The Clean Energy Problem

Equilibrium Today • Global asset platform of sustainability-driven

real assets funds.

• $500M (USD) AUM across platform  Targeting $1B AUM in 2013 • Leader in sustainability investment, real asset

strategies, and impact • San Francisco (CA) & Portland (OR)

Australian Pastoral Fund

ACM Permanent Crops, LLC Superior value-creation from vertically integrated, sustainable farming Investment Highlights One of the nation’s largest managers of permanent cropland ($165 million) Targeted 8-10% current income and 12-14% total IRR (net) Vertically integrated, owner/operator model Growing, processing, marketing Captures value across the supply chain

E re Su op

Summary Agriculture Capital Management is managed by AgriCare and Equilibrium C cropland in the U.S. It operates 10,000 acres of farmland, as well as midstr institutional investors and other farmland owners, totaling $165 million. A its own brand (HomeGrown Organic Farms).

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Investment Strategy Invest in permanent cropland and synergistic midstream assets to create a

The Clean Energy Problem “Across the globe, there are at least 1,199 coal plants now on the drawing board… Many of these proposed new plants are in China and India, which account for 76 percent of proposed capacity. “ -Washington Post, Nov. 20, 2012

• “Beijing’s municipal government reported air-

quality-index levels as high as 500 Saturday night .. U.S. experts consider anything above 150 as “unhealthy” and anything from 301 to 500 as “hazardous.” … Chinese monitors stop recording at 500… An air monitor run by the U.S. Embassy …showed the air quality topping out at 755, an astonishing level the embassy calls, for lack of a better description, “beyond index.”

-Washington Post, January 14, 2012 2

We have met the enemy and he is us.

• Between China and the US, 42% of global

carbon emissions.

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Proceedings of the Sixth International Conference for Enhanced Building Operations, Shenzhen, China, November 6 - 9, 2006

Investment in carbonless energy sources • Wind, Solar  Well understood investment structures at utility scale • BioEnergy –Multiple value streams mean

complex, but accessible, investment path; useful resource  Just beginning in US, even earlier in China

• Energy Efficiency –  Huge potential – if an investment mechanism can be found.  Problem is scaling – decision path for creating cash flows for investment.  In NW, test installations underway for metered yield from EE providing investment path.

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