1. Introduction to Caspian Advisors
September 2013
Top 50 Impact Investment Firms
2011 SPM Silver Award
Signatory to the PIIF
Signatory to CPPs
2. This presentation shall not constitute an offer to sell or the solicitation of any offer to buy, which may only
be made at the time a qualified investor receives a confidential private offering memorandum (“CPOM”)
describing the offering and related subscription agreement. In the event of any inconsistency between the
descriptions or terms in this presentation and the CPOM, the CPOM shall prevail. These securities shall not
be offered or sold in any jurisdiction in which such offer, solicitation or sale would be unlawful, until the
requirements of the laws of such jurisdiction have been satisfied. This presentation is not intended for
public use or distribution. Any projections, market outlooks or estimates in this presentation are forward
looking statements and are based upon certain assumptions. Any projections, outlooks or assumptions
should not be construed to be indicative of the actual events which will occur. Any information regarding
portfolio composition or investment restrictions are intended as guidelines, which may be modified or
changed by Caspian Advisors in its discretion and without notice.
4. About the Presenter
Viswanatha Prasad
• Founded the firm in 2004
• 25 years of experience in
Financial services of which 15
years in Financial Inclusion
• Formerly, CEO of BASIX, one of
India’s most reputed social
enterprise Groups
• Serves on the board of some of
India’s largest Microfinance and
Social Enterprises
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5. Background
Who we are:
– Caspian was set up in 2004 as an impact investment manager
investing in socially responsible, multiple bottom line businesses
delivering financial and social value.
What we do:
– We deploy private capital into impact sectors, including microfinance,
affordable housing, last mile banking and small business financing.
Funds Under Management
– Two Equity Funds with ~$100 million invested across 14 Social Impact
Businesses
– One Debt Fund Target $40 million (under Fund Raise), completed First
close of $10mn
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6. Background
What our team offers:
– experience in building organizations, conceiving and launching
socially-focused investment vehicles, and engaging the right teams to
manage these vehicles
– Successful entrepreneurial, fund management and investment
banking track record
– Extensive relationships within the Indian impact investing space,
including international and local equity investors, lenders, promoters,
managers, rating agencies, regulators, industry associations and the
press
– Caspian Funds are GIIRS Pioneer Funds; Four star rating in 2011 , 2013
What we aim to achieve:
– To channel capital effectively into diverse impact businesses through
various financial instruments to enable their growth and viability, and
to manage these investments responsibly to provide a financial and
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social return to investors
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7. Sample Investment
Micro Housing Finance Corporation
• Start-up Investment made in 2009
• Took a significant minority ownership (42%) in a regulated Micro
Mortgage Finance Company by backing a group of experienced Bankers
• Worked closely with the company in all aspects of the business
• As of June 2013 the company has a customer base of over 3000
customers with an asset base of $15 million with an average mortgage
loan size of ~$7,600
• These are self-employed customers engaged in informal businesses or
salaried employees in small businesses, who, despite having the ability to
service a mortgage loan of ~$7000 -$10,000 are excluded by the formal
banking system and mainstream mortgage finance companies since they
lack formal proof of income.
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8. Sample Investment
Micro Housing Finance Corporation
• Caspian helped develop MHFC’s business plan, credit processes, capital
raising and software & systems selection etc.
• This is done by participating on the board and board committees as well
as spending time with the management and customers on site.
• Caspian’s manager for this investment has over 15 years of experience in
mortgage lending, previously managing a portfolio of over $1 billion.
• Worked also with the company to get a social performance rating
through GIIRS.
• MHFC has a 4 star rating.
• This is typical of what Caspian does as Technical Assistance for our
investees- significant investment of time, expertise and networking.
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11. MHFC Customer Profile
Dattatray Bansode is an auto-rickshaw
driver living and working in Yawat, a
suburb of Pune, India. Although he
earns between USD 160 and USD 200
per month, he has no documented
proof of his income, as his daily earnings
are in cash, and he does not keep any
records. Dattatray is one of thousands of
self-employed, informal workers, such
as vegetable vendors, taxi drivers, tailors
and contract labourers with established
livelihoods and regular monthly incomes
that our investees provide with
affordable mortgage loans.
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12. MHFC has about 3000 such clients...
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13. Caspian’s Portfolio
16 companies in the portfolio across Equity and Debt Investments
• 6 Microfinance Institutions
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3 Small Business Finance Intermediaries
3 Mortgage Finance Institutions
2 housing Developers
1 Affordable School Finance company
1 Last Mile Banking provider
Exit Track record
Caspian has so far exited 11 of its Equity Investments
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14. Caspian’s approach to impact investing
Originate
• Identify strong
social companies
serving target
market
• Provide
companies with
flexible
instruments that
meet their needs
& our criteria
Clients are better off
Reach people
responsibly
• Increases # clients
• Opens branches in
underserved areas
• Develops new
products and
services
Access to affordable and
convenient financial products and
services will enable clients to:
• Grow businesses
• Hire more people
• Increase income/ assets
• Afford basic necessities (food,
housing, healthcare, education)
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15. Caspian’s Ambition and Future
• Continue its Leadership role in Impact Investing in the
Financial Inclusion space and its adjacencies
• Currently fund raising for its $40mn Debt Fund – “Caspian
Impact Investments” or “CII”
– $10mn First Close completed in March 2013
– Will invest in Financial Inclusion Intermediaries and in Food
and Agriculture
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