Cyril Gouiffès of European Investment Fund @ REconomy practitioners guest speaker online event, 24.8.2017.

1. EIF - Impact Investing Tools
24th August 2017 - The edge
between REconomy and Impact
Investing

2. SME Development Stages
DEVELOPMENT
HIGHER RISK LOWER RISK
Public Stock Markets
Incubator/Accelerator-linked funds
Technology Transfer
Microcredit
VC Early Stage
Portfolio Guarantees & Credit Enhancement
VC Lower Mid-market & Mezzanine Funds
PRE-SEED PHASE SEED PHASE START-UP PHASE EMERGING GROWTH
Social Impact Funds
Business Angels
Payment-by-Results investment schemes
Social Impact Accelerator
(SIA)
€243m
EFSI Social Impact window
min. €150m
Impact Investing: Mainstream Activity
at EIF

3. Social Impact
Accelerator
Social
Impact
Venture
Capital
Fund
Social
SME
Social
SME
Social
SME
Social
SME
Social
SME
Investment Targets
Final
beneficiaries
Crédit
Coopératif
Fund-of-funds
Investors
SITRA
Bulgarian
Development
Bank
Social
Impact
Venture
Capital
Fund
Social
Impact
Venture
Capital
Fund
Across the EU,
Candidate Countries
and Potential
Candidate Countries
Public-Private Partnership
EUR 243m Investment Capacity
Social Impact Accelerator (SIA) – Structure
Social Impact
EIB/EIF
Deutsche
Bank
3

4. 4
Europe’s leading social impact fund
investor
Since 2014:
10 fund investments
€104.6m* (43%) committed
38 final beneficiaries
** Funds: Impact Partenaires III & Impact Creation 1
**
* Exchange rate GBP/EUR on 31 Dec. 2016

5. New tools for impact investing:
EFSI Equity Instrument
5
New tools for impact investing
Investments
in/alongside
intermediaries linked
to
incubators/accelerat
ors targeting social
enterprises
Investments in business
angels funds or co-
investments alongside
business angels
targeting social
enterprises
Payment by Results
investment schemes
targeting social sector
organizations at large

6. EFSI Investment Criteria(*)
Independent
Management team
EIF ranks (at least)
pari passu
Max commitment:
€ 50m
7.5% ≤ ticket size ≤
50% (typically)
2X – 2/3 rule
Eligible
beneficiaries: SMEs,
Small mid-caps,
SocEnt
15 years +3
(*) non-exhaustive list 6

7. Investment in/alongside Financial
Intermediaries linked to incubators/
accelerators
7
EIF as (co-)investor Private/Institutional Investors
Financial Intermediary
(Typically venture capital funds)
Portfolio of Social Enterprises (and other eligible beneficiaries)
established or operating within the EU ranging from pre commercial stage up to early growth
Incubators/
Accelerators
Min: 7.5%
Max: typically up to 50%
Max: EUR50m
Equity/Preferred Equity/
Hybrid Debt-Equity/
Other mezzanine financing
Services

8. Co-investment with Business Angels
8
EIF as (co-)investor
Business Angels/
Business Angels Funds
Co-investment vehicle/agreement with Business Angels
Portfolio of Social Enterprises (and other eligible beneficiaries)
established or operating within the EU ranging from early stage to growth stage
Min: 7.5%
Max: typically up to 50%
Max: EUR50m
Equity/Preferred Equity/
Hybrid Debt-Equity/
Other mezzanine financing

9. Payment-by-Results
9
EIF as (co-)investor
Private/ Institutional Investors/
PbRManager
Financial Intermediary
(Typically through special purpose vehicles)
Social Enterprises/Social Sector Organisations
established or operating within the EU
Min: 7.5%
Max: typically up to 50%
Max: EUR50m
Equity/Preferred Equity/
Hybrid Debt-Equity/
Other mezzanine financing/
Debt

10. Impact measurement
10
1
SOCIAL
OBJECTIVE
STAKEHOLDER
ANALYSIS
IMPACT
2
3
4
5
6
7
8
elaboration of change
theory
identification of social issue
definition of stakeholder-
specific metrics
analysis of stakeholder
expectations
stakeholder selection
stakeholder mapping
definition of stakeholder-
specific objectives
measurement/reporting of
social impact performance
10
Intermediary’s
financial reward is
linked to the
achievement of
social impact across
the portfolio
2-3 Impact KPI’s per
investee (except for
PbRs, where impact-
reward link is
captured in the
tool’s structure)

11. Social Business
Models
Traditional Business
Models Run in a
Social Way
Geographically-
Focused Business
Models
Business Models
Social Enterprise Business Models
MyChoicePad helps
children, young people
and adults who have
speech, language or
communication needs.
Autistic individuals receive
the opportunity to
contribute their skills to the
IT sector (e.g. Software
Testing) and to
independently fund their
lives.
The Gym provides low cost
health and fitness facilities
in purpose-built gyms
which are open 24 hours a
day.

12. What do we look for?
12
Team or BA
Investme
nt
Strategy
Market
opportunity or
need
Vehicle
structure
and size
Downside
Protection
Terms &
Conditions
Impact Thesis,
Theory of
Change
Active pipeline
Alignment of
interest
Relevant dealflow

13. Contact Details
13
Cyril Gouiffès
Investment Manager
Impact Investments
Technology & Innovation
Email: c.gouiffes@eif.org
Web: www.eif.org
http://www.eif.org/what_we_do/equity/sia/index.htm
http://www.eif.org/what_we_do/microfinance/easi/index.htm?lang=-en
http://www.eif.org/what_we_do/efsi/equity/index.htm
For further information on SIA, EaSI and EFSI Equity for social impact
please visit:

14. 14
Disclaimer
▪ This document is for information purposes only and is intended to provide an
outline of the main terms for the products described therein, which are
indicative, non-exhaustive and subject to change
▪ This document does not constitute a recommendation, a solicitation, an offer
or a binding commitment – either implicit or explicit – on the part of the EIF
▪ This document and any information contained therein may not be circulated
and/or reproduced in part or in full without the prior written consent of EIF