"Identifying investment and funding opportunities for high impact

Transcription

1 "Identifying investment and funding opportunities for high impact Kostis A. Tselenis Head of Investments, Quadia Stockholm, 13 February 2017

2 ABOUT QUADIA Regulated investment manager specialized in social and environmental finance Quadia targets and invests in companies which par8cipate in and drive the emergence of a new economic paradigm, i.e. an economy concerned about its survival and which is socially and environmentally inclined, solidary, collabora8ve, circular and regenera8ve; failing to adequately measure and integrate global sustainability threats into an investment strategy drama8cally increases por@olio related risks and dilutes future economic returns Leading and pioneering impact investor with USD 150m invested in over 30 companies, projects and funds with 10 investment professionals in 4 countries Core ac/vi/es: asset management, advisory, corporate finance Investment priori/es include Club deals Equity co-investments in late VC/PE sustainable technologies Food investments Debt financing in sustainable food and agriculture Foodtech Equity investments in high-growth, disrup8ve foodtech opportuni8es Fund investments Broad diversifica8on through geographies and themes Energy access Equity and debt throughout the off-grid energy access value chain

3 INVESTMENT MANAGEMENT REVIEW OF MISSION & GOALS PORTFOLIO ANALYSIS RISK-RETURN ANALYSIS INVESTMENT PROCESS 3

4 INVESTMENT PROCESS REVIEW OF MISSION & GOALS PORTFOLIO ANALYSIS RISK-RETURN ANALYSIS INVESTMENT PROCESS ORIGINATION SELECTION INVESTMENT ANALYSIS EXECUTION INVESTMENT MANAGEMENT EXIT INVESTMENT CRITERIA TARGET PROFILE DEALFLOW ACTIVE SEARCH IMPACT CRITERIA TERMS PRICING PORTFOLIO FINANCIAL ANALYSIS IMPACT ANALYSIS TERMS REVIEW NEGOTIATIONS APPROVALS TRANSACTION MGT MONITORING COACHING IMPACT REPORTING FINANCIAL REPORTING PLANNING OPTIONS ACTIVE / PASSIVE CONSTRUCTION SITE VISIT

5 ORIGINATION REVIEW OF MISSION & GOALS PORTFOLIO ANALYSIS RISK-RETURN ANALYSIS INVESTMENT PROCESS à Challenging but exci8ng à Time consuming à Decisive for quality à Dependent on manager s skills ORIGINATION SELECTION INVESTMENT ANALYSIS EXECUTION INVESTMENT MANAGEMENT EXIT INTERNAL EXTERNAL CO-INVESTORS CONFERENCES / EVENTS ONLINE DATABASES PORTFOLIO COMPANIES COMPETITIONS WEBSITE / SOCIAL MEDIA MANAGEMENT S PERSONAL NETWORK INCUBATORS DIRECT REQUESTS IN-HOUSE RESEARCH DEVELOPMENT PROGRAMS ADVISORS / INTERMEDIARIES SOURCING & INVESTMENT ANALYSIS IS WHAT DIFFERENTIATES A GOOD FROM A BAD INVESTOR / INVESTMENT MANAGER

6 DEALFLOW STATISTICS Other Organic Nutri8on Responsible Goods Healthcare Access Biodiversity Other Bonds Project Finance VC/PE South America Asia North America Afica Watchlist Invested Due Diligence Inequality Declined Clean Energy Supply Fund Europe THEME ASSET CLASS GEOGRAPHY STATUS 6

7 CHALLENGES QUANTITY EUGH NUMBER OF DEALS (THEMES, GEOGRAPHIES, IMPACT)? QUALITY FINANCIALS, GOVERNANCE, MANAGEMENT, IMPACT? STRUCTURE VARIETY OF INVESTMENT STRUCTURES, LIQUIDITY, VEHICLES? TIME NECESSARY TIME TO SPEND? TIMING TARGET NEEDS VS. INVESTORS CAPACITIES? OPPORTUNITY!

8 Kos/s A. Tselenis Head of Investments M linkedin.com/in/tselenis Quadia Rue du Conseil-Général 20 CH-1205 Geneva Switzerland T F

9 APPENDIX Investment process & origination in detail Quadia corporate presentation 9

10 1. Origina/on 2. Selec/on 3. Investment Analysis Con/nuous dealflow / investment universe QUADIA INVESTMENT CRITERIA QUADIA DEALFLOW DATABASE (QDD) EXTENDED COMPANY PROFILE (ECP) DIRECT INVESTMENT ANALYSIS REPORT (DIAR) Investment mandates compa/bility (themes priori/es) Strong social / environmental impact footprint / poten/al Market, product, technology footprint / poten/al Financials & profitability - poten/al Management / governance Decline Watch List Quadia short list Decline Watch List Short analysis Investment Commieee Due Diligence: Impact / Financial Decline Watch List Quadia Targets Exit Investment Commieee No Exit Exit Management Repor/ng Investment Monitoring & Coaching Investment transac/on Final investment proposal Fine tuning & nego/a/ons INVESTMENT EXIT REPORT (IER) REPORTING DATABASE INVESTMENT UPDATE REPORT (IUR) FILING & DOCUMENTATION FINAL DIAR QUADIA INVESTMENT TERMS 6. Exit 5. Investment Management 4. Execu/on

11 networking board par8cipa8ons management s and board s network conferences intermediaries theme events advisors Quadia co-investor network investor groups incubators industry gatherings laboratories website Con/nuous dealflow / investment universe Investment mandates compa/bility (themes priori/es) Strong social / environmental impact footprint / poten/al Market, product, technology footprint / poten/al Financials & profitability (- poten/al) Management / governance ac/ve search for poten/al targets porholio companies business networks business partners academia QUADIA INVESTMENT CRITERIA Watch List Decline QUADIA DEALFLOW DATABASE (QDD) Quadia short list Quadia Targets Priori/es: geographical proximity, Quadia preferred markets / geographies, developed markets / products, co-investor opportuni8es, por@olio synergies

12 THESIS Quadia targets and invests in companies which participate in and drive the emergence of a new economic paradigm, i.e. an economy concerned about its survival and which is: ü ü ü ü ü Socially and environmentally inclined Solidary Collaborative Circular Regenerative Failing to adequately measure and integrate global sustainability threats into an investment strategy dramatically increases portfolio related risks and dilutes future economic returns.

13 POSITION Quadia is a regulated investment manager specialized in social and environmental finance. With close to USD 150 million invested in over 30 companies, projects and funds, Quadia is a leading and pioneering impact investor. Quadia targets significantly impactful companies which have positioned their products and services to meet a growing demand influenced by an irreversible paradigm shift driven by worldwide interdependent social, environmental and economic stakes. Economic Relevance Financial Performance Social Impact Environmental Impact

14 ORGANIZATION Quadia SA Switzerland 4 countries 10 full-time employees Quadia Wealth Advisors China Quadia Sàrl Luxembourg Quadia Impact Services Switzerland Quadia UK Limited United Kingdom Impact Capital Impact Partners Capital I, LP Impact Partners Capital I, LP Impact Partners Capital I, LP Impact Partners Capital I, LP Partners Impact I, Capital LP Partners I, I-X, LP LP & NourriTerre VIII-XI, LP Quadia Ventures

15 CORE ACTIVITIES Quadia SA Switzerland 3 core activities Advisory Asset Management Corporate Finance Direct investments Equity Debt Fund investments Equity Debt Club Deals Impact Capital Partners Debt NourriTerre Venture Capital Quadia Ventures Financial Structuring Impact Evaluation Technical Assistance and Capacity Building IMPACT Quadia s core investment thesis centres on sustainability as a pillar of risk management and economic valuation. Evaluating and enhancing social and environmental impact is therefore central to Quadia s portfolio management.

16 INVESTMENT PRIORITIES CLUB DEALS Equity co-investments in late venture capital / private equity sustainable technology deals with established strategic investors FOOD INVESTMENTS Debt investments in sustainable food and agriculture opportunities throughout the food value chain FOODTECH Equity investments in high-growth, disruptive, sustainable foodtech opportunities FUND INVESTMENTS Investments in funds with a strong environmental and social footprint (global, all industries) ENERGY ACCESS Debt investments (working capital, short & long-term debt) in companies throughout the off-grid energy access value chain

17 QUADIA IMPACT MEASURMENT (QIM) 1 st Inductive approach à 2 nd External standards à 3 rd Quadia s own measurement methodology (QIM) 1. Sustainability Benchmarks Contribution to sustainability hotspots of the industry 2. Impact Footprint Product/service/ program -> impact creation Company/ organisation -> leverage Industry/ context -> maximization Potential for progression 3. Financial Efficiency Allocation of money Ratio (impact/ revenues/ risks) 4. Portfolio Coherence Offsets? Create interactions -> leverage/ maximization Objectives: I. Capital provider point of view à Maximize impact II. Whole value chain & stakeholders à Avoid offsets III. Potential to grow and progress à Transformative effect

18 SELECTED DIRECT INVESTMENTS Renewable energy infrastructure (Switzerland) Fair-trade dried foods sourcing and distribution (Switzerland) Energy efficient mobile technology (UK) Food sharing App (UK) Online platform connecting local farmers and producers (France) SME lending in emerging markets (Switzerland) Heat waste to energy technology (Germany) Socially-minded organic bakeries (France) Ethical banking (Switzerland) Community empowered food marketplace (Belgium) Energy efficient nano-technology for digital screens (Sweden) Reforestation and sustainable forestry (Panama)

19 SELECTEID FUND INVESTMENTS Impact Finance Fund Bamboo Financial Inclusion Fund Oasis Fund Organic Growth Fund Sustainable Pioneer Fund Vastgoedfonds Microfinance Fund IKS Ancile Fund Fund for remediation of industrial polluted sites in Europe Social investment cooperative Impact Investing Fund

20 PORTFOLIO BY GEOGRAPHY PANAMA 1.6% USA 1.1% MEXICO 0.9% UNITED KINGDOM 10.7% DENMARK 0.1% SWEDEN 7.4% ICELAND 0.4% ARGENTINA 0.1% NETHERLANDS 5.8% BELGIUM 0.3% GERMANY 5.5% SENEGAL 0.1% FRANCE 12.7% SWITZERLAND 55.7% IVORY COAST 0.1% Statistics as percentage of total invested amount, as per September 2016

21 INVESTMENT PROFESSIONALS Aymeric Jung, Managing Partner Eric Archambeau, Co-founder and Chairman of the Board Sandrine Pfister, Financial Analyst George Coelho, Senior Investment Advisor Josep Segarra, Investment Analyst Sophie Durey, Head of Impact Evaluation Guillaume Taylor, Co-founder and Managing Partner Cheryl Hicks, Senior Impact Advisor Kostis Tselenis, Head of Investments

22 MEDIA