<h1 style="text-align:center;">Part 2: Impact investing: Transferring wealth, wisdom and values between generations</h1> After more than two years of managing impact investments in Ethiopia, one of the things I find most interesting is how impact investing is not only creating a bridge between economies; it is creating a bridge between the Baby Boomer generation and their Gen X and Y heirs. Here’s what I’ve learned.<figure class="image"><img src="/uploads/ethiopia_sesame_trip_march_april_2014_59157096ae.jpg"></figure>Impact investing combines desires and values that both generations share. Baby Boomers, now moving into retirement, have worked hard to provide for their families, plan for a comfortable retirement, leave some wealth to their heirs and leave the planet better than they found it. As they enter their second phase of life, they focus on answering the question “What will be my legacy?” Their parents, what Tom Brokaw refers to as “The Greatest Generation,” believed that philanthropy was how to use the spoils made during the hard-working years of your life. The Greatest Generation would say -- give it away. And many wonderful elements of society have resulted from this charity. But I have noticed that the Baby Boomers have a different view. They are more concerned about sustainability, asking questions like “What if I cannot write a check next year, will this charity be able to continue on?” And they believe in creating a culture of empowerment versus dependence saying things like “Does the world always expect the U.S. to provide a bailout?" Baby Boomers see impact investing as a way to create a legacy that aligns with their values.Twenty years younger, their Gen X and Y children are graduating with degrees in business from top-tier schools, but don’t want to spend their lives behind a computer, earning a paycheck and pushing paper around. They want it all - both money and meaning. They are even willing to take a pay cut in order to work on challenging problems in the world.* Many Fortune 500 companies are scrambling to create programs to attract these best and brightest. Members of Gen X and Y care more about doing something meaningful, something they are proud of, than just amassing wealth that they will give away once they retire. This generation sees impact investing as a career choice.There are already some great examples of impact investing creating a bridge between generations that enables the transfer of shared values and wealth. Take Ron Cordes, who sold his company AssetMark Investment Services to Genworth Financial (NYSE:GNW) and set up the <a href="http://www.cordesfoundation.org/">Cordes Foundation</a>. The foundation champions bold, innovative solutions to the world's toughest problems by “connecting, equipping and supporting social entrepreneurs, and by catalyzing new sources of capital for impact investments in social ventures.” Sounds like a man that wants more sustainable ways of creating impact. Ron’s daughter Stephanie, who I had an opportunity to meet with in New York, is a sharp young woman who gave up a promising career in the fast-paced fashion and advertising industry <a href="http://www.nytimes.com/2014/02/11/your-money/family-foundations-let-affluent-leave-a-legacy.html?_r=2">to work with her father at their foundation</a>. She is absolutely fired up about impact investing, and just recently returned from a tour around Africa to look at potential investments. This is a great example of impact investing aligning two generations.I have also seen it firsthand here in Ethiopia, where we manage a portfolio of investments for <a href="https://www.renewcapital.com/investing" target="_blank" rel="noopener noreferrer">the Impact Angel Network</a>, a network of investors around the U.S. dedicated to making investments in high-potential companies in Africa. When the IAN comes to visit with their families on <a href="../../impact-angel-network/events.html">Econ-Tourism trips</a>, I see more than just another family trip: I see appreciation. I see fathers teaching sons and daughters how to review an income statement. I see wealth, wisdom and values passing between generations.I make the case then, that impact investing is not only a new industry that blends the better elements of philanthropy and investing, but is also a platform to connect two generations that could greatly benefit from some new connection points around wealth and values.

Examples of multi-generational impact investing.

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Part 2: Impact investing: Transferring wealth, wisdom and values between generations

<h1 style="text-align:center;">Part 1: Impact investing: Transferring wealth, wisdom and values between generations</h1>Parents, let’s begin with a quiz: Have you heard of impact investing (#impinv)? How about social entrepreneurship (#socent)? How about Ashoka, GIIN, ANDE, Kiva or Acumen? If you know what impact investing is, or of any of these organizations, your cool status with your kids may be higher than you think. If you're scratching your head right now, you’re not alone.<figure class="image"><img src="/uploads/2014_februrary_ean1_7e50a8b81a.jpg"></figure>The impact investment movement is happening...it’s a hot new field of finance that blends social and environmental impact alongside financial returns. J.P. Morgan predicts that the impact investing market will equate to more than a trillion-dollar by 2020. J.P. Morgan also says the industry size has jumped 20% from last year to $46B under management.* You can bet big firms like Goldman Sachs are working hard to design impact investment products for their wealthy clients. The popularity of impact investing is also growing on college campuses around the country. Thousands of students at top tier universities are enrolling in impact investment and social entrepreneurship courses, attending conferences and seeking careers in the impact investment space.* Impact investing is heating up in Washington, D.C., too, where earlier this month a group of heavy-hitting philanthropists and investors met at the White House to pledge $1.5B to impact investing, and USAID, OPIC and SBA all pledged to support impact investing.* The trend and related industry is clearly growing.So what is impact investing? There are many definitions related to the many types of impact investments and investors out there. But, here's my definition: impact investing is Warren Buffet meets Indiana Jones meets Mother Teresa. RENEW investments are made into high-potential, fast-growing companies in Africa where capital is scarce but opportunity is ripe. This is not like the billions being thrown into tech companies solving first-world problems. These investments are addressing real challenges around the world; think of a bread company in Ethiopia that employs 200 people and makes a good profit margin. Our investors use their capital to unlock growth in these companies, create jobs and generate financial returns. The social problems we are addressing lead to “healthy” economic development – growth in the middle market. It’s risky and deeply fulfilling. More formal definitions typically say something to the effect that impact investing is a field of finance that seeks to create measurable financial and social and/or environmental returns for investors.In the U.S. we are about to experience the greatest transfer of wealth in history; roughly $30 trillion is going to pass from retiring Baby Boomers to their children during the next 30 years.* Yet from discussions I have had with parents and wealth managers, it is often difficult for the generations to connect around shared values and a vision for how that wealth should be managed. And from what I’ve seen firsthand, impact investing has the potential to be a powerful bridge between generations.

Part 1: Impact investing: Transferring wealth, wisdom and values between generations

<h1 style="text-align:center;">Chapter Chairs Named in Wilmington, Washington, D.C., and Charlotte</h1> The Impact Angel Network named chapter chairs for the Wilmington, Delaware, Washington, D.C. and Charlotte, North Carolina chapters in July.This year’s chairs are Jeff and Donna Turi in Wilmington, Dr. Andrew Umhau in Washington, D.C. and Alan Gardner in Charlotte. Members of each chapter meet regularly to review investment opportunities and take trips to Africa to look at investments and advise on the growth of their portfolio companies. Members of the chapters have invested in three businesses in Ethiopia within the past year: Metad Agricultural Development PLC, an Ethiopian specialty coffee company, Mama Fresh Injera PLC, an Ethiopian commercial manufacturer and exporter of fresh-baked injera, and <a href="../2013/renew-facilitates-investment-dventus-technologies.html">dVentus Technologies PLC</a>, a clean energy company.In addition to the three current chapters, network members live in Texas, Georgia, Minnesota and California. Network members are accredited investors who believe in using market-based solutions for wealth creation in Africa. Members have exclusive access to RENEW’s investment pipeline, and take regular, guided trips to Africa to assess opportunities, attend board meetings, consult with companies, meet with diplomats and government leaders and experience new cultures.<figure class="image"><img src="/uploads/photo_d_c_chapter_june_2014_9368f86f7a.jpg"></figure>

The Impact Angel Network names chairs for 2014 - 2015 in three cities across the U.S.

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Chapter Chairs Named in Wilmington, Washington, D.C., and Charlotte

<h1 style="text-align:center;">USAID-PRIME Partnership</h1>&nbsp;USAID–PRIME &amp; RENEW PRIVATE EQUITY LEVERAGING SERVICE<figure class="image image-style-align-center image_resized" style="width:31.49%;"><img src="/uploads/usaid_320b42b268.jpg"></figure>A growing school of thought proposes that small- to medium-size enterprises (SMEs) in developing countries are key drivers of long-term stability and growth. By providing jobs, paying taxes, and producing, buying and selling local goods and services, SMEs act as the backbone or engine of an economy.<figure class="image image-style-align-center"><img src="/uploads/screen_shot_2014_05_22_at_10_54_28_am_62e7c3a628.png"></figure>Unfortunately, SMEs struggle to grow in many developing countries, and as a result, microbusinesses and large conglomerates dominate the country’s economic pyramid. While the excitement for SMEs is there, both from public and private sector actors, most government-led SME projects are underperforming, and few if any investments are being made into SMEs in developing countries by private investors. RENEW is pioneering an innovative public private partnership model that stimulates direct investments into promising SMEs. RENEW recently partnered with Mercy Corps, an international non-governmental organization operating in Ethiopia since 2004, to implement a novel approach that leverages the private sector to create sustainable economic development.Joining the resources of the U.S. President’s Feed the Future and Global Climate Change Initiatives, the U.S. Agency for International Development (USAID) launched the Pastoralist Areas Resilience Improvement through Market Expansion (PRIME) project in 2012 to respond to increasing pressures on pastoralist livelihoods. Mercy Corps leads the implementation of the project valued at $52M along with international and Ethiopian partners. Under the Mercy Corps-led consortium, the project aims to stimulate increased production, productivity and marketing through more competitive livestock and livestock products markets; increase communities’ ability to adapt to a changing climate; significantly improve alternative livelihood options through essential skills transfer and contribute to the wider knowledge on pastoral development. PRIME is operating across 30 woredas (counties) in three strategic clusters in the Afar, Oromia, and Somali regions of Ethiopia. PRIME has allocated resources to encourage private equity investment in livestock and other related sectors in the targeted regions of Ethiopia. The goal of this activity is to leverage private sector equity financing for investment in promising Ethiopian livestock sector-related ventures facing capital constraints. The PRIME project will use facilitation and co-investment rather than direct implementation and handouts as the project modality, because project leaders believe this approach has the best potential for sustainable growth in line with the Ethiopian Government’s Growth and Transformation Plan.The public private partnership model – where the interests of the development community so clearly align with the local private sector and the investment community – represents a new field of development that is rapidly growing. The type of financing RENEW and PRIME are helping mobilize – broadly called impact investments – is growing as an investment class, offering investors opportunities to create sustainable social impact and financial returns through investments in companies that operate in high impact and fast growing countries such as Ethiopia. These trends, along with Ethiopia's rapidly expanding private sector, could help position PRIME to be a flagship project in the development sector.&nbsp;&nbsp;

USAID, PRIME and RENEW partner in Ethiopia.

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USAID-PRIME Partnership

<h1 style="text-align:center;">Successful Mama Fresh Launch Event</h1>The RENEW and Mama Fresh teams hosted a successful launch of Mama Fresh &amp; the Teff Chef in Washington, D.C. last week. The owners of Mama Fresh, husband and wife team Hailu and Konjit, traveled from Ethiopia to help prepare and serve an estimated 3,000 people at the Ethiopian Embassy as part of Washington D.C.'s Passport D.C. event. Other participants included Ethiopian Airways and <a href="http://soomfoods.com/">Soom Foods</a>, a company producing tahini from Humera sesame.The event was a huge success to unveil the new Mama Fresh brand and website (<a href="http://www.mama-fresh.com/">www.mama-fresh.com</a>). A number of investors attended the event and then went on a tour of the city to meet with MFTC's customers and hand out free samples and marketing materials. The night ended with an event for investors, other stakeholders, and store owners at a local Ethiopian restaurant.<figure class="image"><img src="/uploads/2014_mama_fresh_embassy_event_7804d1097b.jpg"></figure>

RENEW and Mama Fresh host an event to celebrate Mama Fresh's re-launch in the D.C. market.

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Successful Mama Fresh Launch Event

<h1 style="text-align:center;">Industry Profile: The Dairy Industry</h1><figure class="image image-style-align-center image_resized" style="width:33.22%;"><img src="/uploads/ethiopia_feb_26_to_mar_4_2012_268_c378a92ee7.jpg"></figure>Ethiopia seems to have significant potential for dairy development due to its large livestock population (10 million cattle produce meat and milk), favorable climate for improved, high-yielding animal breeds, and relatively disease-free environment. Despite having the largest livestock population in Africa, Ethiopia’s milk production is relatively low. Additionally, increasing demand for milk and milk products from a growing population offers an opportunity for milk producers and processing cooperatives to increase productivity.*Even though the general milk production and consumption in the country is still minimal, the milk market networks seem to be improving in the past few years. Findings showed that milk cooperatives were the dominant milk buyers from producers. Recently, milk cooperatives have been increasing in number in Ethiopia.*The dairy sector in Ethiopia seems to be characterized by the transition towards a market-oriented economy and appears to be moving towards a takeoff stage. Consumers are also getting the products at their doors or in shops specialized in supplying dairy products. Cooperatives and unions established for these purposes are playing a crucial role in changing the marketing landscape of the sector.*This shift towards a market economy is creating large opportunities for private investment in urban and semi-urban dairying. As a result, significant development interventions for the industry aimed at addressing both technological gaps and marketing problems are being practiced in the country. Other factors also support the promotion of private investment to introduce new technology in the sector including improved genotypes, feed and processing, and integration of crossbred cattle into the smallholder sector.*The dairy sector in Ethiopia is expected to continue to grow over the next decade as the growth in demand for dairy products increases.*The New Agriculturist, Boosting Ethiopia’s small-scale dairy industry, August 2011 *ILRI, Sustainable Livestock Digest, Diary intensification and milk market quality in Amhara Region, Ethiopia, December 2011 *Ethiopian Business Review, Milk Market New Actors In the Milk Supply Chain Are Changing The Market For Good 2013-2014 *International Food Policy Research Institute, Dairy Development in Ethiopia, October 2004

Ethiopia seems to have significant potential for dairy development.

Industry Profile: The Dairy Industry

<h1 style="text-align:center;">Mama Fresh Re-launches its Brand in the U.S. Market</h1>Mama Fresh Injera PLC, an Ethiopian company that is the largest commercial manufacturer and exporter of fresh-baked injera in Ethiopia, has re-launched its brand in the U.S. market and is now exporting injera and other Mama Fresh products to the United States.Injera is a staple bread of Ethiopian cuisine made from teff, a gluten-free, ancient grain. The Mama Fresh product line also includes other Ethiopian staples such as berbere, kocho, mitmita, shero, duro wat, and a variety of other products and spices. Mama Fresh products are now being distributed throughout the Washington, D.C, Virginia, and Maryland areas at local shops and restaurants.The owners of Mama Fresh, husband and wife team Hailu Tessema and Konjit Zewdie, are in the Washington, D.C. metro area through May 9, 2014 for a launch event with Mama Fresh investors and customers of Mama Fresh. The launch event on Saturday, May 3, 2014, will feature Mama Fresh products and provide a chance for customers and investors to meet.Investors in Mama Fresh, who are members of RENEW’s Impact Angel Network, will also be present at the event. RENEW LLC, based in Washington. D.C. and Addis Ababa, Ethiopia, introduced the U.S.-based investors to Mama Fresh on various trips to Ethiopia in 2012 and 2013. RENEW supports a global network of accredited angel investors dedicated to making positive social and financial returns on their investments.Mama Fresh sources teff from hundreds of smallholder farmers and employs more than 90 men and women in the company’s bakeries and kitchens. The company sells products domestically in Ethiopia and currently exports to Germany, Sweden, Norway, Nigeria and the United States. To find out more, visit <a href="http://www.mama-fresh.com/">www.mama-fresh.com</a>.Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.

Renew Capital Angels invested in Mama Fresh Injera, a commercial manufacturer and exporter of fresh-baked injera and spices. Injera is a staple bread of Ethiopian cuisine and is made from teff, a gluten-free grain.

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Mama Fresh.avif

Mama Fresh Injera will hold a launch event in Washington, D.C., this Saturday.

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Mama Fresh Re-launches its Brand in the U.S. Market

<h1 style="text-align:center;">Sustainatopia Impact Conference 2014</h1>Leaders in impact investing convened in Miami for <a href="http://www.connectionmiami.com/">Sustainatopia's Impact Conference 2014</a>. RENEW partner, <a href="https://renewcapital.com/team/tom-scriven">Tom Scriven</a>, joined leaders of global banks, impact investing firms, NGOs and governmental and international agency officials for a three-day conversation about trends and challenges in the fast-growing impact investing industry. They gathered Wednesday night for a fashion show and Sustainability Awards ceremony attended by local advocates for sustainability and impact investing working in fashion (Amber Arbucci, photographer and former Victoria's Secret model, other fashion models and designers), local government officials (Philip Levine, Miami Beach mayor), architecture (Chad Oppenheim) and international finance (JP Capello), among others advancing sustainable development.Keynote speaker Bina Venkataraman (Senior Advisor to the President of the United States on Climate Change Innovation) opened the conference speaking on President Obama's initiatives to use big data to evaluate and promote sustainable development solutions.Tom joined leaders of other firms catalyzing impact investments in speaking on their work with early stage and other companies underserved by the capital markets. Tom and <a href="http://www.connectionmiami.com/2014-speakers">fellow panelists</a> spoke on the importance of intermediaries' work in readying SMEs in emerging markets for foreign investment and in catalyzing that investment into frontier markets, such as East Africa, rural communities in the United States and Southeast Asia.A recurring theme of this discussion and others at the conference, including one led by Cornerstone Capital founder and former head of research at UBS, Erika Karp, was that demand for impact investments continues to grow, particularly as intergenerational transfers of wealth occur from baby boomers to their millennial children. The impact investing community needs to respond to this demand by offering a range of investment products across asset classes for both accredited and retail investors.Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.

RENEW's Tom Scriven joined other leaders in the impact investing field in Miami last week.

Sustainatopia Impact Conference 2014

<h1 style="text-align:center;">Real Stories of Real Investments</h1>One of RENEW's core beliefs is that great businesses are the engines of a thriving economy. Over the past year, RENEW 's Impact Angel Network has invested in three incredible businesses in Ethiopia. We believe that investing in these businesses and others like it will create the engine that lifts nations out of poverty.<figure class="media"><oembed url="https://youtu.be/KXJfBFJXoPQ"></oembed></figure>To celebrate these successes, we've created a short video that tells part of the story of each entrepreneur. Celebrate with RENEW, the Impact Angel Network and the entrepreneurs behind these growing companies by watching their stories unfold.Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.

Watch a video that tells the story of three investments that RENEW's Impact Angel Network made in the last year.