"Rockefeller Foundaton Impact Investment Overview" TTGV tarafından düzenlenen Refresh 2017 toplantısı, "Teknoloji Finansmanı ve Finansman Modelleri" bölümü.

1. Rockefeller Foundation: Impact
Investing Overview
Brinda Ganguly
October 7, 2016

2. 1
Table of Contents
• Rockefeller Foundation (RF) Overview
• What is an Impact Investment?
• RF Impact Investing Activities
– Strategy #1: Program Related Investments (PRIs)
– Strategy #2: Grant Making
– Strategy #3: Mission Related Investments (MRIs)

3. 2
Rockefeller Foundation (RF) Overview
• Established in 1913 by John D. Rockefeller
• Mission: Improve the well-being of mankind
• Global programs that focus on different sectors and geographies
• Offices in New York, Bangkok, Nairobi, Bellagio (Italy)
• Current endowment is ~$4.5 – 5BN
– Sole source of funding
– One of the largest private foundations in the world
• Annual charitable distributions: ~$200MM
– Based on a 5% “pay out” regulatory requirement
– Private foundations are carefully regulated by the Internal Revenue Service (IRS) in the U.S.

4. 3
What is an Impact Investment?
• Investment that is made with the intention of generating financial return as well as social impact
– Can have different risk-return profiles, be structured in different ways, be in different sectors

5. 4
Strategy #1: What is a PRI? (1/4)
• PRIs are part of the IRS regulations
– Legally defined term
– Since the late 1960s
• Allow foundations to make impact investments
• PRIs are, by definition, below market rate investments
– Non risk-adjusted returns
• Different foundations have different investment strategies

6. 5
Strategy #1: RF and PRIs (2/4)
• RF has been making PRIs for almost 20 years with a Board approved allocation
• Currently, a ~$50MM portfolio
– Expected to grow over the coming years
– Includes debt, equity, guarantees
– Direct and investments into funds
• ~75% of the investments are outside of the U.S.
• Managed by a 3-person team based in NY and Bangkok
• Realized returns are in the low single digits

7. 6
Strategy #1: Current Approach (3/4)
1. Internally focused: Scaling our more
mature programs, where grants and
financing can work together to help
achieve social objectives
• Smart Power for Rural Development
• Yield Wise
2. Externally focused: Co-investment
Partnership with Overseas Private
Investment Corporation (OPIC)
• Agreement to co-invest up to $45MM
in transactions together
• Integration of different skill sets to
achieve program objectives
• Leads to a higher risk PRI portfolio
• Strong financial partner with significant
amount of capital and talented
investment team
• Potentially less risk financially
• Allows for greater financial leverage and
efficiency gains in certain areas
• Opportunity to review many different
kinds of deals that align with the
Foundation’s objectives

8. 7
Strategy #1: Why RF Makes PRIs (4/4)
• Flexible capital
– That can be tailored to meet the needs of the recipient
• More equitable engagement with commercial actors
– That can help programs scale and achieve financial leverage
• Full alignment of interests
– With social and financial objectives
• Recycle capital
– To maximize Foundation resources
• Enhanced social impact data collection
• Provides continued experience in the impact investing field
• Creates opportunities to partner and learn from institutional investors
– Who view markets through a more traditional commercial lens
PRIs are a powerful tool to complement grant-making in achieving program goals

9. 8
Strategy #2: What is the Problem? (1/2)
• Enabling environment for impact investing is weak
– The “pipes” that make money flow are weak or non-existent
• As a result:
– It is difficult for investors to find deals
– It is hard for investees to find capital
– Transaction costs are high
• These barriers makes it hard for the impact investing market to grow

10. 9
Strategy #2: What Has RF Done? (2/2)
• Networks for investors
– Global Impact Investing Network, Mission Investors Exchange, Aspen Network of Development Entrepreneurs
• Market infrastructure
– Rating agencies, , investment banks, social stock exchanges, etc.
• Intermediaries that still require subsidy
– Calvert Foundation, Root Capital, Non-Profit Finance Fund
• Research and policy
• Funding organizations that are developing innovative finance ideas that are not yet ready for
investment
~$75MM in grant-making to help build the enabling environment for impact investing

11. 10
Strategy #3: Endowment Overview (1/1)
• Endowment is commercially invested, mostly in funds
• Traditional asset allocation strategy
• Managed by an in-house ~10 person team
• On-going discussion – at the RF Board level – regarding impact investing from the endowment

12. 11
Thank You
Brinda Ganguly
bganguly@rockfound.org
212-852-8342