‘Social Business Award’ ( 2011 ) Award •Social Venture Partners Tokyo: ‘Social Venture Award’ ( 2010 ) Recognition •Selected as a case study by Asian Development Bank Institute (ADBI) •Invited speaker at various international conferences on social investment ARUN, LLC 19 Future Plans ARUN aims to expand its activities and scale up social impact through the following future plans: 1. Expand Investment Scale - Increase fund size to USD 5 million by 2015 through individual and corporate investors - Expand investment portfolio to 10-15 enterprises by 2015 2. Strengthen Regional Office in Cambodia - Strengthen investment management and value-up support functions

1. 2nd International Symposium on Social Investment
Challenges of Social Investment from Japan
Takara Tsuzaki, Partner
URL ： www.arunllc.jp

2. Corporate Profile
OUR VISION
OUR MISSION
We envision a society where all members live and enjoy the full range of their talents and
abilities regardless of background and economic status.
1.
2.
To create opportunities and empower people in developing countries, through providing
financial access to and sharing knowledge and skills with social entrepreneurs.
To create a space for mutual learning and action between people in Japan and social
entrepreneurs in developing countries, through an interactive Social Investment Platform.
Name
ARUN, LLC.
Established in
December 2009
Office Location
Isshin Bldg., 2-11-7, Yaesu, Chuo-ku, Tokyo, Japan
President
Satoko KONO
Capital
5,000,000 Japanese Yen
 Social Investment in developing countries
Business Area
Overseas Office
HP
 Hands-on support for social enterprises in developing countries
 Mutual learning and training for social investors
 Business matching and advisory support
Phnom Penh, Cambodia
http://www.arunllc.jp
ARUN, LLC
2

3. Business Principle
ARUN is Japan’s first platform which promotes social investments, supports value-up of investees
(creation of extra values) and brings about social impacts.
ARUN identifies and invests to social entrepreneurs in developing countries using funds collected from individual &
corporate investors. The investments aim to increase employment opportunities, environmental sustainability and
poverty reduction impact through human resources development.
ARUN works closely with entrepreneurs who strive to solve the poverty by the power of their independent business
and improve the society.
ARUN connects the entrepreneurs and the investors through investment activities, aiming to create “meaningful flow
of money” which contribute to the sustainable society.
Investors (Japan)
Investees (Developing Countries)
Individuals and enterprises
interested in social investment
Social Entrepreneurs
Social Enterprises
Social Investment
Platform
Supports communication between
the Investees and Investors
12/19/13
ARUN, LLC
3

4. Scope of Our Business
Investees (developing countries)
 Search entrepreneurs with
social/development mission
 Provide investment program
 Evaluation and measurement of
social impact
Investment
Management Support
 Advise on management, financial and
marketing
 Monitoring
Investors (Japan +α)
 Market analysis on social enterprises
 Evaluation on social enterprises
 Business matching
 Technical assistance and support
through investment
Research and Advisory Services
Marketing and Promotion
 Promote social investment through
marketing and public relation
 Provide opportunities for social
investment
 Organize Study tour (direct
interaction with investees)
 Feedbacks on investment activities

5. Main Activities
1. Investment and Value-up of BOP Business
・ Investments to enterprises which solve social problems such as poverty through business
・ Value- up of investees by financial support + management support and business matching among companies
2. Participatory Social Investment Platform
・ Building a platform where Japanese investors and entrepreneurs of developing countries can share ideas and
grow together
・ Active participation of professionals and talented people inside and outside of the platform
・ Implementation of human resource development for effective flow of capital
3. Evaluation of Social Impact, Monitoring and Reporting
・ Developing social impact monitoring and reporting scheme that reflects business activity and social impact in
the community and wider society
ARUN, LLC
5

6. Management & Organizational Structure (1)
【 Organizational Structure 】
Representative
Advisory
Board
Directors
Cambodia Office
Business
Management
Investment
Committee
Marketing
Promotion
IT ・ Information
ARUN LAB
【 Directors 】
Satoko Kono, Founder/President
MSc .Social Policy from London School of
Economics. After graduating from International
Christian University (ICU) and working for a
private company, she lived and worked in
Cambodia for 10 years since 1995 as a
development specialist of business NGO, the
Japan International Cooperation Agency (JICA)
and the World Bank. She gained extensive
knowledge and personal network in the
country, and inspiration to establish and
promote social investment emerged. ARUN
believes that building a new scheme of
development cooperation can be realized
through innovative approach.
12/19/13
ARUN, LLC
Hiroyuki Tsuzaki, Director of Business Planning
Master’s degree in International Development
Policy from Duke University. He has solid
experience on financing. He has worked for
Grameen Bank, Shinkin Central Bank, and Citi
Bank, and currently residing in the US and working
at the World Bank.
Kazuyuki Tsuchiya, Director in Marketing
/Promotion
Master’s degree from Tokyo University. He is
Economic analyst for social infrastructure
improvement at a think-tank. He also serves as
Executive Board member of an environmental nonprofit organization, and is a leading figure on
promoting social finance in Japan.
6

7. Management & Organizational Structure (2)
The Partners (Investors) of ARUN are professionals of finance, consulting, agriculture and media in their main
professions and their experiences and networks are fully utilized in ARUN’s activity. Their professional skills
and strong social mind symbolize ARUN’s operational structure and ARUN keeps dynamic, sustainable and selfreliant management system.
Profession of partners ：
2009 Dec.
Investor ： 10
Amount of investment ：
16 miillion yen
Partners
2013 September
Volunteers
Investor ： 92+1corporation
Amount of investment: 67.5 million yen
Consulting International Development Finance Education Self employed
Manufacturer Media Trading company IT Others
Agriculture Corporation
ARUN, LLC
7

8. Targeting on the Missing Middle
ARUN is filling the gap of financing small/medium-sized social entrepreneurs/enterprises through
social investment
Currently, ARUN is the only fund targeting small and medium sized enterprises (SMEs) in Japan.
SMEs have the great potential to building local capacity and economy, but faces greatest financial
needs. They are too small for commercial institutions, yet too large for microfinance institutions.
ARUN is filling this gap and solve the problem of the ‘missing middle’.
Financial Needs
Existing financial support entities
Commercial financing institutions
Large-Scale
ARUN’s target
SMEs
Absence of financial support mechanism for SMEs
For commercial banks
requires complex loan procedures （＝ Cost efficiency ）
For MFIs
Too large financial needs, too long lending period
Micro business by
individuals and
families
12/19/13
MFIs
ARUN, LLC
8

9. Business Model of ARUN
investment
1. Individuals
Enterprises
Exit
2. Corporate Investors,
Development Finance
Organizations
3. Foundations
Funds
Social Investment Platform
Sales
Administrative
Expense
Business
Income
Investment
A
B
C
E
D
F
Social
Return
Pro bono activity
Nonprofit
Corporation
Investigation
Study
■ Countries targeted
Cambodia, Myanmar, India etc.
■ Size of Investment （ per portfolio)
USD 10,000 – 100,000
A
■ Field of Investment : Scale-up of social
B
business in
Agriculture, Environment conservation,
Education,
C
Health and Hygiene, Water, Tourism etc.
■ Investee’s stage
E
Several years after starting business ～
Medium-term
stage
D
■ Investment scheme
Equity investment, Loan
■ Targets of Investment
F
Entrepreneurs, Local SMEs, Local advance
Japanese
Value-up
-affiliated companies, Local micro –finance
Social Nature and Businessinstitutes.
related Improvement
ARUN, LLC
9

10. Why Social Investment Now?
In Japan the capital market of philanthropy debenture goods is underdeveloped. Globally, social investment
and impact investment are still a new concept, and rapidly emerging in the last few years.
Global Current
‘Impact Investment’, coined in 2007, aims to solve to social or development issues, such as poverty and
environment while pursuing economic return. Market for impact investment is expected to grow up to 4
billion to 1 trillion US Dollars in 10 years (Monitor Institute, USA).
Recipient of
Funds
Excellent and highly minded ‘Social Entrepreneurs’ who seek for social challenges through enterprises
have emerged in many countries in the world. They are promising investees.
Lender of Funds
‘Social consumption’ spreads around the world of investment, which is to chose more socially helpful
product if the quality is same. Among investors the notion of ‘Sociality = Value’ is wide-spread.
The total sales of philanthropy type bond and number of debenture
ARUN, LLC
10

11. Investment Results
ARUN offers practical services to developing markets with high growth potentials and aims at the two
wheels model of growth of enterprises and social impact creation.
ARUN Investment History (USD)
The investment results (number) according to the stage
Early
※Includes short-term investment of the unit for several months in multiple times
Agriculture (organic rice)
Agriculture (organic honey)
Beauty
IT
Seed
Amount of investment （ 2009-2012 ） : 1,145,000 USD
Period :
1-3 years
(short-term 1 month)
Interest rate :
10-12%
Collection result (2010-2012 ） :
904,035 USD
Expected collection （ 2013-2014 ） :
256,759 USD
Financial returns (estimated) :
123,046 USD
Hotel
ARUN, LLC
11

12. Investee: Sahakreas CEDAC (organic rice & wild honey)
Dr. Yang Saing Koma
Founder. Born and raised in the
rural area of Cambodia. Received a
doctorate degree in agriculture
from Universität Leipzig (Germany)
in 1995. While teaching at the
Cambodian Royal University of
Agriculture, Dr. Koma established
CEDAC, a development NGO in
1997. He serves as an advisor for
NGOs and foundations, and a
recipients of the Ramon Magsaysay
award.
Business:
Purchase and sales of organic crops
Major activities:
1. Sahakreas CEDAC purchases organic crops at a reasonable price
from the group that cultivate organic crops under the guidance of
CEDAC at a reasonable price, and distribute to market (Union of
small farmers: Approx. 300 groups).
2. Return the portion of the profits to the farmers union, and
support rural development activities for self-reliance.
*CEDAC NGO operates across the country, and covers 70,000
households in 2,800 villages (30% of the whole nation)
Sahakreas CEDAC
Farmers
Retail
Rice mill, packing with
CEDAC branding
Paddy
rice
Milled
rice
Sahakrea CEDAC bought about 1,500 tons of paddy rice and sold mainly in the domestic market in the fiscal year 2010.
ARUN, LLC
12

13. Investee: Arjuni (hair extension)
Profile of the Founder: Janice Wilson
U.S. citizen. After graduating from the
University of Washington (B.A. in
Political Science), developed her
career as a dancer / choreographer
and attained graduate degree from
Columbia University of Law. In the US,
she provides advisory services to real
estate company and venture capital,
and has extensive knowledge and
experiences on both non-profit and
private sector.
Arjuni’s Business
manufacture and retail human hair products
– “The World’s Purest Human Hair”
1) Purchase hair from women in rural
villages in Cambodia
2) process the hair extension by hand
3) Sell online
Arjuni’s Comprehensive Manufacture/Sales Model:
【 Manufacture 】
Collection
【 Sales 】
Website
Blending
Fabricatio
n
Sanitization
ARUN, LLC
Trade
Shows
&
Special
Events
“Arjuni is able to provide
custom-made products
through the unique
vertical integration
model.” by Janice
13

14. Investee: Frangipani Villa (Boutique hotel)
Company Profile:
•
•
•
•
The Frangipani Villa (Cambodia) Co., Ltd,
Established in 2007
No. of Hotels in operation ： 7
（ 5 in Phnom Penh, 2 in Siem Reap ）
URL: http://www.frangipanihotel.com/
【 Hotels in Phnom Penh 】
Frangipani Royal Palace
Frangipani Fine
Arts
Features:
•
•
•
•
•
Mid-range priced, contemporary boutique hotel
Frangipani Villa 60s
(rare to find in Cambodia, pioneer in the industry)
Low cost, high design hotel buildings
Operate in long-term lease of land, and reduced the initial cost
Management team with wide range of background; architect,
Frangipani Villa 90s
development consultants, government agencies
Strictly against sex tourism, and strong social mind in all aspects
of management (employ minorities and homeless people,
provide trainings)
Frangipani Living Arts
14

15. Success Cases: Recognitions
ARUN’s investees are getting high recognition worldwide. ARUN is successful in supporting promising
entrepreneurs and enterprises from the seed stage by building strong relationship of mutual trust and networks.
SKC Founder
2012 Ramon Magsaysay Award
Social Return
(2009-2012)
Frangipani Owner
Appeared in the Phnom Penh Post
Arjuni Founder
Appeared in the New York Times and
BBC
・ Improvement on living conditions （ 3000 households growing organic rice , 500 households
producing organic honey ）
・ Employment （ training and employment of youth from 250 poor households, education and
employment opportunities for 40 women ）
・ Environmental conservation （ organic agriculture , community forest preservation ）
・ Self-sustained organization （ productive cooperation of natural honey, organic rice ）
ARUN, LLC
15

16. Value-up through Investment
ARUN has developed a method for value-up for business growth and has been providing technical assistance
and management support to maximize the social impact of business throughout the investment period. ARUN’s
management team, partners, and regional office (Cambodia) engage closely with investees.
■Value-up of natural honey business:
By mobilizing financial, technical and human resources through various channels, ARUN succeeded
in improving the quality of natural honey in Cambodia.
As a result, community based natural honey business improved and Cambodian natural honey was
exported to Japan for the first time.
ARUN, LLC
16

17. Social Impact Evaluation Scheme
ARUN selects investee enterprises in conformity with both social and business criteria. ARUN has developed
its own social impact evaluation scheme and utilizes for DD, reviewing and reporting of investment activities.
Social /Developmental Effectiveness
Criteria
Business/Management Criteria
Commitment by entrepreneurs to bring
about social changes for the cause
Business Model
Financials
Degree in which
social value is
created
Employment
Governance
Leadership
Impact on
Community
■Social Monitoring: Stakeholder analysis
Return on Investment
Local
■Evaluation of Social Impact
(applied to our investees) Leadership
Customers
Environment
ARUN
Entrepreneurs
Workers
Innovativeness
Suppliers
Contribution to
local communities
Employment
Family
ARUN, LLC
17

18. Awareness Raising and Capacity Development
ARUN cooperates with wide variety of stakeholders to disseminate the concept of social investment, putting
efforts in awareness raising, research and studies and capacity building. The achievements of such efforts
benefit social investment sector.
■Raising Awareness and Networking – Building
Eco –systems in Japan and abroad
-Dissemination of information through website, SNS
and its newsletter.
-Regularly organizing fund raising events,
workshops, symposiums, investment briefing
sessions
-Building networks with corporate investors,
development financing organizations, foundations
and social investment institutions.
-Developed research arm and conduct study on
BOP business and social impact assessment.
-Participate in social/impact investment
conferences and seminars abroad and present cases
■Human Resource Development for the Next
Generation
- Organize Social Business Competition in Cambodia
twice a year (participants: university students from
Japan, Cambodia and Myanmar)
ARUN, LLC
18

19. Grants & Award, Recognitions
Research Grant （ JICA ）
•Study on BOP business and Social Investment （ 2011-2013 ）
•Study on Assessment of Development Effectiveness and Financing Method for BOP
Business （ 2013 ）
Grant
•Japan Foundation: ‘Intellectual Exchange Grant’ （ 2012 ）
•Mitsubishi-Tokyo UFJ Foundation: ‘Enlightening Activity’ （ 2011-2013)
•National Land Afforestation Promotion Organization: ‘Support for the Green Fund’ （ 20102012 ）
•KDDI Foundation: ’Social and Cultural Activity Grant’ （ 2010-2011 ）
•The Toyota Foundation: ‘Asian Neighbors Program’ （ 2009-2011 ）
Prize
•Eco Japan Cup: Environmental Business Women Award （ 2010 ）
•SBI Business Plan Contest :Award for the Excellence （ 2009 ）

20. Growth Strategy
ARUN’s one of the top priorities in the coming years is to develop mechanisms that can
support a number of investments in an efficient manner and simultaneously
enhances the growth and expansion of social investment sector.
Strategy
Strategy
Strategy for 2013
Infrastructure building to support the
growth of social investment
-Making mechanism of value-up
method
-Development of monitoring methods
-Network building in Southeast Asia
Cooperation with other
institutions
Portfolio growth through
collaboration with social
investment organizations (equity
investments, including debt, etc.)
Foundation
Foundation
of ARUN
of ARUN
Amount of total
investment
60 million yen
(0.6 million USD)
Start-up 2010-12
Enhancement of portfolio
-Industry
-Growth stage of investee
companies
-Investment amount & period
Expansion of
social investment
through platform
building
Value-up of investees and extension of social
investors network is the key element for success.
300 million yen
(3 million USD)
Growth 2013-15
1 billion yen
10 billion yen
Expansion 2016-18
Progress 2019-21
(10 million USD)
(100 million USD)
- Develop and refine social impact assessment - Cooperation with other social
- Awareness of social investment
- Provide investment opportunities for domestic
investment and relevant institutions
(mainly individual investors)
and foreign institutional investors
and organizations globally
- Pilot investments
(foundations, development institutions etc.) - Provision of greater and wider
- Development of analytical
- Expand activities to neighboring countries in
services in social investment
methods (screening, DD, report)
Asia
- Expanding targeted regions for
- Activities in Cambodia
- Equity investment
investment
ARUN, LLC
Provision of platform
that connects the
investees and private
and institutional
investors
20