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2013symposium_Caspian1 2013symposium_Caspian1 Presentation Transcript

  • Introduction to Caspian Advisors September 2013 Top 50 Impact Investment Firms 2011 SPM Silver Award Signatory to the PIIF Signatory to CPPs
  • This presentation shall not constitute an offer to sell or the solicitation of any offer to buy, which may only be made at the time a qualified investor receives a confidential private offering memorandum (“CPOM”) describing the offering and related subscription agreement. In the event of any inconsistency between the descriptions or terms in this presentation and the CPOM, the CPOM shall prevail. These securities shall not be offered or sold in any jurisdiction in which such offer, solicitation or sale would be unlawful, until the requirements of the laws of such jurisdiction have been satisfied. This presentation is not intended for public use or distribution. Any projections, market outlooks or estimates in this presentation are forward looking statements and are based upon certain assumptions. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. Any information regarding portfolio composition or investment restrictions are intended as guidelines, which may be modified or changed by Caspian Advisors in its discretion and without notice.
  • Caspian Advisors - Background Private and Confidential 3
  • About the Presenter Viswanatha Prasad • Founded the firm in 2004 • 25 years of experience in Financial services of which 15 years in Financial Inclusion • Formerly, CEO of BASIX, one of India’s most reputed social enterprise Groups • Serves on the board of some of India’s largest Microfinance and Social Enterprises 4 Private and Confidential
  • Background Who we are: – Caspian was set up in 2004 as an impact investment manager investing in socially responsible, multiple bottom line businesses delivering financial and social value. What we do: – We deploy private capital into impact sectors, including microfinance, affordable housing, last mile banking and small business financing. Funds Under Management – Two Equity Funds with ~$100 million invested across 14 Social Impact Businesses – One Debt Fund Target $40 million (under Fund Raise), completed First close of $10mn 5 Private and Confidential
  • Background What our team offers: – experience in building organizations, conceiving and launching socially-focused investment vehicles, and engaging the right teams to manage these vehicles – Successful entrepreneurial, fund management and investment banking track record – Extensive relationships within the Indian impact investing space, including international and local equity investors, lenders, promoters, managers, rating agencies, regulators, industry associations and the press – Caspian Funds are GIIRS Pioneer Funds; Four star rating in 2011 , 2013 What we aim to achieve: – To channel capital effectively into diverse impact businesses through various financial instruments to enable their growth and viability, and to manage these investments responsibly to provide a financial and 6 social return to investors Private and Confidential
  • Sample Investment Micro Housing Finance Corporation • Start-up Investment made in 2009 • Took a significant minority ownership (42%) in a regulated Micro Mortgage Finance Company by backing a group of experienced Bankers • Worked closely with the company in all aspects of the business • As of June 2013 the company has a customer base of over 3000 customers with an asset base of $15 million with an average mortgage loan size of ~$7,600 • These are self-employed customers engaged in informal businesses or salaried employees in small businesses, who, despite having the ability to service a mortgage loan of ~$7000 -$10,000 are excluded by the formal banking system and mainstream mortgage finance companies since they lack formal proof of income. 7 Private and Confidential
  • Sample Investment Micro Housing Finance Corporation • Caspian helped develop MHFC’s business plan, credit processes, capital raising and software & systems selection etc. • This is done by participating on the board and board committees as well as spending time with the management and customers on site. • Caspian’s manager for this investment has over 15 years of experience in mortgage lending, previously managing a portfolio of over $1 billion. • Worked also with the company to get a social performance rating through GIIRS. • MHFC has a 4 star rating. • This is typical of what Caspian does as Technical Assistance for our investees- significant investment of time, expertise and networking. 8 Private and Confidential
  • Financial Exclusion in India 9 Private and Confidential
  • Sample customer of MHFC 10 Private and Confidential
  • MHFC Customer Profile Dattatray Bansode is an auto-rickshaw driver living and working in Yawat, a suburb of Pune, India. Although he earns between USD 160 and USD 200 per month, he has no documented proof of his income, as his daily earnings are in cash, and he does not keep any records. Dattatray is one of thousands of self-employed, informal workers, such as vegetable vendors, taxi drivers, tailors and contract labourers with established livelihoods and regular monthly incomes that our investees provide with affordable mortgage loans. 11 Private and Confidential
  • MHFC has about 3000 such clients... 12 Private and Confidential
  • Caspian’s Portfolio 16 companies in the portfolio across Equity and Debt Investments • 6 Microfinance Institutions • • • • • 3 Small Business Finance Intermediaries 3 Mortgage Finance Institutions 2 housing Developers 1 Affordable School Finance company 1 Last Mile Banking provider Exit Track record Caspian has so far exited 11 of its Equity Investments 13 Private and Confidential
  • Caspian’s approach to impact investing Originate • Identify strong social companies serving target market • Provide companies with flexible instruments that meet their needs & our criteria Clients are better off Reach people responsibly • Increases # clients • Opens branches in underserved areas • Develops new products and services Access to affordable and convenient financial products and services will enable clients to: • Grow businesses • Hire more people • Increase income/ assets • Afford basic necessities (food, housing, healthcare, education) 14 Private and Confidential
  • Caspian’s Ambition and Future • Continue its Leadership role in Impact Investing in the Financial Inclusion space and its adjacencies • Currently fund raising for its $40mn Debt Fund – “Caspian Impact Investments” or “CII” – $10mn First Close completed in March 2013 – Will invest in Financial Inclusion Intermediaries and in Food and Agriculture 15 Private and Confidential
  • Thank You For further information on Caspian, please visit www.caspian.in 16