E+co | Metrics in Social Impact Investing
- 1. Metrics in Social Impact InvestingInternational Transactions ClinicUniversity of Michigan Law SchoolE+Co: Clean Energy EnterprisesApril 12, 2011
- 2. E+Co OverviewMissionTo positively impact climate change and reduce poverty through investment in small and growing clean energy enterprises. Investments in >250 enterprises in 21 developing countries
- 3. Market-based & Entrepreneur-centric
- 4. Six regional offices (Costa Rica, South Africa, Tanzania, Ghana, Thailand, China)
- 5. Affordable, Available and Appropriate Technology
- 6. Solar, Hydro, Biomass, LPG, Wind, Cook Stoves
- 8. Services
- 10. Growth InvestmentsThe Energy LadderTransitions in Fuel Use at Different Stages of Economic Development Cost, Cleanliness, EfficiencyElectricityGas, LPGKeroseneCharcoalFirewoodCrop Waste/DungIncome
- 11. E+Co Triple Bottom Line Returns*After write-offs and before operating expenses
- 12. Toyola Energy Ltd.Fuel Efficient Cookstoves in GhanaToyola Energy manufactures and sells energy efficient cook stoves in Ghana
- 13. In 2010 E+Co approved its third investment in Toyola for $542,000
- 14. Served over 35,000 households
- 15. Sold over 100,000 cook stoves
- 16. The operation has created over 200 jobs
- 17. Offset over 140,000 tons of CO2 emissionsIOIO FA Fin Mgr RMPerform Due Diligence and prepare environmental checklist Prepares Fact Sheet and Investment RecommendationCreates code for Time tracking Assign FunderApproves Fact sheet and RecommendationFMComm.TeamUpdates Funder in GMS and Forecast FilePrepares IC Meeting MinutesIORMIOSMCIO/CEOCIOICCIOCIOCIOIO Start EDSPrepares Intro Sheet Approves Intro sheetReview and advise on Intro sheetReview and Approves Fact sheet and Recomm.Submits investment for IC approval Approves InvestmentReviews & Uploads IC Meeting minutes and investment history in GMS,Marks inst approved in GMS, enters approval date, uploads Fact sheet and print for fileConsolidates Intro sheet comments and uploads to GMSEnters Lead in GMSInvestmentManagement - Approval ProcessLead IdentifiedEnt Training Reqd.?NoYesInvoke Term Sheet Approval ProcessProcess complete6
- 18. IORe-evaluate (EDS, if needed)Disbursement Processing Legal Documents ApprovalIOIOLawyerIOCP met in short term?Reviews and approves legal documents, prepare legal review checklistPrepare Legal Documents, Incorporate Terms in Term sheetSend term sheet to Lawyer Prepares repayment schedule in an excelInvestment ApprovedYesNoIO/Leg CEntCIOIORMSends docs to CEO for signaturePerform Quality control on legal documentsReviews and approves legal documents and signs checklistSigns final documents, sends docs to IO/legal counselSends legal documents to Entrepreneur for signatureLawyerCEOFin SpecFin SpecLawyerHandle post signature requirements (e.g. collateral registrations)Signs final documents and informs Fin SpecReturns signed docs to lawyersFiles copy of documents (physical copy)Send final registered copies to Reg. Office/Fin SpecProcess Complete7
- 19. E+Co Investment ProcessClient IdentificationPrepare Introduction SheetProvide Business Development ServicesUndertake due diligencePrepare Term SheetPresent Investment Recommendation To E+Co Senior Management up to $100,000to E+Cos Investment Committee $100,000+Execute Legal Documents Disburse funds
- 20. E+Co Legal SupportLocal Lawyers have vetted E+Cos Loan documents.
- 21. E+Co staff sends Term Sheet to Lawyers once the investment is approved.
- 22. Lawyers prepare legal documents and communicate with clients lawyers.
- 23. Lawyers oversee execution of documents, including registration of collateral and signed agreements.
- 24. If client defaults, E+Co engages local legal counsel to assist with collection.
- 25. E+Co Headquarters works with Weil, Gotshal on a pro bono basis for other mattersThank you!Anne MurraySenior Development Officer, E+Cowww.EandCo.net