Transform Global (TG), previously Transform Capital Management, is a model for a private world bank, also known as a global impact investment bank, investing into funds which have a social, environmental and financial return. TG aims to address critical market failures caused by our current financial system, while tackling the environmental and social symptoms that are a by-product of the system.

1. TRANSFORM
GLOBAL
A vision for a Private World Bank
also referred to as a Global Impact Investment Bank
different by design, to make a difference

2. TRANSFORM
GLOBAL
Positive Innovation in Finance for a Better World
A model designed to catalyse a £1 trillion market in
Active Impact Investment, to help the planet
and improve lives - the world over
Executive and Investment Summary.
The business model is simple. Create a Private World Bank,
supported by sponsorship from select categories of global corporation.
Use core revenues and sponsor support, to raise innovative funds,
blended from aligned investors - and deploy them all around the world.
Ensure the Global or Local Impact Investment Funds, are structured to
directly or indirectly address key funding gaps, which by addressing and
funding at scale, is good for society, sponsors and all other stakeholders.
Go further. By globally publicising the importance of funding solutions for
the real economy, and social / environmental challenges, help sponsors
drive returns. Publicise their involvement, give them access to a pipeline
of innovation, help them address key risk and resilience threats - and give
them a platform to differentiate against their less sustainable competitors.
The opportunity is to invest in one or all of the staged investment
rounds, to partially or fully capitalise this detailed vision for a
Private World Bank. Transform Global is raising £36.5m
in stages of £1.5m, £5m then £30m in equity.
Healthy returns are offered through this innovative model
which is designed to do both good, and do well.

3. TRANSFORM
GLOBAL
Index
1
First - a little context
2
Grand challenges - need urgent solutions
3
Transform Global - where it fits
4
A Private World Bank - with aligned corporate support
5
Democratising finance - to fuel the ‘real intelligent economy’
6
There is a better way - to structure, raise and deploy funds
7
Progressive business structure - focus and model
8
Profit with purpose - just the right balance
9
G/LIPS - The Global and Local Impact, Pilot and Seed Fund
10
-
11
The GIIF - Global Impact Investment Fund
12
-
13
The LIIFs - Local Impact Investment Funds
14
-
15
Innovations at the heart of the Transform Global model
16
Hope - engagement - equity - and investment examples
17
Background - management - and how it will attract talent?
18
‘Scale Up Speed Up’ - the marketing roadshow
19
The development plan - co-global headquarters
20
The investment opportunity - risks - returns - and governance
A sustainable proof of concept - and a platform to build from
Funding the financial innovators - indirect investing
Funding important but ignored enterprise - direct investing

4. TRANSFORM
GLOBAL
First - a little context
“70% of all power required by 2030, still needs to be built”
“an additional 1 Billion people over the next 20 years will be urbanised”
“the equivalent of 1 new city the size of London, is being currently created every 6 weeks”
“more buildings will be built in the next 40 years, than were built in the last 10,000”
“many of the utilities that currently provide our energy, will not exist tomorrow”
“80% of global fish stocks are classed as having being fully or over exploited”
“unless we change, 70% of the planet will suffer water insecurity by 2030”
“trust in governments, corporations and banks is at an all time low”
yet - despite these critical risks and opportunities,
where is the urgency, innovation, and collaboration,
and how can we remove key investment bottlenecks?
1

5. TRANSFORM
GLOBAL
Grand challenges - need urgent solutions
Locally, regionally and globally,
there are some really big risk
and resilience threats that
require urgent attention.
Tackling them requires nothing
short of Transformation.
The world is facing an unprecedented crisis in sustainability, with wide ranging
economic, social and environmental ramifications.
Global population is predicted to rise by over 2 Billion souls over the next 30 years.
This puts more strain on already stressed water, food and natural resource systems.
Despite people rising out of poverty in parts of the world, gaps between the have’s
and have not’s have never been greater, and are fast widening.
All this creates multiple linked conditions for serious instability.
To live within the natural limits of the planet, whilst raising living standards, and
addressing the serious risk and resilience threats detailed - we need to Transform;
• our energy systems;
• the way we protect and value biodiversity and ecosystem services;
The most important Transformation,
• how we live and feed a growing population;
as a catalyst for everything else, is
• how we define and create wealth;
to Transform how capital is raised,
• our economies, to create sustainable new jobs and prosperity for all;
deployed and managed.
• and to do it all - the way we manage natural, human and financial resources.
While the scale of the challenges is truly staggering, all this can be done, and fits
together as part of a coherent sustainability agenda.
In short - less capital needs to flow
to things that are destructive on a
social and environmental level,
and a great deal more needs to
flow to the kinds of projects,
businesses and innovations
which are constructive.
The good news is people the world over are fabulously creative. When the
incentives are right and capital is made available along with just the right help and
support, and of course sensible governance - incredible things can happen.
Key to it all is finding ways to intelligently fill many nonsensical funding gaps so
entrepreneurship and innovation can be unleashed on an unprecedented scale.
While we need solutions and innovations on every level and in every corner of
society, existing finance and governance systems have so far failed to deliver.
Transform Global is about using the power of incentivised collaboration and
‘system innovation’ in finance to finally reverse this trend.
*
*another way to describe ‘system innovation’ is the ‘practice of joined up thinking’, or looking
at things from an ‘holistic’ or ‘whole systems’ perspective, and changing or utilising numerous
pieces of a system - to alter entrenched practice or challenge the status quo.
2

6. TRANSFORM
GLOBAL
Transform Global - where it fits
While some investment banks have worked hard to use finance to address social
and environmental challenges, even for those with the greatest motivation,
there have been some significant blind spots. Most however have been locked
into business models that are hard to change, or into competitive landscapes
from which it is hard to escape. They have ignored or struggled with the kind of
financial innovation that is urgently required and most socially useful.
National, regional and multilateral financial institutions often have sensible
agendas, and just like commercial investment banks, they play an important
role. However at the scale or with the flexibility required, they also struggle to
meaningfully address the aforementioned challenges. All too often, bureaucracy or
entrenched interests block rather than open up access to capital.
Actors in philanthropy, aid and charity all make important contributions too.
However, there is just not enough donor capital to go around, and donated money
is not always the best solution to address what economists call ‘market failures’.
Financial innovations are emerging. Crowd funding, peer to peer lending, payment
and transaction solutions, and many flavours of impact investment to name a few.
However - while important, much of this financial innovation is struggling to get to
scale, or is not suited to address some of the bigger challenges - infrastructure
for example. For structural or capacity reasons, many of these innovations are still
highly unattractive to mainstream financial markets - and this has to change.
To scale up and speed up the provision of intelligent finance to address the most
pressing and important of needs, ‘fit for purpose’ financial institutions are required,
so that all manner of financial and non financial innovation can be catalysed.
Transform Global aims to be just such an institution.
The focus is on delivering financial innovations which can be adapted and deployed
globally. Finance suited to the modern, complex and interrelated world. Where links
between public, private and philanthropic are frequently blurred. And doing all this
with the combined strength, aligned interests and responsible governance required
to democratise capital at scale.
Transform Global is model which collaboratively and efficiently can work with all
forms of capital, institutions and funds, with 100% focus on filling the funding gaps
that need addressing but which others are unable to do on their own.
And - it’s designed with some important innovations that position it to succeed.
3
Filling critical funding gaps, that
can unlock the level and type of
commercial activity to thoroughly
address global challenges, requires
funds and financial instruments
which are better designed,
structured and deployed.

7. TRANSFORM
GLOBAL
A Private World Bank - with aligned corporate support
By pulling together a powerful
group of motivated commercial
sponsors, not only can this Private
World Bank secure core funding
so it is of sufficient size to be fit for
purpose, but it can also garner value
added help and support, creating
the ideal conditions where positive
innovation in finance, and therefore
in innovation itself - can thrive.
To innovate with finance and meaningfully impact the issues described, it’s critical
to operate at scale and for the business model to incorporate scalable design.
To be ‘fit for purpose’ requires focus and plenty of motivated personnel in a number
of connected and complex areas. To structure and raise new funds for example,
and to replicate them around the world - there needs to be a focussed and large
scale sales and marketing effort - all with specialist skills and support.
It’s clear that to stand the best chance of success, it would help to have some
deep pocketed, complementary and motivated partners. Those who can benefit in
many ways from their involvement, and who in return are able to provide revenues
and support in areas to which they are best suited. In other words, sponsoring
operations so the important innovations that require much funding and take time,
have the ideal conditions to become financially viable and fully sustainable.
The Transform Global model incorporates ways to recruit motivated aligned
sponsorship from global, regional and local corporations. It is designed to deliver
compelling benefits in return - helping sponsors stay relevant and truly innovative.
Transform Global will allow
sponsors to properly demonstrate
Energy
FMCG
Automotive
Mining
A snapshot of key
categories of sponsorship
for organisations which are;
leadership and capability on a
global level, to a degree that moves
Media
Telecoms
Water Management
Power Generation
the needle of both perception and
reality, generating tangible
and defensible returns as a result.
• globally diverse;
• sector exclusive;
• motivated and;
Finance
Food & Beverage
Consulting
Technology
• best of breed
Commercial and non commercial benefits of collaborative sponsorship.
Transform Global and the funds
it will then raise and deploy,
collectively are positioned to give
sponsors a funding network of
substance, providing multiple
and exciting benefits in return for
their support and engagement.
• working with a group of noncompetitive organisations to unlock capital, in order to
address risk and resilience threats - and business viability - globally.
• leveraging sponsorship to capital unlocked, by at least a 1 : 100 ratio.
• collaborative intelligence and competitive differentiation.
• adding value in areas of core competence, with the knowledge others are contributing
in a similar fashion.
• access to the deal flow pipeline for further investment and scale opportunities,
and capability to place ‘non core’ projects and offshoots into the funding and open
innovation machine, to unlock hidden value.
• access to sustainability technologies, businesses and expertise to further drive
sustainability focussed returns.
• ability to train, educate and inspire employees, with an active secondee program with
recruitment and retention benefits of global proportions.
• positive publicity on a global and coordinated scale, with the ability to leverage
impacts and brand loyalty - while focussing on the day job.
• commercial returns that can completely recover the cost of sponsorship, via modest
but linked fund investments.
4

8. TRANSFORM
GLOBAL
Democratising finance - to fuel the ‘real intelligent economy’
It is estimated that these SME’s are responsible for over 50% of new job creation,
and between 40% and 60% of all innovation. Yet in an emerged economy such as
the UK, they are also thought to receive much less than 0.5% of all institutional
investment. This inverse relationship between job creation, innovation and capital
invested is a global phenomenon and it’s one with serious consequences for us all.
The big question is how many more jobs would be created, and solutions generated
for important social and environmental issues, if bottlenecks could be removed to
unlock capital and support in the ‘Valley of Death’, and do so at adequate scale?
For many reasons, financial investment chases liquid markets, large deals and
mature opportunities. However, a big part of why more capital does not flow more
effectively to where it is needed for healthy economies - is due to how funds are
structured and raised. This leads to challenges in how these funds are invested.
Generally, funds for investing in areas which are viewed as risky, or into entities
which are small and require aggregation, where more work is required for success,
are 100% equity - or risk money. Often this capital comes from investors who seek
to maximise financial return, and funds are mostly structured to last 10 years.
For many reasons, these funds are incredibly inefficient, but remarkably this basic
fund structure (the 2 : 20 - 10 year model) has seen little innovation in 40 years.
The world over, governments
and others do work to stimulate
economies, often in strategically
important areas such as energy,
the environment or health.
Yet when such impact investors
(those with a social / environmental
purpose) do invest - they often
do so in disconnected ways.
Would it not be better if they
could all collaborate with great
scale and joined up thinking?
It’s our belief that this is the only
way to get capital flowing - which
is why incentivised collaboration is
at the heart of the Transform model.
In this out of date structure, with typically one class of investor (such as pension
funds), returns sought to compensate for the real or perceived additional risk,
actually prevent the funds investing into the type of enterprise that most require
capital (ironically these are where decent aggregate returns could be found if a little
more thought was given to the structure and system of investing).
To de-risk as a result, funds are often small and narrowly focussed - but this is
a damaging false economy. High return expectations, means decent help and
support alongside investment is just not possible, and funds rarely posses critical
mass which in turn would enable better systems and efficient investment portfolios.
While the ‘Valley of
Death’ is a commonly
recognised problem
in technology, there
are similar funding
gaps, challenges and
bottlenecks in other
sectors and types
of business such
as project finance,
non tech investing,
infrastructure etc.
5
HIGH
Capital
Intensity
LOW
water
infrastructure
t in Sa
fo hat ves mp
t
r
l
de sus are me e a
ve ta cr nt rea
i b
Many talk about the importance of investment flowing to the ‘real economy’
where the heartland of ’SME’s’ (small and medium enterprise) can be found.
Those companies and entrepreneurs who despite being starved of capital, are
historically proven to create more jobs and deliver more innovation than their
larger counterparts. We call it ‘the real intelligent economy’.
property
retrofits
Intellect
LOW
capital flows to high IP,
businesses, but is thin on

9. TRANSFORM
GLOBAL
There is a better way - to structure, raise and deploy funds.
A key challenge Transform Global
neatly tackles, is that innovation
which comes from outside existing
systems (which is where real
innovation normally occurs),
is fiercely resisted by those who
profit most from the old system.
Providing both capital and strong
support enables innovators to
jump over resistance barriers in
a way that is fair and objective.
Blended, evergreen and value
adding broader portfolio funds
can help capital to flow naturally.
Allowing aligned stakeholders to
access more of what they seek for
energy
storage
By governments, supranationals or groups of impact investors, investing (or using
guarantees) alongside pension funds - then larger funds can be raised at a lower
cost, and over a longer timeframe, including evergreen.
This structure enables strategic and impact investors to get measurable social and
environmental benefits in return for slightly lower financial return expectations (plus
or minus market returns, rather than 100% financial loss such as philanthropy).
As a result, institutional investors such as pension funds, are then able to invest
into a major part of the fund. They gain access to lower risks, steady returns and a
patient investment horizon, and help meeting longer term obligations as a result.
Crucially, the lower average cost of capital, and patient time frame that blended
evergreen funds can provide, pays for what’s really needed and most often ignored.
Early stage business of all types need technical help and support alongside any
investment. By incentivising those providing it, and helping entrepreneurs focus
on core activities, any investment is able to go much further. All this combines to
ensure overall success with impacts enhanced in the process.
At Transform we also believe a better and more holistic way of building a portfolio
of investments - is to do so through stages. Investing from the earliest pre revenue
stages, all the way to maturity - and either to dividend creation or appropriate exit.
This system, in a carefully and dynamically structured portfolio, means a broader
selection of businesses and projects can receive investment, and they can receive
it from earlier stages. It thus opens up investment bottlenecks, and in turn provides
access to many previously unreachable investment opportunities.
Additional data that can be gathered as a natural part of the process, and also
knowledge that can be captured and disseminated (important for scaling or
aggregating business in critical areas, such as energy, agriculture and water)
creates a feedback loop to further drive scale, success and impacts.
The direct investing focus therefore, is to create the structures which are able to
raise and deploy funds that are blended and value adding, and therefor better
suited to filling important funding gaps to unleash the real intelligent economy.
el
a
op ina itic bot as w
m bi al tle it
en lit to n h
t a y in ad eck
nd no dr s
ro va ess
ll tio
ou n
t
less risk - and with more diversity.
On the fund raising and structuring side, where possible and appropriate, as can
be seen below - the focus will be on blending funds from aligned investors.
digital
only
tual Property
HIGH
, low capital intensity
n the ground elsewhere
the focus is on moving from
disconnected investment like this
Government
Investment
Corporate
Investment
to larger blended aligned
impact funds like this
to enable strong portfolios that make
staged investments and provide practical
added value help and support like this
Institutional
Investment
Impact
Investment
Blended
Evergreen
6

10. TRANSFORM
GLOBAL
Progressive business structure - focus and model
Transform Global Trust (TGT)
Has ownership stake to embed long term vision
provide governance, and deliver NFP objectives
financial
government
corporate
impact
With sponsor revenue and support, the GIIB
has the strength and focus to raise and scale
new important funds and financial innovations
G/LIPS Fund
(Global & Local Impact Pilot & Seed)
G/LIPS will deliver a comprehensive proof
of concept for Transform Global, manage
risk, and provide a strong launch platform
Global Impact Investment Fund (GIIF)
The £500m GIIF will invest into a
TGT - Local
Local Impact Investment Fund (LIIF)
e.g. UK Impact Investment Fund
small basket important asset managers,
platforms and financial initiatives with
maximum impact and scale potential
Assess, Incubate, Develop, Accelerate
(AIDA) providing incentivised help and support
(to be replicated around the world)
The £2billion LIIF will invest into
ignored early stage businesses and
projects in planet positive themes
and sub themes (£100k - £40m)
TGT Trustees
Global Impact Investment Bank (GIIB)
TGT Local Trustees
Company Investors
Business Structure
Advisory
Research
Technology
Fund raising
Communications
Network
Leadership - Support Functions - R&D
Fund Investors
Transform Global Ltd
Risk Management & Impact Measurement
Sponsors
Assess, Incubate, Develop, Accelerate
(AIDA) providing incentivised help and support
Middle East & North Africa Impact Fund
Japan Impact Fund (etc.)
Through incentivised collaboration and scalable design, the Transform Global
model has the potential to directly unlock £150b over 12 - 15 years.
Indirectly it has the potential to catalyse much more. All to address
some of the toughest but most important issues in the world
Transform Global is specifically structured to:
The business model.
•
raise equity investment, and commercial sponsorship, in order to fund and
support a powerful but will governed umbrella organisation which can then;
1. sponsorship
•
raise and blend capital from financial, social, and commercial investors;
•
3. share of fund management fees
create or find funds, funding vehicles and platforms through which said capital
can best be deployed;
•
find, evaluate, invest in, incubate and accelerate sustainable ventures - with
a system packed full of innovations, that can help do this at significant scale while better managing risk and generating blended returns;
•
•
generate healthy financial returns, with patient capital characteristics;
•
7
combine advantages of a commercial approach with a sustainability agenda all
supported by strong impact measurement capability;
create an efficient template which can be replicated, franchise style, country by
country, with local management and the benefits of network intelligence.
2. fund marketing (distribution) fees
4. share of carried return
Key areas to be addressed.
1. Sustainability (energy, agriculture
water, clean technology etc.)
2. Intelligent economic recovery
3. Education
4. Health

11. TRANSFORM
GLOBAL
‘Profit With Purpose’ - just the right balance
Neither ‘profit maximising’,
or ‘not for profit’ capital structures
alone are suitable to fill the gaps
to address some of the most
Not only do funds need to be blended. We believe Transform Global itself is best
suited to a being a social / commercial hybrid - to deliver ‘profit with purpose’.
Delivering on these ambitions requires capital. A business model with growth
characteristics of highly valued organisations will enable investors in Transform
Global to make compelling returns - fuelling scalability and maximum impact.
important issues of modern times.
Though stock and other performance incentives, personnel will have not just an
ownership mentality - but an ownership stake. For the talent to make money,
investors have to make money. And for both groups to make money, there has to be
measurable social and environmental impacts.
The ‘For Profit With Purpose’
This structure, ownership mentality and business disciplines that come from
having investors, alongside well designed and progressive governance, is all about
ensuring accountability and efficiency. The goal is to signal that is not only possible,
but that doing well and doing good with maximum impact, can be a proven reality.
structure ensures flexibility and
operational strength, whilst also
providing well governed and
analytical ways of measuring
results and impacts.
The 5 : 10 : 20 + model
Why is this structure really important?
Creating working markets for distributed renewable energy for example, building up
knowledge industries, sustainable agriculture, and tackling what is known as the
‘valley of death’ in early stage investment (a challenge also known as ‘access to
finance’), will require more capital than is available in ‘social only’ finance such as
aid, charity, philanthropy or government funding.
As a core part of the ‘Sustainable
Charter’ Transform Global will have
a 5 : 10 : 20 + relationship with the
Transform Global Trust.
It will most likely also take longer, thus delivering lower returns than most profit
maximising funds and structures typically tolerate in the short term. Over time
however, these businesses, in sectors of the future, will collectively have a strong
chance of delivering significant profitability, and therefore value and returns.
5 - is the number of shares (5 Million,
or 5% of equity when Transform
Global is fully funded & diluted) to be
held by the TGT foundation.
At a time where more and more executives, entrepreneurs, and young people who
are exiting education want to work on things they deem important - this structure
also gives the ideal platform to recruit and motivate talent at scale.
10 - is the number of days per year,
that all employees can spend working
on Impact projects of their choice.
20 - Is the target percentage of post
hurdle rate returns for any fund
raised or managed by Transform,
which will be used to fund TGT aims
which include max impact not for
profit areas of: Sustainability; Health;
Education; and Investment Reform
+ - is everything else that Transform
Global can do to support the
Trust, including funding any direct
governance associated costs, and
working on any separate fund-raising
or relevant promotion activity.
The Transform Global Trust - and the Sustainable Charter
Transform Global has a progressive ownership structure, with the goal of working
to embed the principles set out at its founding - and using its living endowment for
maximum impact - in areas of sustainability, health, education and financial reform.
The Transform Global Trust (TGT) is being set up to be a transparent independent body,
with strong management and a respected mix of trustees to include public servants,
and leaders from the NGO, academic, think tank and policy communities.
TGT will have a small ownership stake in Transform Global, with a weighted share of
the vote and associated governance role. TGT will have responsibility to ensure the
‘Sustainability Charter’ which sets out what the business can and cannot do, and how
it will operate - is adhered to.
In addition, TGT will be responsible for delivering on the objectives which have purely
social goals, and as the panel to the left shows, it should have the means to address
areas that are truly important with maximum and well funded impact.
8

12. TRANSFORM
GLOBAL
G/LIPS - The Global and Local Impact, Pilot and Seed Fund
Though Transform Global has significant ambition, steps to deliver the full vision
with international roll out - are inherently practical. The first of these steps will be
the innovative £20m G/LIPS fund - which manages risk for initial equity investors,
whilst also delivering a compelling proof of concept for the innovations that are
included in the wider business model.
The objective is to do something that on a small scale, delivers a highly compelling
proposition to investors and investee companies alike. By providing seed (and
incubation), and lead (with corporate finance co-investment fund-raising), the
model can be both attractive to investee companies, and healthy for investors.
Importantly, G/LIPS creates a strong launch platform, delivering investment case
studies, helping secure cornerstone investors, and starting the sponsor recruitment
program. In turn it positions for Global and Local Impact Investment Fund launches.
G/LIPS will invest in circa 24 staged investments over two - three years, with similar
process to the full Transform model. Of course a fund this size can’t do exactly what
the larger Global or Local funds would do, but its design will give effective indicators
for processes and innovations to be used on a larger level. These include: objective
stages; speed of execution; collaborative network; portfolio design; added value
provision; fair and transparent terms; method of driving and harnessing returns;
and the ability to measure and reinforce impacts.
G/LIPS will also use a cut down version of the portfolio and deal management
technology to be utilised in the Global and Local Impact Investment Funds.
Showcasing typical Local Impact
Investment Fund investments,
20 seed deals of £200k will be
made over the first 2-3 years.
Here, investee companies
will receive £150k of cash and
£50k of direct incubation services.
This builds the relationship, adds
value with meaningful help and
support, all helping feed into the
decision process on who should
progress to the next stage.
From there approximately 50%,
or 10 investments will receive
follow on funding, where Transform
provides a lead round averaging
£800k. The corporate finance team
will raise match funding from other
strategic or value adding investors.
G/LIPS fund stages and structure
Pilot Investments for Local
Impact Investment Fund deals
Pilot Investments for Local
Impact Investment Fund deals
£150k seed
£800k lead
£400k seed
The process is similar for deals
which showcase the Global Impact
£2M lead
Investment Fund - though more
concentrated. 4 companies will
receive £500k (£100k of incubation
services and £400k of investment).
exits
exits
For 3 qualifying investments,
G/LIPS will then invest £2m with
£2m - £4m of co-investment raised
by the corporate finance team.
£50k
£1.2m- £4.2m
Cash investment
9
£100k
Incubation support
£2m - £4.2m
Follow on fund-raise

13. TRANSFORM
GLOBAL
A sustainable proof of concept - and a platform to build from
•
G/LIPS will be a £20m fund to make seed and lead investments into theme
relevant businesses, and to pilot process, technology, portfolio construction
methods, and sector focus for the Global and Local Impact Investment Funds.
•
The structure is an investment breakthrough as no management fees will be
charged to fund investors.
•
All incentives will be performance based. The cost of raising the fund, and
providing initial and ongoing management, will be covered by equity investors
or from other strategic partner organisations.
•
G/LIPS fund, de-risks the investment for initial equity investors, through
providing carry rights on the portfolio (if the full Transform Global business
model was not possible for whatever reason, the management share of returns
(carry) on the diverse portfolio, would go to initial Transform equity investors).
•
G/LIPS is designed to fully invest within 24 - 30 months.
•
The objective is to enable exits via ‘passing through’ exit management to more
financially driven follow on mainstream investors - but with governance and
structure to ensure exits are responsible.
•
Investors receive 100% of returns up to 6%, and 64% of anything over 6%,
with 20% going to the Transform Global Trust Foundation, and 16% going to
Transform Global and G/LIPS General Partner personnel.
•
Invested companies will receive intensive incubation alongside a financial
investment. This will allow G/LIPS management to decide which deals are
appropriate for leading a further funding round. Incubation will be charged to
investee companies at 25% of initial investment (20% for larger GIPS deals).
•
The corporate finance team will raise co-investment (with corporate finance
costs being met from a fee charged for additional funds raised). To assist
the process and provide further ‘skin in the game’, the G/LIPS fund will lead
these investment rounds (providing £800k on average for typical Local Impact
investments, and £2m for Global Impact Investments (for definitions, see
Global and Local Impact Investment Fund details on the following four pages)
•
Sponsor support will be secured where possible for incubation space, publicity
and additional legal / financial services.
The G/LIPS fund will be raised
from a mixture of individual
investors, institutions, and aligned
strategic investors such as the UK
government via its business bank.
Or from the EU where suitable
business stimulus programs exist.
10

14. TRANSFORM
GLOBAL
The GIIF - Global Impact Investment Fund
The big idea around the Global Impact Investment Fund, is to find the most
innovative and game changing financial ideas and businesses in new market
creation and Impact Investment. To fully and progressively invest in the
management or operating companies, and with our Global Impact Investment
Bank, support their further fund-raising and help them scale at optimum speed.
As it is currently practiced, much financial innovation of the type society so
desperately needs, happens from a position of weakness. It’s frequently under
capitalised or funded with impatient or inadequate structures. As a result it’s in a
class all of its own when it comes to levels of difficulty and chances of success.
Disruptive innovation rarely comes from existing market players as we have said
previously. Yet - the resistance new players in finance meet, particularly those with
blended purpose, no matter how sensible or important, is massive.
If success is to be measured as meaningfully impacting important challenges,
and creating healthy working markets, and over time creating profitable financial
businesses to fund and sustain them - nothing less than scale will suffice. We have
to find new ways of ensuring more of the positive financial innovation can occur,
less fails for the wrong reasons, and more can get beyond market resistance,
achieve scale - and meaningful success.
The Global Impact Investment Fund, with Transform Global and the sponsors
behind it, is designed to progressively and collectively get around these problems,
creating a position of strength for a basket of game changers in finance.
It is more efficient to fund a
complementary basket of financial
innovations, so more have a better
chance in succeeding to address
truly important financial challenges.
Sponsors will be invited to invest
into the Global Impact Investment
Fund, where a modest investment,
delivering a target return - could
enable them to wipe out their
entire cost of sponsorship - further
motivating their help and support.
Qualifying GIIF Investments
will have:
• Transformational system innovation
potential in the sourcing and
deployment of funds, or high impact
market enabling capability.
Fund management fees are supplemented by TG and sponsors
to provide fund-raising support and technical assistance
£5m x 15
£75m
£10m x 10
£15m x 5
£25m x 2
£10 Billion combined annual
market size within 5 - 10 years
£2 Billion
Stages
£100m (£175m) £75m (£250m) £50m (£300m) Totals
£5 Billion
Climate and
ecosystem
service bond
exchange
£500
Million
Peer to peer /
crowd funding
platforms
Investment
size and number
Staged equity investments into management companies
of new or proven platforms, fund managers, asset managers
or initiatives with scale and maximum impact potential
11
Sustainable
aggriculture
aggregation
fund
• £1bn + of annual investment
potential within 5 years of launch,
or less for those with high enabling
potential.
• The ability to address critical areas
of market failure in either or both,
the developed / developing worlds,
emerged / emerging markets.
£2 Billion
• For addressed market failure to
be eradicated, over time, restoring
governed, balanced & working
markets.
£500
Million
• Commercial return potential,
operating with market mechanisms
and designed to provide financial
returns to investors, around
important social or environmental
purpose, with strong governance.
Sanitation/ water
management
financing
facility
Impact bond
management
and exchange
Size of annual markets, or capital
deployed by funds, platforms or
initiatives as a result (within 5 yrs)
• Wide impact focus on: Sustainability
(Climate; CleanTech; Agri; Energy)
Health, Education, Social Enterprise
and solutions based commerce.

15. TRANSFORM
GLOBAL
Funding the financial innovators - indirect investing
•
The Global Impact Investment Fund (GIIF) will have a £500m target size, with
initial deals carried out through a modest pilot fund (G/LIPS). The GIIF will start
(first close) at £50m and is targeted to be in place 6 - 9 months after launch.
•
The GIIF will be raised by the Transform Global distribution (fund-raising) team
and managed by the stand alone GIIF General Partner unit inside the HQ.
•
Non core functions may be outsourced to a co-manager to provide corporate
finance, regulatory and back office support.
looking for maximum impact.
•
The goal is for the GIIF to be ‘evergreen’, meaning on exits, it will return capital
and an ongoing yield to investors - recycling a percentage of the surplus to
continue investing - therefore continuing to deliver social and financial returns.
Investors for GIIF will include
•
For those who wish, liquidity and fund exit will be provided via a secondary
market offering - or other suitable means.
•
10 - 15 transformational fund management, market-enabling or investment
initiatives are targeted in the first 5-6 years.
•
Investments will receive average initial equity of £5m. As can be seen by the
graphic on the facing page, the most promising are then targeted to receive
follow on investment into the company and, if appropriate, co-investment into
the subsidiary funds themselves (up to a total of £55m max per deal).Total of
up to £300m of equity (60% of GIIF) into management companies, and £200m
(40% of GIIF) into fund investments.
•
The full 2% management fees will only go to support personnel costs for
running the fund - thus giving a much stronger GP (General Partner) function
than would be available through typical fund management structures.
•
Transform Global will use sponsorship and partner revenue to pay for the GIIF
fund raise, supportive technology, incubation, collaboration, global promotion,
governance, supportive economic and technical research and related services.
Transform Global will also do follow on fund-raising for investee organisations.
•
Risk is mitigated via the concentrated incubation capability, complementary
nature of investments, and support from a network of sponsors and partners.
•
The GIIF targets an Internal Rate of Return of 12% - 18% + leveraged impacts.
The GIIF is designed to give
game changing financial
innovations a fighting chance of
succeeding and getting to scale.
And to provide a leveraged
impact solution to all investors
impact investors, foundations,
ultra high net worth individuals,
governments, sponsors and
socially responsible Investment
(SRI) focussed institutions.
The entire fund-raising budget for
the GIIF will be covered by equity
investment and sponsor revenues.
Within 3 years, this structure is
projected to fund a team of 40
full time fund-raising professionals,
fund-raising for the GIIF itself, and
for all initiatives, platforms, funds or
asset managers the GIIF invests into.
12

16. TRANSFORM
GLOBAL
The LIIFs - Local Impact Investment Funds
The core idea behind the Local Impact Investment Funds, is on a local, regional or
country level, to invest for equity into broad and deep, early to late stage portfolios
of theme focussed businesses which address social or environmental challenges.
Some which will be highly innovative and high growth, and some - highly normal.
The exact ‘blend‘ of capital and terms will vary according to strategic objectives
of government or relevant underwriter of debt, level of development or economic
profile of a region, competitive landscape, investor objectives and priorities, and
maturity of the Transform Global and LIIF business models themselves.
At the core of the LIIF structure, is a system and process which can more effectively
find, filter, fund and properly accelerate investment opportunities - in a way that is
good for all stakeholders. Investing in a way that is better for the entrepreneurs
and management teams, better for investors, and better for other stakeholders too.
To the left of the diagram below, the system starts with an introducer network
and outreach program to deliver deal flow. Using a staged process, potential
investments are then filtered fairly and objectively, with investment in the due
diligence and assessment process to ensure it is thorough and that great people,
ideas and ventures do not fall through the gaps.
From there as can be seen, a volume of seed investments can be made. Due to the
added value help and support provided via the AIDA system, these seed deals can
then progress through stages, as far as they need, to full funding, maturity and exit.
This structure, with a method of capturing data and using advanced analytics
for decision support - means the focus can be taken off the individual idea or
business, and switched to looking at the overall portfolio returns and impacts.
Early
Middle
(yellow)
capital allocation
per stage as
a proportion
of annual
investments
deal-flow
pipeline
for a country
such as the UK,
the LIIF would
be investing
at £200m
per annum
at target size
Deal size
and number
Risk is managed and
fund level returns generated here
Innovation and roll out
potential proven and nutured
S
S
Incubation
13
E
S
HR, recruitment, talent
management and training
Marketing, sales, web design,
build and presentation
Legal, financial, patents,
contracts, commercial
Facilities, supply chain IT
infrastructure, telecoms
Market research, policy,
environment, science
Technical, engineering,
logistics, manufacturing
For a £2 Billion fund (ideal
for a country the size of the
UK), there would be 180
AIDA personnel (full time &
contracted) and 60 investment
managers - giving a 3 : 1 ratio
£10m - £30m
Co-investment with value adding parties
raised at each stage
A
(Assessment, Incubation,
Development & Acceleration)
The AIDA team can be paid due
to the blended capital structure
with lower capital costs.
Late
£2.5m - £10m
£100k - £2.5m
AIDA Leverage
S
M
Development
E
N
T
Acceleration
REMEMBER
Transform Global with it’s corporate
sponsor support, will be doing the
structuring and fund raise. The LIIF
investment management teams are
then free and focussed on sourcing
and making the investments,
using a much more patient and
fairer system to generate timely
and appropriate exits. The AIDA
teams, who are fully incentivised on
success, provide added value help
and support to investee companies.

17. TRANSFORM
GLOBAL
Funding ignored but important enterprise - direct investing
LIIFs will be structured to look at the
bigger picture of fund performance
•
With the LIIF structure, we aim to set new standards in Venture Investment.
•
LIIFs will be raised by the Transform Global distribution team, but structured
and managed by independent management where they are based, locally
or regionally. Because they will be raised by, but operated at distance to
Transform Global, a network of LIIFs can be scaled globally.
•
A typical fund would be of
£1.5Bn – £2.5Bn raised from a
blend of motivated and patient
capital providers (social, financial,
philanthropic and strategic).
Using structured financial
techniques to blend capital from
aligned groups means LIIFs have
the strongest chance of being of
adequate scale, and delivering
financial and Impact returns with
lower individual investor risk.
using a more objective and much
fairer system of working out who to
invest in, and with wider investment
criteria than most in venture capital.
Projections indicate that just one
Local Impact Investment Fund
could create 100,000 – 150,000
jobs within a 10 year period for
a country the size of the UK.
Typical early
stage fund
10 year equity
Example
LIIF Structure
Strategically underwritten debt
Institutional evergreen equity
Impact evergreen equity
•
The Local Impact Investment Funds will be evergreen, designed to first pay
back the principle to investors, then provide steady, ongoing returns through
capital recycling. Unlike typical venture investing, the focus is on generating
desired returns and impacts in the most sustainable manner.
•
Investment decisions are made on a local level by management who are
carefully selected and trained in the Transform and LIIF process, and who
are supported by Transform systems, technology and the wisdom of groups
decision framework. They are also able to plug into the network intelligence at
a head office level, or from counterpart funds around the world.
•
Governance is critical and the Transform pre and-post deal management
software enables head office to monitor investment activity and step in to
provide re-mediation support, should it be required.
•
The value proposition incorporates speed, scale, long-term perspective and
the ability to satisfy varying needs and appetites towards risk. It does so with
the potential for much larger capital flows and far greater combined impact.
Impacts everyone can benefit from.
•
To maintain adherence to the vision of tackling the ‘valley of death’ issue,
between 20% and 30% of average annualised investment from the LIIFs will be
reserved for first stage deals of up to £500k (or equivalent). 25% – 30% will be
reserved for second stage deals of up to £5m, and up to 50% of the fund will
be reserved for deals of £5m and above. To allow for additional flexibility, up to
20% of funds under management may be invested in companies requiring £5m
and above that have not already received at least two rounds of investment
from the first or second stage allocation.
The Local Impact Investment Funds
(LIIFs) will operate in single markets,
such as the UK, France, Spain or
Texas, or regions such as the GCC,
Scandinavia or Benelux countries.
Management believe they are
also the most suitable structure for
operating in tough or emerging
markets, including sub Saharan
Africa, India and China.
By making staged investments,
and providing incentivised support
to investee companies (through our
AIDA system), the LIIFs can support
evolution including from concept
to commercial success.
14

18. TRANSFORM
GLOBAL
Innovations at the heart of the Transform Global model
There is no doubt Transform Global is ambitious. The challenges the world faces,
require nothing less. Yet that ambition also has to be practical, achievable, flexible
and for maximum impact - self reinforcing.
While Transform universally excites, when some first take a look, they find the same
scale that excites, also a little daunting. The way the model is designed to progress
from stage to stage however, and key features, drivers and innovations at its core all support practical delivery.
The business model is designed carefully with characteristics shown in the
innovation wheel below, and is glued together by the Transform Global brand. The
sections around the outside of the wheel represent key departments that enable
everything to happen, all of sufficient scale so Transform can achieve it’s potential.
The innovation wheel, which
can be viewed in full on the
Transformglobal.co website, shows
how at the heart of the model, there
are a number of linked innovations
which are able to work in harmony,
and strengthen each other.
We have given summaries of just a
few of the core innovations below.
Technology and decision framework. Semi automated data
gathering ,assessment, and performance monitoring systems
of 30 of the world’s leading corporations, selected by business
enable superior investment selection, even at very
sector, geographic location and attitude. Given the
r es ea rch
early stages, especially important for tackling
Transform mission and likely public profile,
the valley of death and access to capital
this gives an unmatched opportunity for
sponsor leadership
problems. Many opportunities can
sponsors to garner CSR, marketing,
support and timing
be reviewed and assessed in
and other benefits. These include
talent
scale and
greater depth by a larger team,
aligning themselves with the
magnet
scalability
resulting in more objective
public mood and being seen
assessment. Data gathering
as a force for good. They
values
blended
and monitoring continue as
are also able to use
and culture
capital
the investees progress.
the LIIF technologies
Above all, intelligent data
and systems to drive
systems give the ability
their own innovation
fund
incentivised
to harness the wisdom
process. Sponsors will
structures
cornerstone
collaboration
structural
of intelligent groups to
collectively provide
features
assess opportunities
£150m per year
drivers
(£5m each) of core
knowledge
funding, plus other
underpinning
TRANSFORM
Scale & scalability.
management
assistance, and in so
theory
To tackle global
GLOBAL
doing, they are able to
the brand
challenges, we need
better manage their
activity on an extreme
own risk and resliance
advocacy
local level. How we
progressive
threats, and create a
partners
facilitate that, and
structure
operational
pipeline of risk adjusted
create meaningful
innovations
sustainability returns.
scale, however will be
decision
portfolio
on a macro level. The
framework
design
Transform Global system
Fund structures. Where
design, is all about carving
possible, funds will be
dynamic
AIDA
out the space, and creating
evergreen and recycle capital,
allocation
leverage
a model that has strength and
with surplus returns paid to
terms and
deal-flow
capacity to work at optimum scale,
investors. After the pilot fund, the
conditions
pipeline
where benefits of scale are high, and
first fund will be a £500m Global
where fund structures can be replicated
Impact Investment Fund. This will invest in
tech nology
globally at optimum speed.
platforms that help favourably alter the global
conditions for investing in sustainability, including:
new asset managers, new market creation, and platforms that
Fund-raising. There are real benefits if fund-raising expertise
facilitate further investment. We call this leveraged triple bottom line.
and relationships can be harnessed, honed and expanded with
There will also be multiple Local Impact Investment Funds, locally or
military like precision, focus and scale. Separating fund raise from
regionally based. The standard investment fund, structure and format deployment, and doing so with sponsor support gives the strength
can be replicated locally at low cost across the world.
and capacity to raise new innovative funds, and replicate them.
ra
or
nd
ng
ad
isi
vis
fu
y
Sponsor support. Transform Global will be sponsored by a network
com
tw
at
io
ne
nic
ork
mu
ns
15

19. TRANSFORM
GLOBAL
Hope - engagement - equity - and investment examples
Sustainability
Intelligent
Financial leading to
understanding
economic
non financial
and focus
growth
innovation
=
Hope
Aligned investment
flowing to the real
Engagement
Intelligent Economy
+ Employment
+ Treasury revenue
=
Equity
The words above capture the essence of what Transform Global is all about. Those that are most important, are shown in
yellow. Hope, equity and engagement are words of today.
The world can only be a better place if our existing financial systems add more value than they take. The opposite is a world
where people are disengaged, people lack hope, where the environment is damaged beyond repair, and where the extremes
of inequities only increase. A world where terrorism and terrible things are ever more prevalent.
To change things for the better - to Transform - we have to fund the things that have been much ignored. The examples below
are the types of business that can make the world a little or a lot better, but they are also the types of businesses that have
typically fallen through existing funding gaps. It is time to change things - and the Transform model can kick start that much
needed change - and do so in a way thats much better for all aligned stakeholders in the process.
Deal Example 1.
Deal Example 2.
Deal Example 3.
An early stage business, formed by
a small group of entrepreneurs, has
linked a breakthrough in materials
science, with a better process of
retrofitting properties to create a
way of reducing energy utilisation by
20-30% for domestic or commercial
properties. The business has
licensed the technology, and
requires capital to build out the
company and processes, and local
funding for installers, to enable
distribution and scale. £2m equity
sought for top company, with £200k
- £500k required for every installer.
Both forms of finance are required
for success and maximum impact.
Team from a sponsoring or similar
corporation, have prototyped
an engine technology, where
significant material and energy
savings are possible, but where
the corporate will not allocate
development capital due to non
core nature, misunderstood
market potential, or internal capital
competition. Business case is
viable, and corporate are happy
to spin off, retain equity and co
invest. Estimated £10m required
to get into production, £50m for
commercialisation. Disruptive
potential. Cut back case - £500m£1b value in 5-10 years.
Entrepreneur and advisors with
team lined up, and with an
exciting financial innovation. Well
formulated, detailed business
plan. £1.5m of seed capital
required to establish viability of
business case, market and tech
potential and for team to become
operational. Business straddles
all target areas of importance and
incorporates financial technology,
financial services, and marketing.
Further £5m required to reach base
viability and £30m for full roll out.
High market enabling, impact and
return potential, with a commercial
model that is innovative & exciting.
16

20. TRANSFORM
GLOBAL
Background - management - and how it will attract talent?
Transform Global is the culmination of seven years of focussed research,
development and action by a single social entrepreneur - Steve Podmore.
Transform Global has a number of
With a history in business education and training, marketing, talent management
and consulting - after years working to raise capital for entrepreneurial ventures
Steve realised that if the world was to progress, system innovation in finance
was badly needed. With an intense interest in economics, sustainability and
the psychology of individual and organisational behaviour, in late 2006 Steve
embarked on what was to become an all consuming journey. The desire was
to get to the heart of the linked system challenges, and to do something about
them. The core idea has gone through a number of iterations, and the result is
the mature, developed and stress tested model that is Transform Global.
have provided seed investment
It has been said, that the only way to understand and address a serious
challenge, is to live it - and to know it inside out. To look at it from angles others
have not seen, to listen to - but not be swayed by feedback, to iterate, and not to
give up. One of the biggest discoveries of this journey, where the key challenge
that Transform seeks to address - has been lived, experienced and observed
continually - relates to how the recruitment and investment process for important
ideas and businesses, works - or more accurately - doesn’t work.
As investment is typically today (without Transform - or outside of California), most
potential funders, particularly for things that are capital intensive, want someone
else to have invested first. They look for risk to be removed (which is not efficient
on a deal by deal basis), and for A class management to be fully engaged. Often
investors seek ‘the name’ as a way to get comfortable - but this shortcut often
backfires. Breakthrough innovation comes from outsiders, and rarely are these
innovators taken seriously. Rather than nurtured and supported to raise capital
and recruit a sound team from a position of strength - founders are ignored. This
makes no sense, and is at the heart of the problem.
The trouble, especially for big ideas or businesses, is without at least the first
meaningful stage of capital, it is very hard to recruit a strong and sufficiently
diverse team, and get them fully embedded. Not everyone is wealthy and able to
work without pay. Yet trying to recruit from a position of weakness, and expecting
people to work for the months that they need to sufficiently understand a
technology or business and their role in it - is beyond hard. It often delivers the
type of team that not only fails to impress - as could be predicted, it fails to deliver.
Transform cleverly addresses these issues - and ironically having lived through
them - this positions Transform itself, and entities funded as a result - for success.
Transform Global - Org Chart
seasoned advisors, some of whom
over the years - with strong
capability in finance, technology,
marketing and in the broad tent of
sustainability. They include:
• The former head of government
relations for one of the largest
energy companies in the world.
• European Chairman and Vice
Chairman of Ogilvy and Mather,
the worlds largest marketing and
communications agency.
• The co-founder of a leading
environmental investment bank.
• Head of European sustainable
banking for a US investment bank.
• Head of treasury and operations
for a top UK retail bank.
• A number of business, technical and
engineering focussed executives.
• Scientific, public policy and social
enterprise / finance experts.
Despite the challenges described,
Transform now has a very strong
network, including those who are
lined up as stage 1 management,
or as important members of the
ongoing team thereafter.
The founder and core team, which
includes experienced corporate
finance, investment management
and operational executives, will
raise the first stages of funding,
and with the assistance of advisors
above, in stages 1 - 4 (pg 19/20),
will then recruit from a position of
strength - those shown in the org
chart to the left. The compensation
plan is staged, and offers equity
and performance options to all.
17

21. TRANSFORM
GLOBAL
Scale Up Speed Up - the marketing roadshow
In this dynamic three day event to
be organised by Transform Global,
or in the many feeder roadshow
events, interested stakeholders
Scale Up Speed Up (SUSU), is a comprehensive event format to help stakeholders
fully answer the important questions below. It will also help them understand the
solutions, including how Transform Global would work in practice, what different
stakeholders can get, and how they can engage. Questions include:
•
Despite the urgency to de-carbonise, and in the absence of binding
agreements from international governments - what we are missing which could
speed up sustainable economic and environmental recovery.
•
How ‘fit for purpose’ financial innovations, can be better identified, proven,
scaled and scaled at optimum speed.
•
What financial innovations are currently in the pipeline to better plug critical
local and global funding gaps.
•
How it is possible to integrate adaptation and mitigation to climate change,
with development and intelligent economic recovery.
•
How we can build delivery capacity for the Green Climate Fund and also for
international funds that can deliver maximum impact with innovation and jobs
alongside attractive financial, social and environmental returns.
•
Which public policy measures, public private partnerships, and civil society
initiatives can help address these global risks and opportunities.
•
How we can learn from past developments of new asset classes or markets,
such as hedge funds, carbon markets, micro finance and exchange platforms.
will get to discuss answers to the
truly important questions shown.
Crucially, rather than just another
talking shop, scratching the surface
but achieving little else, participants
will be able to dig into the detail of
a practical and tangible catalysing
solution to the issues they care
most about. And, they get to do
so with sufficient exposure to best
understand how they can engage
and contribute to its success.
SUSU doubles as a marketing
roadshow for Transform Global.
It is designed to attract the ideal
profile of attendees due to the event
format, profile of keynote speakers,
intense interest in the subject, and
Once Transform has secured the £1.5m in seed funding, core team are on board
and embedded, and presentation materials are ready, SUSU will be actively
marketed by a highly experienced team. Scale Up Speed Up will be free to attend,
and strictly by invitation or by application.
The event format is innovative, collaborative and compelling, and will be marketed
via an extensive PR and communications campaign, with smaller feeder events,
email, and direct contact to targetted attendees selected from the extensive
Transform network and related stakeholder groups.
the marketing method to current
and potential stakeholders.
Scale Up Speed Up
A 3 day event to bring together over 300 global investors and leaders to explore ways
to accelerate results, innovation, sustainability and equity in finance to best address the
biggest risk and resilience threats - and unlock the largest opportunities of modern times.
Qatar
Q1 2014
Exploring how Transform Global can expand the provision of
Active Impact Investment into Sustainability - Health - Education - Energy
18

22. TRANSFORM
GLOBAL
The development plan - co-global headquarters
target London
co-global headquaters
?
?
?
?
?
possible locations for
the co-global headquarters
?
?
?
?
?
?
?
example of global head office design
Transform Global is a big vision - and therefore it requires visionary backers and supporters also. Management believe the
best way to launch, is to co-locate the headquarters between London and a suitable country where the regional benefits
Transform can deliver are significant, and where the platform of a second HQ enables scalability and market access.
Being a global financial centre and the home city, Transform aims to ensure London is at the heart of responsible financial
innovation, with many aligned host country benefits. The co-global HQ will most likely be in a key centre in an emerging
market. In partnership with the host country government, Transform Global will seek to build an iconic ‘Global’ head office as
a financial innovation hub and prestigious showcase of advanced sustainable building, technology and enterprise. Transform
at its heart is a sustainability focused job creation machine - offering many benefits for countries and regions where it might
have a presence. Ultimately, the goal is to cover the map with appropriate Local Impact Investment Funds, managed by
Transform Global, or by local and regional partners. The system design, practical steps, and scale and support the sponsors
bring, will enable Transform to set new standards of how important funding gaps are addressed around the world.
STEP 1.
STEP 3.
STEP 4.
Transform is raising a £1.5m
equity round (possibly split
into two stages of £250k and
£1.25m. The closing goal of
this fund-raising, is Q1 2014
ready for a Q2 2014 start.
Management have decided
to proceed down the crowd
funding route should no
suitable strategic investor
be found prior to the target
start date, and are currently
preparing documentation
and doing pre marketing,
with the goal of going live
on Crowdcube in Jan 2014.
This funding round will
enable the core team of 15
persons to be on board,
for all communications to
be simplified, regulatory
approval progressed, and
marketing for stage 2
completed via the Scale Up
Speed Up event roadshow.
19
STEP 2.
Step 2 involves the securing
of the £20m G/LIPS fund
and a further £5m of equity
(A Round second close),
after which investment
activity will commence.
The equity will enable the
technology platform (pre
and post deal management,
and crowd sourced deal
and decision support) to be
built, and for it to be tested
in the live G/LIPS investment
environment. Excluding
separate teams who will
complete Incubation and
Corporate Finance work
for the G/LIPS fund, the
core Transform team will
rise to circa 25 persons.
Additionally, the full model
will be ratified, with a fund
raise and outreach program
to secure sponsors and
investors for step 3.
Step 3 is a combined step,
where any of the three pieces
could happen in any order,
or most likely all at once.
To fully role out the model,
there is a £30m equity raise
(First Round) to capitalise
the business (which includes
£10m of investments - to
be made into profitable
entities, giving advisory,
network and technology
platforms - for marketing
access, talent and technical
capability). At the same time,
the sponsor recruitment
process (begun at step 1)
aims to deliver cornerstone
Global Sponsor agreements.
In parallel the first £50m
for the GIIF is targeted to
close, with sponsor and
GIIF investments growing
thereafter. When step 3 is in
place, roll out proper starts.
The first Local Impact
Investment Fund will be
raised when step 3 is fully
in place, with the first LIIF
predicted to take up to 18
months. This allows technical
preparation, fund-raising,
and for investment activity to
begin. Each LIIF is predicted
to take up to 4 years to be
investing at the annual target
capacity. When the first
LIIF is in place, Transform
Global will work to close the
second, third and forth LIIFs
and so on. Step 4 is where
the sponsor recruitment is
also extended locally into
categories that are beneficial
and complementary to
Global Sponsors.

23. TRANSFORM
GLOBAL
The investment opportunity - risks - returns - and governance
Fund-raising Strategy.
Transform Global, as a compelling
alternative model for a Global
Impact Investment Bank, requires
necessary complexity to be cleverly
distilled. The focus of the fund raise,
is showcasing that the core idea
is strong, that delivery has been
thought about and planned in great
detail. That the model is flexible,
can work, can attract talent and
that management, including those
the model can attract, are (or can
be) credible and capable. And - to
communicate all this in common
language for all, and in sufficient
detail for those who need more.
Transform Global is preparing for a fund raise to fully capitalise the business with
£36.5m. As can be seen below, this may be done in three or four practical steps.
The first £1.5m - is an opportunity for strategic investors, impact investors, or via a
crowd funding platform - for individuals to back this model for a Private World Bank.
The follow on £5m (expected to take between 6 and 9 months to raise), will enable
strategic financial or corporate investors who are seeking deal flow pipelines and
related open innovation capability, to participate in this innovative financial model.
£5m equity will be raised alongside the £20m G/LIPS fund.
Finally, to fully capitalise - £30m in equity will be raised, via sponsors, impact
investors, or as strategic investment from the host country for the co-global HQ.
Though the full business model does not require it, and full capitalisation enables
profitability to be reached in year 3, Transform reserves the right to raise additional
equity in a pre IPO or IPO fund-raising. Management plan to offer a full or partial
exit to investors within 3 - 4 years of launch through such means - whilst also
strengthening the balance sheet to prepare for and fund global scalability.
Fully capitalised with £36.5m
£6.5m Equity
£30m (+) Equity
£250k £1.25m
S/EIS
EIS
X 15
£5m
X 25
£20m
G/LIPS Fund
The first £6.5m of equity
is risk managed by the
£20m G/LIPS fund.
Including £10m to make strategic (and hedging) investments in:
Network
20p
10-30 x
25p
8-24 x
STEP 1.
50p
4-12 x
STEP 2.
Advisory
Technology
The full business plan, shows up to 100 persons by the end of
year 1, and 300 by the end of year 3. All personnel can qualify
for performance based options, which also are built into the
plan, and contribute to return expectations shown below.
(GIIF, LIIF and AIDA personnel - are in addition to the above)
First £50m of GIIF (Global Impact Investment Fund)
Target GIIF size = £500m
First LIIF (Local Impact Investment Fund)
Target LIIF size = £500 - £2.5b
In the event the Global and
Local Impact Investment Funds,
sponsorship and further equity
cannot be raised, returns for the
management of the G/LIPS fund,
with strength in diversity, would
revert to initial equity investors,
thus limiting downside risk.
Upside projections for full
roll out are shown below.
Maximum Impact and Governance.
2nd LIIF
3rd LIIF etc.
Global sponsor
recruitment
100p (share purchase price)
2-6 x (base case - to target - return projections - in 4 - 7 years)
STEP 3.
STEP 4.
Though details on this page highlight
the financing strategy and return
projections, it is important to reiterate
the blended purpose of Transform
Global, and the focus on using its
hybrid social / commercial model to
deliver maximum impact on critical
issues such as climate change,
sustainable development, job creation
for intelligent economies, and the
linked issues of health, education
and affordable clean energy for all.
This blended purpose and impact
focus will be made possible by the
sustainable charter and governance
structure, and embedded and
reinforced via the Transform Global
Trust and its independent trustees.
This innovative structure, means while
Transform Global is designed to make
and sustain healthy returns for all
stakeholders, ‘financial only investors’
are still welcome, but with the explicit
understanding and agreement to
these positive impact terms.
Safe Harbour Statement. This document is not a formal investment memorandum and contains no offer to sell securities. It is a
marketing document for the Transform Global concept - to be used in preliminary discussions and marketing to potential investors,
management and for strategic partner recruitment. It lays out the business model, sponsor recruitment strategy, and intended structure
of funds it will raise and manage directly or indirectly. Also included are details on the equity fund raise for Transform Global itself. Return
projections shown, detail base case values for full roll out - based on the business plan and assumptions contained therein. The cut down
version of which, and the investment term sheet will be made available to accredited investors and partners by request, and will be made
available on the Crowdcube platform when the crowd funding campaign goes live early in 2014. Projections can go up and down, and
investors should seek professional advice prior to making any commitment. Though management believe the business model is realistic
and can scale once Step 1 funding is secured - Transform Global carries risks. These include fund-raising steps or sponsor recruitment,
which may fail fully or partially. Also, the business projects zero revenues until step 2, with the full business plan commencing at step 3.
20

24. TRANSFORM
GLOBAL
Transform Global
20 Little Britain
London EC1A 7DH
Tel +44 203 478 1136
hello@transformglobal.co
www.transformglobal.co