1. Security, Stability and Sustainability
Making a Positive Difference in Frontier and Emerging Markets
TBN Annual Conference - London, 25 May 2012
This presentation does not constitute an offer to sell, or a solicitation to buy, any interest. Any such offer or solicitation will be made to qualified investors only by means
of a final offering memorandum and only in those jurisdictions where permitted by law

2. NOTICE TO INVESTORS
The limited partnership interests (the “Interests”) in Sarona Frontier Markets Fund 2 LP (the “Fund”) will be offered pursuant to exemptions
from the prospectus and registration requirements of applicable securities laws in the United States. As a result, the Interests in the Fund
will be subject to restrictions on their transfer under applicable securities laws. In addition, the terms of the Fund’s limited partnership
agreement will also contain restrictions on the transfer of these Interests.
All of the statements made and information contained herein concerning the Interests are qualified in their entirety by reference to the final
offering memorandum and limited partnership agreement for the Fund.
In making an investment decision, investors must rely on their own examination of the Fund and the terms of the offering, including the
merits and risks involved. The securities offered hereby have not been recommended by any federal, state or provincial securities
commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy
of this document. Any representation to the contrary is a criminal offense.
The Interests in the Fund are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted
under the United States Securities Act of 1933, as amended, and applicable state securities laws, pursuant to registration or exemption
therefrom. Investors should be aware that they will be required to bear the financial risks of this investment for an indefinite period of
time.
Investment objectives stated herein are goals based on historical results of Sarona’s funds and their typical gross and net exposures. There is
no guarantee that Sarona’s funds actually will, or are likely to, achieve these objectives.
This summary is for illustration and discussion purposes only and is not intended to be, nor should it be construed or used as, financial,
legal, tax or investment advice or an offer to sell, or a solicitation of any offer to buy, an interest in any fund. Sarona Asset Management, Inc.
(“Sarona”) acts as investment manager to the Fund. Any offer or solicitation of an investment in any fund managed by Sarona may be made
only by delivery of a fund’s Confidential Offering Memorandum to qualified prospective investors.
This presentation is provided to you on a confidential basis. This presentation may not be reproduced in whole or in part, nor may its
contents be disclosed to any other person without the prior written consent of Sarona.
2 Confidential

3. ABOUT A NEW OLD MODEL
VIVINA BERLA

4. THE WORLD IS CHANGING
GDP Growth Rates are Diverging
8.0%
Frontier & Emerging Markets
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
Developed Markets
0.0%
1965 1975 1985 1995 2005
Source: World Bank (2011)
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

5. THE WORLD IS CHANGING
2000-2030 GDP Annual Growth Rates
7.1%
0.9%
Developed World Sarona Target Regions
Source: World Bank (2012), OECD (2012)
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

6. THE WORLD IS CHANGING
Share of Nominal GDP
2010 2030
17%
31%
5% 39%
78%
30%
Developed Countries
Russia & China
Sarona Target Regions Source: World Bank (2012), OECD (2012)
6 Sarona at TBN Annual Conference, London 25 May 2012 Confidential

7. THE WORLD IS CHANGING
The Phenomenon of Urbanization
• “Population growth and rapid
urbanization mean creating the
equivalent of one new city of one million
people every week to 2050”*
• In 2010, 33% of the urban population in
developing regions lived in slums**
- Sub-Saharan Africa 62%=200 million
people
- Southern Asia 35% =190 million
people
*The Anthropocene Journal, March 2012
** UN HABITAT State of the World’s Cities 2010/2011
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

8. THE WORLD IS CHANGING
The Rising Middle Class : An Engine for Growth
80
70 Middle Class as % of Global Population
60
50
40
30
20
10
0
1500 1600 1700 1820 1913 1950 1980 2005 2025
Source Chart 1: Surjit S. Bhalla, “Second Among Equals: The Middle Class Kingdoms of India and China”, May 2007
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

9. THE WORLD IS CHANGING
SME contributions to GDP
37% 30% 36%
16%
39%
51%
47%
31%
13%
Low Income Countries Middle Income Countries High Income Countries
Informal SME Remaining
Source Chart 2: Small and Medium Enterprises Across the Globe: A new Database, Ayyagari, Beck & Demirguc-Kunt, the World Bank
Development Research Group, August 2003: "Venture Capital for Development" Patricof & Sunderland, August 2005
9 Sarona at TBN Annual Conference, London 25 May 2012 Confidential

10. AID IS NOT ‘THE’ SOLUTION
Aid and Growth 1970-2000
10 year moving average
% %
Growth/GDP per capita
Aid/GNI
Source: ECIPE Analysis of World Development Indicators Online
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

11. AID IS NO LONGER WELCOME
The American – Journal of the American Enterprise Institute
3 July 2007
$300 billion to Africa since 1970:
“….there is little to show for it in terms of
economic growth and human
development”
Paul Kagame
President of Rwanda
(Brendhurst Foundation Discussion Paper 2007)
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

12. THE UNINTENDED CONSEQUENCES OF AID
• Fosters dependency
• Distorts markets
• Does not increase tax base
• Misaligns incentives
• Is characterized by fickle capital flows
• Rarely yields scalable, sustainable impact
• Undermines accountability between government and its citizens
• Encourages the best and brightest in “recipient” countries to work for government
or international NGOs
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

13. SARONA BELIEVES IN AN ALTERNATIVE MODEL
Development of Private Equity Industry in Emerging Economies
• Started in mid-90s
• Managers seek international business experience…
then come home
• Capitalized by Development Finance Institutions
• Strong emphasis on ESG criteria and positive
outcomes
• More than just capital
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

14. INVESTORS ARE BEGINNING TO SEE IT TOO
Now recognizing the potential
14 Sarona at TBN Annual Conference, London 25 May 2012 Confidential

15. INVESTORS ARE BEGINNING TO SEE IT TOO
They want to align their investment with their values
• Ethical
• Environmental
• Social
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

16. SARONA’S VISION
Working to bring our contribution to Security, Stability and Sustainability
• Bridge between private capital and entrepreneurial growth in Frontier and
Emerging Markets
• Geographic and sector focus on positive change, for all stakeholders, where it is
most likely to occur, given the appropriate inputs
• Alignment of interests
• Focus on positive outcomes valuable to “them”, not us
• Benefiting from long experience and an expanding network of partners and
supporters (OPIC deserves a special mention)
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

17. TRUE TO OUR ETHICAL AND MORAL VALUES
• Six decades of investing in Frontier and Emerging markets under the banner of
“Business Solutions to Poverty”
• Migrating from a direct investment portfolio to a more scalable, sustainable, and ‘safer’
model for investors and investees: Private Equity Fund of Funds portfolios
1953:
MEDA is
formed to 1997: Co-founded 2002: Co-founded 2009/10: Sarona
invest in Latin America Challenge MicroVest Capital Frontier Markets
Sarona Dairies Investment Fund Management Fund 1 LP
2012 : Sarona
Frontier Markets
Fund 2 LP
1993: Sarona Risk 1999: Sarona 2007: Sarona Risk 2011: Sarona Asset
Capital Fund (under Global Capital Fund 1 LP Management Inc.
various names) Investment Fund spins out of MEDA
17 Sarona at TBN Annual Conference, London 25 May 2012 Confidential

18. WHAT WE LOOK FOR IN OUR GPS…AND WE LOOK HARD!
• Local presence, knowledge, experience: an ‘edge’
Frontier Market Focus • Narrow focus on a strong geography and/or sector
• Active value-add approach, relevant to frontier markets
• Target profitable deals in growth stage companies
Profit Focus • Value-add: Transform companies to world class excellence
• Move companies from low to higher liquidity market
• Transparent and recognized valuation practices
ILPA Adherence • High quality legal documents
• Strong governance; alignment of interests
• Diversification, selection, due diligence pre-deal
Risk Mitigation • Monitoring, active management and proximity post-deal
• Experience and thoughtfulness at all times
• Explicitly driven by progressive values
Positive Outcome Focus • Small/mid-market companies; internal demand of mid-class
• Leaders in implementing ESG criteria
18 Sarona at TBN Annual Conference, London 25 May 2012 Confidential

19. STABILITY THROUGH LONG TERM DIVERSIFICATION
Portfolio Exposure Portfolio Exposure Portfolio Exposure
by Region by Sector by Country
Latin America/Caribbean Agribusiness Health India Mexico Philippines
Africa Info/Communication Tech Education Turkey Thailand Other (32
South Asia Consumer Goods Affordable Housing Kenya Indonesia countries)
East Asia Clean energy Professional Services Peru Morocco
Financial Services Sustainable Forestry
Light Manufacturing Water
19 Sarona at TBN Annual Conference, London 25 May 2012 Confidential

20. SARONA’S IMPACT SO FAR
Investible Universe
China and Russia
Developed Markets
41 countries 15,156,215 - Clients Served 11 funds
19,100 - Permanent Employees 54 Companies
3 continents 198.5 - Renewable Energy Megawatts 12 sectors
Sarona at TBN Annual Conference, London 25 May 2012 Confidential

21. Questions & Answers

22. saronafund.com
Gerhard Pries Vivina Berla
sarona@saronafund.com europe@saronafund.com
+1.519.883.7557 +31.20.798.13.10
110 -1B Frobisher Drive HFC Plaza, Gustav Mahlerplein 3
Waterloo ON • N2V 2G7 • Canada Amsterdam • 1082 MS • The Netherlands