Introduction to Unitus Capital. September 2012

Transcription

1 Introduction to Unitus Capital September

2 Unitus Capital Institutional Investors Impact Funds Family Offices / Foundations High Net Worth Individuals Government Institutions Global Investors & Capital Markets Structured Products Private Placements Mergers & Acquisitions Buy-side Advisory Work Microfinance Microinsurance Technology Renewable Energy Healthcare Education Water & waste management Agriculture Social Businesses Unitus Capital connects social businesses with the global capital markets 2

3 Achievements Demonstrated ability to deliver innovative transaction structures and increase our clients access to capital and attractive investment opportunities Expansive geographic presence focused on growing developing economies with potential for high impact Raised over $720 mm for 32 clients, indirectly benefiting >30 mm people at the bottom of the pyramid Mandates in India, the Philippines, Pakistan, Singapore Mandates in India, China, Philippines and Australia and China Broad BOP sector focus to maximize impact across industries Clients in microfinance, healthcare, renewable energy, agriculture, affordable housing, education, technology and water & sanitation Strong pipeline of significant transactions in impact investing Current pipeline of signed mandates totals over US$260 million for 33 clients Unitus Capital has established itself as the leading financial advisor to social businesses in Asia US $1 = 45 INR 3

4 Unique Record in Innovative, First Time Transactions ASOMI First equity investment in a north-east MFI FirstRand Bank First loan to an Indian MFI Credit Agricole First loans to MFIs in India SKS Microfinance First Rated Pool Sale to a Bank Grameen Koota First investment by FII in NCDs of a Tier II MFI First Time Transactions Jagaran First Rated Pool transaction for a startup MFI Bandhan SIDBI s first big equity investment in a MFI Saija & Swadhaar funding in two start up MFIs FFSL First control transaction in an Indian MFI SKS Microfinance First Indian Microfinance IPO Unitus Capital has successfully executed pioneering financial transactions and structures 4

5 Network Across Impact Investing Space World Class Practice Attracted the highest quality international talent to the Board, management and financial advisory team Professional staff has increased from 7 employees in January 2009 to 18 employees currently Presence in Bangalore, New York and Sydney Talented Team with Extensive Connections in Impact Investing Clients Asian social businesses across the financial services, affordable housing, agriculture, education, health, renewable energy, technology and water & sanitation Leading Investors Social Investment Funds Mainstream Venture Capital / Private Funds Commercial and Development Banks High Net Worth Individuals NGOs and Government Organizations Philanthropic Institutions Regulatory Agencies Unitus Capital has a deep and diverse client and investor network in impact investing 5

6 Demonstrated Track Record in Microfinance Institutions IPO US$ 360 million August 2010 US$ 32.2 million July 2012 US$ 13.7 million August 2010 US$ 11.1 million Dec 2009 US$ 9.0 million Jan 2011 US$ 4.8 million Mar 2009 Arman US$ 3.3 million Dec 2011 US$ 2.7 million Dec CCPS US$ 2.1 million Dec 2008 US$ 0.6 million Oct 2009 Unitus Capital has successfully raised ~ $440 mm of equity for leading MFIs in Asia US $1 = 45 INR 6

7 Demonstrated Track Record in Social Enterprises across various sectors Buy side US$ 14.8 million August 2011 US$ 5.0 million April 2012 US$ 2.71 million June 2012 US$ 2.6 million Feb 2012 Convertible US$ 2.2 million Jul 2010 US$ 1.39 million Oct 2011 US$ 1.0 million Feb 2011 US$ 0.75 million Dec 2011 BODHICREW Buy side Jan 2012 Buy side Jan 2012 Buy side Jan 2012 Buy side Mar 2012 Unitus Capital is the leading investment bank for social enterprises in Asia US $1 = 45 INR 7

8 Unique Track Record in Structured transactions UC has successfully raised $65 mm for Indian MFIs through Structured Transactions Securitized Loan Pool Sale US$ 17.8 million Mar 2009 Rated Pool Sale US$ 3.8 million Mar 2012 Non Convertible Debentures US$ 9 million Dec 2010 Non Convertible Debentures US$ 2.8 million Mar 2011 Non Convertible Debentures US$ 8.2 million May 2012 Non Convertible Debentures US$ 2.8 million Mar 2011 Non Convertible Debentures US$ 8.0 million Feb 2011 Non Convertible Debentures US$ 2 million Mar 2012 Non Convertible Debentures US$ 4.5 million May 2012 Portfolio Sale US$ 1.1 million Mar 2011 Non Convertible Debentures US$ 4.3 million Dec 2009 Portfolio Sale US$ 0.5 million Mar 2011 Unitus Capital is the only social advisory firm which has successfully closed multiple NCD transactions, in addition to portfolio sales for leading MFIs in India US $1 = 45 INR 8

9 Demonstrated Track Record in US$ 26.7 million Mar & Jun 2012 US$ 32.3 million Mar 2010 US$ 26.7 million Mar 2012 US$ 22.4 million Dec 2010 US$ 17.8 million Mar 2012 US$ 11.2 million Aug 2008 US$ 10.3 million Mar 2010 US$ 10 million Dec 2010 VFS US$ 6.5 million Mar 2010 US$ 4.3 million Dec 2010 US$ 3.3 million Mar 2010 US$ 2.32million Sept 2010 US$ 2.2 million Nov 2009 US$ 2.2 million Feb 2011 US$ 2.0 million Mar 2010 US$ 1.6 million Mar 2012 US$ 1.4 million Mar 2010 US$ 0.4 million Dec 2010 Unitus Capital is a leader in arranging debt, totaling $200 mm to date, through term loans and cash credit for leading MFIs in India US $1 = 45 INR 9

10 Demonstrated Track Record in Financial Advisory Buy-side advisor to LeapFrog, the world s first microinsurance equity fund: Engaged with LeapFrog to scan, select, and evaluate investment opportunities in the Indian microinsurance sector Buy-side advisory Buy-side advisor to Morgan Stanley: Sourced investment opportunities for Morgan Stanley in the Indian microfinance sector Buy-side advisor to Microventures, a global microfinance lender: Advised Microventures on a proposed investment in a leading MFI in Karnataka, India M&A advisor to a global microfinance investment vehicle: Advised a global microfinance investment vehicle on M&A options for its investee company Consultants to IFC: Conducted workshop for winners of India Development Marketplace on how to approach Impact Investors effectively; promised to advice them for the next one year Other financial advisory Most preferred advisor to CIIE- IIMA: Partnered with CIIE-IIMA/INFUSE in supporting and promoting fledgling energy entrepreneurs Financial advisor to Simpa Networks: Developed a long-term funding strategy for Simpa Networks Exclusive sub-advisor to Calvert Social Investment Foundation: Engaged with Calvert to identify, asses and recommend MFIs for funding under Microplace, its microfinance lending program Market opportunity and risk consultant to Gaja Capital, an India-focused PE firm: Completed a risk and financial assessment of a leading Indian MFI Financial advisor to Belstar, a leading south-indian MFI: Advised Belstar on business planning and capital raising Unitus Capital has established a strong track record in financial advisory to institutional investors and social enterprises 10

11 Social Enterprise Pipeline Client Name Transaction Amount (US$ mm) Sector Country Transaction / Client Description VSoft $50.0 Technology India Community Cloud services for financial inclusion Deeya $20.0 Renewable Energy India HCG $15.6 Healthcare India Telesolar $16.7 Telecom India KisanKraft $13.3 Agriculture India EyeQ $8.9 Healthcare India Gradatim $8.0 Technology India Silicon Valley / India start-up striving to be a leader in the $500bn stationary electricity storage market HCG is a Bangalore-headquartered cancer care network; the largest in South Asia, treating over 30,000 new patients every year and is a recognized leader over 20 years Solar energy sector start-up providing complete energy solution for telecom towers on a fixed monthly tariff KisanKraft is a wholesale importer & distributor of small farm machinery for farmers, plantation of tea, coffee and horticulture crops with a pan India distribution network EyeQ is a chain of super-speciality eye clinics offering a comprehensive bouquet of eye-care services ranging from routine eye-check up to eye surgery Gradatim, a pioneer in the Business Process Utility (BPU) space, delivers evolutionary, on demand business process utilities to customers across Microinsurance, Micropayments, Micropensions and Litigation In addition to a strong MFI pipeline, UC is working with social entrepreneurs in other industry sectors to raise equity US $1 = 45 INR 11

12 Social Enterprise Pipeline (contd.) Client Name Foliage Real Estate SBF Healthcare Transaction Amount (US$ mm) $6.6 Maybridge $5 Sector Country Transaction / Client Description Affordable Housing India $5.6 Healthcare India Financial Services SEED $5.0 Banking India IIMPS $5.0 Micropensions India Philippines Foliage Real Estate Developers develops and markets affordable housing projects SBF Healthcare runs healthcare centres that specialize in osteoarthritis treatment and cancer treatment. The Maybridge Financial Group is a multinational financial services organization providing financial advisory services and finance to small enterprises,migrant workers sector and microenterprises SEED is the largest Banking Correspondent and partner for both public & private sector banks in India for Financial Inclusion IIMPS provides the low income segment in India access to pension, savings and insurance products through a streamlined and standardized technology-enabled delivery platform Reuters Market Light $5.0 Technology India RML provides customized information regarding weather forecasts, local crop prices to farmers through SMS Speakwell $5.0 Education India Speakwell is the leader in western Indian in the Spoken English training market, planning to expand pan-india UC continues to prioritize sector expansion US $1 = 45 INR 12

13 Social Enterprise Pipeline (contd.) Client Name Transaction Amount (US$ mm) MediAngels $4.4 Healthcare India InOpen $4 Education India Neurosynaptic $3.5 Healthcare India Pathfinder Health India Sector Country Transaction / Client Description $2.5 Healthcare India Autoboxx $2.0 Energy India The Levelfield Schools $0.7 Education India A first of its kind Global online Hospital offering comprehensive set of services rendered by 350 of the world s top physicians, from over 15 countries An innovative and successful educational content developer incubated by IIT Bombay, primarily providing educational solutions to K-12 schools in computer science Neurosynaptic Communications was set up to about Excellence in Remote Health and Healthcare delivery A nationwide chain of family medicine centers based on a unique hub and spoke model, focusing on affordable and preventive primary healthcare Autoboxx is a Bangalore based automation and monitoring company focused on affordable, energy efficient utility management systems for 100ft 9000ft sites. The Levelfield Schools aim to provide affordable, yet highquality education to the students in non-metro-city areas UC continues to prioritize sector expansion US $1 = 45 INR 13

14 Unitus Capital Team Unitus Capital Management and Senior Team Eric Savage Co-Founder & President Former MD, Capital Markets Group at Unitus Inc., Previously with Citigroup/Salmon Brothers Kylie Charlton Co-Founder & Managing Director Former MD, Capital Markets Group at Unitus Inc., Previously with Citigroup Abhijit Ray Co-Founder & Director Former VP, Capital Markets Group at Unitus Inc., Former AGM, SIDBI and previously with State Bank of India Ann Short Chief Operations Officer Former COO, Global Corporate & Investment Banking, Bank of America Securities Amit Kumar Rathi Vice President Previously with TVS Capital, KPMG, World Bank and Ernst & Young Gauravjeet Singh Vice President Previously with Nomura and SBI Capital Markets Vikram Raman Vice President Previously with Acumen Fund and BDO A diverse and talented pool of sector-focused Associate VPs, Associates, Analysts, and Consultants UC has a diverse and dedicated team with more than 100 years of experience across private equity, investment banking, project funding and social entrepreneurship Profiles of individual team members are available in the appendix 14

15 Unitus Capital Team Board of Directors Co-Chairmen Narayan Ramachandran Former MD and India Country Head, Morgan Stanley Alex Wendeln Managing Director, WEGA Dave Richards Executive Director, Unitus Inc. Geoff Woolley Co-Founder, multiple VC funds; Board member MicroBenefits China Investors Steven Funk Robert Gay Founder and Chairman of Grand Marais Investments Co-Founder and CEO, Huntsman-Gay Capital Partners; founding Board member, Unitus Inc. Geoff Woolley James Lee Sorenson Co-Founder, multiple VC funds, board member, MicroBenefits China Chairman, Sorenson Development, Inc.; Co- Founder, Sorenson Capital William S. Price III Founding Partner, TPG Unitus, Inc. International NGO focused on innovative solutions to global poverty Narayan Ramachandran Former MD and India Country Head, Morgan Stanley WEGA Support GmbH German-based investment firm UC Board of Directors and Investors include global leaders across investment banking, private equity, and social entrepreneurship who have extensive global networks Profiles of individual board members are available at 15

16 Case Studies of Select Transactions 16

17 Select Transactions IPO US$ 360 million August 2010 Transaction Details Headquarters: Hyderabad, Andhra Pradesh Closing date: August 2010 No. of clients: 6,780K Gross Loan Portfolio: Rs. 4,321 crore (US$940mn) Transaction size: Rs. 1,654 crore (US$360mn) equity Investors: IPO Key Highlights First IPO in the microfinance sector IPO was subscribed at 98.5x the initial investment UC was involved in providing IPO process knowledge Buy-side US$ 14.8 million August 2011 Headquarters: Mauritius Closing date: September 2011 Size of fund US$135 mn Transaction size: Rs. 67 crore (US$ 15 mn) equity Investment Shriram Credit Company Limited Groundbreaking deal that extends insurance, savings and investment products to the those earning less than US$2.50/day in the underserved Indian market UC was the sole financial advisor on LeapFrog Investments maiden transaction in India US$ 2.6 million Feb 2012 Headquarters: Manila, Phillppines Closing date: Feb 2012 No. of clients: 25000K Transaction size: Rs crore (US$2.6mn) equity Investors: Incofin Investment Management, responsability Social Investments AG UCs first non-mfi equity deal outside India The fund raised will help ENCASH increase their ATM network by approximately 850 ATMs UC was involved in the equity raise process for Encash from the two investors 17

18 Select Transactions (Contd.) US$ 11.1 million Dec 2009 US$ 8.7 million Jan 2011 Transaction Details Headquarters: Kolkata, West Bengal Closing date: December 2009 No. of clients: 2,100K Gross Loan Portfolio: Rs. 1,080 crore (US$231.8mn) Transaction size: Rs. 50 crore (US$11.1mn) equity Investors: SIDBI Headquarters: Delhi, India Closing date: January 2011 No. of clients: 248K Gross Loan Portfolio: Rs crore (US$44mn) Transaction size: Rs crore (US$8.7mn) Investors: Shore Cap, IFU Key Highlights Bandhan was then the 3th largest MFI in India and was ranked 2nd best in the world by Forbes in 2007 First round of large equity raise by Bandhan UC involvement resulted in significant negotiation on terms and conditions of investment including valuation Despite the crisis, was able to attract multiple bidders creating a competitive process Executed the deal within the tight deadline required Received a strong valuation for the company, while attracting funding equivalent to almost twice Satin s initial expectations US$ 14.4 million June 2011 Headquarters: Bangalore, Karnataka Closing date: June 2011 No. of clients: 190K Gross Loan Portfolio: Rs. 180 crore (US$mn) Transaction size: Rs. 65 crore (US$mn) equity Investors: CVCI First significant PE deal amidst the AP crisis Valuation was reasonably higher than the previous round, which is a remarkable achievement given the AP crisis UC ran a successful road show triggering the right investor sentiments and helped negotiate key terms and conditions for JFS 18

19 Select Transactions (Contd.) Arman US$ 3.3 million Dec 2011 Transaction Details Headquarters: Ahmedabad, Gujarat Closing date: December 2011 No. of clients: 47K Gross Loan Portfolio: Rs. 46 crore (US$10.4mn) Transaction size: Rs. 15 crore (US$3.3mn) equity Investors: Incofin Key Highlights First PE transaction into a listed MFI The share purchase price was more than double market price. The entire transaction was completed in four months US$ 4.7 million Mar 2009 Headquarters: Trichy, Tamil Nadu Closing date: March 2009 No. of clients: 400K Gross Loan Portfolio: Rs. 150 crore (US$30mn) Transaction size: Rs crore (US$4.7mn) equity Investors: MicroVest, Unitus Fund First Indian investment by MicroVest Reasonable level of investor interest despite challenging market environment Strong focus of CEO & senior management brought process to rapid conclusion (< 3 weeks) US$ 2.4 million Sep 2008 Headquarters: Mumbai, India Closing date: September 2008 No. of clients: 3K Gross Loan Portfolio: Rs. 2.5 crore (US$0.5mn) Transaction size: Rs. 12 crore (US$2.7mn) equity Investors: Accion Gateway Fund, Michael & Susan Dell Foundation, UEF, Confidential Private Trust Able to attract investors that were supportive of the company and understood its challenges First equity raising for a Mumbai-based MFI Able to market Veena Mankar as a visionary leader First Indian equity investment for Accion Gateway Fund 19

20 Select Transactions (Contd.) US$ 0.5 million Oct 2009 Transaction Details Headquarters: Patna, Bihar, India Closing date: October 2009 No. of clients: 3K Gross Loan Portfolio: Rs. 1.2 crore (US$0.26mn) Transaction size: Rs. 2.3 crore (US$0.5mn) equity Investors: Accion Gateway Fund Key Highlights First equity raising for a Bihar-based MFI Able to attract significant investor interest despite relatively small size of MFI UC involvement resulted in significant valuation premium + CCPS US$ 2.1 million Dec 2008 Headquarters: Guwahati, Assam, NE India Closing date: December 2008 No. of clients: 21K Gross Loan Portfolio: Rs crore (US$4.3mn) Transaction size: Rs crore (US$0.67mn) equity Rs crore (US$1.33mn) CCPS Investor: Incofin (Belgium) First equity raise by an MFI in NE India First equity investment in India by Incofin UC involvement resulted in significant valuation premium First successful equity raise by a Tier 2 or Tier 3 MFI since beginning of financial crisis US$ 1.1 million Feb 2011 Headquarters: Bangalore, India Closing date: February 2011 Transaction size: Rs. 5 crore (US$1.1mn) Investors: Michael and Susan Dell Foundation, Accion International Vindhya is a BPO company that hires the differently-abled people Able to attract long term partners with global business linkages as investors in the Company Generated substantial interest from both social and early-stage technology focused funds 20

21 Select Transactions US$ 11.2 million Aug 2008 Securitized Loan Pool Sale US$ 16.0 million Mar 2009 Non Convertible Debenture US$ 4.3 million Dec 2009 Transaction Details Headquarters: Chennai, Tamil Nadu Closing date: August 2008 No. of clients: 304K Gross Loan Portfolio: Rs. 288 crore (US$57.6mn) Transaction size: Rs crore (US$11.2mn) Investor: HDFC Bank, YES BANK, SIDBI, DCB, ABN-AMRO Bank, AXIS Bank and HSBC Headquarters: Secunderabad, Andhra Pradesh Closing date: March 2009 No. of clients: 3,400K Gross Loan Portfolio: Rs. 2,240 crore (US$448mn) at 12/08 Transaction size: Rs. 80 crore (US$16mn) Investor: YES Bank Headquarters: Bangalore, Karnataka Closing date: December 2009 No. of clients: 225K Gross Loan Portfolio: Rs. 164 crore (US$35.2mn) Transaction size: Rs. 20 crore (US$4.3mn) Investor: MicroVest I, LP (USA) Key Highlights First comprehensive debt raising by a financial advisor for a startup MFI Largest debt raised by a financial advisor for a startup in the first 8 months of operations Developed relationship with Micro Ventures, which ultimately became an equity investor in Equitas Securitized rated loan pool sold to YES Bank, demonstrating market appetite for rated paper Only second rated microfinance transaction in India First securitized non-agricultural pool sale in India Highest possible short term rating attained (P1+) Ground breaking transaction facilitated by UC First direct investment by a Foreign Institutional Investor in an MFI in India First NCD issued by a Tier II MFI in India First listed Transaction by a Tier II MFI in India Rated by CRISIL (P4+) on a short term scale 21

22 Select Transactions (Contd.) Transaction Details Key Highlights Rated Pool Sale US$ 3.8 million Mar 2012 US$ 35.6 million Mar 2012 Headquarters: Kolkata, West Bengal Closing date: March 2012 No. of clients: 50K Gross Loan Portfolio: Rs. 35 crore (US$ 7.8mn) Transaction size: Rs crore (US$ 3.4mn) Investor: Ratnakar Bank Headquarters: Bangalore, Karnataka Closing date: March 2012 No. of clients: 266K Gross Loan Portfolio: Rs. 288 crore (US$ 64mn) Transaction size: Rs. 160 crore (US$ 35.6mn) Investors: SBI, Yes Bank, IDBI Bank, SIDBI, Dena Bank, Credit Agricole First rated pool sale transaction for a startup MFI Transaction will boost the confidence of lenders (Jagaran doesn t carry any loans on its books) Pool of loans rated by CRISIL as "A3(SO), reflecting moderate degree of safety in regard to timely payment Unique transaction with five different banks lending to the company at the same time Big boost in confidence of the MFI sector for receiving funding from multiple banks Among the first exposures to Indian MFI sector for the foreign lender US$ 26.7 million Mar 2012 Headquarters: Bangalore, Karnataka Closing date: March 2012 No. of clients: >3500K Gross Loan Portfolio: Rs crore (US$ 789.5mn) Transaction size: Rs. 120 crore (US$ 26.7mn) Investors: Credit Agricole First large exposure to Indian MFI sector for the foreign lender Excellent example of increasing confidence of foreign banks in Indian MFI sector 22