Introduction to Unitus Capital - · PDF file · 2012-11-07management • Agriculture Social Businesses ... Unitus Capital is the leading investment bank for social enterprises in

Introduction to Unitus CapitalSeptember 2012

1

• Institutional Investors• Impact Funds• Family Offices /

Foundations• High Net Worth

Individuals• Government

Institutions

Global Investors

• Debt & Equity Capital Markets

• Structured Products• Private Placements• Mergers & Acquisitions• Buy-side Advisory

Work

• Microfinance• Microinsurance• Technology• Renewable Energy• Healthcare• Education• Water & waste

management• Agriculture

Social Businesses

Unitus Capital

2

Unitus Capital connects social businesses with the global capital markets

Achievements

3

Unitus Capital has established itself as the leading financial advisor to social businesses in Asia

Demonstrated ability to deliver innovative transaction structures and increase our clients’ access to capital

and attractive investment opportunities

Expansive geographic presence focused on growing developing

economies with potential for high impact

Broad BOP sector focus to maximize impact across industries

Mandates in India, the Philippines, Pakistan, Singapore and China

Strong pipeline of significant transactions in impact investing

Mandates in India, China, Philippines and Australia

Raised over $720 mm for 32 clients, indirectly benefiting >30 mm people at the bottom of the

pyramid

Clients in microfinance, healthcare, renewable energy, agriculture, affordable housing, education, technology

and water & sanitation

Current pipeline of signed mandates totals over US$260 million for 33 clients

US $1 = 45 INR

Unique Record in Innovative, First Time Transactions

4

Unitus Capital has successfully executed pioneering financial transactions and structures

First Time Transactions

ASOMIFirst equity

investment in a

north-east MFI

FirstRand

BankFirst loan to an

Indian MFISKS

MicrofinanceFirst Rated Pool

Sale to a Bank

Grameen

KootaFirst investment

by FII in NCDs

of a Tier II MFI

BandhanSIDBI’s first big

equity investment

in a MFI

SKS

MicrofinanceFirst Indian

Microfinance IPO

JagaranFirst Rated Pool

transaction for a

startup MFI

Saija &

SwadhaarEquity funding in

two start up MFIs

FFSLFirst control

transaction in an

Indian MFI

Credit

AgricoleFirst loans to

MFIs in India

Network Across Impact Investing Space

5

Unitus Capital has a deep and diverse client and investor network in impact investing

World Class Practice• Attracted the highest quality international talent to the Board, management and financial advisory team

• Professional staff has increased from 7 employees in January 2009 to 18 employees currently

• Presence in Bangalore, New York and Sydney

Clients• Asian social businesses

across the financial services, affordable housing, agriculture, education, health, renewable energy, technology and water & sanitation

Leading Investors• Social Investment Funds

• Mainstream Venture Capital / Private Equity Funds

• Commercial and Development Banks

• High Net Worth Individuals

NGOs and Government Organizations• Philanthropic Institutions

• Regulatory Agencies

Talented Team with Extensive Connections in Impact Investing

Demonstrated Track Record in EquityMicrofinance Institutions

6

Unitus Capital has successfully raised ~ $440 mm of equity for leading MFIs in Asia

Equity

US$ 11.1 million

Dec 2009

Equity

US$ 4.8 million

Mar 2009

Equity + CCPS

US$ 2.1 million

Dec 2008

IPO

US$ 360 million

August 2010

Equity

US$ 2.7 million

Dec 2008

Equity

US$ 13.7 million

August 2010

Equity

US$ 9.0 million

Jan 2011

Equity

US$ 32.2 million

July 2012

Arman

Equity

US$ 3.3 million

Dec 2011

Equity

US$ 0.6 million

Oct 2009

US $1 = 45 INR

Demonstrated Track Record in EquitySocial Enterprises across various sectors

7

Unitus Capital is the leading investment bank for social enterprises in Asia

Equity

US$ 1.0 million

Feb 2011

Convertible Debt

US$ 1.39 million

Oct 2011

Equity

US$ 0.75 million

Dec 2011

Buy side Equity

Jan 2012

BODHICREW

Buy side Equity

Jan 2012

Buy side Equity

Jan 2012

Equity

US$ 2.6 million

Feb 2012

Buy side Equity

Mar 2012

Equity

US$ 5.0 million

April 2012

Equity

US$ 2.2 million

Jul 2010

US $1 = 45 INR

Equity

US$ 2.71 million

June 2012

Buy side Equity

US$ 14.8 million

August 2011

Unique Track Record in Structured transactions

8

Unitus Capital is the only social advisory firm which has successfully closed multiple NCD transactions, in addition to portfolio sales for leading MFIs in India

Non Convertible

Debentures

US$ 2 million

Mar 2012

Non Convertible

Debentures

US$ 2.8 million

Mar 2011

Non Convertible

Debentures

US$ 9 million

Dec 2010

Portfolio Sale

US$ 0.5 million

Mar 2011

Non Convertible

Debentures

US$ 4.3 million

Dec 2009

Non Convertible

Debentures

US$ 8.0 million

Feb 2011

Portfolio Sale

US$ 1.1 million

Mar 2011

Non Convertible

Debentures

US$ 2.8 million

Mar 2011

Securitized Loan

Pool Sale

US$ 17.8 million

Mar 2009

Rated Pool Sale

US$ 3.8 million

Mar 2012

UC has successfully raised $65 mm for Indian MFIsthrough Structured Transactions

US $1 = 45 INR

Non Convertible

Debentures

US$ 4.5 million

May 2012

Non Convertible

Debentures

US$ 8.2 million

May 2012

Demonstrated Track Record in Debt

9

Unitus Capital is a leader in arranging debt, totaling $200 mm to date, through term loans and cash credit for leading MFIs in India

Debt

US$ 11.2 million

Aug 2008

Debt

US$ 32.3 million

Mar 2010

Debt

US$ 1.4 million

Mar 2010

Debt

US$ 22.4 million

Dec 2010

Debt

US$ 3.3 million

Mar 2010

Debt

US$ 10.3 million

Mar 2010

VFS

Debt

US$ 6.5 million

Mar 2010

Debt

US$ 2.0 million

Mar 2010

Debt

US$ 2.2 million

Nov 2009

Debt

US$ 2.2 million

Feb 2011

Debt

US$ 4.3 million

Dec 2010

Debt

US$ 0.4 million

Dec 2010

Debt

US$ 2.32million

Sept 2010

Debt

US$ 10 million

Dec 2010

Debt

US$ 26.7 million

Mar 2012

US$ 17.8 million

Mar 2012

DebtDebt

US$ 26.7 million

Mar & Jun 2012

Debt

US$ 1.6 million

Mar 2012

US $1 = 45 INR

Demonstrated Track Record in Financial Advisory

10

• Buy-side advisor to LeapFrog, the world’s first microinsurance equity fund: Engaged with LeapFrogto scan, select, and evaluate investment opportunities in the Indian microinsurance sector

• Buy-side advisor to Morgan Stanley: Sourced investment opportunities for Morgan Stanley in the Indian microfinance sector

• Buy-side advisor to Microventures, a global microfinance lender: Advised Microventures on a proposed investment in a leading MFI in Karnataka, India

• M&A advisor to a global microfinance investment vehicle: Advised a global microfinance investment vehicle on M&A options for its investee company

• Consultants to IFC: Conducted workshop for winners of India Development Marketplace on how to approach Impact Investors effectively; promised to advice them for the next one year

• Most preferred advisor to CIIE- IIMA: Partnered with CIIE-IIMA/INFUSE in supporting and promoting fledgling energy entrepreneurs

• Financial advisor to Simpa Networks: Developed a long-term funding strategy for Simpa Networks

• Exclusive sub-advisor to Calvert Social Investment Foundation: Engaged with Calvert to identify, asses and recommend MFIs for funding under Microplace, its microfinance lending program

• Market opportunity and risk consultant to Gaja Capital, an India-focused PE firm: Completed a risk and financial assessment of a leading Indian MFI

• Financial advisor to Belstar, a leading south-Indian MFI: Advised Belstar on business planning and capital raising

Buy-side advisory

Other financial advisory

Unitus Capital has established a strong track record in financial advisory to institutional investors and social enterprises

Social Enterprise Pipeline

11

In addition to a strong MFI pipeline, UC is working with social entrepreneurs in other industry sectors to raise equity

Client NameTransaction

Amount (US$ mm)

Sector Country Transaction / Client Description

VSoft $50.0 Technology India Community Cloud services for financial inclusion

Deeya $20.0Renewable Energy

IndiaSilicon Valley / India start-up striving to be a leader in the $500bn stationary electricity storage market

HCG $15.6 Healthcare IndiaHCG is a Bangalore-headquartered cancer care network; the largest in South Asia, treating over 30,000 new patients every year and is a recognized leader over 20 years

Telesolar $16.7 Telecom IndiaSolar energy sector start-up providing complete energy solution for telecom towers on a fixed monthly tariff

KisanKraft $13.3 Agriculture IndiaKisanKraft is a wholesale importer & distributor of small farm machinery for farmers, plantation of tea, coffee and horticulture crops with a pan India distribution network

EyeQ $8.9 Healthcare IndiaEyeQ is a chain of super-speciality eye clinics offering a comprehensive bouquet of eye-care services ranging from routine eye-check up to eye surgery

Gradatim $8.0 Technology India

Gradatim, a pioneer in the Business Process Utility (BPU) space, delivers evolutionary, on demand business process utilities to customers across Microinsurance, Micropayments,Micropensions and Litigation

US $1 = 45 INR

Social Enterprise Pipeline (contd.)

12

UC continues to prioritize sector expansion


Amount (US$ mm)


Foliage Real Estate

$6.6AffordableHousing

IndiaFoliage Real Estate Developers develops and markets affordable housing projects

SBF Healthcare

$5.6 Healthcare IndiaSBF Healthcare runs healthcare centres that specialize in osteoarthritis treatment and cancer treatment.

Maybridge $5Financial Services

Philippines

The Maybridge Financial Group is a multinational financial services organization providing financial advisory services and finance to small enterprises,migrant workers sector and micro-enterprises

SEED $5.0 Banking IndiaSEED is the largest Banking Correspondent and partner for both public & private sector banks in India for Financial Inclusion

IIMPS $5.0 Micropensions IndiaIIMPS provides the low income segment in India access to pension, savings and insurance products through a streamlined and standardized technology-enabled delivery platform

Reuters Market Light

$5.0 Technology IndiaRML provides customized information regarding weather forecasts, local crop prices to farmers through SMS

Speakwell $5.0 Education IndiaSpeakwell is the leader in western Indian in the Spoken English training market, planning to expand pan-India

US $1 = 45 INR

Social Enterprise Pipeline (contd.)

13

UC continues to prioritize sector expansion


Amount (US$ mm)


MediAngels $4.4 Healthcare IndiaA first of its kind “Global online Hospital” offering comprehensive set of services rendered by 350 of the world’s top physicians, from over 15 countries

InOpen $4 Education IndiaAn innovative and successful educational content developer incubated by IIT Bombay, primarily providing educational solutions to K-12 schools in computer science

Neurosynaptic $3.5 Healthcare IndiaNeurosynaptic Communications was set up to about Excellence in Remote Health and Healthcare delivery

Pathfinder Health India

$2.5 Healthcare IndiaA nationwide chain of family medicine centers based on a unique hub and spoke model, focusing on affordable and preventive primary healthcare

Autoboxx $2.0 Energy IndiaAutoboxx is a Bangalore based automation and monitoring company focused on affordable, energy efficient utility management systems for 100ft – 9000ft sites.

The LevelfieldSchools

$0.7 Education IndiaThe Levelfield Schools aim to provide affordable, yet high-quality education to the students in non-metro-city areas

US $1 = 45 INR

Unitus Capital Team

14

UC has a diverse and dedicated team with more than 100 years of experience across private equity, investment banking, project funding and social entrepreneurship

Eric SavageCo-Founder & President

Former MD, Capital Markets Group at Unitus Inc., Previously with Citigroup/Salmon Brothers

Kylie CharltonCo-Founder & Managing Director

Former MD, Capital Markets Group at Unitus Inc., Previously with Citigroup

Ann ShortChief Operations Officer

Former COO, Global Corporate & Investment Banking, Bank of America Securities

Abhijit RayCo-Founder & Director

Former VP, Capital Markets Group at Unitus Inc., Former AGM, SIDBI and previously with State Bank of India

Vikram RamanVice President

Previously with Acumen Fund and BDO

Unitus Capital Management and Senior Team

A diverse and talented pool of sector-focused Associate VPs, Associates, Analysts, and Consultants

Gauravjeet SinghVice President

Previously with Nomura and SBI Capital Markets

Amit Kumar RathiVice President

Previously with TVS Capital, KPMG , World Bank and Ernst & Young

Profiles of individual team members are available in the appendix

Profiles of individual board members are available at www.unituscapital.com

Unitus Capital Team

15

UC Board of Directors and Investors include global leaders across investment banking, private equity, and social entrepreneurship who have extensive global networks

Board of Directors

Co-Chairmen

Narayan Ramachandran

Former MD and India Country Head, Morgan Stanley

Geoff Woolley Co-Founder, multiple VC funds;Board member MicroBenefits China

Investors

Steven Funk Founder and Chairman of Grand Marais Investments

Geoff Woolley Co-Founder, multiple VC funds, board member, MicroBenefits China

Robert Gay Co-Founder and CEO, Huntsman-Gay Capital Partners; founding Board member, Unitus Inc.

James Lee Sorenson

Chairman, Sorenson Development, Inc.; Co-Founder, Sorenson Capital

William S. Price III Founding Partner, TPG Unitus, Inc. International NGO focused on innovative solutions to global poverty

Narayan Ramachandran

Former MD and India Country Head, Morgan Stanley

WEGA Support GmbH

German-based investment firm

Alex Wendeln

Managing Director, WEGA

DaveRichards

Executive Director, Unitus Inc.

Case Studies of Select Transactions

16

17

Select Equity Transactions

Headquarters: Hyderabad, Andhra Pradesh

Closing date: August 2010

No. of clients: 6,780K

Gross Loan Portfolio: Rs. 4,321 crore (US$940mn)

Transaction size: Rs. 1,654 crore (US$360mn) equity

Investors: IPO

Transaction Details Key Highlights

IPO

US$ 360 million

August 2010

• First IPO in the microfinance sector

• IPO was subscribed at 98.5x the initial investment

• UC was involved in providing IPO process knowledge

Headquarters: Mauritius

Closing date: September 2011

Size of fund US$135 mn

Transaction size: Rs. 67 crore (US$ 15 mn) equity

Investment Shriram Credit Company Limited

• Groundbreaking deal that extends insurance, savings and investment products to the those earning less than US$2.50/day in the underserved Indian market

• UC was the sole financial advisor on LeapFrogInvestments’ maiden transaction in India

Buy-side Equity

US$ 14.8 million

August 2011

Equity

US$ 2.6 million

Feb 2012

Headquarters: Manila, Phillppines

Closing date: Feb 2012

No. of clients: 25000K

Transaction size: Rs. 12.5 crore (US$2.6mn) equity

Investors: Incofin Investment Management ,

responsAbility Social Investments AG

• UCs first non-MFI equity deal outside India

• The fund raised will help ENCASH increase their ATM network by approximately 850 ATMs

• UC was involved in the equity raise process for Encash from the two investors

18

Select Equity Transactions (Contd.)

Headquarters: Bangalore, Karnataka

Closing date: June 2011


Gross Loan Portfolio: Rs. 180 crore (US$mn)

Transaction size: Rs. 65 crore (US$mn) equity

Investors: CVCI

• First significant PE deal amidst the AP crisis

• Valuation was reasonably higher than the previous round, which is a remarkable achievement given the AP crisis

• UC ran a successful road show triggering the right investor sentiments and helped negotiate key terms and conditions for JFS

Equity

US$ 14.4 million

June 2011

Headquarters: Kolkata, West Bengal

Closing date: December 2009


Gross Loan Portfolio: Rs. 1,080 crore (US$231.8mn)

Transaction size: Rs. 50 crore (US$11.1mn) equity

Investors: SIDBI

Equity

US$ 11.1 million

Dec 2009

• Bandhan was then the 3th largest MFI in India and was ranked 2nd best in the world by Forbes in 2007

• First round of large equity raise by Bandhan

• UC involvement resulted in significant negotiation on terms and conditions of investment including valuation

Headquarters: Delhi, India

Closing date: January 2011


Gross Loan Portfolio: Rs. 198.5 crore (US$44mn)

Transaction size: Rs. 39.9 crore (US$8.7mn)

Investors: Shore Cap, IFU

• Despite the crisis, was able to attract multiple bidders creating a competitive process

• Executed the deal within the tight deadline required

• Received a strong valuation for the company, while attracting funding equivalent to almost twice Satin’s initial expectations

Equity

US$ 8.7 million

Jan 2011



19


Headquarters: Trichy, Tamil Nadu

Closing date: March 2009


Gross Loan Portfolio: Rs. 150 crore (US$30mn)


Investors: MicroVest, Unitus Equity Fund

Equity

US$ 4.7 million

Mar 2009

• First Indian investment by MicroVest

• Reasonable level of investor interest despite challenging market environment

• Strong focus of CEO & senior management brought process to rapid conclusion (< 3 weeks)

Headquarters: Mumbai, India

Closing date: September 2008

No. of clients: 3K

Gross Loan Portfolio: Rs. 2.5 crore (US$0.5mn)


Investors: Accion Gateway Fund, Michael & Susan Dell Foundation, UEF, Confidential Private Trust

• Able to attract investors that were supportive of the company and understood its challenges

• First equity raising for a Mumbai-based MFI

• Able to market Veena Mankar as a visionary leader

• First Indian equity investment for AccionGateway Fund

Equity

US$ 2.4 million

Sep 2008

Arman

Equity

US$ 3.3 million

Dec 2011

Headquarters: Ahmedabad, Gujarat


No. of clients: 47K

Gross Loan Portfolio: Rs. 46 crore (US$10.4mn)


Investors: Incofin

• First PE transaction into a listed MFI

• The share purchase price was more than double market price.

• The entire transaction was completed in four months


Headquarters: Guwahati, Assam, NE India


No. of clients: 21K



Rs. 5.33 crore (US$1.33mn) CCPS

Investor: Incofin (Belgium)

• First equity raise by an MFI in NE India

• First equity investment in India by Incofin

• UC involvement resulted in significant valuation premium

• First successful equity raise by a Tier 2 or Tier 3 MFI since beginning of financial crisis

Equity + CCPS

US$ 2.1 million

Dec 2008


20

Equity

US$ 1.1 million

Feb 2011

Headquarters: Bangalore, India

Closing date: February 2011

Transaction size: Rs. 5 crore (US$1.1mn)

Investors: Michael and Susan Dell Foundation, Accion International

• Vindhya is a BPO company that hires the differently-abled people

• Able to attract long term partners with global business linkages as investors in the Company

• Generated substantial interest from both social and early-stage technology focused funds

Headquarters: Patna, Bihar, India

Closing date: October 2009

No. of clients: 3K



Investors: Accion Gateway Fund

• First equity raising for a Bihar-based MFI

• Able to attract significant investor interest despite relatively small size of MFI

• UC involvement resulted in significant valuation premium

Equity

US$ 0.5 million

Oct 2009

Headquarters: Chennai, Tamil Nadu

Closing date: August 2008



Transaction size: Rs. 51.6 crore (US$11.2mn)

Investor: HDFC Bank, YES BANK, SIDBI, DCB, ABN-AMRO Bank, AXIS Bank and HSBC

• First comprehensive debt raising by a financial advisor for a startup MFI

• Largest debt raised by a financial advisor for a startup in the first 8 months of operations

• Developed relationship with Micro Ventures, which ultimately became an equity investor in Equitas

Headquarters: Secunderabad, Andhra Pradesh



Gross Loan Portfolio: Rs. 2,240 crore (US$448mn) at 12/08

Transaction size: Rs. 80 crore (US$16mn)

Investor: YES Bank

• Securitized rated loan pool sold to YES Bank, demonstrating market appetite for rated paper

• Only second rated microfinance transaction in India

• First securitized non-agricultural pool sale in India

• Highest possible short term rating attained (P1+)





Transaction size: Rs. 20 crore (US$4.3mn)

Investor: MicroVest I, LP (USA)

• Ground breaking transaction facilitated by UC

• First direct investment by a Foreign Institutional Investor in an MFI in India

• First NCD issued by a Tier – II MFI in India

• First listed Transaction by a Tier – II MFI in India

• Rated by CRISIL (P4+) on a short term scale

21

Select Debt Transactions

Key HighlightsTransaction Details

Debt

US$ 11.2 million

Aug 2008

Securitized Loan

Pool Sale

US$ 16.0 million

Mar 2009

Non Convertible

Debenture

US$ 4.3 million

Dec 2009

22

Select Debt Transactions (Contd.)

Key HighlightsTransaction Details

Debt

US$ 26.7 million

Mar 2012

Debt

US$ 35.6 million

Mar 2012

Rated Pool Sale

US$ 3.8 million

Mar 2012

Headquarters: Kolkata, West Bengal


No. of clients: 50K

Gross Loan Portfolio: Rs. 35 crore (US$ 7.8mn)

Transaction size: Rs. 16.91 crore (US$ 3.4mn)

Investor: Ratnakar Bank

• First rated pool sale transaction for a startup MFI

• Transaction will boost the confidence of lenders (Jagaran doesn’t carry any loans on its books)

• Pool of loans rated by CRISIL as "A3(SO)“, reflecting moderate degree of safety in regard to timely payment




Gross Loan Portfolio: Rs. 288 crore (US$ 64mn)

Transaction size: Rs. 160 crore (US$ 35.6mn)

Investors: SBI , Yes Bank, IDBI Bank, SIDBI, Dena Bank, Credit Agricole

• Unique transaction with five different banks lending to the company at the same time

• Big boost in confidence of the MFI sector for receiving funding from multiple banks

• Among the first exposures to Indian MFI sector for the foreign lender



No. of clients: >3500K

Gross Loan Portfolio: Rs. 3553 crore (US$ 789.5mn)

Transaction size: Rs. 120 crore (US$ 26.7mn)

Investors: Credit Agricole

• First large exposure to Indian MFI sector for the foreign lender

• Excellent example of increasing confidence of foreign banks in Indian MFI sector

Documents

Introduction to Unitus Capital - · PDF file · 2012-11-07management • Agriculture Social Businesses ... Unitus Capital is the leading investment bank for social enterprises in