sarona frontier markets fund

1

Sarona Frontier Markets Fund 1 LP

2

Bringing meaning to your investments

Take Advantage of Frontier Market Upside

Invest in impact investing through a fund of SME funds focusing on SME equity in developing countries in clean tech, microfinance, agro-processing, health, tourism and telecom value chains

Entrust a manager with a 56-year track record in SMEs in Frontier Markets and a history of exceeding performance

3

A. The Frontier Market Upside

B. Our solution

C. Our track record

IntroducingSarona Frontier Markets Fund 1 LP

4

Frontier Market UpsideGDP Growth Trend

Frontier Market Upside Stock Capitalization

5

Frontier Market UpsideSmall & Medium Enterprises – Sector Trend

7

Frontier Market UpsideThe Environmental Premium

-20%

0%

20%

40%

60%

80%

100%

120%

140%

Tota

l Re

turn

Difference

Above Average Innovest Carbon Beta Rating (All sectors)

Below Average Innovest Carbon Beta Rating (All sectors)

Innovest’s Carbon Beta Model (Global stocks):Returns for 57 months Top 50% vs. Bottom 50% All Sectors

Annualized Alpha: 378 bps

Source: With permission of Matthew Kiernan (2009) of Risk Metrics

8

• Impact Investing: • A new industry has developed• Achieving profit plus impact on

social and environmental level

• The Economist predicts:• this will be a new asset class of• $500bn in 5-10 years

• We’re at the forefront of this industry

Frontier Market UpsideImpact Investing

9

• The Sarona Frontier Markets Fund is a Fund-of-Funds that will achieve• Profit: For investors• People: Benefit for the poor• Planet: Earth-care for our

grandchildren

IntroducingSarona Frontier Markets Fund 1 LP

10

Our value propositionto investors

• We select the best private investment managers in Frontier Markets around the world to achieve

Profit, People, Planet

• And you can travel with us to visit the companies where your capital is invested

11

SMEs in Southern

Africa

Renewable energy

project in India &

Philippines

SMEs in Mexico

Microfinance Banks in

developing countries

Fund Structure

12

Fund of Funds: We select the best small private investment managers with a strong country or industry focus

Diversification: We don’t invest in just one or two countries; we invest broadly, knowing that some countries will flourish more than others

Micro, Small and Medium Enterprises: Our managers stay away from large cap companies. They look for growth in small and medium sized companies, including Microfinance Banks

Profit, People, Planet: We invest in fund managers that aggressively target a triple bottom line

Fund benefits Strategy

13

Evergreen Offering: Sarona will allow investors in at the end of each calendar year

Liquidity: Unlike most private investment funds, Sarona offers each investor an annual redemption opportunity after a three year hold period

Experience: We invite you to join us on due diligence or management trips to various countries. Don’t leave your money to others – see where your money goes!

Fund benefits Investor Experience

14

Frontier Market Upside: You may have missed the extra growth spurt of the past 46 years, but you don’t want to miss the future!

Returns: We target a net financial return to investors of 15% over the long run. Annual ROI for investors will start at 5% and grow from there. You’ll also know that your capital is benefiting people and improving the environment

Fund benefits Results

15

• Berkeley Energy Partners: – Renewable energy in India, Philippines, based in UK and India

• Ariya Capital: – Microfinance, Renewable Energy, Telecom in Southern

Africa, based in UK and Botswana • MicroVest Capital Management:

– Microfinance Banking, Global, based in Washington• Ignia Fund:

– Housing, health, agro-processing SMEs based in Mexico• Colombia Opportunities Fund:

– Tourism, agro-processing, ICT, clean tech SMEs based in Colombia

• Sorenson Housing Fund: – Affordable Housing Projects in India, based in the US and in

India

Pipeline 2009 and early 2010

16

• Investing in Frontier Markets since 1953: – First investment = Sarona Dairy in South

America– Continued direct investment for 56 years

• Last 12 years, (co-)founded: – Latin America Challenge Investment Fund– MEDA Investments Inc, Sarona Funds– MicroVest Funds

Why us?A track record in innovation and leadership

17

Why us?A track record in growth

18

Why us?A track record in social impact

19

Why us?A track record in performance

Every Fund has achieved or exceeded targets

– Latin America Challenge Investment Fund, debt for Microfinance Banks, 1999-2008: >8%

– Sarona Group:• Sarona Risk Capital Fund (MEDA), high risk, early

stage capital for experimental companies: >8%• Sarona Risk Capital Fund I LP: 5%

– MicroVest Group:• MicroVest I LP: 80/20 debt/equity for Microfinance

Banks, 2004-2008: 9%• Micro Access Trust CDO, 2006: 8%

20

Why us?A global network

Our relationship with MEDA provides us with a network of over 3,000 business professionals in over 40 countries

• Domestic: The MEDA business association provides access to 2,900 businesspeople in Canada, USA, Europe – Self-selected group of entrepreneurs who know and care

• Global: The MEDA economic development institute provides access to over 250 business development professionals in over 40 countries

21

• Assets under Management in funds and directly in companies: almost $200 million

• 56 year track record of success: – In 2008, stock markets crashed– Our funds posted profits of 4% - 9%

Why us?Integrity to our investors

22

We need Leaders like you

MEDA has invested $2.5 million as a founding investor

We seek Named Founding Investors:• 8-10 investors at $1+ million

We seek investors: • min invest = $100,000

23

Invitation to Join us as a Named Founding Investor

• Commit $1+ million as Founding Investor

• Named as Founder in presentation material and PPM, in perpetuity

• Invitation to Founder’s Council• Opportunity for partial ownership of

GP• Invitation to travel with management

team

24

Investor Term SheetTerms and Conditions

Terms and Conditions Description

Investment offering Evergreen, annual closings on Dec 31st

Structure Limited Partnership

Minimum investments $100,000

Availability Accredited investors

Cash Call 100% at closing

General PartnerManager

Sarona Frontier General Partner Inc.Sarona Asset Management Inc.

Annual ROE, net of fees Growing, from 5% in first 2-3 years, to 15% in years 5-8

Management Fee 1.45% pa on assets under management

One-time up-front fee 1% on committed capital (except 2009)

Income allocation First 6% to investor; thereafter 80% to investor, 20% to GP. Only paid to GP on investor exits

Exits Full or partial redemption, after 3 year hold, subject to liquidity, on Dec 31st of each year

25

1.519.725.16331.204.295.9688Saronafund.com

sarona@saronafund.com