1. INVESTMENT DIMENSION OF THE INCLUSIVE BUSINESS ECOSYSTEM Duncan Onyango Calabar, Nigeria, 19-20 June 2014

2. 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 Acumen 3. 3 INDIA PAKISTAN EAST AFRICA LATIN AMERICA WEST AFRICA NEW YORK + 5 Offices in Investment Regions + 24 Investment Professionals + 70 Global Staff Office Investments Advisory Fellows Chapters + Global footprint 4. Creating Access to Basic Services 4 HEALTH EDUCATION AGRICULTURE ENERGY HOUSING WATER $11.6 $2.8 $12.8 $0.7 $1.1 Agriculture Energy Health Housing Water SECTOR INVESTMENTS BY $ $11.6 $2.8 $12.8 $0.7 $1.1 Agriculture Energy Health Housing Water SECTOR INVESTMENTS BY # 5. Cumulative Portfolio Growth $86M INVESTED $365M FOLLOW-ON CAPITAL INTO OUR COMPANIES $14M CAPITAL RETURNED 6. $1.2 $1.2 $1.5 $2.3 $3.8 $5.9 $10.8 $29.5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 To date Cumulative Approvals Rapidly growing East Africa portfolio 86+M LIVES IMPACTED 45K+ JOBS CREATED $45.4M CAPITAL LEVERAGED $3.2M AVERAGE REVENUES GENERATED IN 2013 $3M CAPITAL EXPECTED TO BE RETURNED TO ACUMEN IN 2014 Total Cash Returned: $5.2M ($US in millions) $45.4 7. State of the Portfolio 8. 2013 Portfolio Performance Performance Ranking: Performing: Largely tracking to or above targets and providing regular data Issues: Company is missing targets Watch: Serious issues are facing the company that could result in legal action, insolvency, default or other serious consequences 9. WHY ACUMEN? 9 +Potential for large-scale social impact +Invest in disruptive enterprises that are financially self-sustaining +Extensive knowledge base from existing investments +World-class team of investment professionals and advisors 10. The Patient Capital Model The aim of our model is to bridge the efficiency and scale of market-based approaches and the social impact of pure philanthropy. 10 RECEIVE CHARITABLE DONATIONS SCALE GAME- CHANGING COMPANIES MAKE PATIENT CAPITAL INVESTMENTS DEBT OR EQUITY INVESTMENT IN AN EARLY-STAGE SOCIAL ENTERPRISE 7 10 YEARS RETURNS RECEIVED FROM AN EXIT OR PAYBACK ARE RECYCLED TO MAKE NEW INVESTMENTS EXIT & RECYCLE RETURNS RECYCLING RETURNS 11. Financial return objective No return Traditional venture capital Maximize financial return Maximize Social impact objective None Maximize Traditional philanthropy Maximize social impact Patient Capital Blending social and financial returns for long-term social impact 0% Patient Capital for long-term social impact 12. Early stage Scale up Exit at Scale Recycle returns 7-10 years Invest funds in equity or debt Grow enterprises focused on social impact and sustainability Recycle returns into more enterprises 1 2 3 Investing to alleviate poverty and recycling returns 13. HIGH LEVEL OF SCRUTINY Strong brand awareness historical on-ground presence drive robust and renewing pipeline 13 Over 700 deals reviewed 150 deals entering formal diligence 55 deals received committee approval 29 deals closed + Highly experienced team and stringent review processes ensure high level of scrutiny for all potential investments 14. ADDING VALUE AT EACH STAGE Pre-Investment Deal Structuring Post-Investment + Rigorous initial pre-investment screening and selection + Experienced Portfolio Leadership Team (PLT) weekly, multi- country, cross- sectoral learning; partnership model + Highly-seasoned, majority independent Investment Committee + Impact Theory of Change articulated in Investment Memo + Top-tier external Counsel & in-house legal team + East Africa and global Advisory members participation + Technical Assistance; Board seats; Quarterly & Annual Reviews 14 15. TECHNICAL ASSISTANCE + A convening of several corporations and Acumen-backed social enterprises to identify common ground for collaboration. + Acumen solicits applications from its portfolio of social enterprises that seek flexible grant funding innovate around critical business challenges. + Matchmaking between capabilities of high-level employees at corporations with social enterprise needs. TECHNICAL ASSISTANCE SUMMIT TECHNICAL ASSISTANCE GRANTS CORPORATE SECONDMENTS KEY ACTIVITIES 1. Provide grant funding and technical expertise on specific areas such as marketing and product design to help Acumen investees reach scale 2. Harness insights into business opportunities that better serve low-income consumers globally 16. Key Lessons & Issues 17. 2007 2008 2009 2010 2011 2012 2013 $500k $800k $200k $600k Acumen Risk Capital Key: Getting Real about Costs: The case of d.light 18. 2007 2008 2009 2010 2011 2012 2013 $1.5M $90k $500k $800k $200k $600k $150k $200k $1.5M Acumen Risk Capital Investment cost & management support Acumen Fellow Key: Working capital loan: USAID/Acumen with Deutsche Bank and other lenders = $3.1M OUR INVESTMENT IN D.LIGHT: Fellows & Working Capital Facility $50k $50k $70k $70k $70k $70k$150k $140k 19. Dignity, not dependence Choice, not charity Thank You 20. Contact Details Duncan Onyango Acumen East Africa 1st Floor, Cape Office Park Ring Road Kilimani P.O. Box 101883-00101 Jamia Nairobi, KENYA Tel: +254 716 252802 Mob: +254 720 630028 Skype: duncan.onyango1