TCM a blueprint for a Private World Bank or Global Impact Investment Bank, investing into funds which have a social, environmental and financial return. I am a communications adviser to TCM.

1. Different by design, to make a difference
Executive Summary
Feb 2012

2. Transform
Capital
Management
Execu6ve
Summary
Transform
Capital
Management
is
launching
a
new
ins6tu6on
-­‐
a
model
for
a
Private
World
Bank.
More
descrip6vely
we
explain
it
as
a
Global
Impact
Investment
Bank.
In
short,
we
aim
to
transform
the
way
we
use
financial,
natural
and
human
capital
-­‐
globally.
Increasing
focus
on
short-­‐term
specula;ve
returns
has
come
at
the
expense
of
what’s
beneficial
in
the
longer
term.
Sustainable
returns
on
a
broad
level
can
only
come
via
diverse
job
crea;on,
increasing
social
capital
and
good
stewardship
of
precious
resources.
Since
2008,
we’ve
had
many
reminders
of
how
so
called
free
markets
oEen
work
against
our
common
interest.
Thats
how
austerity,
inequality
and
social
unrest
have
been
increasingly
fueled
around
the
world.
And
we’re
all
much
poorer
for
the
destruc;on
of
natural
resources
that
this
short-­‐term
profit
fixa;on
has
brought
about.
Worse,
the
risk
and
resilience
issues
faced
on
both
a
local
and
global
level
are
ever
more
alarming.
Silver
linings
and
golden
opportuni6es.
It
doesn’t
need
to
be
like
this.
We
can
all
be
richer,
happier
and
truly
sustainable.
Where
others
see
gloom,
we
see
hope,
opportunity
and
innova;on.
But
we
also
see
an
urgent
need
for
systems
innova;on
in
finance,
enabled
by
technology
-­‐
to
beKer
allocate
capital
for
things
that
are
important
in
the
longer
term.
Thats
why
we
do
what
we
do.
We
also
see
a
tangible
hunger
in
people
for
new
incen;ves
-­‐
not
only
short
term
profit,
but
for
the
kind
of
things
that
really
count.
The
things
that
increase
social
capital,
true
quality
of
life
and
environmental
sustainability.
This
hunger
and
the
creativity
it
unleashes
is
what
gives
hope
-­‐
but
hope
needs
a
helping
hand!
The
funds
we’re
establishing
-­‐
the
innova;ve
Global
and
Local
Impact
Investment
Funds,
and
aligned
advisory
and
banking
services,
will
directly
address
these
pressing
needs
at
scale.
As
a
Private
World
Bank,
rather
than
being
funded
by
countries,
substan;al
core
funding
and
powerful
aligned
support
will
come
from
a
group
of
mo;vated
corpora;ons
(sponsors).
Through
Transform,
these
visionary
leaders
are
able
to
indirectly
address
their
biggest
threats,
differen;ate
against
compe;tors,
iden;fy
key
opportuni;es,
and
properly
change
the
rules
of
the
game
that
are
in
our
individual
and
collec;ve
interest.
Collec;ve
intelligence!

3. • Transform
Capital
Management
will
use
a
mul;-­‐layer
process
to
intelligently
raise
and
deploy
commercially
focused
Ac;ve
Impact
Investment
-­‐
and
scale
this
model
globally.
Our
success
will
be
measured
in
social,
environmental
and
economic
returns.
• We
aim
to
innovate
and
ensure
responsible
Impact
Investments
flow
to
fill
funding
gaps
that
will
efficiently
s;mulate
environmental,
social
and
economic
recovery.
The
focus
is
on
working
to
combine
strength
and
align
interests.
• By
deploying
much
needed
capital
in
this
way,
the
model
automa;cally
removes
the
condi;ons
for
some
of
the
worst
social
and
environmental
abuses
and
omissions.
Transform
Capital
Management,
and
its
funds,
have
the
capacity
to
directly
unlock
over
£150Bn
over
a
10
-­‐
15
year
period.
Indirectly
we
can
unlock
even
more.
• Our
model
for
a
Global
Impact
Investment
Bank
is
collabora;ve
and
designed
to
incen;vise
all
par;es
whilst
lowering
individual
risks.
Implementa;on
is
achieved
through
prac;cal
steps.
• The
first
is
an
innova;on
on
how
early
staged
funds
are
raised
and
deployed.
Our
pilot
fund
is
an
innova;ve
fund
to
create
a
basket
of
sample
investments
over
a
24
month
period.
First
deals
are
already
highlighted
and
key
team,
systems
and
structures
will
shortly
be
in
place.
• As
well
as
re-­‐engineering
the
early
stage
investment
model
(objec;ve
systems,
use
of
technology
to
improve
filtering,
decision
making
and
support
processes
and
pa;ent
capital
structures)
all
Transform
funds
will
have
incuba;on,
accelera;on
and
corporate
finance
units
aKached.
• This
pilot
fund
is
designed
to
de-­‐risk
the
equity
investment
into
the
whole
project,
enabling
marke;ng,
communica;ons,
revenue
and
credibility
to
further
drive
momentum
and
glue
everything
together.
• The
larger
funds
this
then
enables
are
the
Global
and
Local
Impact
Investment
Funds.
With
target
fund
sizes
of
£300m
to
£2b,
the
structure
is
for
blended
Public
Private
Partnerships
designed
to
deliver
maximum
impact
and
decent
returns.
• We’re
currently
raising
£6m
into
the
management
company
which
will
enable
regulatory
approval,
the
pilot
fund
and
cornerstone
deals
to
be
closed.
Our
team
will
become
opera;onal
and
we’ll
begin
ini;al
technology
and
system
development
for
roll
out.
A
follow-­‐on
£30m
First
Round
will
offering
highly
aKrac;ve
commercial
returns
(30%
+
IRR)
alongside
posi;ve
social
and
environmental
impacts.
• Revenues
will
come
from
sponsorship
(up
to
30
corporate
sponsors
each
providing
£5m
pa
+
secondees)
in
return
for
focused
risk,
opportunity
management,
global
publicity,
and
innova;on
pipeline
access.
• Over
;me,
the
model
migrates
to
genera;ng
a
greater
share
of
revenue
for
advisory,
management
fees
and
carried
return
for
funds
under
management.
• While
the
vision
for
Transform
is
truly
global,
implementa6on
is
first
local
(in
the
UK
and
GCC)
with
system
design
to
ensure
scaling
can
then
occur
at
op6mum
speed.

4.
MANAGEMENT
&
ADVISORS
• Steve
Podmore
–
Founder
Transform
Capital
Management.
Steve
is
a
believer
in
working
markets,
but
is
driven
by
the
market
and
value
failure
that
has
created
so
much
inequity
in
the
world.
He
has
made
it
his
social
business
and
life’s
work
to
do
something
about
it
on
a
scale
that
can
make
a
difference.
With
a
business
background
in
marke;ng,
psychology,
finance
and
educa;on,
Steve
created
the
ini;al
idea
which
over
six
years
of
development
morphed
into
a
model
to
Transform
Capital
Management.
• Gareth
Hughes
-­‐
Beetle
Capital
Partners
-­‐
Founder;
Prior
to
establishing
Beetle,
Gareth
was
a
Founder
and
Board
member
of
Climate
Change
Capital
('CCC')
with
responsibility
for
Marke;ng,
Fund
Development,
Capital
Raising
and
Investor
Rela;ons.
In
this
role
Gareth
was
involved
in
the
incuba;on
and
development
of
CCC's
funds
and
led
capital
raising
of
in
excess
of
$1.75bn
• Arthur
Wood
–
Founding
Partner
-­‐
Total
Impact
Advisors;
Founder
–
World
Sanita;on
Financing
Facility;
Head
of
Social
Financial
Services
-­‐
Ashoka;
Expert
in
Social
/
Commercial
Structuring;
20
yrs
in
banking
crea;ng
replicatable
financial
products;
Klienwort
Benson;
CouKs.
• David
George
-­‐
Head
of
Energy,
Europe
URS;
Sustainability
and
Environmental
Due
Diligence
Expert;
VP
&
Director
of
Transac;on
Services
Europe
for
URS.
• Anita
Hoffmann
–
Managing
Director
of
Execu;va,
mission
cri;cal
search,
advisory
and
coaching
in
the
Energy,
Renewables,
CleanTech,
Sustainability
and
Climate
Change
area.
Previously
Founder
and
Global
Co-­‐head
of
the
Alterna;ve
&
Renewable
Energy
Prac;ce
at
Heidrick
&
Struggles.
Career
in
Resources
and
Energy
with
Exxon,
Dow
Corning,
Accenture,
DeloiKe
and
ABB.
Anita
holds
an
MSc
Chem
Eng.
from
Lund
Technical
University
in
Sweden
• MaVhew
Hale
-­‐
Head
Of
Sustainable
Banking
-­‐
Bank
of
America
/
Merrill
Lynch
Europe;
Treasurer
-­‐
Merrill
Lynch;
Treasurer
-­‐
Bankers
Trust;
Founder
-­‐
BearBox
&
Striding
Edge.
• Paul
O’Donnell
-­‐
Chairman,
Ogilvy
&
Mather
Group
UK.
Founder
member
of
OgilvyOne
Worldwide
of
Ogilvy
Group
Inc.
and
has
served
as
President
in
Asia
Pacific,
Chairman
of
OgilvyOne
London,
and
Chairman
OgilvyOne
EAME.
Founder
of
the
IPA
Direct
Marke;ng
Group.
Paul
holds
the
Inaugural
Interna;onal
Diploma
Program
from
INSEAD,
and
Masters
Degree
from
Haute
Etude
Commercial
in
Paris.
• Rory
Sutherland
-­‐
Vice-­‐Chairman
of
Ogilvy
Group
UK.
One
of
Wired
magazines
top
100,
Rory
joined
Ogilvy
&
Mather
Direct
in
1988,
served
as
head
of
copy
in
1996
and
Crea;ve
Director
in
1997,
where
he
was
closely
involved
in
the
agency’s
relaunch
and
restructuring
as
OgilvyOne.
Execu;ve
Crea;ve
Director
since
2002
and
past
President
of
the
Ins;tute
of
Prac;;oners
in
Adver;sing.
• Ian
Philion
-­‐
Speechwriter,
Crea;ve
Media
Producer,
E-­‐learning
&
Sustainable
Construc;on
Entrepreneur;
Advisor
to
Governments
and
to
Corporates
in
the
resources,
media
and
financial
sectors.
Addi$onal
core
team
members
are
iden$fied
and
lined
up
but
are
not
yet
publicised.
Steve
Podmore
-­‐
Founder
steve@transformcapitalmanagement.com
+44
7853
008199