Different by design, to make a differenceExecutive SummaryFeb 2012
Transform Capital Management Execu6ve SummaryTransform Capital Management is launching a new ins6tu6on -‐ a model for a Private World Bank. More descrip6vely we explain it as a Global Impact Investment Bank. In short, we aim to transform the way we use ﬁnancial, natural and human capital -‐ globally. Increasing focus on short-‐term specula;ve returns has come at the expense of what’s beneﬁcial in the longer term. Sustainable returns on a broad level can only come via diverse job crea;on, increasing social capital and good stewardship of precious resources.Since 2008, we’ve had many reminders of how so called free markets oEen work against our common interest. Thats how austerity, inequality and social unrest have been increasingly fueled around the world. And we’re all much poorer for the destruc;on of natural resources that this short-‐term proﬁt ﬁxa;on has brought about. Worse, the risk and resilience issues faced on both a local and global level are ever more alarming.Silver linings and golden opportuni6es.It doesn’t need to be like this. We can all be richer, happier and truly sustainable. Where others see gloom, we see hope, opportunity and innova;on. But we also see an urgent need for systems innova;on in ﬁnance, enabled by technology -‐ to beKer allocate capital for things that are important in the longer term. Thats why we do what we do. We also see a tangible hunger in people for new incen;ves -‐ not only short term proﬁt, but for the kind of things that really count. The things that increase social capital, true quality of life and environmental sustainability. This hunger and the creativity it unleashes is what gives hope -‐ but hope needs a helping hand!The funds we’re establishing -‐ the innova;ve Global and Local Impact Investment Funds, and aligned advisory and banking services, will directly address these pressing needs at scale.As a Private World Bank, rather than being funded by countries, substan;al core funding and powerful aligned support will come from a group of mo;vated corpora;ons (sponsors). Through Transform, these visionary leaders are able to indirectly address their biggest threats, diﬀeren;ate against compe;tors, iden;fy key opportuni;es, and properly change the rules of the game that are in our individual and collec;ve interest. Collec;ve intelligence!
• Transform Capital Management will use a mul;-‐layer process to intelligently raise and deploy commercially focused Ac;ve Impact Investment -‐ and scale this model globally. Our success will be measured in social, environmental and economic returns. • We aim to innovate and ensure responsible Impact Investments ﬂow to ﬁll funding gaps that will eﬃciently s;mulate environmental, social and economic recovery. The focus is on working to combine strength and align interests. • By deploying much needed capital in this way, the model automa;cally removes the condi;ons for some of the worst social and environmental abuses and omissions. Transform Capital Management, and its funds, have the capacity to directly unlock over £150Bn over a 10 -‐ 15 year period. Indirectly we can unlock even more. • Our model for a Global Impact Investment Bank is collabora;ve and designed to incen;vise all par;es whilst lowering individual risks. Implementa;on is achieved through prac;cal steps. • The ﬁrst is an innova;on on how early staged funds are raised and deployed. Our pilot fund is an innova;ve fund to create a basket of sample investments over a 24 month period. First deals are already highlighted and key team, systems and structures will shortly be in place. • As well as re-‐engineering the early stage investment model (objec;ve systems, use of technology to improve ﬁltering, decision making and support processes and pa;ent capital structures) all Transform funds will have incuba;on, accelera;on and corporate ﬁnance units aKached.• This pilot fund is designed to de-‐risk the equity investment into the whole project, enabling marke;ng, communica;ons, revenue and credibility to further drive momentum and glue everything together. • The larger funds this then enables are the Global and Local Impact Investment Funds. With target fund sizes of £300m to £2b, the structure is for blended Public Private Partnerships designed to deliver maximum impact and decent returns. • We’re currently raising £6m into the management company which will enable regulatory approval, the pilot fund and cornerstone deals to be closed. Our team will become opera;onal and we’ll begin ini;al technology and system development for roll out. A follow-‐on £30m First Round will oﬀering highly aKrac;ve commercial returns (30% + IRR) alongside posi;ve social and environmental impacts. • Revenues will come from sponsorship (up to 30 corporate sponsors each providing £5m pa + secondees) in return for focused risk, opportunity management, global publicity, and innova;on pipeline access. • Over ;me, the model migrates to genera;ng a greater share of revenue for advisory, management fees and carried return for funds under management. • While the vision for Transform is truly global, implementa6on is ﬁrst local (in the UK and GCC) with system design to ensure scaling can then occur at op6mum speed.
MANAGEMENT & ADVISORS • Steve Podmore – Founder Transform Capital Management. Steve is a believer in working markets, but is driven by the market and value failure that has created so much inequity in the world. He has made it his social business and life’s work to do something about it on a scale that can make a diﬀerence. With a business background in marke;ng, psychology, ﬁnance and educa;on, Steve created the ini;al idea which over six years of development morphed into a model to Transform Capital Management. • Gareth Hughes -‐ Beetle Capital Partners -‐ Founder; Prior to establishing Beetle, Gareth was a Founder and Board member of Climate Change Capital (CCC) with responsibility for Marke;ng, Fund Development, Capital Raising and Investor Rela;ons. In this role Gareth was involved in the incuba;on and development of CCCs funds and led capital raising of in excess of $1.75bn• Arthur Wood – Founding Partner -‐ Total Impact Advisors; Founder – World Sanita;on Financing Facility; Head of Social Financial Services -‐ Ashoka; Expert in Social / Commercial Structuring; 20 yrs in banking crea;ng replicatable ﬁnancial products; Klienwort Benson; CouKs.• David George -‐ Head of Energy, Europe URS; Sustainability and Environmental Due Diligence Expert; VP & Director of Transac;on Services Europe for URS. • Anita Hoﬀmann – Managing Director of Execu;va, mission cri;cal search, advisory and coaching in the Energy, Renewables, CleanTech, Sustainability and Climate Change area. Previously Founder and Global Co-‐head of the Alterna;ve & Renewable Energy Prac;ce at Heidrick & Struggles. Career in Resources and Energy with Exxon, Dow Corning, Accenture, DeloiKe and ABB. Anita holds an MSc Chem Eng. from Lund Technical University in Sweden • MaVhew Hale -‐ Head Of Sustainable Banking -‐ Bank of America / Merrill Lynch Europe; Treasurer -‐ Merrill Lynch; Treasurer -‐ Bankers Trust; Founder -‐ BearBox & Striding Edge.• Paul O’Donnell -‐ Chairman, Ogilvy & Mather Group UK. Founder member of OgilvyOne Worldwide of Ogilvy Group Inc. and has served as President in Asia Paciﬁc, Chairman of OgilvyOne London, and Chairman OgilvyOne EAME. Founder of the IPA Direct Marke;ng Group. Paul holds the Inaugural Interna;onal Diploma Program from INSEAD, and Masters Degree from Haute Etude Commercial in Paris.• Rory Sutherland -‐ Vice-‐Chairman of Ogilvy Group UK. One of Wired magazines top 100, Rory joined Ogilvy & Mather Direct in 1988, served as head of copy in 1996 and Crea;ve Director in 1997, where he was closely involved in the agency’s relaunch and restructuring as OgilvyOne. Execu;ve Crea;ve Director since 2002 and past President of the Ins;tute of Prac;;oners in Adver;sing.• Ian Philion -‐ Speechwriter, Crea;ve Media Producer, E-‐learning & Sustainable Construc;on Entrepreneur; Advisor to Governments and to Corporates in the resources, media and ﬁnancial sectors. Addi$onal core team members are iden$ﬁed and lined up but are not yet publicised. Steve Podmore -‐ Founder email@example.com +44 7853 008199