Investor Presentaiton

Methodology Methodology The data used in this study was collected through a survey, designed by ANDE and LAVCA and distributed by LAVCA, between February and May 2018. The survey targeted impact investors active in Latin America, including investors based in the region and global investors. The survey focused on general investing practices, as well as transactions that took place specifically in 2016 and 2017. For the purposes of this report, impact investors are defined as those who:2 . • Make direct investments in companies and/or projects Have positive social or environmental impact as an explicit objective • Have an expectation of a financial return • Invest using any instrument, including debt, equity, quasi- equity, guarantees, or other The criteria applied in this report deliberately exclude certain investments, narrowing the focus on specific segments of the impact investing industry. Project finance such as green bonds and direct investments made by Development Finance Institutions (DFIs) were excluded from this study. DFIs play a critical role in impact investing in the region, primarily through investments into funds, but the relatively large size of their direct deals would make it difficult to understand the segments that are the focus of this report. The investors who participated in the survey are nonetheless diverse and include PE/VC fund managers, family offices, foundations, and non-profit organizations. While microfinance institutions (MFIs) themselves are excluded from the sample, fund managers who invest in MFIs are included. 2. This definition matches the definition that was used in the 2016 study, with one change: the removal of the minimum investment amount (previously $25,000), so as to fully capture the diversity of ticket sizes present in impact investing activity in the region. 13

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