Overview of the Verde Ventures Fund

1. Verde Ventures
Triple Bottom Line
Investing
Fund Overview

2. Mission of Conservation
International
Conservation International’s mission is to conserve the Earth’s
Conservation International’s global biodiversity, and to
living natural heritage, our
mission is to conserve the societies are able to live
demonstrate that human
Earth’s living harmoniously with nature
natural
Conservation International’s mission is to conserve the Earth’s
heritage—our global
living natural heritage, our global biodiversity, and to
biodiversity—and to
demonstrate that human societies are able to live
demonstrate that human
harmoniously with nature
societies are able to live
harmoniously with nature

3. Conservation Funding Division
Critical Ecosystem Partnership Fund
Provides grants to civil society to enhance their capacity to conserve
biodiversity
Global Conservation Fund
Provides grants for the establishment and long-term financing of
protected areas
Verde Ventures
Provides loans for small and medium enterprises which contribute to
conservation of biodiversity
Global Marine Partnership Fund
Fund in development to provide grants for marine protected areas
Climate Community and Conservation Fund
Fund in development to provide grants for carbon projects

4. Our Purpose
Verde Ventures invests in small
businesses that contribute to conservation
and communities in Conservation
International' global priority areas
s

5. Why Verde Ventures?
• Conservation-based employment is
essential to provide economic incentives for
conservation
• The small business sector is a key partner
in the intersection between human welfare
and conservation
• Lack of available, affordable capital to
ensure the sustainability of the sector

6. Core Products
Loans: US$30,000 to $500,000 (average: $125,000)
Use of Loan funds: Infrastructure, working capital, trade
finance
Typical Deal Structure: Senior or subordinated secured
debt for 3-5 years. Increasingly debt + quasi-equity.
Strategic grants for technical assistance and
environmental and socio-economic monitoring

7. Fund Overview
Sectors Invested Regions Invested

8. Investment Map
Mexico Peru Chile Ghana Indonesia
El Salvador Bolivia Belize Ecuador Kenya
Guatemala Costa Rica Mozambique

9. Triple Bottom Line Results
Environmental
Direct Hectares Impacted (within project area) 308,009
Indirect Hectares Impacted* 3,031,587
IUCN Red-listed Species Impacted 191
Financial
Fund Costs Covered with Non Grant Revenue for FY08 85%
Sales Generated by Businesses Supported $31,786,841
Leveraged Funding $3 million
Social
Total Direct Beneficiaries 15,125
Total Indirect Beneficiaries** 42,467
Percentage of Female Direct Beneficiaries (of total) 30%
*Indirect includes area under the project’s influence, but not direct ownership control
**Immediate family members of direct beneficiaries (direct beneficiaries are project employees)

10. Governance
• Biodiversity Committee
– Internal committee to CI
– 3 permanent members and 1 regional staff
– Meets about 3-6 times per year
• Investment Committee
– External committee
– 7 permanent members
– Meets quarterly

11. Invested Project Summaries

12. Rainforest Expeditions,
Peru
• Amount: $360,556 (2 loans)
• Sector: Ecotourism
• Use of funds: Lodge upgrade
• Deal Structure: 2 loans secured
against local collateral. Co-invested with 2
other lenders.
• Impacts: 2 lodges directly protecting
2,500 hectares and providing direct
income to 316 local, indigenous
people

13. Ibo Island Mozambique
Amount: $495,000
Sector: Tourism
Use of funds: To renovate and
expand its existing lodge in
northern Mozambique
Deal Structure: Invested and
secured with collateral for 5
years.
Impacts: Improved
management of National Park
(750,000 hectares) through
ecotourism led job creation for
40 community members

14. Rolf Wittmer Turismo,
Galapagos
Amount: $250,000
Sector: Tourism
Use of funds: To finance new certified
boat and hire local fisherman as tour
guides
Deal Structure: Loans secured against
local collateral
Impacts: Benefit the local community by
providing an employment alternative to
unsustainable fishing in the Galapagos
Islands

15. Coffee Investments
$10.5 invested in 23 sustainable coffee suppliers (5
countries in Latin America and Asia)
100% trade finance secured on contracts (Starbucks etc.)
95% on-time repayment
Directly benefiting 7,500 small farmers and more than
440,000 hectares of biodiversity-rich forest.

16. Monitoring
• Financial: Business Performance Measurements
• Environmental: Baseline survey + annual site-
relevant indicators for measuring environmental
change during the investment period
• Social/Economic: Baseline
household/community survey + annual indicators
measuring change in socio-economic conditions
of project beneficiaries

17. WH-LEEP
World Heritage Local Ecological Entrepreneurship
Program
• New partnership with the United Nations Foundation, the
United Nations Development Programme’s Small Grants
Programme (SGP)
• Blended capital approach to finance projects located in
World Heritage Sites in 7 countries (Belize, Dominica,
Kenya, Mexico, Philippines, Tanzania and Madagascar)
• Focus on capacity building for community based
enterprises
• UNF financing the grant mechanism for capacity building
and a 75% guarantee of VV invested loan capital

18. Risk Management
• Thorough due diligence and oversight
• Use of CI local networks in 40 countries
• Invest with other lenders (also reduces costs)
• Invest only in US$ and work with companies receiving hard
currency revenues
• Repayment terms of not more than 5 years.
• At least 1:1 collateral secured under local law
• Loan Loss Reserve Requirement averaging 10% of
outstanding capital

19. Mainstreaming Biodiversity
Financing
• Recognition that scalability must occur with
commercial banking and private equity sectors.
• Supply: Financing incentives needed to
encourage banks to lend to sustainable SMEs.
• Demand: Maturation of specific sectors to
become bankable- partially through help of
boutique, blended (loan/grant) capital and
technical assistance.

20. Key Lessons
• Investment capital in the US$30,000 to $500,000
range can be effectively used to achieve
conservation, social and financial returns.
• Strategic use of grant funds with investment
capital can greatly enhance project’s success.
• Direct financial incentives (eg. interest rate
reductions) should be used to further improve
conservation returns on investment.
• Triple-bottom line (environmental, social and
financial) monitoring is crucial, yet expensive.
• Guarantee funding is crucial for early stage
SMEs in developing markets

21. The Road Ahead
• Raise at least $10 million in loan capital within
the next 5 years.
• Raise at least $1.2 million in additional grant
funding for capacity building and monitoring
program.
• Directly impacting 6 million hectares of key
biodiversity landscape on 3 continents
• Supporting business which employ 30,000 local
people with few other opportunities
• Demonstrating and replicating triple-bottom line
success model (self-sufficient in 3 yrs)
• Replicate Monitoring program

22. Thank You!
For more information, please visit:
www.conservation.org/verdeventures