2015 q4 investors report feb 2016

Global Partnerships

INVESTORS REPORTFourth Quarter 2015 | October 1 - December 31, 2015

www.globalpartnerships.org

Seattle Headquarters: Global Partnerships, 1932 First Avenue, Suite 400, Seattle, WA 98101, USA | Tel: 206.652.8773 | Website: www.globalpartnerships.org

For more information, contact:

Jason Henning, VP, Investor and Donor Relations

[email protected] | 206.456.7832

Featuring: Fundación Alternativa on p.3

Photo © Global Partnerships

http://www.globalpartnerships.org

http://globalpartnerships.org

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http://www.impactassets.org/ia50/fund.php?id=a01E000000CHJiQIAX

| Letter from the CIOO |

13 COUNTRIESwhere Global Partnerships has worked

86 PARTNERSwith whom Global Partnerships has worked

3.68 MILLION LIVES IMPACTED (estimated number of lives impacted as a result of GP’s investments in partner organizations)

$183.1 MILLIONcumulative capital deployed

Global Partnerships | Q4 2015 | As of December 31, 2015 |

BY THE NUMBERS

February 15, 2016

Dear Investor,

When Global Partnerships (GP) launched its first impact investment fund in 2005, our lending activity was limited in size (Microfinance Fund 2005 was a $2 million fund), scope (investees were all microfinance institutions) and geography (four countries in Central America).

GP has now embarked on its second decade as a nonprofit impact investor, and with the passing of time our reach – and impact – has grown exponentially. We have now made over $180 million in loans to nearly 90 social enterprises of various types, including solar light manufacturers and agricultural cooperatives, across 13 countries. Our underlying loan products are increasingly varied, and we now offer greater term flexibility for investors.

But the common, underlying thread that has remained unchanged is our commitment to expanding opportunity for people living in poverty.

This commitment to mission has led us to recently expand our lending activity to Africa, the continent with the most persistent and pervasive poverty in the world. To advance our work in Africa, and to continue growing our work in Latin America, we launched our largest fund to date, Social Investment Fund 6.0 (SIF 6.0), anticipated to be up to a $75 million fund. In August of last year we opened a field office in Nairobi, Kenya, and are steadily building out a strong team to oversee our portfolio. SIF 6.0 anticipates closing its first loan in Africa about the time that this letter is published.

SIF 6.0 will continue GP’s investment work in the areas of health, rural livelihoods, green technology and micro-entrepreneurship, and the Fund already has a robust pipeline of prospective African and Latin American partners. Our philanthropically-funded research is currently exploring the potential of new types of social enterprises and initiatives in both regions. We are also assessing new channels for delivering services, most notably in rural livelihoods where agricultural value chains are experiencing innovation that may benefit millions of smallholder farmers.

Global Partnerships has also increased its investment in impact evaluation, and beginning with this report you’ll find more detailed, sector-level impact data, along with how fund portfolios are allocated across areas.

Thank you for your interest in our work.

Warm regards, Mark Coffey Chief Investment and Operating Officer

Country: EcuadorYear Founded: 1991Number of Employees: 133 Clients: 13,424Average Loan Size Per Client: $2,237Percent Rural: 82%

| Featured Partner: FUNDACIÓN ALTERNATIVA |


WHO Fundación Alternativa is a microfinance institution that provides microcredit loans to over 13,000 microentrepreneurs in 6 regions throughout Ecuador. In addition to credit, Fundación Alternativa’s clients also receive targeted training, access to annual health brigades, and a newly developed low-cost health insurance product.

WHAT

Fundación Alternativa works in predominantly rural areas offering mainly individual loans to micro and small entrepreneurs in order to improve client incomes and quality of life. The organization is also committed to reaching even more marginalized groups through their solidarity group lending that targets women, and their “Hope” credit product that serves families living with disabilities. All clients have the option to enroll in a health insurance product, as most clients have limited access to quality care within the public health system.

WHY

Fundación Alternativa takes a very client-centered approach to developing products and services that cater to the needs of its clients. In addition to providing access to financial services, Fundación Alternativa has invested in client feedback studies and specialized personnel to inform the ongoing development of its training and education strategy. GP believes Fundación Alternativa’s commitment to rural and marginalized clients and delivery of additional services and health insurance provides clients with the right opportunities for improved, healthier lives.

A Fundación Alternativa client grows tomate de arbol in a rural community outside of Quito. Photo © Global Partnerships.

Click to see all partner profiles

1.5 million Ecuadorians live in extreme poverty and cannot meet nutritional requirements even if they spend everything they have on food. Poverty is higher in rural areas, where 2 out of 3 impoverished people live.

http://www.globalpartnerships.org/our-investments/our-partners/


Fund Manager’s Comments

All principal and interest payments from the Fund’s partners were made on time during the fourth quarter. Funds from payments made were partially used to make the scheduled principal payment to investors of just over $8.7 million, plus interest, in October 2015. There will be limited disbursement activity in the fund during the remaining term, consisting only of one or two seasonal disbursements to agricultural cooperative partners to maximize the available cash in the Fund. The Fund has built up a solid retained earnings cushion, and the fund manager expects no issues in making all remaining payments to investors on time in June 2016.

$15.7MM Current Capital Deployed

$67.9MM Cumulative Capital Deployed

121 Cumulative Number of Loans

985K Cumulative Lives Impacted (Estimated number of lives impacted as a result of SIF 2010’s investments in partner organizations)

23 Current Number of Partners

42 Cumulative Number of Partners

Fund Overview

Inception DateOctober 21, 2010

Fund Manager Global Partnerships

Type of FundDebt

Investment CurrencyUS$ and fully hedged local currency

Fund at aGlance

$67.9MM CumulativeCapitalDeployed

23 Current Partners

985K Cumulative Lives Impacted

FINANCIAL SNAPSHOT

| Social Investment Fund 2010 |

WEIGHTED AVERAGE RISK RATING

3.49 (Arrow indicates change from previous quarter.) 2 - 5 = Investable Credit, 6 = Special Mention, 7 = Substandard, 8 = Probable Loss

FUND RETURN vs. DURATION-MATCHED TREASURIES

0.94%

3.64% Fund

UST

0 1 2 3 4 5

| Social Investment Fund 2010 || Social Investment Fund 2010 |


Percent of Invested Capital by Impact Area

These partners deliver financial services, preventative health education and access to health services for microentrepreneurs and their families.

7 Partners*

374,142 Clients**

$784 Average Loan Size

51% Rural

86% Women

Health Services

These partners provide financial services and education for microentreprenuers.

12 Partners*

509,049 Clients**


56% Rural

81% Women

Microentreprenuership

These partners supply solar lights and small solar home systems to rural, off-grid households.

1 Partner*

114 Units Sold during Quarter

Green Technology

These partners offer credit, crop-focused technical assistance and improved market access for smallholder farmers.

8 Partners*

110,240 Clients**

$2,041 Average Loan Size

64% Rural

48% Women

Rural Livelihoods

IMPACT SNAPSHOT


78% of Clients are Women

55% of Clients Live in Rural Areas

52%Microentrepreneurship

26%Rural

Livelihoods7%

Green Technology

15%Health

Services

21% Rural

58% Women

* Some partners work in more than one impact area. ** Total number of clients served by partner enterprises.

| Social Investment Fund 2010 || Social Investment Fund 2010 |

Percent of Invested Capital by Country

PORTFOLIO COMPOSITION


BOLIVIA (21%)Crecer (6%)EMPRENDER (3%) IDEPRO (5%)Pro Rural (1%)Sembrar Sartawi (7%)

ECUADOR (17%)ESPOIR (3%)Fundación Faces (5%)VisionFund, Ecuador (9%)

EL SALVADOR (12%)CrediCampo (2%)ENLACE (9%)

GUATEMALA (4%)Friendship Bridge (4%)

HONDURAS (4%)RAOS (4%)

MEXICO (9%)CESMACH (0%)CONSERVA (3%)VisionFund, Mexico (6%)

Note: All percentages have been rounded to the nearest whole number.

1% Cash

4% Guatemala

4%Honduras

17%Ecuador

9%Mexico

22%Nicaragua

9%Peru

12%El Salvador

21%Bolivia

Green Technology

Health Services

Rural Livelihoods

Microentrepreneurship

NICARAGUA (22%)Aldea Global (5%)FDL (4%)MiCrédito (7%) Pro Mujer, Nicaragua (6%)

PERU (9%)ADRA (6%)Alternativa (Peru) (1%) APROCASSI (0%)Pro Mujer, Peru (2%)

CASH (1%)

| Social Investment Fund 5.0 |



SIF 5.0 disbursed over $6.4 million to 11 partners during the fourth quarter, including a new partner in Mexico. We expect to maintain this high-level of disbursement activity for at least the next few months while the Fund progresses toward its target size of $50 million. During the quarter, all SIF 5.0 partners with fixed date payments due made them as agreed, although a few delays occurred on trade finance loans to agricultural organizations due to product export delays. The Fund ended the quarter with over $40 million in loans outstanding and we anticipate calling additional investor capital during the first and second quarters of 2016.

Fund Overview

Fund at aGlance


37 Current Partners


FINANCIAL SNAPSHOT




591K Cumulative Lives Impacted (Estimated number of lives impacted as a result of SIF 5.0’s investments in partner organizations)




3.81 (Arrow indicates change from previous quarter.) 2 - 5 = Investable Credit, 6 = Special Mention, 7 = Substandard, 8 = Probable Loss


Inception DateMarch 25, 2013


Type of FundDebt


1.13%

3.29% Fund

UST

0 1 2 3 4 5




10 Partners*

299,171 Clients**


43% Rural

81% Women

Health Services


16 Partners*

630,969 Clients**


59% Rural

87% Women



3 Partners*

454,942 Units Sold during Quarter

Green Technology


15 Partners*

217,915 Clients**


66% Rural

48% Women

Rural Livelihoods

IMPACT SNAPSHOT





35%Rural

Livelihoods

4%Green

Technology

27%Health

Services



97% Rural

50% Women






2% Cash

7% Guatemala

1% Haiti

1%Honduras

19%Ecuador

15%Mexico

12%Nicaragua

10%Peru

20%Bolivia

BOLIVIA (20%)EMPRENDER (5%)FONDECO (2%)IDEPRO (7%)Pro Rural (1%)Sembrar Sartawi (6%)

COLOMBIA (2%)Amanecer (2%)

ECUADOR (19%)CEPESIU (1%)D-MIRO (5%)ESPOIR (6%)Fundación Alternativa (4%)VisionFund, Ecuador (4%)

EL SALVADOR (2%)CrediCampo (2%)FADEMYPE (1%)

GUATEMALA (7%)CDRO (1%) FECCEG (0%) Friendship Bridge (1%)FUNDEA (5%) Profasa (0%)

HAITI (1%)Fonkoze (1%)

HONDURAS (1%)IDH (1%)

Green Technology

Health Services

Rural Livelihoods


MEXICO (15%)Pro Mujer, Mexico (7%)SOFIPA (2%)VisionFund, Mexico (6%)

NICARAGUA (12%)COOPEFACSA (1%)FDL (4%)Fundenuse (2%)Pro Mujer, Nicaragua (5%)

PARAGUAY (6%)Arasy (4%)Bioexport (3%)

PERU (10%)ADRA (2%)Alternativa (Peru) (1%) CenfroCafe (0%)Coop Sol y Café (0%)Norandino (2%)Pro Mujer, Peru (5%)

REGIONAL (LATIN AMERICA) (2%)Greenlight Planet (1%)Tecnosol (1%)

CASH (2%)

2% Colombia

2% El Salvador

6% Paraguay

2% Regional




Global Partnerships is pleased to welcome Social Investment Fund 6.0 into its family of funds. SIF 6.0 issued its first capital call in October 2015 and quickly disbursed over $4 million to five partners in three countries in Latin America. The GP team is building a robust pipeline of mission-aligned partners and anticipates making its first loan in Africa during the first quarter of 2016. The Fund has $30 million in commitments and will continue to accept commitments as it scales to meet its target size of $50 million to $75 million.

Fund Overview

Fund at aGlance


5 Current Partners


FINANCIAL SNAPSHOT




3K Cumulative Lives Impacted (Estimated number of lives impacted as a result of SIF 6.0’s investments in partner organizations)




3.95 2 - 5 = Investable Credit, 6 = Special Mention, 7 = Substandard, 8 = Probable Loss

Inception DateOctober 8, 2015


Type of FundDebt



0.91%

3.00% Fund

UST

0 1 2 3 4 5




4 Partners*

168,724 Clients**


40% Rural

75% Women

Health Services


3 Partners*

117,245 Clients**


61% Rural

86% Women



N/A Partners*

N/A Units Sold

Green Technology


N/A Partners*

N/A Clients**

N/A Average Loan Size

Rural Livelihoods

IMPACT SNAPSHOT





77%Health

Services








71%Ecuador

5%Mexico

24%Peru

ECUADOR (71%)D-MIRO (36%)ESPOIR (12%)Fundación Alternativa (24%)

MEXICO (5%)VisionFund, Mexico (5%)

PERU (24%)Pro Mujer, Peru (24%)

CASH (0%)

Green Technology

Health Services

Rural Livelihoods


Global Partnerships | Q4 2015 | As of December 31, 2015 | Page13



ALL FUNDS

| Aggregate Distribution by Country and Impact |


30%Rural

Livelihoods5%

Green Technology

27%Health

Services


2% Cash

2% Colombia

<1%Haiti

1% Regional

4%Paraguay

5% Guatemala

5% El Salvador

14% Nicaragua

11% Peru

19% Bolivia

22% Ecuador

13% Mexico

Green Technology (5%)

Health Services (27%)

Rural Livelihoods (30%)

Microentrepreneurship (38%)

BOLIVIA (19%)

COLOMBIA (2%)

ECUADOR (22%)

EL SALVADOR (5%)

GUATEMALA (5%)

HAITI (<1%)

HONDURAS (2%)

MEXICO (13%)

NICARAGUA (14%)

PARAGUAY (4%)

PERU (11%)

REGIONAL (LATIN AMERICA) (1%)

CASH (2%)

2%Honduras

2015 q4 investors report feb 2016

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