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

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1. 2015 Boardwalk Capital Management Unleash the 95% Competitive Performance with Social impact June 2015 2. 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 3. 3 2015 Boardwalk Capital Management. Each individual, celebrity or family office has the same opportunity as a foundation: Creating a unique social brand. 4. 4 2015 Boardwalk Capital Management. If you could invest with a better footprint, and earn the same returns, why wouldnt you? Scott Sadler, Founder Boardwalk Capital Management 5. 5 2015 Boardwalk Capital Management. The Typical Foundation 95% 5% Retained Investments Targeted Grants Unleash the 95% to do some good. 6. 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. Todays Conundrum 7. 7 2015 Boardwalk Capital Management. Todays investors are demanding something different: Competitive Returns with Positive Social Impact Impact Investing is now one of the industrys 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 8. 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. 9. 9 2015 Boardwalk Capital Management. Most asset types can be Impact assets Fixed Income Quality 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 10. 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 11. 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 12. 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. 13. 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) 14. 14 2015 Boardwalk Capital Management. Thank you Unleash the 95% 15. 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.