Inspired Evolution - Investment Philosophy

Natural Product Investing and Clean Technologies Investment Philosophy

INVESTMENT PHILOSOPHY

Evolution One's investment philosophy is based on the concept of additionality whereby accelerated development and use of cleantech products, services and processes not only provide superior performance at lower costs but also reduce environmental and climate change impacts, thereby promoting mutually reinforcing benefits for society.

Inspired Evolution's investment philosophy centres on long-term equity and equity-related investing based on rigorous sustainability research. Sustainability analysis therefore represents a core principle of our pre- and post-investment cycle. The performance enhancement or turn around to long-run performance is measured within a suite of sustainability indicators defining Inspired Evolution's differentiated investment strategy and added value.

The Evolution One Fund will make around 10 to 15 investments over a period of three to five years across the SADC region, but predominantly within South Africa.

Investment strategy:

(i)	proprietary sourcing of investment opportunities through the proactive efforts of the principal partners constituting the executive and investment board to the fund, extensive networks, reputation and referrals;
(ii)	targeted investment in market-leading, small, medium-sized and large companies with strong management teams, a clear competitive advantage and excellent prospects for growth;
(iii)	customised, innovative structuring to achieve superior risk-adjusted returns and to minimise risk through an early return of capital and conservative use of leverage;
(iv)	active involvement in value creation post-investment;
(v)	use of a broad range of exit strategies.

Rigorous sustainability research informing long-term equity and equity-related investing.