Impact-Investing

Positively addressing social and environmental challenges
while pursuing financial return.
BY JONATHAN FIRESTEIN — MANAGING DIRECTOR, PRIVATE CAPITAL AND IMPACT INVESTING
AND SEAN OLESEN, CFA, CAIA — DIRECTOR, PRIVATE CAPITAL AND IMPACT INVESTING
Impact Investing

1
BY JONATHAN FIRESTEIN — MANAGING DIRECTOR, PRIVATE CAPITAL AND IMPACT INVESTING
AND SEAN OLESEN, CFA, CAIA — DIRECTOR, PRIVATE CAPITAL AND IMPACT INVESTING
Financial capital serves many purposes, the most common of which are security, lifestyle,
retirement and wealth expansion. Private wealth owners may find they have enough capital to meet
these objectives and have remaining capital with which to pursue positive social and environmental
impact. The question is, how to do that, and when?
There is no shortage of opportunities to make an impact today. Unprecedented global population
growth presents our planet and institutions with mounting social and environmental challenges.
Poverty and inefficient markets have created quality-of-life issues in all corners of the world, and
our finite natural resources are increasingly strained from over use. As the United Nations projects
global population to grow to 9.6 billion by 2050 from 7.1 billion today, these challenges are likely to
grow if not effectively addressed. Can government and philanthropy alone solve these problems?
We believe that private business, private capital and capital markets can have a tremendously positive
impact on the economic, social and environmental conditions challenging our world. We work with
clients who share a similar vision and see their efforts as a fundamental part of establishing and
defining their family or foundation legacy.
It can be difficult and overwhelming for families and foundations to decide how and where to
direct their financial resources to actually achieve a meaningful impact. Understanding the options
available and obtaining objective counsel from a trusted advisor can help. Because we understand
why positive impact is an important value for families and foundations, we have developed a
personalized approach to help our clients effectively and confidently apply their financial resources
to encourage positive outcomes.
Important disclosures provided on page 21.
“Impact investing is a powerful model with the potential to build markets
and drive change for the people who need it most.” — Bill Gates
Impact Investing
Positively addressing social and environmental
challenges while pursuing financial return.

2 Important disclosures provided on page 21.
Insights
Impact Investing
Impact Investing
Private wealth owners commonly pursue impact through philanthropy, giving time and money to
nonprofit organizations and foundations. Recently, a new class of investments has emerged that
significantly broadens the opportunity to support actions that produce measurable results for the
benefit of our planet and the people living on it: impact investing.
Impact investing can complement both philanthropy and a traditional investment portfolio, and help
align financial capital with your passions, beliefs and objectives. When successfully implemented,
impact investing can potentially produce a sustainable pool of capital that can work for generations.
The most common definition of impact investing comes from the Global Impact Investing Network, a
nonprofit formed in 2009 by the Rockefeller Foundation with a mission to enable the impact investing
community to solve more social and environmental challenges with greater efficiency:
“Impact investments are investments made into companies, organizations,
and funds with the intention to generate social and environmental impact
alongside a financial return.” — Global Impact Investing Network
Impact investments can be made in all corners of the world, in frontier and emerging markets,
developed economies and our local neighborhoods. Opportunities to invest for impact are present
in 10 market sectors and six primary asset classes, allowing for traditional portfolio construction
utilizing asset allocation and diversification of risk.
Impact Investing Sectors
Social impact investments strive to provide opportunities for better life through:
• Health and wellness • Education
• Microfinance • Affordable housing / Community development
• Small business development
Environmental impact investments seek to reduce strain on the earth’s finite
resources through:
• Natural resources conservation • Sustainable / Organic agriculture
• Clean water / Sanitation • Energy efficiency / Clean energy production
• Environmentally conscious real estate
See detailed information on the sectors starting on page 9.

3Important disclosures provided on page 21.
Impact Investing Asset Classes
PUBLICLY TRADED STOCKS BONDS
Security selection and portfolio construction are driven by filtering and screening for environmental,
social, governance (“ESG”) and other impact factors.
1. Stocks: Filters are applied to an established investment universe (e.g. domestic large-cap,
emerging markets), seeking to identify companies that score high in ESG metrics, as well as
other impact factors like a satisfied workforce. These companies may be more likely to attract
quality employees and outpace competition with market-leading products and services.
Capital can also be directed towards specific sectors regarded as high impact by the wealth
owner and away from sectors or companies regarded as low or negative impact.
2. Bonds: Traditional credit underwriting is complemented by impact ratings in an attempt
to outperform benchmarks. Impact data can steer the portfolio away from companies and
municipalities that appear to be relative bad actors, potentially providing an additional margin
of safety against default.
Impact investors can utilize impact data to assemble portfolios of stocks and bonds by acquiring
securities directly and investing in mutual funds, exchange-traded funds (ETFs), hedge funds and
separately managed accounts.
PRIVATE CAPITAL OPPORTUNITIES
Equity and debt investments are made in nonpublicly-traded companies and projects with intentions for
impact and profit.
3. Private Equity / Venture Capital: Equity investments in startup and growth companies with
impactful missions which complement for-profit activity. Investments typically are executed by
an experienced firm that contributes strategic value and leadership to the company.
4. Private Debt: Loans to impactful companies and social organizations, accessed directly
or via fund structures. This asset class offers a wide range of impact opportunity, risk levels
and expected return.
5. Real Estate: Development and/or repositioning of commercial real estate certified as
environmentally efficient. Project-based energy efficiency retrofits and change-of-use objectives
are typically focused on commercial real estate and do not always require owning the real estate.
6. Real Assets: Timber, infrastructure, farmland, water rights and alternative energy all present
equity investment opportunities. Infrastructure and alternative energy projects provide debt
investment opportunities as well.
Impact investors can assemble portfolios of private impact investments through diversified private funds,
individual transactions and lending to impactful organizations.

Insights
Impact Investing
Do Impact Investors Sacrifice Financial Return?
It’s natural to wonder if impact investing sacrifices the potential for financial return. The short
answer is some impact investment opportunities do sacrifice financial return, but most don’t.
Our analysis of impact investments starts with the analytical framework applied in traditional
investments: the relationship between risk and expected return. Then we add a third factor:
the expected impact achieved by the investment. Personal decisions can then be made for the
optimal relationship between expected risk, return and impact, and a portfolio can be constructed
based on this optimal mix.
Impact-first Investors
Philanthropy
Program-
Related
Investing
Balanced
Objective
Financial
Objective
Purpose
Goods and services
can be shared with
those in need
Catalytic capital to
advance markets
High Impact with
moderate returns
High returns with
accompanying
impact
Evaluation
Social and/or
environmental
results
Similarity to stated
foundation objective
Desired impact with
acceptable returns
Attractive returns
with acceptable
impact
Actors
Donors and
established
nonprofits
Family and
community
foundations
Impact
investors
Impact and
traditional investors
Financial Return
Expectation
Negative
0%
Market returns
0%
Market returns
Market returns
For discussion purposes only – Impact investments are not guaranteed to meet or exceed identified
financial expectations.
Financial-first Investors
Impact Investing

The Ascent Approach to Impact Investing
We believe impact investing is a viable approach for wealth owners to pursue positive change in the
world, but as attractive as that goal may be, we don’t allow the promise of social and environmental
benefits to distract us from the discipline of financial analytics.
We use the same due diligence framework and rigorous review process for impact investments
as we use for traditional and alternative investments. We prefer fund managers that have previous
impact investing experience, including previous successful management of investor capital.
Additionally, we avoid funds with excessive fee structures that demonstrate an inability to invest in a
cost-efficient manner.
Our goal is to identify what we believe are the most compelling impact investing opportunities
with appealing future prospects and attractive performance track records vs. impact peers and
traditional market benchmarks. We’re not conflicted in our recommendations because we don’t
manage any proprietary investment funds. Thus, we have no motivation to recommend an internally
managed fund over a fund managed by an independent firm.
Building a Meaningful Impact Investing Portfolio
Impact investments can be most rewarding when they reflect an investor’s passions.
Building a meaningful portfolio requires discovery, planning and investing. We believe impact
investing is uniquely personal and we suggest that our clients create a family or foundation definition
for impact investing.
What are your passions? Are you motivated by social change, environmental improvement or both?
How do you want your financial capital to help grow your legacy?
DISCOVERY
• Explore all areas of impact. Perform research to find knowledge that will fuel exploration
within your beliefs.
• Identify values and anchor themes that power your desire for impact. Impact
investing provides opportunities to invest in your passions regarding people, problems,
places, pathways and philosophies.
• Define “impact” for your family or foundation. Impact investing presents a meaningful
opportunity to bring stakeholders of all ages and aptitudes together to discuss an investment
portfolio. Impact investing may also present a positive learning environment for next-generation
beneficiaries of wealth.

Insights
Impact Investing
PLANNING
• Determine your impact investing focus. Gather the stakeholder group surrounding the
wealth to make a collective decision on where to focus when building the impact investment
portfolio. Choose among sectors, security types, asset classes and geographies.
• Designate an impact investing allocation. Determine the amount of capital to be
invested for impact. Create a discrete impact portfolio or integrate impact investments within
an existing portfolio.
• Create an impact mission statement. A detailed mission statement establishes the
purpose of the impact investing effort and can also include targeted sectors, asset allocation
and a return target for the aggregate portfolio.
INVESTING
• Consistently review investment options that align with your impact mission statement.
Reviewing numerous options helps generate confidence in specific investments that appear to
offer the optimal projected mix of risk, return and impact.
• Invest in your passions. Build the portfolio and follow the directives established in the
impact mission statement. Adapt and expand the mission statement when appropriate.
• Monitor financial performance and impact achieved. Work to continually improve
the tracking of impact targeted and achieved. Utilize knowledge gained through monitoring
investment and impact results to review future investments.

Your Opportunity to Make an Impact Today
Private wealth owners have a special opportunity to direct their resources to create positive impact
for people and the planet. Can the growing social and environmental challenges be disrupted by
significant private sector innovation? The remainder of this paper highlights 10 impact investing
sectors, allowing you to start down a pathway of research and discovery toward building a
meaningful impact investment portfolio.
Impact investing can produce desirable financial and impact returns, enhance group dynamics and
be central to efforts to define legacy. Impact investing complements philanthropy and, if positive
investment returns are generated, produces a sustainable pool of capital that can create impact for
generations.

Impact Investing Sectors
Social
Health and wellness 10
Education 11
Microfinance 12
Affordable housing / Community development 13
Small business development 14
Environmental
Natural resources conservation 15
Sustainable / Organic agriculture 16
Clean water / Sanitation 17
Energy efficiency / Clean energy production 18
Environmentally conscious real estate 19

Overview
Technological advancements in personalized medicine
and comprehensive therapy present significant potential
for life expectancy to rise meaningfully in developed
countries and with wealthy / insured people. Emergence of
new delivery models and service efficiency gains present
significant opportunity for greater access to healthcare
in emerging-market countries and with impoverished /
uninsured people.
Yet, the path to affordable and accessible healthcare
for all remains uncertain. In the developed world, the
primary issue is generally not availability but affordability.
Rising costs limit the total population that can receive
the benefits of advancements in healthcare. In emerging
economies or where people are living at the base of their
local economic pyramid, quality healthcare can be elusive
or even unavailable due to a lack of infrastructure.
Impact Opportunity
The creation of lower-cost and more accessible models of
delivering healthcare can increase the volume of service
delivered. Technology can contribute to the optimization
of service delivery and can serve to better educate local
communities.
People of all socio-economic levels face health issues and
challenges to longevity. Advancements in treatment and
tools that promote wellness can continue to increase quality
of life and extend lifespans.
Advancements in personalized medicine and health
monitoring can continue to improve the healthcare service
delivered to each individual. Treatments including drug and
device development targeting specific ailments can bring
relief to those coping with specific chronic conditions.
Prominent Impact Endeavor
Robert Wood Johnson Foundation
Improving the Health and Healthcare of all Americans
The Robert Wood Johnson Foundation works to build a
better culture of health in our society. It has supported many
organizations focused on health and wellness across various
sectors, from working to prevent childhood obesity to investing
in health innovators.
Investment Options
Stocks: Companies involved in healthcare service delivery,
pharmaceutical drug and medical device development.
Bonds: Municipal bonds that finance hospitals, senior
care centers and other healthcare facilities. Corporate
bond issuance from companies involved in healthcare
service delivery, pharmaceutical drug and medical device
development.
Private Equity: Venture capital investing in companies
seeking to establish disruptive service delivery models and
develop new healthcare products. Buyouts of mature and
profitable health and wellness-related companies.
Private Debt: Specialty lending to established healthcare
companies seeking to introduce new products and services.
Health and Wellness
SOCIAL IMPACT INVESTMENTS
Social Impact
Efficiency gains in service delivery and advancements
in personalized medicine can benefit people of all
socio-economic levels.

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Overview
Quality education is the foundation of community
development. Educated children are more likely to make
positive contributions to society and grow into financially
independent adults than their less educated counterparts.
In the developed world, educational failures are
manifested in high dropout rates and low-quality
education. In emerging and frontier market countries,
children may receive insufficient education or no
education at all.
Even though most children depend on their government
for education, there are many opportunities for the
private sector and private investment to a make positive
contribution to the overall educational experience.
Impact Opportunity
Education is undergoing a great revolution. New
technologies are enhancing classroom learning and
broadening the delivery of education, as any Internet-
enabled device can become an on-demand classroom.
In the United States, the Federal Government expects to
complete its deployment of high speed internet to every
school in the country by 2018. Increasing internet access
throughout the world enables more students of all socio-
economic levels to receive an education.
The delivery of education involves multiple inputs, including
infrastructure, human capital, tools, technology and
supporting services.
Impact investment pursues expanding access to, and raising
the quality of, education through improving infrastructure,
technologies and service models. Innovation in the delivery
of education can enhance a personalized student experience
and allow for quality education to reach more of the world’s
children.
Bill and Melinda Gates Foundation:
College-Ready Education Program and Global
Libraries Program
The College-Ready Education Program seeks to ensure that
low-income and minority young people graduate from high
school prepared for college. It also seeks to double the number
of low-income young adults who earn a postsecondary degree
or credential by the age of 26.
The Global Libraries Program seeks to improve the lives of one
billion “information-poor” people by 2030 while positioning the
world’s 320,000 public libraries as critical community assets
and providers of information.
Investment Options
Stocks: Private education companies that supply post-
secondary adult education and suppliers to the education
industry.
Bonds: Municipal bonds that finance school development
and school infrastructure. Corporate bonds of private
education companies.
Private Equity: Venture capital investing in technology
intended for the education market. Direct investing in charter
and private school development and operation.
Private Debt: Direct loans to impactful education nonprofits
and bridge-lending for new charter school development.
Education
Social Impact
New technologies delivered by expanded global
connectivity are raising the quality and availability of
education for students throughout the world.

Overview
Financial security and a desire to build wealth are
aspirational goals for many people. Access to affordable
financial products and services is an important early step
in helping households build and maintain assets. Loans
to small businesses can help entrepreneurs establish and
grow operations.
People and businesses that have difficulty accessing
mainstream financial services typically have fewer
options and pay higher rates to access capital.
Microfinance progress over the past generation has
demonstrated that the intentional targeting of under-
served communities can make a difference, and be
profitable for financial services enterprises.
Impact Opportunity
Microfinance capital can enable business growth, which
in turn creates employment opportunities for people within
the community, fostering economic growth and financial
inclusion. Microfinance capital can also be utilized to finance
community-based real estate and affordable housing.
In the United States, microfinance is led by community
development financial institutions (CDFIs). A CDFI is certified
by the U.S. Department of the Treasury as a non-governmental
financial institution that has the primary mission of community
development. CDFIs typically pursue projects in housing,
community revitalization, transit-oriented development,
agriculture and energy efficiency.
Microfinance in emerging-market countries primarily
focuses on loans to poor parts of the population that are not
being served by mainstream financial services providers.
Borrowers are typically small entrepreneurs, such as street
vendors, traders, service providers, small farmers, fishermen
and herders. Financial services available to these individuals
also include microdeposits and microinsurance.
A growing component of microfinance in emerging-market
countries is using a mobile phone to create an interface
from which the customer can interact with the microfinance
institution. Many forward-thinking microfinance institutions are
also incorporating social performance management, working
to implement management practices that allow social goals
to be embraced, pursued, monitored and reported.
Grameen Foundation
Improving Access to Financial Services
Grameen Foundation partners with commercial banks, mobile
operators, microfinance institutions, agricultural co-ops
and other providers to create and scale financial products
and services for the poor and poorest. Grameen works to
demonstrate how appropriately designed financial products
can improve lives and livelihoods by reducing risk, improving
financial security and increasing income.
Investment Options
Stocks: A thin universe of microfinance institutions trade in
markets throughout the world.
Bonds: Corporate bond issuance from financial institutions
involved in making microfinance loans.
Private Equity: Venture capital investing in microfinance
institutions operating in emerging markets: early stage
investing in start-up microfinance institutions and growth
capital investing in established microfinance institutions.
Private Debt: Direct loans to domestic CDFIs, sometimes
with the opportunity to direct the capital to specific purposes
(e.g., small-business lending) or geographies. Investments in
private debt funds that invest in the senior and junior debt of
established microfinance institutions in emerging markets.
Microfinance
Social Impact
Microfinance capital can improve livelihoods by
enabling business growth, creating jobs, and financing
community-based real estate.

13
Overview
Housing and community-centric real estate are the
foundations of attractive neighborhoods. Quality
affordable housing, accessible retail, recreational space,
and access to convenient transportation options are
essential ingredients for a desirable community.
Many American cities have substantial quantities of
vacant and abandoned housing units as a result of
the foreclosures associated with the Great Recession.
Incomes have declined for many families due to the
challenging job market, which has increased demand for
affordable housing.
Impact Opportunity
Investments in affordable housing have the potential to
change the lives of people who need stability to generate
opportunity. An affordable home in a vibrant community,
filled with promise and the prospects for a good life, is a
central component of the American dream.
Affordable housing investments are made in residential real
estate assets which are developed or repositioned for sale
or rent. Credit counseling is often required for participants
in affordable housing efforts. Projects can target families,
seniors, current residents of public housing, those with
special needs and Section 8 tenants.
Many affordable housing projects utilize low-income housing
tax credits, a subsidy program provided by the federal
government. To qualify, projects must set aside at least 20
units for households that earn less than 50% of gross area
median income, or set aside at least 40 units for households
that earn less than 60% of gross area median income.
Affordable housing projects are often public-private
partnerships. Financial institutions, governments, community
organizations and private investors can work together to
realize innovative solutions to revitalize communities.
Ford Foundation
Expanding Access to Quality Housing
To help low-income families in metropolitan areas obtain
quality affordable housing, the Ford Foundation promotes the
development of homes linked to public transportation, good
schools, secure employment and helps provide innovative
finance tools to purchase and maintain them.
Investment Options
Bonds: Mortgages from single- and multi-family properties
placed in mortgage-backed securities backed by the federal
government. Municipal bond issuance can also finance
affordable housing projects. These bonds can be accessed
directly, and via mutual funds in which a fund manager
selects suitable bonds to place in the portfolio.
Private Debt: Private lending pools established to make
direct loans to people that want to purchase homes in
communities designated for revitalization. Homebuyers may
have the ability to access significant credit counseling (not
universally required) to strengthen their credit rating, which
may reduce default risk to the investor and promote better
long term financial opportunity for the buyer.
Real Estate: Investments in the development or
repositioning of multi-family apartments for rent and houses
for sale. Typically accessed by identifying a private fund
manager that will assemble a diversified portfolio of projects
for fund investors.
Affordable Housing / Community Development
Social Impact
Access to affordable housing can change the lives of
people who need stability to generate opportunity.

Overview
Small businesses are an important component of every
local economy. These businesses provide needed local
services and employ millions of people. Many small
businesses are minority- or women-owned and are an
important source of low- to moderate-income jobs.
Access to capital for growth and expansion can be difficult
to obtain for a small business. If growth objectives are
hindered by a lack of accessible capital, the business may
not grow as fast or expand its workforce.
Impact Opportunity
Many people, businesses and communities throughout the
United States are under-served by mainstream commercial
banks and lenders. To address this market inefficiency,
community development financial institutions (CDFIs) and
private investment funds target growing businesses with a
desire, reason and capacity to borrow.
CDFIs encompass a range of nonprofit and for-profit entities,
including community development banks, community
development credit unions, community development loan
funds, community development venture capital funds and
microenterprise loan funds.
Small business development lenders also typically provide
guidance, expertise, networks and other advocacy. Lenders
can target specific communities, commonly with many low-
to moderate-income residents and employees.
Loans to small businesses are often utilized to pursue
growth opportunities in offering new products and services
and pursuing customers in new markets. These growth
initiatives typically create new jobs that provide employees
with income to better care for their families by, for example,
having access to better education and healthcare.
KL Felicitas Foundation
Social Enterprise and Social Entrepreneurship
The foundation’s mission is to enable social entrepreneurs and
enterprises worldwide to develop and grow sustainably, with an
emphasis on rural communities and families. The foundation’s
impact investing strategy works to match the entrepreneurial
spirit and business discipline of social enterprise with the
significant capital being made available through a growing
network of impact investors.
Investment Options
Private Equity: Community focused equity investments
in businesses in low-income areas, contributing capital,
entrepreneurial experience and ingenuity to underserved
markets.
Private Debt: Direct loans to CDFIs, sometimes with the
opportunity to direct the capital to specific purposes or
geographies.
Private Debt: Investments in private debt funds that
lend capital to companies for specific growth objectives,
sometimes with opportunities to have some equity
participation along with the debt investment.
Small Business Development
Social Impact
Impact investors can provide important financing
to small businesses which use the capital to enable
growth, create jobs and expand local services.

15
Overview
Everyone depends on natural resources, such as
fresh water, clean air, plants and animals for the basic
necessities of life as well as on the exploitation of the
planet’s energy sources for the kind of conveniences like
shelter, mobility and urban living that have come to typify
the modern human experience.
But many question the capacity of the planet to keep pace
with an ever-growing population as demands for more
food, fresh water and energy continue to stress these
limited resources. Global population is projected to grow
from 7.1 billion today to 9.6 billion by 2050.1
Significant
population growth presents our planet with mounting
environmental challenges and increasing strain on our
finite natural resources.
Impact Opportunity
Sustainability is a versatile word, but it generally means
operating in a fashion that allows future use of a natural
resource to be unharmed. It can be argued that we are not
operating at a sustainable level, and that business practices
and incentive structures should be changed or developed.
Investing in the conservation of natural resources can help
restore lakes, rivers and nature reserves, along with their
native plant and animal ecosystems. These efforts, broadly
referred to as “mitigation,” “mitigation banking” and “habitat
conservation,” can help offset biodiversity loss caused by
residential, commercial and industrial development.
Debt-for-nature swaps are used internationally in
transactions where some of a developing nation’s foreign
debt is forgiven in exchange for local investments in
environmental conservation.
Investments targeting the Reduction of Emissions from
Deforestation and forest Degradation (known as “REDD”
and “REDD+”), target the reduction of carbon emissions
by working in strategic geographies that have endured
significant forest degradation or are critical forests that are
essential for atmospheric balance.
The Gordon and Betty Moore Foundation
Environmental Conservation Program (ECP)
The Moore Foundation believes in bold ideas that create
enduring impact and works to balance long-term conservation
with sustainable use. The foundation’s ECP focuses on the
role markets can play in driving large-scale change toward
protecting biodiversity.
Investment Options
Bonds: Issued to provide financing for environmental
restoration projects, often called “green bonds.” The
World Bank is the largest issuer, typically offering bonds
in emerging and frontier market local currencies. Green
bonds can be accessed directly or via funds where the fund
manager selects bonds for the portfolio.
Private Equity: Investments in forest replanting projects that
produce carbon credits that can be sold to corporations
looking to offset emissions, to a few select progressive
governments (e.g. Norway and Japan), or into the carbon
credits market.
Private Debt: Direct loans to projects or organizations that
finance conservation activity by encouraging sustainable use
of natural resources by people in the region.
Real Assets: Purchase of ranches and forests for
restoration or preservation.
Natural Resources Conservation
ENVIRONMENTAL IMPACT INVESTMENTS
1
United Nations, World Population Prospects, 2012
Environmental Impact
Conservation with the goal of resource sustainability
can work to counter mounting environmental challenges
driven by significant population growth.

Overview
Productivity and yield gains in agricultural production
show promise in keeping pace with rapid population
growth. As consumers more closely examine the elements
of production, demand continues to grow for high-quality
food produced with a sustainable, long-term approach.
Some of the gains in the volume of food production
can be traced to production processes that may not be
considered sustainable. The use of hazardous pesticides,
creation of pollution and poor land resource management
may engender long term risks to meeting productivity
demands. The United States Agency for International
Development (USAID) estimates that 38 percent of the
world’s land surface suitable for agriculture, has become
degraded through mismanagement.1
Impact Opportunity
As the global population rises and demand for food
increases, sustainable farming practices and responsible
land stewardship are necessary to increase agricultural
productivity while protecting biodiversity and maintaining
sufficient supplies of clean water. The goal of sustainability
is to produce more food on less land while improving soil
quality, minimizing the use of chemicals, treating waste
effectively and maintaining wildlife habitat.
Wealthier consumers can choose to be discerning regarding
food quality and origin. Demand for high-quality, organic and
sustainably-produced foods is likely to continue to increase
as information on methods of production and harvesting
becomes more available. Investment efforts that embrace
this movement can be rewarded as consumer preference for
high-quality and higher-margin food increases.
In emerging economies, large sections of society rely on
agriculture for their livelihood. When food is produced in a
sustainable fashion, it can help farmers hedge against an
unstable climatic environment.
Demand for protein increases as wealth increases. Well-
positioned investments in protein production, including
in land-based animal husbandry and aquaculture, can
capitalize on this growing demand.
Rockefeller Foundation
Food Security
Increasing agricultural productivity is critical for both human
welfare and economic growth. Many farmers are subsistence
farmers, often producing barely enough food to feed their
families. Unable to generate a surplus to sell, they have no
income to buy the inputs necessary to enhance their crop
yields, even though it would take only modest investments
and improvements in farming practices to triple or even
quadruple production. The Rockefeller Foundation works for
greater food security by supporting the scaling of organizations
and structures used to aggregate institutional-scale impact
investments and place them efficiently with investees.
Investment Options
Stocks: Companies with products and services dedicated
to organic and sustainable agriculture.
Bonds: Corporate bond issuance from companies with products
and services dedicated to organic and sustainable agriculture.
Private Equity: Venture capital investing in new technologies
for food production, including monitoring systems and
infrastructure. Buyouts of mature and profitable agriculture-
related companies.
Private Debt: Lending to agricultural cooperatives and fair
trade food producers as well as companies with products and
services dedicated to organic and sustainable agriculture.
Real Assets: Acquisition of conventional farmland with the
intention of converting it into certified organic, sustainable
farmland. Development of new methods of food production
to meet the growing demand for organic food and proteins.
Sustainable / Organic Agriculture
1
USAID, February 2014
Efforts to establish agricultural sustainability can help
increase food production to keep pace with population
growth while improving soil quality.

17
Overview
Clean water is vital for life. We depend on it for drinking,
food production, hygiene and many technologies. Clean
water, effective sanitation and active recycling are pillars
of a healthy and sustainable community.
Access to clean water is often taken for granted because
of its assumed availability and low cost. Water is local, it
can’t be easily imported via global trade and it’s generally
expensive and energy-intensive to move long distances.
But global water infrastructure is degrading, while
population growth and the rising middle class are
simultaneously intensifying the demand for clean, fresh
water. Although effective sanitation and active recycling
may one day be achievable for all, many people today go
without the basic necessity of clean water.
Impact Opportunity
The World Health Organization reports that 780 million
people throughout the world lack access to fresh water.
Diseases contracted through polluted drinking water and
improper sanitation kill millions annually. The World Health
Organization estimates that 8.8 million children under the
age of five died in 2009, most of them in Africa and India,
due to waterborne diseases.
In the United States, clean water for all is the common
objective, but aging water infrastructure is struggling to keep
up with the burgeoning demand. Population growth also
increases demand for service providers in sanitation and
recycling.
Investments in conservation can be made in watershed
protection, water credits trading and water rights. These
investments generally involve the acquisition of agricultural
or raw land and managing the associated water rights for
conservation or redirection to higher-value uses.
In emerging and frontier market countries, opportunities may
be available to invest in water infrastructure. Sanitation and
recycling are also particular targets for impact investors, as
opportunities exist in these markets for private enterprise.
Conrad N. Hilton Foundation
Providing Safe Water
Access to safe water, in conjunction with adequate sanitation
and hygiene services, can improve the overall well-being of
the world’s most disadvantaged and vulnerable people. The
Conrad N. Hilton Foundation works to improve the well-being
of populations in targeted countries by supporting sustainable
access to safe water.
Investment Options
Stocks: Companies involved in water infrastructure, water
products and water technology.
Bonds: Municipal bonds that finance water, wastewater
treatment, sanitation and recycling projects. Corporate bond
issuance from companies involved in water infrastructure,
water products and water technology.
Private Equity: Venture capital investing in emerging water-
related technologies. Buyouts of mature and profitable
water-related companies.
Private Debt: Direct loans to projects or organizations that
finance conservation.
Real Assets: Acquisition of agricultural or raw land for
the right to own and manage the water resources or
redirecting them to higher-value uses such as renewable
energy development, expanded urban water supply and
the creation of environmental credits generated through
watershed restoration.
Clean Water / Sanitation
Technological advancements, improved infrastructure
and a focus on efficiency can expand access to clean
water for the 780 million people that consistently lack it.

Overview
Many people throughout the world are accustomed to
affordable and abundant energy to power their homes,
businesses, transportation and water infrastructure.
Industrialization, agricultural advancements, personal
transportation and on-demand water and electricity have
created enhancements in the human experience. All are
powered primarily by affordable and abundant traditional
energy sources.
But global demand for energy, water and other natural
resources is increasing as the world’s population
continues to grow and traditional energy sources are
being depleted. As a result, energy efficiency initiatives
that support the development of alternative and renewable
energy sources are increasingly being pursued.
Impact Opportunity
Innovations in clean energy production and energy efficiency
are occurring rapidly and alternative / renewable energy
solutions are becoming cost-competitive with traditional
solutions. These innovations include technologies, products
and services that reduce traditional energy consumption,
industrial inputs, waste and pollution.
Global population growth, urbanization and aging energy
infrastructure are driving demand for more efficient energy
use and alternative energy sources. Numerous countries,
states and municipalities have set targets for percentages of
energy consumption to come from renewable sources.
The opportunity for impact investing in clean energy and
energy efficiency, often referred to as “clean technology,”
encompasses:
• Alternative Energy: Solar, wind, geothermal, hydro,
waste-to-energy
• Energy Efficiency: Lighting, smart grid, building
automation, sensor technologies
• Advanced Materials: Batteries, energy storage, renewable
building materials, biodegradables
• Transportation: Vehicle electrification, fleet management,
biofuels
The William and Flora Hewlett Foundation
Energy and Climate Initiative
The Hewlett Foundation invests with the goal of ensuring that
energy is produced and used cleanly and efficiently, with limited
impact on human health and the environment. The foundation
is committed to limiting the overall global average temperature
increase to less than 2°C to avoid the worst effects of climate
change.
Investment Options
Stocks: Companies involved in clean and alternative
energy production, innovative industrials and materials and
efficiency focused utilities and technology companies.
Bonds: Municipal bonds that finance alternative energy
production projects. Corporate bond issuance from
companies involved in clean alternative energy production
and energy efficiency.
Private Equity: Venture capital investing in new energy
technologies. Buyouts and growth-capital investments
in companies that have proven their product, service or
technology is ready for widespread commercialization.
Waste-to-energy conversion projects and energy efficiency
installations.
Private Debt: Participation in alternative energy production
financing and lending to energy efficiency projects.
Energy Efficiency / Clean Energy Production
Production of clean, alternative energy and energy
efficiency projects can help meet growing demands for
energy and reduce negative effects on the environment
from energy consumption.

19
Overview
Real estate developers and investors can pursue
equipping their projects with features and technologies
that focus on efficiency, flexibility and openness. Tenants
and buyers may pay a premium price if the building offers
desirable space and the potential for lower energy bills.
But equipping real estate for environmental consciousness
and modern space design can be costly. Property owners
often do not have the desire or capital to renovate and
repurpose older buildings with strategic upgrades.
Developers of new real estate may not want to incur extra
costs that come with installing the most efficient systems.
When successfully executed, however, property
improvement strategies that capitalize on the growing
environmental consciousness of the marketplace can
become central to the ability of an investor to create value
and produce a return.
Impact Opportunity
Technology, recent trends towards re-urbanization and
growing environmental consciousness among consumers
and business owners are driving the demand for “green”
real estate, which is generally considered to be more energy
efficient, less wasteful and more open and conducive to a
collaborative lifestyle.
Highly-efficient buildings are designed to use less energy,
may attract higher rents, have fewer vacancies and provide
the potential to command higher prices at the time of sale.
Energy cost savings and well-designed financing structures
can also reduce net building operating costs permanently.
To take advantage of the growing demand for green real
estate, investors can pursue transforming under-performing
office, retail and multi-family residential properties through
targeted renovations and flexible, creative layouts.
Some projects pursue certifications to further enhance value.
One commonly pursued certification is Leadership in Energy
Environmental Design (LEED), a green building certification
program that recognizes best-in-class building strategies
and practices.
Clinton Foundation
Energy Efficiency Program
More than one-third of worldwide energy is consumed in
buildings, yet studies show that we could reduce that energy
use by as much as 30 percent. Reducing building energy use
through energy-efficiency and monitoring strategies can have
significant environmental, occupant health and economic
impacts. The Clinton Climate Initiative works to overcome
barriers to achieving large-scale reductions in energy use in
buildings across the globe.
Investment Options
Stocks: Companies with products and services for efficient
energy management in residential and commercial real estate.
“Green REITs” that score high in sustainability rankings.
Bonds: Corporate bond issuance from companies with
products and services for efficient energy management in
residential and commercial real estate.
Private Equity: Venture capital investing in new
technologies focused on energy efficiency. Buyouts and
growth capital investments in companies that have proven
their product, service or technology is ready for widespread
commercialization. Waste-to-energy conversion projects and
energy efficiency installations.
Private Debt: Lending to real estate owners that use the capital
to perform energy efficiency upgrades and building retrofits.
Real Estate: Purchase of commercial and multi-family
residential real estate with the intention to reposition the
property as highly energy efficient with modern space
designs. Development of new property with energy efficiency
installations and open, flexible floor plans.
Environmentally Conscious Real Estate
Real estate that stands out from its peers in efficiency,
flexibility and openness can demand higher rents and
produce enhanced return on investments.

Insights
Impact Investing
Jonathan Firestein
Managing Director, Private Capital and Impact Investing
Jonathan Firestein leads the research efforts across investment opportunities in private capital and
impact investing, working to connect client objectives and passions to personalized investment
recommendations. Jonathan holds an MBA, MS Economics and BA Economics.
ABOUT THE AUTHORS
Sean Olesen, CFA, CAIA
Director, Private Capital and Impact Investing
Sean Olesen leads the research efforts across investment opportunities in private capital and
impact investing, working to connect client objectives and passions to personalized investment
recommendations. Sean holds an MBA and BS International Economics.

21
IMPORTANT DISCLOSURES
Investment products and services are:
This information was prepared in May 2015 and represents the opinion of Ascent Private Capital Management of
U.S. Bank. It does not constitute investment advice and is issued without regard to specific investment objectives or the
financial situation of any particular individual. The information presented is for discussion purposes only and is not intended
to serve as a recommendation or solicitation for the purchase or sale of any type of security. The factual information provided
has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. U.S. Bank
and its representatives do not provide tax or legal advice. Individuals should consult their tax and/or legal advisor for advice
concerning their particular situation. The organizations mentioned in this publication are not affiliates or associated with
U.S. Bank.
Equity securities are subject to stock market fluctuations that occur in response to economic and business developments.
International investing involves special risks, including foreign taxation, currency risks, risks associated with possible
difference in financial standards and other risks associated with future political and economic developments. Investing in
emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of
investments in a single region may result in greater volatility. Investing in fixed-income securities are subject to various
risks, including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate
events, tax ramifications, and other factors. Investment in debt securities typically decrease in value when interest rates rise.
The risk is usually greater for longer term debt securities. Investments in lower rated and nonrated securities present a greater
risk of loss to principal and interest than higher rated securities. There are special risks associated with an investment in
commodities, including market price fluctuations, regulatory changes, interest rate changes, credit risk, economic changes,
and the impact of adverse political or financial factors. Investments in real estate securities can be subject to fluctuations in
the value of the underlying properties, the effect of economic conditions on real estate values, changes in interest rates, and
risks related to renting properties (such as rental defaults). Exchange-traded funds (ETFs) are baskets of securities that are
traded on an exchange like individual stocks at negotiated prices and are not individually redeemable. ETFs are designed to
generally track a market index – broad stock or bond market, stock industry sector, or international stock. Shares of ETFs
may trade at a premium or a discount to the net asset value of the underlying securities. An investment in a hedge fund is
speculative in nature and involves a substantially more complicated set of risk factors than traditional investments in stocks
and bonds. Risk factors include such strategies as short sales, leverage, hedging and non-diversification. Mutual fund
investing involves risk and principal loss is possible. Investing in certain funds involves special risks, such as those related
to investments in small- and mid-capitalization stocks, foreign, debt, and high-yield securities, and funds that focus their
investments in a particular industry, or employ a long-short strategy. Please refer to the fund prospectus for additional details
pertaining to these risks. Private equity investments provide investors and funds the potential to invest directly into private
companies or participate in buyouts of public companies that result in a delisting of the public equity. Investors considering
an investment in private equity must be fully aware that these investments are illiquid by nature, typically represent a long-
term binding commitment, and are not readily marketable. The valuation procedures for these holdings are often subjective in
nature. Private debt investments may be either direct or indirect and are subject to significant risks, including the possibility
of default, limited liquidity and the infrequent availability of independent credit ratings for private companies.
NOT A DEPOSIT NOT FDIC INSURED MAY LOSE VALUE NOT BANK GUARANTEED
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

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