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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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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