Microsupport Participation Fund

Participate in Impact

By Tayfun ÖZKANCFO, Turkish Red Crescent SocietyBoard Member, TRC Asset Management Co.

November 20, 2019

Contents

1) Sustainable Development Goals and Turkey (p.3-4)2) GIFIIP and impact investing (p.5-8)3) Microsupport Participation Fund (p.9-12)4) Summary (p.13)

Everything for Global Benevolence…

Sustainable Development Goals

Increasing Turkey’s Contributions to andVisibility in the Global Development Agenda

• 841. International efforts to finance development and to increase the role of private sector in development will be actively supported.

• 841.1. The institutional and legal infrastructure will be built, and the international efforts will be supported in this regard for Turkey to attract impact investing, Islamic finance and socially responsible financial resources more.

• 841.2. The public-private partnerships will be promoted to create the legal and financial basis to support entrepreneurs who design innovative and technology-based solutions to developmental problems.

Turkey will also contribute.

11TH DEVELOPMENT PLAN (2019-2023)

PRESIDENCY OF TURKEY, PRESIDENCY OF STRATEGY

AND BUDGET OFFICE

It can be achieved via a global platform.

IICPSD(UNDP Istanbul

International Center for Private Sector in Development)

IsDB(UNDP Istanbul

International Center for Private Sector in Development)

Participation(a.k.a. Islamic) FinanceImpact Investing

By utilizing impact investing…

+ Financial Return

+ Positive Social Impact

Philantropy

Conventional Investing

Impact Investing

Blended Finance

Private Capital

Development Capital

…that will draw interested investors.

%20 %16%64

GIIN Annual ImpactInvestor Survey 2018

Finance is evolving.Since the establishment of modern finance to date, the third grand wave is underway. We can ride this wave and by successfully implementing the synthesis of participation finance and impact investing, we can set an example at a global scale.

INGOs Treasury Banks/Holdings

Investment Committee(including external members)

Consultancy Services forBusiness Model Design

It can be listed on BIST

Independent Custodyof Fund Assets

Independent Audit

Entrepreneur

Project 2Entrepreneurs

(Partners)

Musharakah

Mudaraba Murabaha

AssetManagement Co

Consultants(ICEE)

Solution Partners

Investors

TAKAFUL

Multilaterals

Deal Generation andProject Management

in the Field

Entrepreneur

Entrepreneur

Entrepreneur

Entrepreneur

Microsupport Participation PE Fund

MicrosupportParticipation

PE Fund

Project 3Project 1

Commitments

Fund, structure distinct from grants…

General Refugees

Fund Tenure Open ended Close Ended (7-10 years?)

Target Size Indefinite (open ended) Definite (US$50 M)

Ticket size US$100,000 US$500k – 5 M

Type of Investment Capital and other participation based finance methods

Priority Sectors Sustainable agricultureRenewable EnergyAccessible Basic Services(shelter, health, education)

As well as:Sectors that can expand on the existing vocational capacities.

TRC and other humanitarian agencies are used to distributing grants. Investing forimpact is a different mentality. We shall provide, still in the name of benevolence, financial support, but (1) for a specific production, business and (2) when income is generated, we shall claim back the investors’ share of the profit justly.

…new mentality.Not only teaching how to fish…

…but also providing fishing line, bait, bucket …

- Developing a business model that is suited to those in need, the geography, market realities

- Setting up a business with the necessary legal, organizational and commercial infrastructure

- Competitive raw material and material acquisition- Marketing, sales support- Emptio Venditio Agreements with big players.- Know-how exchange and partnerships with similar

businesses

…and establishing a sustainable ecomonic structure (ecosystem) where they can sell the fish they catch….

Kızılay can do this:

Strengthen social resilience via economic empowerment

With its…400+ Branches and rep. offices7500+ Personnel60,000+ Volunteers16 Community Centers

Turkish Red Crescent can organize itself to generate and structure deals, check on the credibility of potential social entreprenuers, disburse the required equity, follow up the projects, measure the impact, and report on the progress.

In Summary… For Global Benevolence: Sustainable Development Goals were developed. Turkey has committed to contribute to the SDGs For this objective, we can partner up with international organizations Impact investing and participation finance concepts and tools can be utilized. Global financial trends are very much supportive of this approach. Following the waqf civilisation, the «participation in impact via private investment»

approach can be the sustainable model for financing social entrepreneurship forthe next centuries.

Thank you…Participate in Impact