Capital Building the Leaders in Sustainability Driven Real Assets
Founded in 2007
2013: $500M+
2014: $ B
Real Assets:
Agriculture/Food, Water, Energy, Real Estate
Current income, long-term IRR, and inflation hedge
Uncorrelated to traditional asset classes
Flight towards long lived real assets
Fragmented, significant size, and often few managers
Sustainability Driven “alpha” strategies
Institutional investor focus
Impact at scale
Come for the returns,
Stay for the impact
Confidential

8. Real Assets Sectors and Alpha Generation
Equilibrium Sustainable Methodologies
Source of Returns
Renewable Energy
Distributed, decentralized, energy generation and efficiency
Sustainable Agriculture
Reducing chemical inputs, leveraging mechanization, enhancing the soil
Multiple revenue streams
Reduced input costs
Waste/inefficiency into value
Higher value outputs
Long term enhanced asset productivity
Green
Real Estate
Mixed use, efficient designs, integrated with the community
Water Management
Reclaimed, recycled and efficient use of wastewater streams
Land Stewardship
Optimizing land resource utilization
Directly Correlating
Sustainable Methodologies and Returns
Confidential

9. Equilibrium Platform

10. Research Drives Our Investment Process
Proprietary Research
36 to 48 months Process
Cost: $2M- $4M
Development Strategy
Proprietary Strategies
Superior returns
Real assets
Long term assets
Scale
Innovative structures
Building Teams
Addressing Investors’ Needs
Fund Team Formation
Product Development
Fund Launch and Investing
Measurement and Reporting
Confidential

11. Current Product Highlights
ACM Permanent Crop, LLC
Investments in permanent cropland and synergistic midstream assets to create a vertically integrated, sustainable farming enterprise that grows, packs and markets high-value produce. Focused on management and operational improvements using Agriculture Capital Management’s proven expertise.
10-year fund, $ mm targeted size
Australian Pastoral Fund
Investments in the land and operations of grass-fed cattle and sheep in Australia. Targets 500,000 cattle and 1 million sheep for domestic and export markets. This is the fund manager’s third pastoral fund dedicated to sound environmental, animal welfare and human resources management practices.
10+years fund, - $500mm
Wastewater Opportunity Fund, LLC
Project-level capital for the development and operations of waste to revenue bio-processing facilities. Initial proprietary projects include U.S. bio-processing developers in livestock/agriculture and food processing.
7-year fund, $ mm targeted size `
Gerding Edlen Green Cities II, LP
Value-added, sustainable real estate development and investment funds. Focused on urban, in-fill, office, apartment and mixed-use properties in the U.S. from one of the world’s leading developers of LEED-certified properties with over 50 certified or registered LEED projects., of 60 green projects
7year fund, $ mm targeted size
Multi-Strategy Real Assets Vehicle
A multi-manager vehicle, with no management fees or carried interest, from Equilibrium's platform of sustainability-driven real asset investment products.
12+ years vehicle, 2014 pooling period, $250 million maximum pool size
Confidential

12. Equilibrium Capital Group
Building the Global Leader in Sustainability Driven Real Assets
Confidential

13. ACM Permanent Crops, LLC
Superior value-creation from vertically integrated, sustainable farming
Fund Summary
Agriculture Capital Management is managed by AgriCare and Equilibrium Capital. AgriCare is one of the largest managers of permanent cropland in the U.S. And operates 11,000 acres of farmland, as well as midstream assets (processing, packaging and storage facilities), for institutional investors and other farmland owners, totaling $165 million in asset value. AgriCare also manages a marketing/distribution operation with its own brand (HomeGrown Organic Farms).
Investment Highlights
Crops mix: Citrus, berries, table grapes, and nuts
Geography: western U.S. (California, Oregon, other)
Targeted assets portfolio: Existing cropland 70%, development land 30%
Midstream assets: captures greater share of economics between retail market(s) and farm production, quality control, process control
Sustainable farming practices: water management, topsoil protection / enhancement
Drivers of returns: organic products offer premium pricing, midstream assets captures margins, sustainable farming practices accumulates value of the croplands
Fund Features
Fund size: $150-$250 million, minimum investment $1.5 million
Management fee: 1.5%
Bonus in years where current income exceeds preferred return; capped at 0.5% addition to management fee.
Carried interest: 15% with catch-up
Preferred return: 8%
Targeted Fund returns: current income from crop operations (8%-10%) plus capital return from sustainable land use practices, totaling 12%-14% IRR (net)
Term: 10 years (+2 one-year extensions)
Confidential

14. Australian Pastoral Fund
Diversified portfolio in the land and operations of Australian grass-fed cattle and beef
Fund Summary
A portfolio of Australian grassland properties and livestock for domestic and export markets, diversified by region and climate zone. Targets 500,000 grass-fed cattle and one million sheep using sustainability, mobility and technology as integral to operations. This is the Fund manager’s third pastoral fund dedicated to sound environmental, animal welfare and human resources management practices.
Market Opportunity
Global beef consumption is expected to climb 24% by 2020, from 64.5 million metric tons in 2011.
Australia is the world’s 2nd largest beef exporter after Brazil.
Rising incomes and growing populations in emerging markets are fueling demand for farm products including proteins, helping push global food costs 1.9% higher in January (the most in 11 months), according to the United Nations.
Fund Features
Fund size: A$250-A$500
Management fee: 0.75%
Property acquisition management fee: one- time 1% of acquired assets
Current Yield: Targeted 8%-10% current yield
Total IRR: 16% - 20%
Performance Incentive Bonus: 15% of net gains on disposal after 5% compounded annual hurdle
Term: Exit or monetization strategy to be determined by unitholders after 10 years from close
Confidential

15. Green Cities Fund II
Value-added, sustainable real estate development and investment funds.
Fund Summary
Gerding Edlen, based in Portland, Oregon, is recognized worldwide as the leading sustainable real estate developer, having completed more than 50 completed projects throughout the United States. Similar to their first fund, Green Cities Fund II is a value-added fund to invest in development capital of selected real estate projects. Projects are in the United States, generally in growing urban centers, and are mixed-use (residential / office / retail) and LEEDS platinum. Value is generated from buildings where people want to live and work, which communities are proud to have as neighbors, and which operate more energy, water and waste more efficiently.
Market Opportunity
Rising demand for sustainable workspace and habitat
Demographic shift – Gen-Y – towards renting, with home purchases deferred
Demonstrable superior returns from LEED products – value-add capital and core capital
Retrofit opportunities at least as great as new-builds
Fund Features
Fund II size: $250 - $300 million
Management fee: 1.50%
Carried interest: tiered depending on performance (to LPs) to align performance incentives
Returns: targeted at 16% to 18% IRR on invested capital
Term: 7 years from close with two one-year extensions
Confidential

16. Wastewater Opportunity Fund
Maximizing value from wastewater
Fund Summary
The Wastewater Opportunity Fund will provide project-level capital to leading developers that design, build and operate projects in the agricultural waste, food waste and municipal wastewater sectors. Farms, food processing facilities and municipalities are burdened by high waste removal costs, fines related to strict wastewater discharge constraints, volatile energy costs, and increasing air pollution restrictions. The Fund solves capital constraints faced by these projects that require less than $25 million and that generate valuable revenue streams from the energy and nutrients that are embedded in wastewater.
Market Opportunity
The Fund’s targeted sectors and addressable wastewater market include over 4,250 potential projects representing $30.4 billion of total project capital requirements in the next five years.
Wastewater efficiency solutions benefit from favorable existing legislation and are experiencing strong, growing demand as farms, food processors, communities and municipalities attempt to address waste management problems, including high disposal costs, greenhouse gas emissions, odor, pollution, contamination and capacity limitations.
The projects generate revenue from renewable electricity or gas, nutrients, environmental credits and byproducts, often through long-term revenue agreements with credit-worthy counterparties. The Fund’s portfolio will establish these well-defined performance contracts and enable a variety of potential Fund exit strategies that 1) are enhanced by the ability to aggregate projects and 2) can be realized in the absence of a robust public market or mergers and acquisitions activity typically required by clean technology or water rights funds.
Fund Features
Fund size: $150–$250 million (minimum investment of $2.5 million)
Management fee: 2% per annum, attenuating 10% per year after year five
Carried interest: 20%, with catch-up
Preferred return: 8%
Returns: Targeted 16%-18% net IRRs and 8% current income
Term: 7 years with up to 3 one-year extensions (with LP consent)
Confidential

17. Multi-Strategy Real Assets Vehicle
A multi-manager vehicle, with no management fees or carried interest, providing access to Equilibrium's platform of sustainability-driven real assets investment products
Fund Summary
No fee, no carry: Only actual costs to administer the Fund.
Equilibrium participates through its ownership interest in underlying managers.
Not a blind pool: A significant portion of the portfolio has already been identified. At each pool closing, capital will be invested in funds actively accepting investors capital.
Targeted current income: Current returns reflect long-term productive economics of underlying real asset strategies
Additional access to funds: Equilibrium to facilitate direct access to Managers
Proposed Fund Investments Investments in 4-8 underlying funds on the Equilibrium platform, across multiple regions and five primary sectors.
Fund Features
Management fee: None (admin. expenses only)
Carried interest: None
Returns: Targeted at 6% to 7% blended current returns, and 15% net total IRR
Term: Based on underlying funds; est. 12+ years
Allocation method: Equally distributed as available, no more than 25% in any fund/product, no more than 50% of any first-close.
Targeted Agriculture Energy Real Estate Water Land
Sectors
Equal allocation into funds actively in market and accepting investors’ capital at each vehicle pool closing, during open period
Fund 1: ACM Permanent Crops Fund I Vertically integrated, sustainable permanent crops
Fund 2: Green Cities Fund II Value-added and opportunistic green real estate
Fund 3: Wastewater Opportunity Fund New opportunities in wastewater efficiency
Fund 4: Australian Pastoral Fund Diversified portfolio of grass-fed livestock and land
Future Strategies
2-4 additional strategies under development
Confidential

18. Disclaimer and Forward-Looking Statements
The information contained herein and any other forms of communication related thereto are for information purposes only, and should not be regarded as an offer to sell or a solicitation of an offer to invest in any security. Past performance is not indicative or a guarantee of future performance. Equilibrium Capital is not a registered investment advisor and does not provide tax, accounting, or legal advice. Investors are advised to consult with their tax, accounting, or legal advisers regarding any potential investment. This information and all the material shared in conjunction with it whether verbal or oral are confidential.