A proven model for early stage investing

1. AQAL
INVESTING:
AN
INTEGRAL
APPROACH
TO
THE
FUTURE
OF
INVESTING
Unleashing
the
Power
of
Current
Trends
for
the
Benefit
of
All
Mariana
Bozesan,
PhD
Club
of
Rome,
full
intl. member
Founder
&
General
Manager,
AQAL
Capital
GmbH,
Munich
Senior
Research
Fellow,
Humboldt-­‐Viadrina
School
of
Governance,
Berlin
February
11th,
2014
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2014
AQAL
Capital.
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Confiden:al.

2. OUTCOMES
TODAY
Demys:fying
the
landscape
of
rather
confused
investors
Understanding
the
hidden
determinants,
context,
and
trends
Unleashing
the
power
of
the
integral
model
for
the
benefit
of
all
©
2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
1

3. OUTCOMES
TODAY
Demys:fying
the
landscape
of
rather
confused
investors
Understanding
the
hidden
determinants,
context,
and
trends
Unleashing
the
power
of
the
integral
model
for
the
benefit
of
all
©
2014
AQAL
Capital.
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rights
reserved.
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2

4. Lehman,
Fukushima,
Madoff,
Libor,
Climate
Change,
Debt
Crisis…
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2014
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3

5. …
lead
to
wealth
owners’
sinking
confidence
in
ins:tu:onal
investors*
*Source:
BCG
Report,
Regaining
Lost
Ground:
Resurgent
markets
and
new
opportuni5es.
Becerra
et
al.2010.
*Source:
BCG
Report,
Regaining
Lost
Ground:
Resurgent
markets
and
new
opportuni5es.
Becerra
et
al.2010.
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2014
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4

6. >=
10%
of
High
Net-­‐Worth
Individuals
want
sustainability
in
both
financial
terms
and
impact,
but
cannot
get
it
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2014
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Capital.
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7. ….
because
innova:ve
financial
products
that
can
fulfill
their
needs
are
missing
at
large
scale
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8. THUS,
MANY
HNWI
ARE
BYPASSING
INSTITUTIONS
Seeking
alterna:ves
to
tradi:onal
fund
products,
oden
sobered
by
weaker
than
expected
performance
Wealth
owners
are
self-­‐organizing:
AVIVA
Corporate
Sustainability
Coali:on
($2
trillion)
Request
to
UN
member
states
to
adhere
and
develop
regula:ons
for
global
framework
on
corporate
sustainability
repor:ng
Intl.
policy
framework
for
company
disclosure,
transparency,
accountability,
responsibility,
incen:ves
Interna:onal
Integrated
Repor:ng
Commiiee
(IIRC)
Interna:onal
Stock
Exchange
Ini:a:ve:
RIO+20
Reques:ng
sustainability
lis:ng
rules;
>
43%
of
all
stock
exchanges
worldwide
adhered
to
them
already
Natural
Capital
Declara:on
Commitment
of
the
financial
sector
toward
the
integra:on
of
natural
capital
(earth’s
assets
&
ecosystem
services)
criteria
into
financial
products
and
services
Sustainable
Capitalism
Manifesto
–
Al
Gore
&
David
Blood
Global
Repor:ng
Ini:a:ve
(GRI):
Sustainable
Repor:ng
Guidelines
G4
The
Giving
Pledge:
>
50
Billionaires
star:ng
with
Warren
Buffet,
Bill
&
Melinda
Gates,
R.
Branson,
etc.
GIIN/IRIS
by
The
Rockefeller
Founda:on
Self-­‐organizing
family
offices
including
PYMWYMIC,
AQAL
Inves:ng,
RDS
Capital,
TONIIC
Impact
Inves:ng
is
oden
missed
by
ins:tu:onal
investors
(only
5%
use
it)
vs.
10%
of
HNWI*
The
B
Corp
Declara:on
&
the
Conscious
Capitalism
Movement
incl.
GIIRS
*Source:
J.
P.
Morgan
&
GIIN
Report:
Insight
into
the
Impact
Investment
Market.
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2014
AQAL
Capital.
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rights
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December
14,
2011
7

9. ©
2014
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8

10. GLOBAL
ALLIANCE
FOR
BANKING
ON
VALUES
REPORT*
with
total
assets
exceeding
$60
billion
has
Eliminated
the
myth
about
lower
returns
through
sustainability
Beier
returns
on
assets
than
regular
banks
Significantly
higher
levels
of
growth
in
loans
and
deposits
Higher
and
beier
quality
of
capital
Revealed
that
sustainable
banks
are
more
robust
and
resilient
than
tradi:onal
ones
GSIFI=Global
Systemically
Important
Financial
Ins:tu:ons
*Source: GABV. (2012, March). Global alliance for banking on values: Strong, straight forward, and sustainable banking. Financial capital and impact metrics of value based banking. Full report. March
2012. Downloaded May 15, 2013 from http://www.gabv.org/wp-content/uploads/Full-Report-GABV-v9d.pdf
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11. TRADITIONAL
INVESTING
IS
CHALLENGED*
Financial
crisis
lead
to
fear
and
uncertainty
TRADITIONAL
INVESTING
Falling
revenue
and
margins
Massive
capital
migra:on
Profit
Metrics
Frustrated
wealth
owners
losing
trust
in
their
asset
managers
Alterna:ve
and
customized
inves:ng
are
on
the
rise
Tradi:onal
inves:ng
oden
focused
on
short-­‐term
profit
maximiza:on
at
the
expense
of
long-­‐term
health
of
global
community,
culture,
environment,
ethics,
and
overall
human
happiness
Tradi:onal
investment
metrics
oden
missed
sustainable,
:me-­‐based
businesses
and
responsible
investment
opportuni:es
Many
tradi:onal
asset
managers
failed
to
develop
a
core
competency
in
alterna:ve
inves:ng
opportuni:es
including
impact
inves:ng
(SRI/
RI/ESG)
e.g.
WALL
STREET
BERKSHIRE-­‐
HATHAWAY
KKR
SEQUOIA
CAPITAL
Profit
*Source:
Mulcahy, D. & Weeks, B. & Bradley, H. S., (2012, May). We have met the enemy …. And he is us: Lessons learned from twenty years of the Kauffman Foundation’s investments in venture capital
funds and the triumph of hope over experience. Kauffman Foundation Research
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2014
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12. ©
2014
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11

13. Impact
Inves:ng
is
growing
but
it
is
fragmented
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2014
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14. IMPACT
INVESTING
IS
FRAGMENTED
IN
TERMS
OF
MOTIVES
AND
APPROACH
Two
types
of
Investors*
Financial
(Profit)
First
Investors
Pursue
the
op:miza:on
of
financial
returns
before
having
an
impact
floor
Investors
“are
not
willing
to
accept
lower
than
market
returns
as
a
cost
to
op:mizing
social
or
environmental
goods,
although
they
s:ll
make
a
posi:ve
impact”
Impact
(People/Planet)
First
Investors
Seek
to
op:mize
social
and
environmental
impact
with
a
financial
floor
For
greater
impact,
investors
are
willing
to
accept
lower
than
market
financial
returns
IMPACT
INVESTING
Sustainability
Metrics:
ESG
e.g.
GRAMEEN
BANK
TRIODOS
BANK
GLS
BANK
BANK
SARASIN
Triple
BoAom
Line
Planet
People
Profit
*Defini:on
ader
(Eurosif,
2010,
p.
7)
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15. GLOBAL
SUSTAINABLE
INVESTING
(SRI/RI)
IS
GROWING*
Global
Sustainable
Investments
using
some
kind
of
ESG
criteria
reached
US$
13.6
trillion
(=21.8
%
of
total
AuM
in
2012)
Most
common
strategy
is
the
nega:ve/exclusionary
screening,
US$
8.3
trillion
AuM
Norm-­‐based
screening,
US$
3.0
trillion
AuM
mostly
Europe
(65%
of
known
SRI
AuM)
Posi:ve/best-­‐in-­‐class
screening
1.0
trillion
AuM,
mostly
US
Assets
u:lizing
ESG
integra:on
are
at
US$
6.2
trillion
Impact
Inves:ng
theme
investments
are
s:ll
fragmented
and
compara:vely
small
at
US$
89.0
billion
Sustainability
theme
investments
are
also
compara:vely
small
at
USD
83.0
billion
*Source:
The
Global
Sustainable
Investment
Alliance
(GSIA)
Report
2012,
hip://gsiareview2012.gsi-­‐alliance.org
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16. GLOBAL
SUSTAINABLE
INVESTING
(SRI/RI)
(COND.)
Screening
of
investments
Nega:ve/exclusionary
screening
-­‐
The
exclusion
from
a
fund
or
poryolio
of
certain
sectors,
companies
or
prac:ces
based
on
specific
ESG
criteria
Posi:ve/best-­‐in-­‐class
screening
-­‐
Investment
in
sectors,
companies
or
projects
selected
for
posi:ve
ESG
performance
rela:ve
to
industry
peers
Norms-­‐based
screening
–
Screening
of
investments
against
minimum
standards
of
business
prac:ce
based
on
interna:onal
norms
Integra:on
of
ESG
factors
The
systema:c
and
explicit
inclusion
by
investment
managers
of
environmental,
social
and
governance
factors
into
tradi:onal
financial
analysis.
Sustainability
themed
inves:ng
Investment
in
themes
or
assets
specifically
related
to
sustainability
(for
example
clean
energy,
green
technology
or
sustainable
agriculture)
Impact/community
inves:ng
Targeted
investments,
typically
made
in
private
markets,
aimed
at
solving
social
or
environmental
problems
Impact
inves:ng
includes
community
inves:ng,
where
capital
is
specifically
directed
to
tradi:onally
underserved
individuals
or
communi:es,
or
financing
that
is
provided
to
businesses
with
a
clear
social
or
environmental
purpose
Corporate
engagement
and
shareholder
ac:on
This
strategy
employs
shareholder
power
to
influence
corporate
behavior
including
through
direct
corporate
engagement
(i.e.
communica:ng
with
senior
management
and/or
boards
of
companies),
filing
or
co-­‐filing
shareholder
proposals,
and
proxy
vo:ng
that
is
guided
by
comprehensive
ESG
guidelines
*Source:
The
Global
Sustainable
Investment
Alliance
(GSIA)
Report
2012,
hip://gsiareview2012.gsi-­‐alliance.org
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17. INTEGRAL
INVESTORS:
POSITIONING
AND
DRIVERS
HIGH
“FINANCIAL
FIRST”
IMPACT
INVESTORS
Op:mize
financial
returns
while
maintaining
an
impact
floor
FINANCIAL
RETURNS
Pure
Financial
IMPACT
FLOOR
PROFIT
FLOOR
LOW
LOW
INTEGRAL
INVESTORS
Op:mized,
risk
adjusted
financial
returns
and
premium
impact
returns
“IMPACT
FIRST”
IMPACT
INVESTORS
Op:mize
social/
environmental
impact
while
maintaining
a
financial
floor
Pure
Philanthropy
Philanthropy
SOCIAL,
ENVIRONMENTAL,
ETHICAL,
CULTURAL,
&
HAPPINESS
IMPACT
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HIGH
16
16

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19. The
integra:on
between
Tradi:onal
Inves:ng
and
Sustainable
Impact
Inves:ng
is
needed
in
order
to
fulfill
the
needs
of
leading
edge
investors
today
©
2014
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20. AN
INTEGRATED
APPROACH:
AQAL
CAPITAL
INTEGRAL
INVESTING
TRADITIONAL
INVESTING
Profit
Metrics
AQAL
Inves:ng,
Natural
Inves:ng
Integral
Metrics
Interior
Exterior
Individual
e.g.
TRADITIONAL
WALL
STREET
BANKS
AND
VENTURE
CAPITAL
FIRMS
Profit
IMPACT
INVESTING
Sustainability
Metrics
ESG,
IRIS,
SAM
Ethics,
Ego,
EmoJons
&
Consciousness
Behavior
e.g.
GRAMEEN
BANK
LGT
VENTURE
PHILANTHROPY
Triple
BoAom
Line
People
Culture
&
Morals
Planet
People
Profit
Collec:ve
Planet
Profit
Integral
Inves:ng
is
based
on
Ken
Wilber’s
Integral
theory
that
is
widely
applied
in
50
disciplines
including
science,
poli:cs,
economics,
educa:on,
medicine,
and
business;
Ken
Wilber
is
endorsed
by
Nobel
Prize
laureate
Al
Gore,
former
US
President
Bill
Clinton,
former
Secretary
of
State
Hillary
Rodham
Clinton,
and
is
also
used
i.e.
at
McKinsey
and
Company.
Source:
Wilber,
K.
(2000).
A
theory
of
everything:
An
integral
vision
for
business,
poli5cs,
science,
and
spirituality.
Boston:
Shambhala.
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21. WHAT
IS
INTEGRAL
INVESTING?
Integral
Inves:ng
is
a
leading
edge
investment
model
based
on
Ken
Wilber’s
integral
theory
It
is
a
holis:c
inves:ng
vehicle
that
targets
both
premium
market
and
premium
impact
returns
for
the
benefit
of
all
It
implements
the
Parity
of
People,
Planet,
Profit,
with
Passion
and
holis:c
Purpose
in
inves:ng
It
is
an
investment
thesis
that
drives
the
self-­‐actualiza:on
of
all
par:cipa:ng
agents
by
unifying
humanity’s
values
spheres,
the
True,
the
Good,
and
the
Beau:ful
in
inves:ng
Its
de-­‐risking
tools
integrate
tradi:onal
financial
due
diligence,
with
environmental,
social,
and
governance
(ESG)
metrics,
and
with
cultural,
behavioral,
and
consciousness
assessments
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22. What
is
the
evidence?
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23. ©
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22

24. ©
2014
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23

25. SUSTAINABILITY
PAYS
STUDIES
THAT
PROVE
THE
BUSINESS
CASE
FOR
SUSTAINABILITY
”Businesses
can
improve
short-­‐
and
long-­‐term
profitability
through
the
adop:on
of
sustainable
prac:ces
in
the
following
areas:
Natural
Resource,
Energy,
and
Opera:onal
Efficiency
Reduce
input
and
overhead
costs,
militate
regulatory
sanc:ons,
hedge
exposure
to
vola:le
prices
and
supply
chain
disrup:ons,
and
mi:gate
environmental
degrada:on,
and
conserve
capital
for
implemen:ng
a
long-­‐term
growth
strategy
-­‐
See
studies
by
Goldman
Sachs,
DeloiAe,
Interface
Inc.,
McKinsey,
Pricewaterhousecooper,
Center
for
American
Progress
Human
Resources
Management
Retain
experienced
workers,
prevent
the
loss
of
corporate
knowledge,
lower
training
costs,
reduce
employee
absenteeism,
improve
worker
produc:vity,
and
recruit
the
best
talent
-­‐
Goldman
Sachs,
Gallup,
Economist
Intelligence
Unit,
IBM,
NEEF
Financial
Opera:ons
Increase
market
capitaliza:on
and
stock
growth,
improve
investor
rela:ons,
lower
insurance
premiums,
decrease
borrowing
costs,
and
Improve
access
to
capital-­‐
Goldman
Sachs,
Economist
Intelligence
Unit,
Ethisphere,
Gallup,
IBM,
Innovest,
Johannes
Kepler
University,
SAM,
University
of
California
Marke:ng
and
Communica:on
Expand
customer
base,
differen:ate
products,
improve
brand
image,
and
secure
customers
that
are
less
sensi:ve
to
price,
have
greater
brand
loyalty,
purchase
more
and
more
frequently
-­‐
Goldman
Sachs,
Accenture,
DeloiAe
Collabora:on
with
NGOs
and
Government
Gain
access
to
new
markets,
beier
supply-­‐chain
management,
strengthen
regulator
and
community
rela:ons,
improve
brand
image,
mi:gate
risks
to
brand
reputa:on,
militate
government
sanc:on
-­‐
Goldman
Sachs,
Accenture,
Economist
Intelligence
Unit,
IBM”
Source:
Lovins,
H.
Natural
Capitalism
Solu:ons
Website.
Downloaded
February
7,
2014
from
hip://www.natcapsolu:ons.org/businesscasereports.pdf
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24

26. MORE
NUMBERS
AND
FACTS
….
Over
the
next
40
years,
Genera:on
X
and
the
Millennial
Genera:on
will
poten:ally
inherit
an
es:mated
US$
41
trillion
from
the
Baby
Boomer
Genera:on*
These
genera:ons
consider
“improve
society”
as
their
number
1
priority
of
business**
Leaders
in
sustainable,
social,
and
good
governance
policies
have
25%
higher
stock
value
than
their
less
sustainable
compe:tors
35%
of
impact
inves:ng
funds
target
internal
rates
of
return
(IRR)
of
20%!!!!!**
*Source:
Havens,
J.
JJ.,
&
Schervish.
(2003).
Why
the
$41
trillion
wealth
transfer
es:mate
is
s:ll
valid:
A
review
of
challenges
an
ques:ons,
Boston
College
Social
Welfare
Research
Ins:tute.
**
Source:
Drexler,
M.,
Noble,
A.
(2013).
From
margins
t
mainstream:
Assessment
of
the
impact
investment
sector
and
opportuni:es
to
engage
mainstream
investors,
hip://www3.weforum.org/docs/
WEF_II_FromMarginsMainstream_Report_2013.pdf
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25

27. PREMIUM
FINANCIAL
RETURNS
FOR
INTEGRAL
COMPANIES
FIRMS
OF
ENDEARMENT
(FoEs)
2007*
GOOD
TO
GREAT
COMPANIES
(GGCs)
2002
Nucor;
Kimberly-­‐Clark
Kroger;
Walgreens
Wells
Fargo;
Gilleie
Sample:
3.0x
higher
ROI
than
market
average
(S&P
500)
over
15
years
INTEGRALLY
ACTING
BUSINESSES
The
Container
Store
Entelios
AG,
Whole
Foods
Trader
Joe’s;
Patagonia
DM,
REI,
Stoneyfield
Farms
Patagonia
Amazon
Southwest
Airlines
IKEA;
BMW;
eBay,
AVEDA
Sample:
8.0x
higher
ROI
than
market
average
(S&P
500)
over
10
years;
and
3.1x
higher
than
GGCs
15
Year
CumulaJve
Annualized
10
Year
CumulaJve
Annualized
Sample:
Whole
Foods:
+40%
Higher
ROI
than
FoEs
over
10
years
(1800%
shareholder
value
1995–
2006)
5
Year
CumulaJve
Annualized
3
Year
CumulaJve
Annualized
FOE
Return
1646.1%
21.0%
254.4%
13.5%
56.4%
9.4%
77.4%
21.1%
GTG
Return
177.5%
7.0%
14.0%
1.3%
-­‐35.6%
-­‐8.4%
-­‐23.2%
-­‐8.4%
S&P
500
Return
157.0%
6.5%
30.7%
2.7%
15.6%
2.9%
10.3%
3.3%
Note: Company returns are total returns with dividends reinvested and compounded**
*Source:
Sisodia,
R.,
Sheth,
J.,
Wolfe,
D.B.
(2007).
Firms
of
endearment:
How
world-­‐class
companies
profit
from
passion
and
purpose.
New
Jersey:
Wharton
School,
p.
16;
**Source:
Mackey,
J.,
&
Sisodia,
R.,
(2013).
Conscious
Capitalism:
Libera:ng
the
heroic
spirit
of
business.
Boston:
Harvard
Business
Press
Review.
©
2014
AQAL
Capital.
All
rights
reserved.
Strictly
Confiden:al.
26

28. OUTCOMES
TODAY
Demys:fying
the
landscape
of
rather
confused
investors
Understanding
the
hidden
determinants,
context,
and
trends
Unleashing
the
power
of
the
integral
model
for
the
benefit
of
all
©
2014
AQAL
Capital.
All
rights
reserved.
Strictly
Confiden:al.
27

29. THE
FINANCIAL
CONTEXT
The
disaster
of
2007/2008
nearly
ruined
the
global
economic
system
– By
Oct.
2008,
about
$25
trillion
were
obliterated
from
the
value
of
stock
markets
What
started
with
an
ini:al
liquidity
crisis
lead
to
– The
disrup:on
of
capital
flows
– The
collapse
of
the
“too
big
to
fail”
financial
organiza:ons
incl.
Lehman
Bros.,
Fannie
Mae,
and
Freddy
Mac
– Severe
downturns
in
the
global
casino/stock
markets
world
wide
– Currency
crunches,
failure
of
major
businesses
,
global
recession
including
the
European
sovereign-­‐
debt
crisis
(Ireland,
Portugal,
Greece,
Spain,
Cyprus,
etc.)
– LIBOR,
Madoff
scandals
– No
end
in
sight!
Q:
How
sustainable
are
our
financial
and
economic
systems?
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2014
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Capital.
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rights
reserved.
Strictly
Confiden:al.
28

30. THE
SOCIAL
CONTEXT
Real
estate
bubble
bursts,
foreclosures,
evic:ons
(USA,
Spain,
Ireland,
etc.)
Prolonged
unemployment
in
most
Western
countries
– 7.6%
USA,
12%
in
Europe
on
average
Increased
inequality
in
the
West
– USA
with
the
“most
millionaire
households”
in
the
world
followed
by
Japan,
China,
UK,
and
Germany
Growing
health
problems
physically,
mentally,
emo:onally
– Cancer,
overweight,
obesity,
depression,
asthma
Social
unrests:
– Occupy
movement,
Spanish
Indignados,
Greek
protest,
Arab
spring,
Ucraine
protests
Ø
The
worst
social
consequences
since
the
Great
Depression
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2014
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rights
reserved.
Strictly
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29

31. THE
ENVIRONMENTAL
CONTEXT
We
con:nue
to
emit
twice
as
much
CO2
in
the
atmosphere
than
can
be
absorbed
by
our
forests
and
oceans
with
disastrous
consequences
for
the
earth’s
ecological
balance:
– Global
warming
at
accelerated
speed
can
lead
up
to
2-­‐4
degrees
Celsius
in
this
century
– Ongoing
droughts
Water
is
becoming
more
important
than
petrol
– Ongoing
hurricanes,
floods,
rapid
mel:ng
of
polar
ice
caps
lead
to
the
raise
of
ocean
levels
– Irrecoverable
loss
of
bio
diversity
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2014
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Confiden:al.
30

32. What
is
going
on?
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2014
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rights
reserved.
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Confiden:al.
31

33. The
quiet
killer
and
the
driving
force
behind
destruc:on
but
also
the
GOOD
is
Exponen:al
Growth
©
2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
32

34. Most
decision
makers
do
not
get
it
un:l
it
is
much
to
late
to
respond
©
2014
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Capital.
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rights
reserved.
Strictly
Confiden:al.
33

35. What
is
Exponen:al
Growth?
©
2014
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Capital.
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rights
reserved.
Strictly
Confiden:al.
34

36. The
sage
and
the
Indian
king
©
2014
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Capital.
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rights
reserved.
Strictly
Confiden:al.
35

37. THE
SAGE
AND
THE
INDIAN
KING
8
>
1+2+4=7
32
>
1+2+4+8+16=31
On
each
new
field,
there
are
more
grains
of
rice
than
in
all
previous
fields
together
Exponen:al
growth
means
that
each
duplicaJon
contains
a
larger
quan:ty
of
things
than
all
previous
quanJJes
taken
together
The
last
square
would
contain
9.223.372.036.854.780.000
grains
of
rice
that
would
cover
the
surface
of
today’s
India
with
more
than
1
meter
of
rice
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2014
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rights
reserved.
Strictly
Confiden:al.
36

38. EXPONENTIAL
POPULATION
GROWTH
220.000
PEOPLE
ARE
BORN
PER
DAY
(NET)
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2014
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rights
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37

39. EXPONENTIAL
ECONOMIC
GROWTH
It
took
Europeans
1000
years,
the
UK
100
yrs.,
Germany
70
yrs.,
Japan
50
yrs.,
and
it
took
China
only
6
years
to
double
its
economic
output
China’s
resource
hunger
is
not
only
a
media
event
Its
GDP
has
doubled
6
:mes
since
1978
By
2017,
it
will
need
more
resources
and
will
produce
more
goods
than
in
its
en:re
history
all
together!
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2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
38

40. OUR
TRUE
PROBLEM:
LACK
OF
AWARENESS
REGARDING
THE
IMPORTANCE
OF
EXPONENTIAL
GROWTH
With
every
duplica:on,
the
quan:ty
added
is
LARGER
than
the
en:re
compounded
previous
quan:ty
The
megatrends
in
the
21st
century
are:
– Exponen:al
popula:on
growth
– Exponen:al
economic
growth
– Exponen:al
consumer
growth:
During
the
last
40
years,
we
added
3
addi:onal
Billion
consumers
Ø We
have
reached
our
physical
Limits
to
Growth
on
our
planet
©
2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
39

41. DRAMATIC
EXAMPLES
OF
EXPONENTIAL
GROWTH
Food
produc:on
and
water
usage
– We
already
have
an
acute
water
shortage
and
not
enough
agricultural
fields
for
food
produc:on
– The
need
for
food
and
potable
water
is
growing
at
2.5
%
p.a.,
which
will
double
in
28
years
from
now
Ø This
means
that
in
28
years
from
now
humanity
will
need
more
water
and
food
than
in
its
en:re
previous
history
Ø By
2035
we
will
need
another
Earth
if
no
significant
change
occurs!!!!
©
2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
40

42. “Humanity
is
stupid
enough
not
to
do
what
is
perfectly
doable”
to
prevent
disaster,
Prof.
Randers
©
2014
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Capital.
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rights
reserved.
Strictly
Confiden:al.
41

43. Is
that
really
true?
©
2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
42

44. Maybe!
©
2014
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Capital.
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Confiden:al.
43

45. But,
something
good
is
also
going
on!
©
2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
44

46. EVOLUTION
OF
HUMAN
CONSCIOUSNESS
TO
LATER
STAGES
OF
DEVELOPMENT
INTEGRALLY
ACTING
HUMANS
RATIONAL
INTEGRATING
HUMANITY’S
VALUE
SPHERES
“DeMedici
Effect”
in
the
21st
century
INTELLIGENCE
THE
TRUE
-­‐
SCIENCE
-­‐
THE
TRUE
-­‐
SCIENCE
-­‐
THE
BEAUTIFUL
-­‐
ART
-­‐
ENLIGHTENMENT
ERA
DEMOCRACY
NATION
STATES
MODERN
MEDICINE
SPACE
SHUTTLE
THE
GOOD
-­‐
MORALS
-­‐
©
2014
AQAL
Capital.
All
rights
reserved.
Strictly
Confiden:al.
EMOTIONAL
ART,
VALUES,
MORALS,
ETHICS
THE
BEAUTIFUL
-­‐
ART
-­‐
CIVIL
RIGHTS
&
GREEN
MOVEMENT
FEMINISM
SOCIAL
BUSINESS
CULTURAL
CREATIVES:
25-­‐30%
45

47. That’s
true
for
everybody
including
investors,
business
people,
and
leaders
in
general!
©
2014
AQAL
Capital.
All
rights
reserved.
Strictly
Confiden:al.
46

48. RESEARCH
ON
PRIVATE
EQUITY
INVESTORS
132
investors:
50%
men
–
50%
women
Global
investors
from
USA,
Canada,
Germany,
China,
India,
France,
Thailand,
Bali,
Singapore,
Turkey,
Dubai,
Ireland,
Switzerland
High-­‐tech,
clean-­‐tech,
music,
beverage,
health
care,
Wall
street
financiers,
lawyers,
music
industry
Ac:ve
philanthropists
and
social
entrepreneurs
Stanford,
MIT,
Harvard,
Sorbonne,
etc.
graduates
– 45
doctorate
degrees,
60
MBAs,
other
Master’s
degrees
Aggregated
investment
capital:
$1.39B
©
2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
47

49.
THE
HERO’S
JOURNEY:
AWAKENING
Physical
degradation,
back
pain,
overweight,
regular
colds,
heart
problems,
food
allergies,
injuries,
multiple
sclerosis
©
2014
AQAL
Capital.
All
rights
reserved.
Strictly
Confiden:al.
48
Copyright
2010
|
48

50.
THE
HERO’S
JOURNEY:
EMOTIONAL
PAIN
“horrible
divorce,”
death
of
“mother”
or
“wife,”
“high-­‐degree
anxiety,”
“worry
and
fear,”
“heartbreak,”
tension
between
“fear
and
desire,”
“grief,”
the
“need”
to
be
accepted
by
the
outside
world,
“frustration,”
“lack
of
trust,”
“lack
of
joy,”
“deep
sadness,”
“lack
of
alignment,”
“lack
of
fulbillment,”
“completely
unhappy”
©
2014
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Capital.
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rights
reserved.
Strictly
Confiden:al.
49
Copyright
2010
|
49

51.
THE
HERO’S
JOURNEY:
THE
TIPPING
POINT
TERRIBLE
EMOTIONAL
PAIN
LEAD
TO
THE
COURAGE
TO
FACE
OWN
SHADOW
USING
TEACHERS
– “Got
fed
up
with
fear”
– Decision
to
experience
the
“dark
night
of
the
soul”
– Asking
essen:al
life
ques:ons:
“Who
am
I?
Why
am
I
here?”
©
2014
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Capital.
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rights
reserved.
Strictly
Confiden:al.
50
Copyright
2010
|
50

52. NOTICED
LACK
OF
MEANING
AND
FULFILLMENT
“I
wasn't
manifes:ng
why
I
was
here”
“I
was
following
a
script
that
wasn’t
authored
by
me”
“While
there
were
fun
things
like
building
new
markets
and
I
really
enjoy
business,
there
was
this
sort
of
almost
mind
numbingly
impossible
monotony
around
the
trajectory
that
I
was
on”
“I
had
enough
intellectual
understanding
that
the
gold
rings
were
running
out”
“There’s
fewer
jobs
led”
in
the
world
“There
was
a
growing,
gnawing,
unfulfillment
of
maximizing
shareholder
value”
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2014
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rights
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Strictly
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51

53. UNITY
CONSCIOUSNESS
EXPERIENCES
“Lightning
bolt
[that]
moved
through
my
body”
“Out-­‐of-­‐body
experience
…
that
really
showed
me
very
clearly
that
I
am
not
my
body”
“We
proceeded
to
have
a
conversa:on
where
he
read
my
mind
and
responded
so
I
never
opened
my
mouth”
“Feeling
[that]
would
be
so
powerfully
strong
that
it
was
almost
to
the
point
where
you
couldn’t
walk”
“Mys:cal
experience,”
“divine
light,”
“divine
intelligence,”
the
“heart
was
exploding
with
love,”
“My
body
turned
into
an
intense
beam
of
light”
“My
heart
opened
and
I
could
feel
every
bird
and
insect
as
part
of
me”
Ø They
had
no
framework
to
understand
what
was
going
on
and
a
“quantum
leap
in
consciousness”
was
the
result
©
2014
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Capital.
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rights
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Strictly
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52
52

54. THE
HERO’S
JOURNEY:
RETURN
TO
SOCIETY
“This
[journey
within]
was
like
drinking
out
of
a
bire
hose.
In
this
area,
MIT
and
Stanford
Business
School
were
like
drinking
out
of
a
bire
hose
for
academic
and
business
issues.
This
was
like
drinking
out
of
a
bire
hose
for
emotional,
spiritual
and
consciousness
issues.
We
need
both.”
©
2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
53
Copyright
2010
|
53

55. INVESTORS’
VALUES
SHIFT
©
2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
54

56. Exponen:al
growth
works
on
the
GOOD
as
well
This
is
our
opportunity!
©
2014
AQAL
Capital.
All
rights
reserved.
Strictly
Confiden:al.
55

57. OUTCOMES
TODAY
Demys:fying
the
landscape
of
rather
confused
investors
Understanding
the
hidden
determinants,
context,
and
trends
Unleashing
the
power
of
the
integral
model
for
the
benefit
of
all
©
2014
AQAL
Capital.
All
rights
reserved.
Strictly
Confiden:al.
56

58. THE AQAL APPROACH
THE
INTEGRAL
INVESTING
DUE
DILIGENCE
MODEL
AND
PROCESS
INTEGRAL
INVESTING
TRADITIONAL
INVESTING
Profit
Metrics
AQAL
Inves:ng
Screening
Process
Integral
Metrics
Interior
Exterior
Collec:ve
Individual
e.g.
TRADITIONAL
WALL
STREET
BANKS
AND
VENTURE
CAPITAL
FIRMS
Profit
IMPACT
INVESTING
Sustainability
Metrics
ESG,
IRIS,
SAM
Individual
Consciousness
(incl.
morals
&
values)
Due
Diligence
Individual
&
CollecJve
Gap
Analysis
&
Report
e.g.
GRAMEEN
BANK
LGT
VENTURE
PHILANTHROPY
Triple
BoAom
Line
Financial
DD
OrganizaJonal,
Cultural
&
Ethical
Due
Diligence
(DD)
Planet
Social,
Stakeholder
&
Governance
DD
People
Environmental
DD
Profit
Integral
Inves:ng
is
based
on
Ken
Wilber’s
Integral
theory
that
is
widely
applied
in
50
disciplines
including
science,
poli:cs,
economics,
educa:on,
medicine,
and
business;
Ken
Wilber
is
endorsed
by
Nobel
Prize
laureate
Al
Gore,
former
US
President
Bill
Clinton,
former
Secretary
of
State
Hillary
Rodham
Clinton,
and
is
also
used
i.e.
at
McKinsey
and
Company.
Source:
Wilber,
K.
(2000).
A
theory
of
everything:
An
integral
vision
for
business,
poli5cs,
science,
and
spirituality.
Boston:
Shambhala.
©
2014
AQAL
Capital.
All
rights
reserved.
Strictly
Confiden:al.
57

59. FOUNDATIONAL AQAL METRICS
KEN
WILBER’S
INTEGRAL
MODEL
Self
&
Consciousness
[SubjecJve
Experience]
Brain
&
Organism
[ObjecJve
Behaviors]
I
IT
8
Integral
Self
7
Holis:c
Self
6
Sensi:ve
Self
5
Achiever
Self
4
Mythic
Self
3
Egocentric
Self
2
Magical
Self
1
Ins:nctual
Self
5
6
7
8
SF3
SF2
3
SF1
2
Complex
Neocortex
1
Neocortex
(Triune
Brain)
4
INTERIOR
INDIVIDUAL
EXTERIOR
INDIVIDUAL
INTERIOR
COLLECTIVE
EXTERIOR
COLLECTIVE
Archaic
1
Animis:c-­‐Magical
2
Early
Mythic
3
Late
Mythic
4
Scien:fic-­‐Ra:onal
5
Pluralis:c
6
Holis:c
7
Integral
8
1
WE
ITS
Culture
&
Worldview
[INTER-­‐SubjecJve]
Survival
Clans
Ethnic
Tribes
2
Feudal
Empires
3
Early
Na:ons
4
Corporate
States
5
Value
Communi:es
6
7
Holis:c
Communi:es
Integral
8
Meshworks
Four
quadrant
correlates
for
humans,
along
lines
of
increasing
complexity
Ken Wilber’s Integral
Model is endorsed by
Bill & Hilary Clinton
and Applied in 50+
disciplines and
organizations
including McKinsey
and Company
Social
System
&
Environment
[INTER-­‐ObjecJve]
Source: Wilber, K. (2000). A theory of everything: An integral vision for business, politics, science, and spirituality. Boston: Shambhala.
©
2014
AQAL
Capital.
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rights
reserved.
Strictly
Confiden:al.
58

60. ©
2014
AQAL
Capital.
All
rights
reserved.
Strictly
Confiden:al.
59