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3. plenary acumen ms.molly


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3. plenary acumen ms.molly

  1. 1. Acumen FundInvesting in game-changing companiesInvesting in leadersInvesting in ideas that change how the world fights poverty
  2. 2. Acumen Fund A social fund that invests patient capital in enterprises that sustainably serve the poor Note: Acumen Fund, Inc. is structured as a 501(c)3 tax-exempt organization
  3. 3. Since 2001 we have $79 MILLION invested in 69 companies 90 MILLION individuals reached 57,000 jobs created and supported
  4. 4. We work in low-income, emerging markets Pakistan + + India West + Africa East Africa + Acumen Fund Office + + Local offices source and diligence deals + 24 investment professionals + In-country advisory boards
  5. 5. What makes an Acumen Fund investment?+ Potential for large-scale social impact (10x growth or 1M+ customers)+ World-class team deeply committed to solving problems for the poor+ Enterprises that have the potential to be financially self-sustaining+ Potential “game changers” – new global models for fighting poverty
  6. 6. Patient Capital for long-term social impact Traditional venture capital Maximize financial return Maximize Patient Capital Blending social and financial returns for long-term social impact Financial return 0% objective Traditional philanthropy Maximize social impact No return None Maximize Social impact objective
  7. 7. Investing to alleviate poverty and recyclingreturns 7-10 years Exit at Scale Recycle returns Scale up Early stage 1 Invest funds in 2 Grow enterprises 3 Recycle equity or debt focused on social returns into impact and more sustainability enterprises
  8. 8. Our investments create access to basic servicesWater & Sanitation Energy + Community water and + Low-cost power/light for sanitation systems off-grid communities + Scale through public- + E.g. private partnerships solar, biomass, small- scale hydropower Housing Agriculture + Low-cost housing for + Increase productivity of former slum dwellers smallholder farmers + Focus on building + E.g. drip community and flexible irrigation, seeds, fertilize financing products. rs and artificial insemination Education Health + Specialized secondary + Sustainable, low-cost care services, e.g. private education and maternal, eye care activities-based learning + Low cost distribution models systems with innovative + Vocational and skills pricing training
  9. 9. Portfolio growth $79M $79M INVESTED $72M $361M FOLLOW-ON CAPITAL INTO OUR COMPANIES $54M $9.1M $43M CAPITAL RETURNED $37M $26M $15M $8M $4M 2004 2005 2006 2007 2008 2009 2010 2011 TODAY
  10. 10. Building the rural water industry in India$600K Acumen equity investment in WHI in 2004 External capital invested$50M (Dow, IFC) 5M+ Customers served by WHI and companies replicating their model
  11. 11. Electrifying rural India Acumen convertible debt $375K investment in Husk Power in 2009 Villages electrified, impacting 300+ over 200K lives Price for 2 household lights $2 PER MONTH and unlimited cell phone charging.
  12. 12. Game-changing investmentsA to Z (Tanzania) – leading global producer of GEWP (India) – 330,000 people with increased Olyset anti- malarial bed nets crop yields Saiban (Pakistan) – a new model for ZHL – 772 ambulances in 6 states in India; affordable housing development over 1 million calls answered
  13. 13. How we find investments +We believe in building a local team, a strong network of local advisors, and finding local funders +Enterprises must have a high potential for social-impact and a financially sustainable business plan +Lots of collaboration with others in the space to refer pipeline opportunities to each other
  14. 14. How we raise funds We are largely backed by philanthropy +However, donors often have the same criteria as investors
  15. 15. How we raise funds We are clear on our return expectations +We invest primarily for social impact + We expect our capital to be returned, but know that the time horizon is long +Any returns are reinvested into the portfolio
  16. 16. How we raise funds We are clear on our investing thesis, and what value we can add in return +Ten years of impact investing experience +Support for innovative business models +A wide ranging local and global community of experts
  17. 17. Business model pioneers face a criticalfunding gap Blueprint Validate Prepare Scale Up “Pioneer Gap” Monitor Inclusive Markets, From Blueprint to Scale: The Case for Philanthropy in Impact Investing April 2012
  18. 18. New initiatives Education West Africa Regional Fellows + Raised $4M+ in 2011 to + Launched West Africa office + Expand our Global Fellows build education portfolio; and made first investments in program looking to raise $2M 2011 + East Africa Fellows more. + Strong portfolio of 3 Program launched May + Integrating into investments in 2011 geographies in which we health, housing, and agriculture and strong + Expanding into have a deep presence emerging pipeline Pakistan, India, West Africa + Made first 2 investments in 2012-2013 in early 2012 in India + Active Board Member from Ghana and emerging Partner
  19. 19. Our vision for 2015 Catalyze patient capital globally + Expand to 15 countries by 2015 + Grow our portfolio to $150M and impact 150M+ lives + At least 10 of our 80+ companies are truly transformative + 400+ Global and Regional Fellow Program Alumni across the globe + Change the way the world tackles poverty
  20. 20. Thank You Dignity, not dependence Choice, not charity