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ON THE GROUND Acumen Fund 2009/10 AnnuAl RepoRt 1

on the ground2009/10

Annual Report

ON THE GROUND Acumen Fund 2009/10 AnnuAl RepoRt 3

imagine a world beyond poverty

Acumen Fund invests patient capital in businesses that deliver critical, affordable goods and services to the world’s poor, improving the lives of millions.

4 ON THE GROUND Acumen Fund 2009/10 AnnuAl RepoRt 5

“ Between pure charity and pure financial return, there is an unexplored space with tremendous opportunities for innovation, social impact and lasting change.”

seedinggrowth

In the past nine years, Acumen Fund has grown from an idea to a truly global organization that has invested more than $50 million in philanthropic capital in 50 companies across five countries. Our investments have leveraged more than $140 million of additional capital into companies that have, in turn, created more than 35,000 jobs, brought tens of millions of affordable products and services to previously underserved markets, and transformed several industries to include low-income individuals for the first time. Our Fellows Program is flourishing, and we are increasingly involved in policy discussions about how to transform aid and the fight on poverty. More and more, we find ourselves engaged in a conversation around what we believe is perhaps the most important issue of our time: the future of capitalism and how it might be re-imagined to reflect and better serve our interconnected, interdependent world in the 21st century.

Over the last few years, Acumen Fund has become a more complex organization, and we want you, our key stakeholders, to have a greater sense of what we have accomplished and where we are hoping to go. This annual report is an experiment to do just this – and we count on your feedback to determine whether it serves its purposes and how we can improve it.

While we are in a rapid-growth phase, our mission remains consistent: Acumen Fund exists to help end poverty by changing how the world addresses it. We invest patient capital to strengthen and scale businesses that effectively serve the poor, and we champion this approach as a complement to both charity and pure market approaches. We envision a day when every human being will have access to the critical goods and services they need – including affordable health, water, housing and energy – so that they can make decisions and choices for themselves and unleash their full human potential. This is where dignity starts – not just for the poor, but for everyone on earth.

Through our work in India, Pakistan and East Africa, we’ve seen more than ever the need to embed our deepest human values into the way we think about investment – indeed, in the way we think about capital altogether. It never fails to amaze me how people seem so comfortable with making grants for purely charitable purposes, so that they experience a 100% loss of their money, and are equally comfortable investing in hopes of seeing financial returns of 10% - 20% (or more), even if they risk losing a large portion of principal. Yet these same individuals often will not consider investments that result in negative returns of 10 or 20% but that also create outsized social impact. Between pure charity and pure financial return, there is an unexplored space with tremendous opportunities for innovation, social impact and lasting change.

In a world with enormous financial resources – from the capital markets to government funding to aid funding and philanthropy – we need to use every tool at our disposal. And patient capital is just such a tool in a world yearning for new solutions. Acumen has a critical role to play in demonstrating the potential of this new approach – by investing in businesses that change lives, in ideas that change the world and in leaders who will show the way.

It will be challenging, and it will take all of us.

I thank you for being part of this work. Know that we’ve never been more committed than we are today.

Jacqueline novogratz FoundeR & ceo

dear Friends,

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350K wiTH DRiP iRRiGATiON

thousands of smallholder farm families in india are benefiting from increased crops and income thanks to geWp’s drip irrigation systems.

AGRicUlTURE

launched 2009 $8.3M invested

1.5mUsiNG sAfE sOlAR liGHTiNG

d.light design has passed the threshold of 1.5m people with lights world-wide.

ENERGy


35K jobs created

40m+ people reached

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30K PEOPlE iN sAfE cOMMUNiTiEs

in pakistan, Saiban’s housing units are providing thou-sands of families with full access to essential utilities and social amenities like schooling and health care.

HOUsiNG


296 wATER TREATMENT PlANTs

WHi operates community water systems across india that provide 250,000 cus-tomers with safe water daily.

wATER


280 EMERGENcy sERvicEs vEHiclEs

ziqitza Healthcare’s dial 1298 for Ambulance fleet has grown from 10 ambulances in mumbai to 280 in mumbai, Bihar, Kerala and Rajasthan, with plans to scale to 1,000.

HEAlTH


2009/10 highlights

investing in businesses that change lives

4.3mUsEs Of sANiTATiON sERvicEs

ecotact in Kenya has gone from 11 sites in operation in early 2009 to more than 25 in July 2010, each pro-viding access to clean, safe toilet facilities to thousands of customers each day.

100K wiTH ElEcTRiciTy

Fifty-five rural villages in Bihar, india, are now powered by Husk power System’s rice husk-fired generators.

150K fARMERs

Western Seed develops and distributes affordable hybrid seeds to low-income farm-ers in east Africa, improving agricultural output.

1KPEOPlE wiTH HOMEs

our loan to Jamii Bora in Kenya jumpstarted construction of Kaputei town, a pioneering, eco-friendly urban planning project that provides affordable homes for formerly slum-dwelling families.

29m ANTi-MAlARiAl bEDNETs

A to z in tanzania has scaled its capacity to manufacture millions of life-saving insecticide- treated bednets annually.


investing in ideas that change the world

the ultimate change that Acumen Fund seeks to create is a wholesale shift in how the world tackles poverty. We know that real change will come when the world embraces patient capital as a large-scale, mainstream approach that blends the best of philanthropy and entrepreneurship. We know that neither charity nor markets alone are enough to solve the problems of poverty, and we continue to learn more through each of our investments about the impact of this new approach. We work actively to share what we are learning to influence the conversation on sustainable and scalable ways to remove the barriers that keep billions in chronic poverty.

30+ PEER ORGANizATiONs UsiNG PUlsEFrom 2007 to 2010, Acumen Fund spearheaded the creation of Pulse, the online metrics tracking and reporting tool that has become the standard for the social investment sector.

2010 PREsiDENTiAl sUMMiT Acumen investees Roshaneh Zafar of Kashf and Jawad Aslam of AMC were among the entrepreneurs invited to President Obama’s Presidential Summit on Entrepreneurship in April.

ANDE NETwORkAcumen Fund is a founding member of the Aspen Network of Development Entrepreneurs (ANDE). With more than 100 members, ANDE is the leading group for collabora-tion in our sector.

THE blUE swEATERJacqueline’s book, pub-lished in 2009 (and released in paperback in early 2010) was a New York Times bestseller. It has been selected as required reading at universities, sparked book clubs in the Nairobi slums, and become a

launching pad for deeper engagement in Acumen Fund’s work globally.

10 AcUMEN cHAPTERsOur community of official chapters is growing, from New York to San Francisco, London to Dubai, fuelled by individuals who believe in the vision of Acumen Fund and who are spreading the word and raising funds for Acumen.

vibRANT ONliNE cOMMUNiTyOur online community has grown exponentially with thousands of members,

from more than 100 countries, with a passion for spreading the idea of patient capital.

bROADcAsT AND PRiNT MEDiAAcumen Fund continues to share the message of patient capital broadly, with substantive appearances in the media, including onCNN, PBS, CNBC and NPR, and in The New York Times.

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investing in leaders that show the way

As the Fellows program enters its fifth year,we are encouraged by its growing strengthand demonstrated impact. in the past year,the number of applicants has doubled, the diversity of the applicant pool continues to grow, and more of our investees are asking for Fellows. most importantly, the alumni are doing what we had hoped: becoming architects for this sector.

ERic bERkOwiTz, kEEly sTEvENsON & JAwAD AslAM As part of Bamboo Finance, eric Berkowitz (2007) and Keely Stevenson (2007) are investing in social enterprises, including Jawad Aslam’s (2008) Ansaar management company to support hous-ing development in lahore, pakistan.

RAM HARiHARAN Ram Hariharan (2009) is now working with Bridge international Academies, an organization establishing low-cost private schools in Kenya.

sURAJ sUDHAkAR Suraj Sudhakar (2009) is now the manager of Acumen Kenya leaders program and has continued working with hundreds of youth in the slums of Kibera, organizing

book clubs, and holding tedx competitions.

ADRiEN cOUTON Adrien couton (2007) is ceo at naandi community Water Systems, which em-ploys a community-owned and community-managed user fee-based model to expand access to safe drinking water in india.

GAMUcHiRAi cHiTURi gamuchirai chituri (2010) has started a youth entrepreneurship training center in zimbabwe.

JOEl MONTGOMERy & JOANNA HARRiEs Joel montgomery (2009) and Joanna Harries (2009) are leading endeavor’s expansion strategy in east Africa and the middle east, respectively.

cATHERiNE cAsEy catherine casey (2008) is leading Acumen Fund’s exploration of West Africa and policy work in Washington, dc.

TRiciA MORENTE tricia morente (2008) is Head of marketing and Strategy at lifeSpring maternity hospitals in Hyderabad, india.

Alliance for Improved Nutrition and Acumen Fund. We’re seeing Fellows go on to be entrepreneurs, investors and advocates, and to continue to be connected to their cohort and to Acumen Fund. Three of the 2009 Fellows were highlighted in a documentary, The New Recruits, which aired on PBS. The Acumen Fellows Program is a finalist for the John P. McNulty Prize, which recognizes exceptional leadership projects undertaken by the fellows of the Aspen Global Leadership Initiatives around the world.

As part of our efforts to take the program to scale, we are beginning to develop our first national leadership initiative. Our goal over the next 10 years is to develop national leadership programs around the world to train thousands of leaders who are driving social change within businesses, public sector organizations and leading NGOs. This one-year program will be geared towards professionals who will stay in their jobs while participating in the training. By connecting and investing in these individuals and their social change initiatives, we aim to create an interconnected web of global leaders who share common values, are driving change, and have a deep commitment to building a more inclusive economy and social system. A commitment to the first four global leadership programs was announced at the 2010 Clinton Global Initiative; the first program will launch in Kenya in 2011 and will be run by 2009 Acumen Fellow Suraj Sudhakar.

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Over the past five years, Acumen Fund has received nearly 2,000 applications to the Fellows Program, and we have now successfully recruited and trained four classes of Fellows, with our fifth class of Fellows now in training for their nine-month placement with Acumen Fund investees. This year’s ten Fellows (chosen from a pool of 575 applicants, twice that of the previous year, from 65 countries) hail from the United States, Italy, Japan, Jamaica, Pakistan, Kenya and Sri Lanka.

Fellows from previous classes continue to create social change, with 85% of the Fellows alumni choosing to remain in the social sector. Many have gone on to play leadership roles at organizations like Bamboo Finance, New Island Capital Management, Mercy Corps, IDEO, the Global

fEllOws HiGHliGHTs


Fertile ground for innovation Acumen Fund’s investments in india reflect the country’s global significance as a laboratory of innovation, both for individual enterprises and the impact investing field. india is also demonstrating the emergence of game-changing enterprises that touch hundreds of thousands and, in some cases, millions of lives.

Through our investments, we are learning about paths to scale that can be replicated across our portfolio and beyond. For example, we have seen a tremendous ramp-up with Ziqitza Healthcare’s Dial 1298 for Ambulance, an ambulance company started in Mumbai to address a critical gap in access to emergency care. In 2006, Acumen Fund invested $1.5M to help 1298 expand across Mumbai and grow from 10 to 70 ambulances. The company’s success and “access for all” philosophy, where people pay on a sliding pricing scale, helped shift attitudes across India, demonstrating that emergency medical services (EMS) could be provided in a professional, cost-effective way. States across India opened tenders for EMS provisioning, and 1298 won $80M worth of contracts in Maharashtra, Bihar, Kerala and

on the ground in india

eNergYindia is home to three of the four energy investments in our portfolio, and these investees are showing the power of leveraging public resources through private companies to reach hundreds of thousands of low-income customers. in india, the government has recognized its inability to provide power to all of rural india, and instead has implemented an aggressive subsidy to spur the entry of private players. Husk Power systems, which uses rice husk-fired generators to bring power to villages in india’s rice belt, receives a capital expenditure subsidy of 50% or more per system. Husk further reduces the cost of its systems by wiring villages using bamboo poles and low-voltage wire, and by sourcing biomass gasifiers from a local supplier. As a result, Husk’s capex per system is 30%-40% cheaper than similar units. All of this makes the product extremely affordable – about $2 per month for a household with two light bulbs – and in an average Husk village, 80% of the customers use the service. Husk is scaling rapidly – as of June 2010, 28 systems are already serving more than 100,000 customers, making Husk Power one of the largest micro-utility providers in india.

GEwP (2007) the company doubled its sales of drip irrigation systems to indian farmers in 2009, beating quarterly sales and profitability targets without losing sight of its target market: smallholder farmers with-out access to irrigation technologies.

lifEsPRiNG (2007) lifeSpring has signifi-cantly increased hospital-supervised deliveries and reduced maternal and child mortality and morbidity rates. the chain of maternal care hospitals sees an average of 3,000 unique customers per month, serving more than 70,000 patients to date.

D.liGHT DEsiGN (2008) more than 500,000 people in india are benefiting from d.light design’s products, including its first 100% solar village in orissa, india, where solar led lighting has replaced more costly, hazardous kerosene.

HUsk POwER sysTEMs (2009) We invested $400K in Husk power Systems, which uses biomass gasification technology to convert waste rice husks into decentralized electrical power for rural villages at a fraction of the cost of grid extension.

Rajasthan to scale to 1,000 ambulances in the next three years. As of September 2010, 1298 had 280 ambulances in operation nationally.

This is the kind of scale we aim to achieve in all of our investments: not just through direct impact, but by creating entire sectors that address social problems for the poor in innovative ways. We’ve seen this impact in the water sector in rural India. In 2004, when we made our first investment in WaterHealth International, critics from both the business community and the public sector questioned its viability. The $3.5M that Acumen invested, along with another $50M in investment capital from other investors, allowed WHI to scale to 300 systems serving 250,000 low-income customers who purchase safe water on a recurring basis. More importantly, WHI’s model has spawned competitors that have established more than 700 additional systems serving another 500,000 people, and state-level governments in India have begun tendering contracts for companies to develop similar community water systems. A sector has been created, catalyzed by patient capital and visionary leadership by WHI.

Global Easy Water Products (GEWP) has shown tenacity in developing distribution networks and a customer base of more than 60,000 small-scale farmers. Without government subsidies, and alongside a commercial irrigation sector that designs products only for large-scale farmers, GEWP is pioneering a business model to deliver affordable irrigation technologies to the millions of smallholder farmers that make up most of India’s poorest households. GEWP’s drip irrigation systems can double the income of the average customer in one season, and the systems are designed to enable incremental expansion each year, which better suits the needs of cash-constrained households.

These are just three examples of ideas that are scaling nationally in a country of more than 1 billion people and that are demonstrating new ways to expand access to critical goods and services to low-income customers.

iNDiA ADvisORs

G.v. Prasad, dr. Reddy’s laboratories ltd.

sadeesh Raghavan, formerly Accenture consulting

Manoj varghese, Facebook india

Prabir Talati, Actis

vinay shah, mosaic capital

vikram P. sahu, goldman Sachs india

Aman Gupta, imprimis pR

sanjay Gupta, formerly American express

$21.8mcUMUlATivE AMOUNT iNvEsTED

12NUMbER Of AcTivE cOMPANiEs

iNDiA PORTfOliO (as of 9/30/10) iNvEsTMENT HiGHliGHTs

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grounded in the local community Acumen Fund has been on the ground in pakistan since 2002, and we established our office in Karachi in 2006. our portfolio has grown to more than $11 million invested in organizations that are breaking new ground, tackling some of the biggest local challenges and building solutions that can scale. We are the largest and most recognized social investor in pakistan, helping us shape the conversation around what is possible in a country hungry for examples of what is working. in the past two years, we have expanded our pakistan portfolio to include investments in the wa-ter sector, health insurance and agriculture, complementing our deep experience in housing. our local community of support-ers – partners, advisors and others who share our values and vision – work with us to help us realize this vision. there are 38 partner-level supporters of our work from pakistan – a striking demonstration of commitment and trust.

on the ground in pakistan

hoUsiNg saiban’s kkb-4 outside of lahore was launched in 2007. As with any greenfield housing development – especially one for the poor – sales were slow at first, requiring diligence, fortitude and patience on the part of both saiban and Acumen fund. in the last 18 months, sales have increased dramatically and the community is thriving. More than 300 of the houses, all with electricity and sanitation, are occupied. Two schools are active, small shops have sprung up, and parks and football pitches teem with children in the afternoons. based on saiban’s success, in 2009, Acumen fund invested in Ansaar Management company (AMc), a commercial spin-off of saiban launched by Jawad Aslam, a former Acumen fellow, that will build affordable housing for 2,300 families. saiban and AMc’s hard work on the ground is demonstrating to government and others the possibilities for financially viable models for housing that work for the poor.

While the momentum of our work in Pakistan continues to increase, we recognize the challenges facing our investments due to economic pressures and political interference. The greatest recent challenge to Pakistan was the floods in August 2010 that displaced 20 million people and destroyed or damaged millions of homes. The devastation has meant the loss of schools, health facilities and livelihoods, and the emerging threats of disease, hunger and unrest.

Currently, we are looking at our portfolio investments as potential providers of innovative, cost-effective solutions for flood-affected areas. The first to offer support was d.light design, creators of solar lighting for the poor in India. Other investees like A to Z (Tanzania), which manufactures long-lasting insecticide-treated anti-malarial bednets, and Micro Drip, which supplies mini-drip irrigation kits, could play a role in relief efforts as well. Our newest investee – Pharmagen Health Limited – has distributed several tons of clean drinking water nationwide. The National Rural Support Program is coordinating millions of dollars in aid from various organizations, as well as distributing relief to over 400,000 households. Kashf Foundation, with its net-work of microfinance branches nationwide, has distributed much-needed food items. Acumen Fund Partners are also on the front lines. For example, Aman Foundation is providing medical aid through their 2600 ambulances, and Acumen Fund board member Ali Siddiqui is leading an effort to sup-port camps that feed and shelter more than 10,000 people.

Soon, the flood waters will recede, and the country will be faced with the tremendous task of rebuilding tens of millions of lives and billions of dollars’ worth of destroyed infrastructure. We know our investees – through their direct provisioning of micro-loans, housing finance, homes for former slum-dwellers, safe drinking water, micro-insurance, drip irrigation and dairy cows for small-scale farmers – are at the heart of this recovery, now and for years to come.

PAkisTAN ADvisORs

zubyr soomro, Advisory chairman, formerly citigroup pakistan

syed babar Ali, lahore university of management Sciences

farrokh captain, pakistan Human development Fund

Ahsan Jamil, Aman Foundation

zaffar A. khan, formerly pakistan international Airlines

Monis Rahman, naseeb online networks

Ali siddiqui, Jahangir Siddiqui private equity

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sAibAN (2003) Almost 70% of the housing units are sold at KKB-4 and the infrastructure work is completed. By the end of 2010, the development is expected to have a popu-lation of 2,000 people with full access to essential utili-ties and social amenities like schooling and health care.

ANsAAR MANAGEMENT cOMPANy (2009) We invested $1.1m in Ansaar management company (Amc) to develop housing and community for 2,300 households. Amc has purchased land outside lahore for the project site, and sales will commence in early 2011.

JAssAR fARMs (2009) We invested $1.4m in an artificial insemination and embryo transplant business to jump-start the transfor-mation of milk productivity for smallholder farmers. the first calf – named Saviour – resulting from Jassar’s insemination efforts was born in early 2010.

PHARMAGEN (2010) We invested $1.5m in pharmagen, our first water investment in pakistan and the first in the water portfolio to set up community water systems in urban areas to provide safe drinking water across dense low-income communities.

iNvEsTMENT HiGHliGHTs



PAkisTAN PORTfOliO (as of 9/30/10)


on the ground in east africa

renewal and accelerating growth Acumen Fund’s portfolio and presence continue to broaden in east Africa, with our investment portfolio more than doubling over the last 18 months. We are investing in new sectors: agriculture, with an investment in Western Seed company, which develops and sells high-quality hybrid maize to low-income farmers; and energy, through the rollout of d.light in tanzania and a new investment in a mini-hydro system. We are also seeing significant demand for the outputs of A to z (bednets), insta (fortified food) and Beepz (artemisinin), each of which has reached millions of people with their life-saving products.

The year 2009 began with uncertainty for Kenya, with lingering tensions from the post-election violence of the prior year. Yet our investees continue to thrive, reflecting the power of being firmly rooted in the communities that they serve.

Investee Jamii Bora, one of the largest microfinance organizations in Kenya, is an example of resilience. During the violence in 2009, Toi Market, a bustling second-hand clothing trading area of the Kibera slum, and the source of income for many of Jamii Bora’s borrowers, was burned to the ground. Jamii Bora, building bridges with the groups that had started the violence, rebuilt Toi Market, and in so doing demonstrated the importance of a grassroots organization in maintaining the stability of a community in times of trouble.

Acumen Fund invested $250,000 in Jamii Bora to build Kaputei, an affordable housing development outside of Nairobi. Jamii Bora has since repaid this loan, and Kaputei has 750 fully constructed homes for low-income slum dwellers who had proven their ability to repay but would never qualify for a traditional bank mortgage.

We are also learning about the challenges of being part of the global supply chain of major UN agencies and NGOs – with all the unpredictability of the timing of certification, customer demand and cashflows. Insta, one of the few local manufacturers of fortified nutrition products in Africa, is recognized as the leading manufacturer of these products, yet has faced significant challenges in maintaining adequate working capital to run its operations. Demand for its life-saving products is huge, which is why Acumen has spent significant management resources (including the time of a Senior Fellow) and investment resources (a short-term working capital loan) in support of the company. We believe that the 15,000 metric tons of fortified food that Insta has provided is just the beginning for this company, which we hope will be a leader in fortified foods provisioning for years to come.

saNitatioNin 2008, Acumen fund expanded its water portfolio into sanitation with an investment of $750,000 in Ecotact in kenya. Ecotact is building safe, clean public toilet facilities around Nairobi, including in three of the capital’s slum areas. in the past two years, Ecotact has scaled to more than 27 such facilities providing access to thousands of customers a day, with 20 more facilities on order. cEO David kuria was recognized as a winner of the Africa Regional social Entrepreneurs Award for 2009 by the schwab foundation, and his leadership has been critical in an environment where ethnic tensions and distrust persist. Ecotact represents a rapidly expanding public-private partnership that begins with recognition of the demand for greater dignity.

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EAsT AfRicA ADvisORs

Michael Turner, Actis

Edwin Macharia, dalberg

Paras shah, Hamilton Harrison & mathews

A TO z (2002) in tanzania, A to z is pro-ducing enough long-lasting bednets each year to protect nearly 60 million people annually from malaria.

iNsTA (2008) insta in Kenya manufactured 15,000 metric tons of micro-nutrient-rich meals, enough to feed 400,000 individuals per year.

UHEAl (2009) We invested $300K in uHeAl, which delivers specialized eye care services previously unavailable to patients across all income levels in Kenya and east Africa.

wEsTERN sEED (2009) in Kenya, we invested $2m to develop and distribute affordable seed hybrids to smallholder farmers. Western Seed served 150,000 farmers during the 2009/2010 season.

iNvEsTMENT HiGHliGHTs



EAsT AfRicA PORTfOliO (as of 9/30/10)


portfolio overview

$50.3m iNvEsTED

As of September 30, 2010, Acumen Fund’s portfolio has grown to more than $50 million in cumulative investments in enterprises that serve the poor in india, pakistan and east Africa.

$4.1m PRiNciPAl RETURNED

We have seen investments return $4.1m, evidence of our ability to make catalytic investments and recycle capital.

$140m iNvEsTED by THiRD PARTiEs

our portfolio companies have attracted millions in third-party commercial capital, and more still are in the process of raising significant follow-on rounds.

AcM in november 2009, we closed Acumen capital markets i lp (Acm), a $15.9 million fund aimed at fostering a new asset class that invests patient capital in innovative enterprises that serve the poor and focuses on more mature opportunities in Acumen Fund’s portfolio.

MANAGEMENT sUPPORT Since our first investments in 2002, Acumen Fund has provided active manage-ment support to investees, including business plan development and execution planning. in may 2010, we brought together 30 entrepreneurs and senior managers from 25 of our investees with partners, advisors, board members, senior staff and our global portfolio team for four days in nairobi. this meeting offered opportunities to share lessons across sectors and geographies. As part of this peer-to-peer network for investees, we launched a bi-monthly teleconference for investee ceos to discuss and share best practices for pressing management issues.

iNvEsTMENT OvERviEw (As of 9/30/10)

cumulative invested and Approved $50.3m

current Active and Approved investments $39.2m

› debt/loan guarantees $ 11.8m

› equity $27.3m

› grants $ 0.1m

cumulative number of companies 50

number of Active companies 32

leverage on capital $140m (non-Acumen follow-on or co-investment)

$17.4m Health $5.0m Water $3.3m Housing $5.3m energy $8.2m Agriculture

AcTivE & APPROvED iNvEsTMENTs by sEcTOR (As of 9/30/10)

AcTivE & APPROvED iNvEsTMENTs by GEOGRAPHy (As of 9/30/10)

$9.9m pakistan $13.6m east Africa $15.7m india

our long-term goal is to use our scarce patient capital to catalyze game-changing enterprises, companies that are so significant that they transform industries. Just as microfinance has fundamentally changed financial service delivery for the poor, we aim to support enterprises providing safe drinking water, reliable health care, agricultural inputs, affordable household energy and other critical services.

fOR Us, A GAME-cHANGER is AN ENTERPRisE THAT, OvER TiME:

• Serves millions of low-income people with high-quality, basic goods and services

• Has a core innovation that can be replicated in other markets and geographies

• Is financially sustainable so that it continues to serve low-income customers long after we have exited our investment

our experience in patient capital investing has shown that, by taking a long-term view, we can also accelerate the pace of change, with several of our investments growing quickly to serve hundreds of thousands and even millions of people and seeding new industries as they demonstrate what is possible.


financial highlights 2009

We are pleased to present financial highlights for the year ending december 31, 2009. in 2009, 62% of our total cash outflows went toward making and managing our investments in transformative businesses that can solve the problems of poverty.

statemeNt oF positioN assetscash and investments pledges receivable1 other assetsprogram iNvestmeNts › loans receivable › equity investments 2 › loan guarantees total assets liabilities aNd Net assets capital contributions received in advance 3

notes payable 4 Short-term liabilities net assets total liabilities & Net assets

statemeNt oF activitiesreveNUescontributions and support prior years’ contributions write-off investment income interest income - program loans 5 change in value of charitable remainder trust other income reveNUe beFore doNated legal services, space aNd iNvestmeNt lossesdonated legal services and space portfolio investment loss total reveNUe

expeNsesprogram expeNsesportfolio expenses outreach, Knowledge and communications Fellows management and general Administration Fundraisingtotal expeNses beFore doNated legal services aNd space donated legal services and space total expeNses Foreign currency exchange gain (loss)chaNge iN Net assets

portFolio iNvestmeNt disbUrsemeNts

1 / non-profit organizations are required to report pledges for multi-year contributions as revenue in the year the pledges were received. cash received in subsequent years toward these pledges decreases the pledge balance in subsequent years. 2 / equity investments are valued at cost basis. While a non-performing investment is written down to its realizable market value, a performing investment is not written up to its market value above cost. 3 / capital contribution received in advance from a limited partner of Acumen capital markets. 4 / in 2009 Acumen Fund launched Acumen capital markets through which it issued promissory notes to raise additional capital. 5 / in 2009, in addition to interest income on loans, Acumen Fund received $948,755 in loan principal payments and $10,678 in return on equity.

38% program portfolio disbursements 24% portfolio management expenses 22% outreach, Knowledge & communications 4% Fellows 6% management and general Administration 6% Fundraising

2009 cAsH OUTflOws

2007 2008 2009 $ 26,753,543 $ 38,415,447 $ 43,100,299

32,467,711 28,165,035 21,632,046

1,104,121 880,157 991,543

4,148,303 6,769,221 6,506,372

7,284,655 13,092,237 16,743,854

294,000 1,663,000 1,663,000

$ 72,052,333 $ 88,985,097 $ 90,637,114

3,312,361

2,585,125

628,601 592,037 779,582

71,423,732 88,393,060 83,960,046

$ 72,052,333 $ 88,985,097 $ 90,637,114

$ 45,520,394 $ 33,971,301 $ 8,452,569

$ (8,412,965 ) $ (2,100,000 )

861,295 638,753 222,096

156,707 435,988 533,114

25,098 (92,948 ) 45,612

22,063 35,123 94,505

$ 46,585,557 $ 26,575,252 $ 7,247,896

1,264,730 2,714,314 2,208,000

(40,060 ) (2,221,970 ) (1,994,688 )

$ 47,810,227 $ 27,067,596 $ 7,461,208

3,044,295 2,939,637 3,914,471

679,203 1,431,087 3,542,448

667,881 721,345 684,231

836,508 1,227,484 964,830

593,192 749,505 1,002,547

$ 5,821,079 $ 7,069,058 $ 10,108,527

1,264,730 2,714,314 2,208,000

$ 7,085,809 $ 9,783,372 $ 12,316,527

$ 7,123 $ (698,544 ) $ (151,910 )

$ 40,731,541 $ 16,585,680 $ (5,007,229 )

$ 5,359,665 $ 13,031,020 $ 6,164,681


partNers

acUmeN FUNd stewards ($5,000,000+)Aman Foundation Amy Robbins Andrea Soros colombel & eric colombel Bill & melinda gates Foundation Raj & Asha Rajaratnamthe Robert and Kate niehaus Foundationthe Sapling Foundation* the three dogs Foundation*

leadership partNers ($1,000,000+)Anonymous (2)Abraaj capital employeesthe Alexander Family Foundation*Blood Family Foundation c. Hunter & pamela t. Boll* david & Susan lyons d.o.b. Foundationglobal Alliance for improved nutrition (gAin)google.orgJulius gaudio & chandra JesseelF Foundationlundin for Africa Societymahvash & Jahangir Siddiqui Foundationpartridge Foundationpeter & devon Briger FoundationSkoll Foundationzennström philanthropies

KeYstoNe partNers ($500,000+)Anonymous (1)catherine S. muther*edmond & Benjamin de Rothschild Foundationslehman Brothersphalarope Foundation*Sidney e. Frank FoundationWoodcock Foundation

sUstaiNiNg partNers ($250,000+)Anonymous (2)dcd America, inc. george W. & patricia A. Wellde* goldman SachsJohn l. thorntonliquidnet Holdings, inc.nandan nilekaninathan laurellnike FoundationSusan & gib myersthe Shelley & donald Rubin Foundation, inc.

seNior partNers ($100,000+)AnonymousAlwaleed bin talal Foundation Brinson FoundationBruce campbellcharles & Roberta Katz Family Foundation*david & Anita Keller Foundation diana Barrettthe dow chemical companyFadi ghandourFiona & Stanley druckenmiller Francisco garcia paramesgeraldine laybournegv prasadthe Harnisch FoundationHerb Allen iiimr. & mrs. Hisham el-Khazindarideoirving FoundationJay & eileen WalkerJill & Ken iscolJoe & Amy novogratz

Jonathan & Jennifer SorosJose & trish SuarezKing Khalid FoundationKl Felicitas Foundationlodestar Foundationmr. mark lampert & ms. Susan Byrdthe mcJ Foundationmediabrandsmichael & Sarah petersonmiles morlandthe one Foundationplanet Wheeler FoundationResnick Family Foundation, inc. Rod & liz BerensRural india Support trustSalesforce.com FoundationSalvatore FerragamoSelect equity group Foundation Shaukat tarinthe Rockefeller Foundation*the tokyo Foundationtudor investment corporation William e. mayerW.K. Kellogg Foundation*Work-in-progress Fund of tides Foundation

associate partNers ($50,000+)Anonymous (3) Adnan Asdar Ali Jameel Amjad Ali KhanAnn & thomas l. FriedmanApeX Foundation* the Bernard and Anne Spitzer charitable trustcarol Baker & mark Steincharles & Susan Harrisciti Foundationthe cohn Family Foundationelenor and Howard morgan Family FoundationFarrokh captainthe globalislocal FundHarriet mouchly-WeissHasan & Shameela RizviHussain dawoodJay & Randi coen gilbertJeffrey c. & Suzanne c. Walker Karin Helene BauerKashif zafarleslie gimbelliebe & Bill pattersonmaggie Kaplanmargot pritzkermary lyndon Havilandmike velingsniko cannerorient links co. llcpeter cainpeter Kellnerpetersmeyer Family FoundationRalph & dorothy BahnaRory RiggsSadeesh RaghavanSamir Rath Syed Babar Alitahir WahidWhite & case, llpW.l. lyons Brown FoundationYaser gamalizafer Achi

developmeNt partNers ($10,000)Anonymous (9)Ajay parekhAlec HansonAllegro FoundationAsif KhajaBalamurali AmbatiBarry mcHughBetter World FundBill & Betsy meehanBloomberg lp

Bobby & madhavi Raocarolyn Brodycathrine S. Steck Foundation christine A. Jacobs Family Foundationcoburn venturesconnie Steensmacrabby Beach Foundationcraig & Jennifer Staubcredit Suissecrown Family philanthropies dan toole & Beth verheydavid & Keira Barrydavid & peggy tanner philanthropic Funddavid Rosedenise & ira Wagnerdennis millerdhiren & Katie Shahdoug & christine Rohdedubai for Acumendwight Andersonefroymson Family Fund, a cicF FundFaisal & tanya mianFareed & paula zakariaFawad AnwarFrances K. dibner Fundgary Rindnergeeta & Krishen mehtagerry ohrstromglenn & eva dubingood magazinegSRdgvc FundHilton pharma ltdHong leong Holdings ltdHunter douglasimago dei fundimc2

ingrid Stangethe Jacquelyn and gregory zehner FoundationJames o’Shaughnessymr. & mrs. James R. treptowJames WongJason & Jenny KnightJennifer R. mccann*Joan & george HornigJohn HughesJohn & tina novogratzJohn SchaetzlJonathan carpK. Richard & elizabeth Flynt FoundationKatherine collinsKatherine Fulton & Katharine Kunstlaird norton Family Foundationlaura & gary lauder*laurent demuynck & maia ming Fongleith greenslade & dominic Wilsonlemelson Foundationlesley goldwasser & Jonathan plutziklindsay & Brian Shea*the louie-marsh Family Fundmalik & najmi Sarwarmanoj varghesethe marjorie merriweather post Foundationmarks Family Foundationmarten Hoekstramartha & toby Brooksmary pat Ryanmasahiko Sumiyamatthew dontzinmatthew & Anupama tatemerrill lynchthe mr. & mrs. michael p. Kirby charitable gift Fundmikael Ahlstrommike Jacobellisml Resources Social visionmohsin nathani

monis Rahmanmontag Family Foundationmorgan Stanleymunib & Kamila islammurray metcalfe & nancy lukitshnathan cummings Foundationneeraj mehta & Jennifer l. mehtanew York for Acumennew York lifenuru projectpaul Hastings, llcpaul petruccellipedro Hapeter F. moorepricewaterhousecooperspuricom Water industrial corp.Rachel mcAdamsRam SundaramRamesh & neeraja murthyRavi & ginny AkhouryRaymond everett & lucy chowRoger d. BayatRomita Shetty & nasser AhmadRon & Beth dozoretzRonald g. & patricia J. AndersonRuss dirgantoroRussell FaucettS and p goodwill FundSamuel m. victorSanne charitable trustSasha Rabsey & Fred BerkowitzSchering ploughScott turnerSean phelan & Audrey mandelaShamaya giloSharique SiddiquiShehnaz & Shakil tapalStephanie gainesSusquehanna FoundationSimon clarkSyed Ali zaidithomas cooperWahid maskatiyaWalid muslihWes FullerWilliam Rosenzweig & carla Fraccia zeelaf & munir mashooqullah

FoUNdiNg partNersthe Alexander Family FoundationAndrea Soros colombel & eric colombelApex Foundationcatherine S. mutherc. Hunter & pamela t. Bollcharles and Roberta Katz Family Foundationcisco Systems Foundationgeorge W. & patricia A. Welldei. Jerome HirschJennifer R. mccannlaura & gary lauderlindsay & Brian Sheathe novogratz-caceres Family Foundationphalarope Foundationthe Rockefeller Foundationthe Sapling Foundationthe Sigrid Rausing trusttoSAWilliam H.A. Wright iiW.K. Kellogg Foundation

pro boNo partNersgibson, dunn & crutcher llppaul, Hastings, Janofsky & Walker llpWhite & case llpRaee public Relations & the partnership Advertising

* Founding partner (As of September 30, 2010)

a global community sustaining change

board oF directorsmargo Alexander (chair)c. Hunter BollAndrea Soros colombelStuart davidsondavid HellerWilliam e. mayerRobert H. niehausJacqueline novogratzmichael e. novogratzgv prasadAli J. SiddiquiJoseph e. Stiglitz

the work of Acumen Fund would be impossible without the generosity and commitment of our community around the world. We’re excited to see increased global diversity and a hunger to be more engaged in this work.

advisorY coUNcilthe Honorable Bill Bradley, chair, Acumen Fund Advisory councilFazle Hasan Abed, BRAcSyed Babar Ali, lahore university of management Sciences, pakistanchris Anderson, the Sapling Foundationdiana Barrett, the Fledgling Fundcarol Bellamy, World learningSeth Berkley, international AidS vaccine initiativeAngela glover Blackwell, policylinkdavid Blood, generation investment managementlouis Boorstin, Bill & melinda gates Foundationpeter l. Briger, Fortress investment grouptim Brown, ideopeter cain, Ambac Assurance corp.niko canner, Booz & companymaria eitel, nike FoundationJed emerson, generation Foundation, generation investment managementKatherine Fulton, the monitor instituteAshraf ghani, institute of State effectivenessSeth godin, Authorpeter goldmark, environmental defense FundAllen grossman, Harvard Business SchoolAllen Hammond, AshokaJill iscol, iF Hummingbird FoundationAhsan Jamil, Aman FoundationSaj-nicole Joni, cambridge international group ltd.david Keller, david & Anita Keller Foundationcharly Kleissner, Kl Felicitas Foundationnathan laurell, infinium capital managementgeraldine laybourne, oxygen media llcSusan meiselas, magnum photographerHarriet mouchly-Weiss, Kreab gavin Andersoncatherine S. muther, three guineas FundArif naqvi, Abraaj capitalSally osberg, Skoll FoundationJan piercy, ShoreBank corporationRaj Rajaratnam, galleon groupAmy Robbins, the nduna FoundationRam Shriram, Sherpalo ventureszubyr Soomro, citigroup, Karachi Stock exchange Kerry Sulkowicz, Boswell groupR.d. thulasiraj, Aravind eye care Systemcommander colonel patrick e. tierney, u.S. Armydaniel R. toole, uniceFFareed zakaria, timeniklas zennström, Joost, Atomico

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