unleash the 95%

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© 2015 Boardwalk Capital Management Unleash the 95% Competitive Performance with Social impact June 2015

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Page 1: Unleash the 95%

© 2015 Boardwalk Capital Management

Unleash the 95%Competitive Performance with Social impact

June 2015

Page 2: Unleash the 95%

2© 2015 Boardwalk Capital Management.

While each foundation has a unique

mission, every foundation has a

purpose to serve the “greater good”.

Stephen Viederman, President (Ret.)

Jessie Smith Noyes Foundation

Page 3: Unleash the 95%

3© 2015 Boardwalk Capital Management.

Each individual, celebrity or family office

has the same opportunity as a

foundation:

Creating a unique social brand.

Page 4: Unleash the 95%

4© 2015 Boardwalk Capital Management.

“If you could invest with a better

footprint, and earn the same returns,

why wouldn’t you?”

Scott Sadler, Founder

Boardwalk Capital Management

Page 5: Unleash the 95%

5© 2015 Boardwalk Capital Management.

The Typical Foundation

95%

5%

Retained

Investments

Targeted

Grants

Unleash the 95% to do some good.

Page 6: Unleash the 95%

6© 2015 Boardwalk Capital Management.

When bonds yielded 10% and stocks 3%...

Distributing 5% was easy.

Foundations had to rethink how to meet their

distribution requirements.

Now they are rethinking the

definition of “impact” as more than

grantmaking.

Today’s Conundrum

Page 7: Unleash the 95%

7© 2015 Boardwalk Capital Management.

Today’s investors are demanding

something different:

Competitive Returns

with

Positive Social Impact

Impact Investing is now one of the industry’s fastest growing segments

Returns are competitive with conventional investing styles

Social Impact is significant and measurable

In the United

States today,

$2 out of $10

under

professional

management

employs a

sustainable

investment

process.

Impact investing is a fast-growing segment

Page 8: Unleash the 95%

8© 2015 Boardwalk Capital Management.

Investing for Return and Impact

We need to earn returns to meet our future liabilities

Charitable grants Operating expenses Retirement Education Lasting legacy

The World needs help with a variety of challenges

Clean Water Poverty Energy

Climate Change Agriculture Access to finance

Product safety Workers rights Animal welfare

Education Housing Health

New investment risks must be mitigated

Water Scarcity Climate risk Emissions regulation

Consumer attitudes Social media Ethics and corruption

Investing for Impact brings these elements together. Foundations are uniquely positioned to utilize these philosophies.

Page 9: Unleash the 95%

9© 2015 Boardwalk Capital Management.

Most asset types can be Impact assets

Fixed

IncomeQuality of life

bonds

Sustainable corporate and “green” project bonds

Community lending, housing finance, microfinance

Hospital, greenspace, school, water munis

Private

equity“Impact”

investments

Clean technology and renewable energy

Real estate: Brownfield remediation, organic farmland

Base-of-the-pyramid social impact equity

Large Cap

Equity

Global

Sustainability

Leaders

Smaller carbon footprint and declining emissions

Worker-friendly employment practices

Greater philanthropic activity

Superior transparency and governance

Large Cap

Equity

Global

Sustainability

Leaders

Large Cap

Equity

Global

Sustainability

Leaders

Becomes

Social impact is achieved when:

Becomes

Becomes

Page 10: Unleash the 95%

10© 2015 Boardwalk Capital Management.

Theme: Sustainability Leaders

Global Sustainability Leaders Equity

• Leaders in environmental stewardship, policies

and controls

• Best corporate citizens

• Transparency and high ethical standards

• Best places to work

• Diversity and gender equity in management

and on boards

Page 11: Unleash the 95%

11© 2015 Boardwalk Capital Management.

Theme: Agriculture

Farmland LP

• Strategic land purchases within driving

distance of urban farmers markets

• Convert conventional farmland to organic

over three year period

• Rent acreage to successful farmers

• Shortage of organic farmland vs. demand

• Rising profitability per acre from

conventional to “grass fed” to organic

• Successful record for investors, farmers

and consumers

Page 12: Unleash the 95%

12© 2015 Boardwalk Capital Management.

Theme: Access to Finance

BlueOrchard Microfinance Fund:

• Invests in debt instruments issued by

microfinance institutions located in Africa,

Asia, Eastern Europe and Latin America.

• Maximum maturity of three years

“Offer access to financial services to low-

income groups often unserved by

mainstream banks, thus enabling them to

develop and grow income-generating

activities.”

Page 13: Unleash the 95%

13© 2015 Boardwalk Capital Management.

Theme: Renewable Energy

CEA Utility Income Fund IV:

• Solar PV farms constructed with investor

money

• Low correlation with other investment types

• Long term Power Purchase Agreements

with major utility companies

• Energy price for fixed decades

• Renewable energy credits 30%

• 11% IRR (unleveraged)

• Insured by major insurers (Chubb, Travelers)

• Possible leverage (BB&T)

Page 14: Unleash the 95%

14© 2015 Boardwalk Capital Management.

Thank you

Unleash the 95%

Page 15: Unleash the 95%

© 2015 Boardwalk Capital Management

www.BoardwalkCM.com

404-343-2026

[email protected]

Boardwalk Capital Management is an active

member of the Green Chamber of the South.

Follow us on:

Boardwalk Capital Management is a

Certified B Corporation.