1. Impact Investment
Portfolio Analysis
55% RE and RE Backed (21% impact)
45% Securities (16% impact)
Target = 25% impact by 2012
50%+ impact by 2020
First Impact Investment - 2004

2. International
Microfinance
• Microfinance – Global Diversified Fund
– MicroVest Fund 1, LP - www.microvestfund.com
• Debt/Equity Fund (80/20) – Founding Investor
• 10% annual IRR since 2004 – 10 year closed end fund
• Additional CD investment, pays 3-4%
– MicroVest II LP
• Equity Fund, 2009, target 10+%
– MicroVest Short Duration Fund
• Target 2%
– Investment Committee / Board Seat
• Microfinance – Direct Investment in MFI
– Micredito – Nicaragua – www.meda.org
• Direct Loan to MEDA sponsored MFI
• 6% annual pay since 2005
• Short term bridge loan, 9% (repaid)
• Board Observer
– AMSA – Argentina
• Preferred Stock
• Under/non performing

3. International
Private Equity
• Emerging Market Private Equity Fund of Funds
– Sarona Frontier Market Fund, LP – www.saronafund.com
• Founding Investor
• Target Return 12-15%
• Diversified, Global, Target companies that focus on demand of the rising lower/middle class
• Sector and/or Geographic focus
• Agriculture, Water, Health Care, Renewable Energy, Low Income Housing
• Board Chair – Assist in Due Diligence Process
• Emerging Market Private Equity Fund
– Sarona Risk Capital Fund – www.meda.org
• Global, Opportunistic Fund
• Provides seed capital for start-up of Impact Investment initiatives
• Latin America, Eastern Europe
• 8% return since 2007
• Individual Investments
– Via Mennonite Economic Development Associates, managed by Sarona Asset Management
• Paraguay – Starch Processing Company; loan (6%)
• Paraguay – Sugar Cane Ethanol Plant ; equity

4. Domestic (US)
Community Development
• Community Real Estate Investment Fund
– WCI Partners, LP www.wcipartners.com
– www.olduptownhbg.com
– Total return since 2005 (-5%) – slight underperformance vs similar RE nationally in time period
– Partnerships with PHFA, Commonwealth of PA
– Built 18 new market rate townhomes ($210k) on vacant ‘brownfield like’ land
– Renovated 100+ townhomes ($110-$210k)
– Transformed 4 square block area (320 tax parcels) from known drug area to leading neighborhood
– Added $15M value to city tax rolls
– Established neighborhood association
– Substitute city services in area of strained city budgets (street cleaning, security, sidewalks, street trees, banners, lawn
care)
– Recognized as “best” city neighborhood, Historic Preservation Awards
– Jobs created 3 permanent, 15 ongoing construction since 2005, additional 10+ part time (doesn’t include mine – no
pay)
– Managing partner
• Real Estate Backed Loans
– Loan Portfolio backed by mortgages on homes in “target” area
– Yields: various, blended 5.5%
– Essential support for early stages of project due to lack of appraisal values, first time home buyers, etc
– 0 loss rate since 2005

5. Impact Investment
Principals and Observations
• Match Investment with Values
• Provide/Demand Risk Adjusted Market Rate Returns
• Achieve/Seek Discreet, Measurable Goals
• Impact has met/outperformed traditional since 2004 (for this portfolio)
US Investments
• more difficult due to transaction costs, competition, other market capital
• Risk of free rider problem (reduced return by 10-15% - “cost” over $1M)
International Market – strong opportunities for return and impact
• Seek diversity, strong, local, engaged management
• Consider “Fund of Funds” or Sector Focused Funds
• Individual (one-off) investments very risky – unlikely to scale profitably
• Ensure local interests/managers aligned with global investors
• Consider opportunity for Board involvement, travel
Three Principals of Impact Investing: Success/Vision/Humility
1. Success: come with real investment (not charity) $$
2. Vision: come with the ability to see beyond your traditional financial advisor
3. Humility: perhaps most importantly, unless your name is Gates – don’t expect to do it all yourself
or break new ground, join with others already doing good things and help to make them better –
be like Buffet, for example