The Third Billion Fund proposal was developed by Columbia Impact Investing Initiative’s (CI3) team comprised by Evgenia Sokolova, Sandra Halilovic, Helene Roy, and Vladimir Olarte for the International Impact Investing Competition held by the Federal Reserve in San Francisco on April 13, 2012. The proposal was chosen as one of the finalists among 40 applications from top management and public policy schools around the world.

1. Third Billion LLC

2. 870 million *
women between
ages 20 and 65
live outside the
economic system
*Source: Study by Booze & Co. Aguirre, DeAnne, and Karim Sabbagh. "The Third Billion."Strategy+Business May 2010

3. By 2025… *
India
China
*Source: "Home | The Third Billion.” <http://thethirdbillion.org/>.

4. Women reinvest 90% of their income in families and communities*
Women in management positions have 35% greater return on equity*
Investing in women is smart economics
When at least 10 % of a country's girls attend school, its GDP
increases on average by 3%*
*Sources: Study by the OECD, “DAC guiding principles for aid effectiveness, gender equality and women’s empowerment”, Endorsed by the DAC
Senior Level Meeting, December 2008
“The economic power of women” Calvert Foundation http://www.calvertfoundation.org/the-economic-power-of-women

6. No property rights No land rights Labor policy
Unequal
discrimination Market restrictions
access to education Unequal pay
Discrimination at workplace Poor childcare services
Lower status of women in society Poverty Lack of
critical resources Denied credit Fewer
educational opportunities No access to market
Social restrictions Gender disparities Unable
to participate in the supply chain Lack of
entrepreneurial opportunities
Lack access
Unequal access to vocational education
to basic banking services Limited
entrepreneurial skills No access to market

7. No property rights No land rights Labor policy
Unequal
discrimination Market restrictions
access to education Unequal pay
Discrimination at workplace Poor childcare services
Lower status of women in society Poverty Lack of
critical resources Denied credit Fewer
educational opportunities No access to market
Social restrictions Gender disparities Unable
to participate in the supply chain Lack of
entrepreneurial opportunities
Lack access
Unequal access to vocational education
to basic banking services Limited
entrepreneurial skills No access to market

8. No property rights No land rights Labor policy
Unequal
discrimination Market restrictions
access to education Unequal pay
Discrimination at workplace Poor childcare services
Lower status of women in society Poverty Lack of
critical resources Denied credit Fewer
educational opportunities No access to market
Social restrictions Gender disparities Unable
to participate in the supply chain Lack of
entrepreneurial opportunities
Lack access
Unequal access to vocational education
to basic banking services Limited
entrepreneurial skills No access to market

9. No property rights No land rights Labor policy
Unequal
discrimination Market restrictions
access to education Unequal pay
Discrimination at workplace Poor childcare services
Lower status of women in society Poverty Lack of
critical resources Denied credit Fewer
educational opportunities No access to market
Social restrictions Gender disparities Unable
to participate in the supply chain Lack of
entrepreneurial opportunities
Lack access
Unequal access to vocational education
to basic banking services Limited
entrepreneurial skills No access to market

10. No property rights No land rights Labor policy
Unequal
discrimination Market restrictions
access to education Unequal pay
Discrimination at workplace Poor childcare services
Lower status of women in society Poverty Lack of
critical resources Denied credit Fewer
educational opportunities No access to market
Social restrictions Gender disparities Unable
to participate in the supply chain Lack of
entrepreneurial opportunities
Lack access
Unequal access to vocational education
to basic banking services Limited
entrepreneurial skills No access to market

12. A Tiered Investment Fund
Return: 15%
Retirement and Pension Funds
Equity
Financial Return
Growth SMEs Return: 7%
Fund University Endowments
Debt
Higher Return: 2%
Education
Fund Family Foundations
India
PRI
Legal Protection
Fund Social
Return

13. Access to
Higher Education
HOLISTIC APPROACH
Access to
Capital
Access to
Legal Protection
Year1 Year 3 Year 7
STAGGERED IMPLEMENTATION

14. Geographic Focus on Latin America
Mexico
Colombia
60% of
Latin American
Brazil Women*
Economic Potential
Synergies
Team Networks
*Source: IHS Global Insight

15. THIRD BILLION LLC
Enhance economic contribution of women by investing
in their education, entrepreneurship, and legal protection

16. Country Tertiary School
Enrollment Rate in 2010*
Mexico 26%
Colombia 40%
Brazil 41%
Higher Education Fund
Debt capital in financial Diana
institutions and social Mexican
enterprises
Engineering Student
Providing student loans to low
income and talented women
Promote programs that develop
entrepreneurial capacity
Phase I Phase II Phase III
*Source: World Bank’s World Development Indicators

17. Oriana, Colombian
MBA Student in the US
Fund Size: $60 million
IRR (interest rate): 7%
Investment Size Range:
$5 – $20 million
Hold Period: 5 years
Target: 2,000 students
Management fee: 1.5%
Phase I Phase II Phase III

18. Growth SMEs Fund
Equity capital in growing Small
and medium size companies
Led by women or providing
valuable goods and services
to low-income and vulnerable
Evania,
Evania, Brazilian
women
Areas: maternal health, housing, Goldman’s 10,000 Women
nutrition, among others Gardening Tools Company
Phase I Phase II Phase III

19. Leila
Brazilian
CEO of Beleza Natural
Fund Size: $50 million
IRR: 15%
Investment Size Range:
$0.5 – $5 million
Hold Period: 5 to 7 years
Life of Fund: 7 years
Management fee: 2.5%
Phase I Phase II Phase III

20. Renata
Brazilian
Federation of Domestic Workers
Legal Protection Fund
Debt (PRIs*)
NGOs helping women
Accessing Institutions
Using Property
Getting a Job
Building Credit
Going to Court Simone
Goldman’s 10,000
Women Fellow
Phase I Phase II Phase III Gardening Tools
* Program Related Investments

21. Fund Size: $5 million
IRR (interest rate): 0%-2%
Investment Size Range:
$50,000 to $110,000
Hold Period: 5 to 7 years
Management fee: 0.5%
Laura
Mexican Phase I Phase II Phase III
Indigenous Women’s House

22. 3rd Billion Partners Brazil Mexico Colombia
Women Support
Networks
Incubators &
Accelerators
Events and Business
Plan Competitions
Impact Investors

23. Monitoring and Evaluating Impact on Women
1. Women enrolled
2. Women completed
Third Third Billion LLC will use GIIRs for:
Billion • Transparency and accountability
• Monitoring and comparing impact
• Identifying potential investees
LLC
1. Female low-income clients (and total) 1. Women provided legal advice
2. Female jobs maintained and created 2. Degree of change in legislation
3. Female shareholders

24. Thank You

25. Appendix

26. Summary: Structure and Timeline
Expected Hold
Tier Mission Asset Class Risk Mgmt Fee
Return Period
Access to Medium 3 to 5
T1 Debt 7% 1.5%
Education to Low years
Access to Medium 5 to 7
T2 Equity 15% 2.5%
Capital to High years
Access to 5 to 7
T3 PRI 2% Low 0.5%
Legal Protection years
T1: Access to Higher Education
T2: Access to Capital
T3: Access to Legal
3 years 7 years 15 years

27. Organisational Structure: Investment Team
Investment
Committee
CEO Advisory Board
(2/3)
Managing
Directors (2)
Business
VPs and
Development
Principals (2)
(1)
Analysts and
Associates
(3)

28. Risks & Contingencies
Risk Contingencies
Companies with sustainable positive cash flows
No secondary market
Diversification of investees (geographies, sectors
Lack of liquidity
and individual assets.)
Experienced management team
Lack of track record
Established approvals and monitoring process
GIIRS rating
Mission Drift Alignment of financial performance with
demonstration of social impact
Diversified nature of fund’s borrowers, rigorous
Potential of a Loss
selection criteria, track record and reputation of the
fund manager

29. Example - Improving Legal Representation
The 3rd Billion Fund will provide PRI to institutions whose missions
address the following challenges*:
• Accessing Institutions: improve women’s ability to interact with public authorities and
the private sector in the same way as men
• Using Property: improve women’s ability to access and use property based on the
ability
• Getting a Job: reduce restrictions on women’s work, such as prohibitions on working
at night or in certain industries. This indicator also covers laws on work-related
maternity and paternity benefits, retirement ages, sexual harassment and equal pay
for equal work
• Building Credit: reduce minimum loan thresholds in private credit bureaus and public
credit registries, and improves tracking bureaus and registries that collect information
from microfinance institutions;
• Going to Court: improve the ease and affordability of accessing justice (small claims
courts, as well as a woman’s ability to testify in court and initiate court
proceedings.
* Source 1: Study by IFC. “Removing Barriers to Economic Inclusion.” Women, Business and the Law 2012
* Source 2: UN Women Report. “Progress of the World’s Women: In Pursuit of Justice.” UN Entity for Gender Equality 2011-2012

30. Improving Legal Representation
Multiplier Effect: With less legal gender differentiation,
more women work, own or run businesses*
* Source: Study by IFC. “Removing Barriers to Economic Inclusion.” Women, Business and the Law 2012

31. Evgenia Sokolova Sandra Halilovic
Genia is pursing a Masters of Public Sandra is a Masters of
Administration degree in International Affairs’ Candidate at
Development Practice at Columbia Columbia University, concentrating
University. Previously, Genia in International Finance and
worked as a Vice President of Economic Policy (Finance track).
Credit Portfolio Management and
Research in the Natural Resources Sandra carries 5 years of professional experience, working in
Team at JP Morgan Chase. investment banking in New York and London, in emerging
market consulting, and for the World Bank’s International
She graduated from Mount Holyoke with a Bachelor’s Finance Corporation.
degree in Economics (cum laude) and received an She graduated from the University of Virginia's McIntire
International Relations Certificate from Sciences Po in School of Commerce with a B.S. in Commerce, concentrating
Paris. Originally from Moscow, Russia, Genia lived in in Finance. Originally from Bosnia, Sandra lived in Croatia,
Canada, the US, UK and France. Norway, the US, and UK.
Helene Roy Vladimir Olarte
Helene is a Masters of International Vladimir is a Masters of Public
Affairs’ Candidate at Columbia Administration’s Candidate at
University, concentrating in Columbia University, concentrating in
Sustainable Energy Policy. Prior to Economic and Political Development.
her current studies, she received a Currently, he also serves as President
Masters degree of Columbia Impact Investing Initiative
in Management from Audencia Nantes School of and Director of the Center for Social
Management in France. Entrepreneurship HUB Bogota.
Helene has 3+ years of professional experience in the Prior to attending the MPA program, Vladimir worked for
investment management industry most recently at UBS 5 years as a consultant at Kaiser Associates Latin America
and Amundi Alternative Investments. and 2 years as the Lead Consultant of Invest Hong Kong in
Helene is originally from France. South America. Originally from Colombia, Vladimir has
lived in Brazil, the US, China, and South Africa.