RETURNS THROUGH SUSTAINABLE INVESTMENTS
Firm Overview

• Istidama Capital Carbon Fund I (“ICCF”) will be a US$250m “carbon layer” fund – the first fund of its type in the region
• The Fund will invest primarily in rapidly growing companies and projects within the MENA and South Asia region
• The Fund’s investment manager (“Istidama Capital Partners” or “ICP”) will focus on achieving “above-normal” financial returns (i.e. greater than 25% IRR) by providing capital and proprietary “carbon know-how” to companies so that they can achieve their rapid expansion plans, reduce their impact on the environment and create carbon credits that will generate an additional revenue stream
• The ICP team has a world class track record in private equity, carbon consulting, and in particular, possess a unique ability to design and implement carbon abatement schemes and thus create carbon credits

The New Carbon Economy

• Carbon focused assets are a new ethical and innovative alternative asset class which are not correlated to equities, bonds or commodities
• The global carbon market was “born” in 2005 and in 2008 reached a value of over $100bn (Source : Reuters, Sept 2009)
• The sale of carbon credits is forecasted to generate revenues of $650 billion over the next 10 years and worldwide, the market is expected to grow to $700 billion annually by 2013 and as much as $3 trillion by 2020 (Source: Gulf News)
• Some speculators believe that the global carbon economy will, in the not too distant future, be bigger than the current global oil & gas market

Unique Investment & Value Creation Strategy

• The Fund will invest in high growth companies (“Investee companies”) requiring expansion capital, that undertake energy intensive or industrial processes as part of their activities that are considered to be opportunities for carbon abatement
• Through ICP’s investment, the Fund will own minority stakes in these Investee companies and will seek board representation:
  • ICP will put into effect carbon abatement measures to enhance business processes and lower operational costs
  • Systems will be implemented to create saleable carbon credits
  • A book of environmental credits will be built and sold via ICP’s trading platform at the most opportune moment, to developed economy buyers and offtakers
• This creates a “win-win situation” since Investee companies will receive capital to finance their expansion requirements and they will also have access to leading carbon abatement techniques and ICP’s proprietary methodologies to implement the carbon layering schemes
  • As a starting point, ICCF’s investment will benefit from the baseline financial returns derived from the company expansion
  • The “new” carbon revenue stream creates tangible value for the portfolio companies and enhances the base-line investment returns
  • Additionally, by optimizing industrial processes and reducing energy requirements, ICP’s know-how will create further value by enabling the company to lower their operational costs and the associated carbon and environmental impact
• Through the skill set of the Fund’s investment manager (ICP) and their extensive global connections, there is a unique opportunity to access a wide spectrum of transactions ranging from traditional growth capital opportunities to project finance, venture capital and technology deals
  • This ensures that ICCF can tap into the most attractive opportunities within the “new carbon economy” in addition to the environmental “projects” that ICP will implement within Investee companies
• Combining 1) Investment in high growth companies + 2) Carbon credit revenues +3) Implementation knowledge = SUPERIOR RETURNS

Proprietary, Mature Deal Pipeline

• Istidama Capital Partners has identified a proprietary pipeline of high quality investment opportunities that have an aggregate equity value of over US$ 250 million, with the support of its institutional partner (United Nations)
• The companies and projects screened cover a spectrum of geographies and transaction scenarios to achieve a balanced portfolio of investments, in terms of risk profile and rates of returns, over the duration of the Fund’s 8 year life

Highest Calibre Team

• The Fund will be led by a team that has over 100+ years of investment, finance, management and cleantech experience
• The carbon consulting acumen and relationships of the team members is a key asset and differentiator for the Fund
  • ICP are experts is generating carbon credits and accessing the UN frameworks that allow the “carbon layer” schemes to be implemented.
  • ICP has also established and executed proprietary methods which significantly reduce the timeframes to complete projects
• The Fund has an independent investment committee with renowned executives from both the financial and carbon abatement industry