Principal, New Summit Investments Managing Partner, Arjuna ......USD Corporate green bond issuance...

11

Adam Seitchik, Ph.D., CFAPrincipal, New Summit InvestmentsManaging Partner, Arjuna Capital

4.5 Billion Years of Life on Earth

New Summit Investments, LLC. 2

Life in Europe prior to the industrial revolution

New Summit Investments, LLC.

www.connect.bcp.org

3

Capitalism 1.0


Wikipedia, Gross World Product

World Population, in Billions


pexels.com

5

“Why 2017 Was the Best Year in Human History”


- Nicholas Kristof, Jan 6, 2018, New York Times

Humans rule! The Anthopocene Era


250 Years of Extractive Growth


Oxford Tire Pile #1Westley, California, USA, 1999, www.edwardburtynsky.com

http://www.edwardburtynsky.com/

Our future is urban

New Summit Investments, LLC. 9Chris Kennedy

Ecological Footprints and the Human Development Index


Source: Ecological Footprint values are 2013 values from the 2017 National Footprint Accounts, Global Footprint NetworkHDI 2013 values are from the 2016 Human Development Report, UNDP H/T Energies United

Environmental protection vs. Economic Growth


Seriousness of Global Warming


American CapitalismThe Concept of Countervailing Power


Capitalism 2.0: Change the Goal


www.kateraworth.com

Maybe green investing is profitable…


“The Eco-Efficiency Premium Puzzle”

Jeroen Derwall, Nadja Guenster, Rob

Bauer, and Kees Koedijk

FAJ, Volume 61, #2, March/April 2005

How has our industry responded?


CFA Institute – huge progress


American Impact Investing


“For us, impact investing means deploying capital in free markets to seek attractive risk-adjusted returns, creating true prosperity within the opportunities and limits created by sustainability.”

Overcoming pockets of resistance!

Men Resist Green Behavior as Unmanly

Research article in Scientific American

26 December 2017


ECONOMICEMPOWERMENT

Gender Equity

ITC

Responsible Finance

GREENINNOVATION

Energy Efficiency

Green Building

Renewable Energy

Stewardship of Natural Capital

Sustainable Mobility

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CONSCIOUS COMMERCE

Food & Human Health

Sharing Economy


New Summit Impact ThemesIntelligent Growth Through Impact Investing:

Drivers Opportunity Themes

Exxon Mobil Corp XOM

has agreed to disclose how

the regulation of carbon

emissions could affect the

value of its oil and gas

holdings, as sign that

America’s biggest energy

company is stepping up

efforts to address

shareholders’ concerns.

CARBON asset risk

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Rolling Stone Magazine, June 30th, 2016 22

23Arjuna Capital

Targeted Government Credit Allocation

40%

30%

30%

Corporates

Local Governments

Treasuries, Agencies, Supranationals

USD Green Bond Issuance1 & Breckinridge

Corporates:

▪ USD Corporate green bond issuance has totaled $17.6 billion (or approximately 50 issues)

▪ Breckinridge has purchased three: Apple, Bank of America and Morgan Stanley 2

▪ Others do not fit for credit and structure reasons

Local Governments (Taxable Municipals):

▪ US Municipal green bond issuance has totaled $21.8 billion (130 issues)

▪ 12 have been taxable and we did not purchase due to structure.

Treasuries, Agencies, Supranationals:

▪ Development banks represent the large majority of issuance in this category with $44.6 billion

▪ Breckinridge has invested in green bonds from the following: IFC, World Bank, & African Development Bank

Breckinridge Capital Advisors: Government Credit Asset Allocation & Green Bonds

1. Since Inception through March 31, 2017. Sources: Breckinridge Capital Advisors, Bloomberg, World Bank and public sources. 24


STRATEGIES Impact Across Quadrants

PU

BLI

CP

RIV

ATE

EQUITY DEBT

EXTERNAL STRATEGIES

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New Resource BankImpact Highlights

Maas Energy Works specializes in turning methane gas generated by cowmanure into electricity in partnership with rural dairy farmers. The biogaspowers engine-driven generators to provide a renewable energy source.New Resource Bank provides a line of credit to Maas Energy to supporttheir growth as they build two new digester projects.

Urban Bloc transforms used shipping containers into green retail, food, oroffice spaces. These containers can be cost-effectively installed on emptylots to create hubs of commercial activity, enable transitional developmentand improve local communities. New Resource provided a loan to financeinventory growth and working capital needs.

Source: NRB Source: NRB

MAAS ENERGY WORKS URBAN BLOC


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SunFunderImpact Highlights

SunFunder provided SolarNow with a $2 million structured asset financeinstrument loan in July 2016. SolarNow offers pay-as-you-go solar homesystems to off-grid homes and businesses in East and West Africa. The pay-as-you-go model of bringing energy access to off-grid communities is aninnovative and affordable system. In 2016, customers leased over 5,000new solar systems from SolarNow as a result of SunFunder’s loan.

Source: SunFunder Source: SunFunder; Photo: SolarNow

GREENLIGHT PLANET, MULTINATIONAL SOLAR NOW, UGANDA

Greenlight Planet provides solar lanterns (as seen in the picture above)and home solar systems to 18 million people worldwide. Greenlight’s solarlanterns provide an affordable, brighter, and safer light source than thetypical kerosene lamps used in off-grid households in India and East Africa.SunFunder has worked closely with Greenlight Planet and provided themwith three loans so far. The most recent loan, a $1 million facility, isexpected to finance 70,000 solar products and directly impact over220,000 people.


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New Energy CapitalImpact Highlights

Cypress Creek had just 46MW of solar deployed in 2015 when New EnergyCapital made its first investment. After a total of four investments andfollow-ons from New Energy Capital, Cypress is now the largest and fastestgrowing provider of local solar farms in the US. With over 1GW of solar inthe ground, Cypress Creek, with the support of New Energy Capital,generated 705K MWh of clean energy in 2016 and realized 472K MT CO2-Eq. of corresponding GHG savings.

Ygrene Energy is an originator of PACE (Property Assessed Clean Energy)improvements and financings for residential, multi-family and commercialreal-estate properties. Ygrene provides immediately accessible financingwith no upfront payments for energy efficiency, renewables, waterconservation, and, in certain areas, hurricane protection, electric vehiclecharging stations and seismic upgrades.

Source: New Energy Capital Source: New Energy Capital

CYPRESS CREEK YGRENE ENERGY FUND


LYME FOREST FUND IV, LPPortfolio Highlights

The Lyme Redwood Forest Company

This investment in partnership with The NatureConservancy is expected to generate $40 to$42.5 million in its first five years fromeasement sales that protect riparian corridorsand permanently conserve 65,000 acres,including vital salmon spawning habitat.

The partnership includes co-investment, supplyagreements, and structured sale arrangementswith affiliate Redwood Empire.

The focus is on sustainable forest management,operational efficiencies, and growing cashflows from timber harvesting

Source: The Lyme Timber Company LP

29New Summit Investments, LLC.

WINDSAIL CAPITALPortfolio Highlights

GrowthPoint Structures is a Los Angeles based manufacturer ofultra-energy efficiency, environmentally sustainable modularbuildings. Founded in 2009, they reconstruct shippingcontainers into modular classrooms, multi-family housing andworkforce housing. GrowthPoint’s products are aestheticallypleasing, affordable, and LEED Platinum certified. WindSailCapital provided GrowthPoint with a $6 million credit facility in2015 to fund working capital.

Cambrian Innovation is a Boston-based wastewater treatmenttechnology developer focused on the food and beverageindustry (craft breweries, wineries and dairy farms).Cambrian’s main product, the EcoVolt Reactor, efficientlytreats wastewater while extracting clean energy and cleanwater that helps companies both cut costs and improvesustainability. WindSail closed on a $5 million credit facility forgrowth capital in 2016.

Source: WindSail Capital / GrowthPoint Structures Source: WindSail Capital / Cambrian Innovation

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GROWTH POINT STRUCTURES CAMBRIAN INNOVATION


ROSE AFFORDABLE HOUSING PRESERVATION FUND IV, LPPortfolio Highlights

CHANNEL SQUARE, WASHINGTON, DC

PROPERTY OVERVIEW

Channel Square was acquired

by the Firm’s Rose Green Cities

Fund. This mixed-income

community is located in a

rapidly gentrifying location

and was at-risk for conversion

to market-rate housing.

STATUS

Two-thirds of the building has been maintained at or below80% of AMI, and the remainder at market-rate. An increase inarea rental prices has created value through the market-rateportion of the property.

An initial green retrofit was completed to achieve immediateoperating cost savings. Phase II will encompass $11M ofrenovations and includes a new roof coating, solar P.V. systemat the tower, roof replacement at the townhomes, upgrades tothe common area and units and conversion of the commercialspace to nine residential units. As a result of initial energyretrofit work, the property’s energy consumption has beenreduced by 12%.

COURT TOWER, NEWARK, NJ

PROPERTY OVERVIEW

Court Tower Apartments

was acquired by Rose’s

New Jersey Green Affordable

Housing Preservation Fund.

At the time of acquisition,

134 of the 221 units were

subsidized and the building

was only 72% occupied.

STATUS

Rose converted the existing, expired rental assistancepayments for 134 units to a 20-year Section 8 Project-BasedRental Assistance contract for 206 units.

Through this conversion, the building’s rental subsidy contractrates increased by 46%, or $1M. This rent increase allowed forthe Fund to refinance the property and generate proceeds for$8M of renovations.

Rose completed the first of two renovation phases, whichincluded uninhabitable unit renovations and greenimprovements. Rose has reduced the property’s energy use by22% since acquisition.

Source: www.rosecompanies.com Source: www.rosecompanies.com

31New Summit Investments, LLC.

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Adam Seitchik Principal New Summit Investments, LLCPhone: (575) 751-7008Email: [email protected]

CONTACT

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New Summit Investments, LLC (New Summit) approves the use of this presentation only in connection with one-on-one presentations with investment professionals and high net worth individuals. This communication is sent on a confidential basis, and you are welcome to discuss the materials with our staff. This information may not be circulated to others without our permission.

Before making an investment decision with respect to the Income & Impact Fund, LLC, the Private Market Impact Fund I, L.P. or the Highwater Global Fund (the “Funds”) managed by New Summit, potential investors are advised to read carefully the respective offering documents (including any relevant underlying agreements) and the related subscription documents regarding each Fund, and to consult with their tax, legal, ERISA and financial advisors.

This document contains a preliminary summary of the purpose and principal business terms of each Fund; this summary does not purport to be complete and is qualified in its entirety by reference to the more detailed discussions to be contained in each Fund’s offering documentation. New Summit has the ability in its sole discretion to change the strategies described herein. This document is being provided to you on a confidential basis solely to assist you in deciding whether or not to proceed with a further investigation of each Fund. Accordingly, this document may not be reproduced in whole or part, and may not be delivered to any person without the consent of New Summit.

Nothing set forth herein shall constitute an offer to sell any securities or constitute a solicitation of an offer to purchase any securities. Any such offer to sell or solicitation of an offer to purchase shall be made only by formal offering documents, which include, among others, a confidential offering memorandum, operating agreement, subscription agreement and related subscription documents. Such formal offering documents contain additional information not set forth herein, which such additional information is material to any decision to invest in each Fund. The confidential offering memorandum contains additional information, including information regarding certain risks of investing which are material to any decision to invest in each Fund.

No information is warranted by New Summit or its affiliates or subsidiaries as to completeness or accuracy, express or implied, and are subject to change without notice. This document contains forward-looking statements, including observations about markets and industry and regulatory trends as of the original date of this document. Forward-looking statements may be identified by, among other things, the use of words such as “expects,” “anticipates,” “believes,” or “estimates,” or the negatives of these terms, and similar expressions. Forward-looking statements reflect New Summit’s views as of such date with respect to possible future events. Actual results could differ materially from those in the forward-looking statements as a result of factors beyond each Fund’s control. Investors are cautioned not to place undue reliance on such statements. No party has an obligation to update any of the forward-looking statements in this document.

The figures provided above reflect past performance and do not guarantee future results. Actual future results may vary substantially from those of past performance. Investment in each Fund involves a high degree of risk. These results reflect the deduction of all fees paid by each Fund. Figures include reinvested dividends, capital gains and interest.

Investment return and principal value will vary. These results do not reflect the impact of inflation or taxes upon the investment return. While the results do represent actual trading, they do not reflect the impact that future material economic and market factors might have on each Fund.

These materials should only be considered current as of the date of publication without regard to the date on which you may receive or access the information. New Summit maintains the right to delete or modify information without prior notice. Charts, tables and graphs contained in this document are not intended to be used to assist the reader in determining which securities to buy or sell or when to buy or sell securities. The past performance of New Summit, their principals, members, or employees is not indicative of future returns. There is no guarantee that the Investment Manager will be successful in achieving each Fund’s investment objectives. An investment in each Fund contains risks, including the risk of complete loss.All performance results must be presented:

“These results reflect the deduction of management fees paid by each Fund. Figures include reinvested dividends, capital gains and interest.

DISCLAIMER

Principal, New Summit Investments Managing Partner, Arjuna ......USD Corporate green bond issuance...

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