NatureVest OVERVI VIEW W AND 2 2015 OUTLOOK OOK The information - - PowerPoint PPT Presentation

NatureVest

OVERVI VIEW W AND 2 2015 OUTLOOK OOK

The information in this presentation is only general in nature. It is not intended as an offer of securities or other investment vehicles and is not investment advice.

NATUREVEST

STRATEGIC SUMMARY

PURPOSE STRATEGY GOAL

NATUREVEST generates measurable environmental outcomes along with a financial return

NatureVest achieves this with generous support from JPMorgan Chase, The Robertson Foundation, and the Jeremy & Hannelore Grantham Environmental Trust

TNC’s unit working to deliver conservation impact while also generating financial returns Put to work at least $1 billion of impact investment capital for conservation  Structure transactions that can be replicated and scaled  Source impact capital from current and new supporters  Share our knowledge and experience to strengthen awareness and support for impact investment in conservation

CONFIDENTIAL NOT FOR DISTRIBUTION

BUILDING THE FIELD

FOR CONSERVATION IMPACT INVESTING

INVESTING IN CONSERVATION: A landscape assessment of an emerging market

RESE SEARCH CH F FOCU CUS KEY KEY F FINDINGS Illuminate market size and scope for conservation impact investing RESE SEARCH CH L LAUNCH CH November 6, 2014 launch in San Francisco

• $23 billion conservation impact

investment (2009-2013)

• $21 billion from

bilateral/multilateral

• $2 billion from private actors
• 3 segments of activity:

(i) Sustainable Food & Fiber Production (ii) Habitat Conservation (iii) Water Quantity & Quality Conservation

• Private investors expect to

triple capital deployment

• ver next 5 years
• Obstacle to capital

deployment is lack of deals that meet conservation

• utcome and financial return

targets and have management track record

The Gordon and Betty Moore Foundation and The David and Lucile Packard Foundation supported NatureVest in this research co-authored with EKO Asset Management in collaboration with J.P. Morgan Chase.

CONFIDENTIAL NOT FOR DISTRIBUTION

Global Conservation Strategy Mapping | Criteria for NatureVest Deals

PORTFOLIO PRIORITIES

AND HOW THEY’RE SET

1. Support TNC global strategies 2. Conservation activities that generate cashflows 3. Size of the conservation impact and investment opportunity 4. Replicability of the individual deals 5. Readiness to deploy capital

CLI LIMATE LAND ND WATER OCEANS NS CIT ITIES IES

CONFIDENTIAL NOT FOR DISTRIBUTION

PORTFOLIO SUMMARY

SHORT-TERM

Global Conservation Strategy Mapping | Short-Term Transaction Activities

$15M $328M $30M

.

CLIMAT ATE LAN AND WATER OCEANS

$25M $3M

CITIE IES

$40 $401M 1M

PIPELINE TOTAL

$141M

CLOSED DEALS

+

CONFIDENTIAL NOT FOR DISTRIBUTION

Great Western Checkerboards Project

• 167,000 acres
• $134M
• Private foundation support
• Impact investing and philanthropy
• Washington and Montana

Sustainable Cattle in Kenya

• 1.2 million acres
• $7M
• Individual philanthropy & impact investing
• 28 conservancies participating
• 10,000 cattle/year purchased
• Partner: Northern Rangelands Trust

NATUREVEST

SCALING CONSERVATION

Closed NATUREVEST TRANSACTIONS represent new models for conservation

CONFIDENTIAL NOT FOR DISTRIBUTION

NATUREVEST TRANSACTIONS are growing conservation impact

NATUREVEST

SCALING CONSERVATION

CONFIDENTIAL NOT FOR DISTRIBUTION

Deal summary

• Create a model financing vehicle for local green infrastructure efforts through a

performance-based financing facility that can be scaled across 500 cities

• Develop green infrastructure projects and sell credits to developers looking for stormwater

retention solutions.

• Reduce pollution to the Chesapeake Bay, one of TNC’s top priority ecoregions
• Increase open space and urban greening in Washington, DC, currently 43% impervious

surface, with a focus on low-income communities Financial Information (2/28/15)

• Deal size = $3M

Washington, DC

 Investable

Capital structure Targets Concessionary debt HNWIs, foundations Equity HNWIs, foundations, family offices Philanthropy HNWIs, foundations

NATUREVEST TRANSACTIONS are growing conservation impact

NATUREVEST

SCALING CONSERVATION

CONFIDENTIAL NOT FOR DISTRIBUTION

Deal summary

• Purchase 100,000 acre surface estate of critical corridor between two protected areas,

and retire surface mining rights on at least 15,000 acres of high conservation value areas.

• Transform land use in Central Appalachian coal country – transitioning from surface

mining to sustainable forestry, forest carbon and recreation.

• Preserve critical habitat corridor in Central Apps biodiversity hotspot and retire mining

rights to permanently eliminate risk of mountaintop removal mining. Financial Information (2/28/15)

• Deal size = $74M

Appalachia

 Investable

Capital structure Targets Concessionary debt HNWIs, foundations Equity HNWIs, foundations, family offices, corporations Philanthropy HNWIs, foundations

NATUREVEST TRANSACTIONS are growing conservation impact

NATUREVEST

SCALING CONSERVATION

CONFIDENTIAL NOT FOR DISTRIBUTION

Deal summary

• Invest and trade in permanent and temporary water rights in the Murray-Darling Basin with

the purpose of providing environmental water to wetlands as well as delivering financial returns to investors.

• Prioritize wetlands of significance to Aboriginal peoples, and involve Aboriginal communities

in prioritization, watering, and monitoring activities.

• Use as a model to influence the adoption of water markets in other geographies including,

but not limited to, the Western US, China, and Mexico. Australia

Capital structure Targets Senior secured debt Australian Commercial Banks Common Equity HNWIs, foundations

Financial Information (1/5/15)

• Deal size = $25M

 Investable

ENABLING INVESTMENT in nature for all

NATUREVEST

SCALING CONSERVATION

CONFIDENTIAL NOT FOR DISTRIBUTION

The Conservation Note is The Nature Conservancy’s retail security offering to raise capital to finance conservation efforts around the world allowing investors to earn a return on their investment in nature. Since their inception in 2012, the Notes have furthered the mission of the Conservancy and have conserved 700,000 acres and supported 66 projects including:

• A loan to the Iisaak First Nation of Canada to support sustainable timber management in Clayoquot Sound in British Columbia
• The purchase of 1,900 acres in Upper Klamath Lake, Oregon to increase fish spawning and rearing habitat.
• Leveraging $4 of public money for every $1 of investment to protect the remaining 90,000 acres of native prairie in Minnesota

Financial Information (2/15/15) Availability: $4 million Minimum Investment: $25,000

Notes are secured by the full faith and credit of The Nature Conservancy which carries a Aa2 Moody’s bond rating. A Prospectus can be found here: http://www.nature.org/about-us/2015-conservation-note-prospectus.pdf

Terms Annualized Return 1 Year 0.40% 3 Years 0.75% 5 Years 1.75%

QUESTIONS