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EVOLUTION ONE Powered By Docstoc

A new generation of Profitability where
People and the Environment matter.


Be worried. Be very worried.      Evolution One has as its mission adopted a triple-bottom-line
Climate change isn’t some vague
                                  approach for the provision of creative financing and support for
future problem - it’s already
damaging the planet at an         viable, sustainable and entrepreneurial commercial propositions
alarming pace. By any measure,    in the environmental goods and services sector in southern
Earth is at the Tipping Point.
               COVER STORY
       TIME MAGAZINE 03/04/06
                                  Recognising that the growth of the environmental goods and services sector will require a compelling
                                  mix of innovative financing, direct access to world class research and technology, and an astute
                                  understanding of the southern African economic paradigm in which to establish and nurture projects,
                                  the founding partners - Consensus Business Group, Pan-African Capital Holdings and Capital Evolution
                                  - have created and are set to launch Evolution One, a ground-breaking new funding catalyst.

                                  Overall Objective
                                  To achieve exceptional returns, first mover advantage and brand leadership in sustainability investments
                                  using innovative financial engineering to accelerate the advancement of clean technologies and natural
                                  capital markets in contribution to mitigating climate change and promoting a net positive environmental
                                  and social impact across southern Africa.


                                                                         INVESTMENT THESIS

                                                        Higher energy prices
                                                        Resource security
                                                        Global climate change
                                                        Rapidly developing countries (scalability)
                                                        Technological improvements
                                                        Enabling government policy & incentives
                                                        Tighter laws and regulations
                                                        Emerging market growth
                                                        First mover advantage
                                                        Proprietary deal sourcing networks
                                                        Access to technology and intellectual property
                                                        Social equity through innovation and SMME participation

Source: New Mexico Institute of Mining and Technology


                                                                                                 INVESTMENT FOCUS
                                                The Fund is committed to a clean technology focus across the following areas:

                                                           Energy                                                Waste
                                                                                                                 Inspire-Evolution Fund One will support innovative
                                                           We are actively seeking to fund renewable and
                                                                                                                 technology & energy projects that effectively and
                                                           alternative technology & energy projects such as
South African companies stood to earn                                                                            efficiently convert waste into new sustainable
                                                           bio-fuels, wind farms and solar power that match
at least ZAR5.8bn over the next ten                                                                              resources such as energy and energy by-products.
                                                           South African innovation and entrepreneurship with
years from the sale of carbon credits                      the best technology available in the world. We will
earned on projects to reduce                               also focus on energy efficiency and clean coal
greenhouse gas emissions. Previous
                                                                                                                 The Fund will seek out commercial propositions that
estimates of the economic benefit
stood at ZAR2.5bn. There are a
                                                           Air                                                   promote the remediation of damaged environments
                                                                                                                 and polluted soils, and which also assist in
                                                           We are to fund new technology & energy projects
significant number of projects that will                   that promote cleaner air environments, which
                                                                                                                 optimising the value of our region’s soil resources

materialise in the next two years, some                                                                          for the benefit of agribusiness.
                                                           reduce carbon emissions and which have the
of which are still in research stage.                      added potential to earn for their promoters carbon
                                                           credits in the open trading market.
   HARMKE IMMINK, manager of sustainable
solutions division at PricewaterhouseCoopers,
   quoted in Business Report on 20th March
                                                           Water                                                 The Fund will consider actively financing propositions
                                                                                                                 that effectively and cost-effectively contribute to
                                                           Water is South Africa’s most precious resource
                                                                                                                 commercially driven solutions to mitigate
                                                           and we will look to fund technology & energy
                                                                                                                 unsustainable agricultural practices and which
                                                           projects that promote the optimisation of this
                                                                                                                 promote new biotechnologies that move markets for
                                                           scarce resource as well as creating world class
                                                                                                                 natural products, essential oils, organics and natural
                                                           technologies for scale-up and replication globally.

                                                           We are actively seeking to fund enterprise and
                                                                                                                 The Fund will consider actively financing propositions
                                                           project innovations that set new sustainable
                                                                                                                 that effectively and cost-efficiently contribute to
                                                           benchmarks in ecotourism operations and ventures,
                                                                                                                 commercially driven solutions to promote a
                                                           eco-estates and commercial and residential ‘green’
                                                                                                                 sustainable forestry and certified
                                                           settlements and buildings.
                                                                                                                 value-added industries.                06

                                                                               INVESTMENT STRATEGY

Several people were advancing
                                              Evolution One’s investment philosophy centres on long-term
successful action, but no one was
bringing them together…                       equity and equity-related investing based on rigorous
  STEVE HOWARD, co-founder of Climate         sustainability research. Sustainability analysis therefore
        Group, a British lobby that is now
advising the UK government and business
 on climate change policy, quoted in April
                                              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 Evolution One’s differentiated
                                              investment strategy and added value.

                                              Inspired Evolution Investment Management is actively seeking innovative, proven technologies and
                                              projects or infrastructure related investments, which can be scaled up and replicated. The
                                              Evolution One Fund will not be targeting early stage technologies that are not proven at
                                              commercial scale. The Fund Managers are also deploying a risk-averse investment strategy across
                                              predominatley expansion stage, with some early and later stage deals to spread investment risk.
                                              The Fund will seek out deals that are able to generate a gross internal rate of return of 30% or

               FOUNDING PARTNERS


                 FOUNDING PARTNERS


                FOUNDING PARTNERS


                                                                                                            FUND TEAM

                                               EXECUTIVE DEAL TEAM PRINCIPALS
                                                         << Mr Christopher Clarke, CHIEF EXECUTIVE OFFICER
                                                         Christopher is a Founding Partner and the Chief Executive Officer of Inspired Evolution
                                                         Investment Management. Christopher assumes primary oversight of the funds’ investment
                                                         management activities and corporate business. Christopher also heads up the sustainability
Cleaner electricity is on its way.
                                                         research portfolio. Prior to founding Capital Evolution Christopher spent fifteen years
We are introducing BP Alternative
                                                         specialising in sustainable development issues and developing an interest in the role that
Energy - a new business that will use
                                                         sustainability investing can play in accelerating the use and deployment of appropriate
hydrogen, as well as wind, sun and
                                                         technologies and in making natural capital markets work. His experience spans enterprise
natural gas to provide cleaner,                          development and management, project development finance, environmental sustainability
low-carbon electricity. Learn how                        planning, policy development, and corporate governance.
we’re putting a cap on carbon.

                  Full-page advertisement by
  British Petroleum (BP), one of the largest
                                                         << Dr Zuko Kubukeli, EXECUTIVE DIRECTOR
    oil companies in the world, April 2006.              Zuko is a Principal at Inspired Evolution Investment Management. For the past three years
                                                         Zuko has been involved extensively within the private equity arena primarily in the arena
                                                         of unlisted companies, performing company analysis and valuation, turnaround
                                                         propositions, mergers and consulting to some of the country's largest financial institutions.
                                                         He brings Evolution One a wide network of contacts and influence within these
                                                         institutions, investment opportunities, managerial support and leadership to its companies
                                                         and investments. Prior to joining Pan-African Capital Holdings Zuko was an equity analyst
                                                         in the Specialised Funds division at Brait, a South African blue-chip private equity
                                                         company. He was involved devising the company’s investment philosophy, criteria and
                                                         process in selecting hedge fund managers from the universe of managers in South Africa
                                                         and abroad. He held the position of executive director in the division and was also
                                                         chairman of the group's Employment Equity Committee. During his tenure at Brait the
                                                         division grew its funds under management eight-fold and the number of managers
                                                         increased from two to eleven.
                                 FUND TEAM



                                 FUND TEAM


                                                                                                                       ADVISORY BOARD

                     Dr Iraj Abedian (Chairman)                      Philip G. Doyle                                              Professor Anton Eberhard
                     Cape Town, South Africa                         London, United Kingdom                                       Cape Town, South Africa
                     Dr Iraj Abedian is an economist by training     Mr Philip Doyle is the Managing Director of Econergy         Prof. Eberhard’s fields of specialisation includes:
                     and has extensive business and research         International Corporation (EIC). EIC’s activities include:   economics, management, restructuring and regulation of
                     experience in South Africa. Since 1994, Iraj    sourcing of clean energy investment opportunities,           infrastructure industries - particularly the electricity, gas
                     has been involved in formulating                strategic acquisitions, carbon purchasing, and               and water sectors – in support of sustainable
                     macroeconomic policy in South Africa and is     developing key relationships with strategic sector and       development. In addition, energy (and R&D) policy,
a respected adviser to a number of public and private sector         technical partners.                                          renewable energy and energy-efficiency financing and
organisations.                                                                                                                    business models.
                                                                     Mr Doyle has advised and supported in the development
From 2000 to 2004, Dr Abedian served as Chief Economist and
                                                                     of renewable energy projects for public and private          Prof. Eberhard is an energy expert and advisor to Eskom,
EXCO member of the Standard Bank Group of South Africa
                                                                     sector investors and Econergy. Developed the financial       South Africa’s national energy utility. He also served as
Limited and in 2005 he and Professor Wiseman Nkuhlu founded
                                                                     structure for over 15 projects and provided critical         Director of the Energy and Development Research
Pan-African Capital Holdings (Pty) Ltd, a private investment
                                                                     assessments for numerous others.                             Centre from 1989-1999 and has or is currently serving on
                                                                                                                                  the following Boards:
Dr Abedian is currently a member of President Thabo Mbeki’s          Mr Doyle has undertaken commercial/financial
Panel of Economic Advisers and is an honorary professor of           investment sourcing and reviews for over 20 corporate
economics at the University of Pretoria.                             (early/technology, expansion stage, and fund) investment           Infrastructure Advisory Facility (PPIAF)
Since 2001, Dr Abedian has been a member of the board of                                                                                Journal of Economic Regulation and Governance
directors of the Development Bank of Southern Africa (DBSA). He      Mr Doyle has extensive knowledge and experience in
is a director of Transnet Limited and Munich Re and serves on the    working with the Clean Development Mechanism (CDM)                 Southern Africa
Advisory Board of the Auditor-General of South Africa.               and its Certified Emission Reduction certificates (CERs)
                                                                     as well as with Voluntary Emissions Reductions (VERs).             of Science
Dr Abedian is currently the Chief Executive Officer of Pan-African
Capital Holdings and its subsidiary companies.                       Mr Doyle has extensive specific project experience                 Advisory Board
                                                                     including: biofuels (ethanol & biodiesel), natural gas,
                                                                     hydroelectric, wind, biomass, and energy conservation

                                                                                                                   ADVISORY BOARD

Saliem Fakir                                                Egbe “Bebe” Oyegun                                             Nicholas Parker
Stellenbosch, South Africa                                  Cape Town, South Africa                                        United States of America

Saliem Fakir is a senior lecturer at the Department of      Ms Bebe Oyegun is the Biofuels Business Development            Mr Nicholas Parker is co-founder and Chairman of the
Public Administration and Planning at the University of     Manager, for BP Southern Africa (BPSA). Ms Oyegun              Cleantech Group™, LLC. He introduced the "cleantech"
Stellenbosch where he teaches a course on renewable         identifies and assesses business development                   concept to the investment and business community in
energy policy and financing of renewable energy             opportunities in conventional and advantaged Biofuels.         2002. Previously Nicholas accumulated over 15 years
projects. Saliem is the Associate Director of the Center                                                                   experience starting and investing venture funds
for Renewable and Sustainable Energy Studies, a             Ms Oyegun also focusses on the development of                  worldwide through limited partnerships, family offices,
recently established center at the University of            effective and lasting strategic third party relationships in   corporate funds and endowments. During this time, he
Stellenbosch.                                               support of the generation, development and commercial          pioneered the first "sustainability" driven private equity
                                                            delivery of BP’s biofuels business options.                    funds and participated in one of the first solar IPOs. In
Saliem Fakir previously worked for Lereko Energy (Pty)                                                                     the 1990s, he also founded, built and sold an
Ltd an investment company focusing on project               Ms Oyegun has experience in corporate transformation           environmental finance firm. He has served as an advisor
development and financial arrangements for renewable        having developed and managed a framework and                   to multilateral agencies and major corporations.
energy, bio-fuels and the waste and water sectors. He       process for driving BPSA’s strategy, compliance and
also served as Director of the World Conservation Union     deliverables on Broad-Based Black Economic                      He serves as Chairman of E+Co, a public purpose
South Africa (IUCN-SA) office for eight years.              Empowerment (BBBEE) with focussed corporate                    investment company for clean energy enterprises in
                                                            commitments and activities on Employment Equity,               developing countries, and is a member of several
Saliem serves on a number of Boards and during 2004         Gender and Diversity across their Africa operations.           academic and think tank advisory boards.
and 2005 he served as a chairman of the Board of the
National Botanical Institute where he is now                Ms Oyegun holds a Bachelor of Commerce with Honours            Nicholas is a Fellow of the Royal Society for the Arts,
non-executive member. Saliem also serves on the board       in Management.                                                 Manufactures and Commerce (RSA). Nicholas has lived
of the Fair Trade in Tourism Initiative, and is member of                                                                  and worked in Africa, Asia, Europe and North America
the Technical Advisory Committee of the Global                                                                             and currently resides with his two children in Toronto.
Reporting Initiative, based in Amsterdam.

                                                                                                 FUND MANAGEMENT

                                                 The Inspired Evolution Investment Management executive and advisory
                                                 team brings to the southern African environmental goods and services
South Africa stands to benefit from
the expansion of the Clean                       sector a mix of management resources that includes international
Development Mechanism (CDM) that                 experience as direct investors in the environmental sector, proven fund
gives carbon credits to projects in
developing countries based on clean
                                                 management skills and unchallenged local knowledge and expertise.
energy sources.                                  Additionally, the company provides:
SIR NICK STERN, Senior Economic Adviser to
the British Government, speaking to the South
  African National Treasury on 25th April 2006   Funding: Inspired Evolution Investment Management will provide significant capital investment in the form of equity
                                                 participation for bankable projects. The fund managers are also able to leverage this contribution by assisting in debt
                                                 funding arrangements.

                                                 Technology: the Group brings to South Africa direct access to a broad range of proven technologies and viable
                                                 business enterprises in which it has already secured equity participation. These technologies will be matched with local
                                                 South African know-how to optimise success.

                                                 Research and advisory services: The fund managers are able to provide South African companies with direct access
                                                 to established and reputable research resources such as Imperial Innovations, the commercial arm of London’s Imperial
                                                 College, as well as introductions to organisations specialising in the field, illustratively Econergy International plc, world
                                                 leading environmental project managers.

                                                 Market knowledge: The Inspired Evolution Investment Managers will engage with project promoters and key
                                                 institutions and organisations in South Africa and abroad to optimise the market uptake of new environmental goods
                                                 and services such as renewable energy and bio-fuels.


Once you put a value on carbon                  Inspired Evolution Investment Management currently has offices in
reductions, you make winners out of
                                                Johannesburg and Cape Town in South Africa, and London in the United
innovators. You offer a pot of gold.

  FRED KRUPP, President of the US Company,
 Environmental Defence, quoted in March 2006.

                                                                                     These offices are fully functional and provide the
                                                                                     fund management team and its stakeholders with
                                                                                     conveniently located and easy-to-access premises
                                                                                     from where the Fund is managed. The geographic
                                                                                     spread enhances the Fund’s footprint.


                                                    CAPE TOWN         JOHANNESBURG
                                                        ACCESS TO TECHNOLOGY &
                                                         INTELLECTUAL PROPERTY

                        An innovative, cost-efficient
                        and viable producer of          Innovative solutions for
                        bio-ethanol and methanol        global agricultural needs
                                                                                      Green fuels to the world

                  The UK’s leading, listed
                  producer of bio-diesels
                  with a global crop-to-pump
                  technology                                                                 Large scale production and exploitation
                                                                                             of biodiesel and glycerine

                                                                                                                              Acquire fuel cell
       One of the UK’s leading
       university based technology
                                                                                                                              property rights

       transfer companies

                  The Sunpowered                                                                                          A leading international
                  Company                                                                                                 clean energy company

A microbial biotechnology                                                                                         Established to be an operator of,
company specialising in plant                                                                                     and undertake active investment in,
health care systems and natural                                                                                   both proven and innovative
systems solutions for commercial                                                                                  renewable energy technologies
tree care, horticulture and forestry
                                                                                                  Britain's biggest
                                                                                                  producer of coal
                  World’s first and North
                  America’s only voluntary,
                  legally binding rules-based
                  greenhouse gas emission                  A world leader in developing new and innovative
                  reduction and trading system.            technology that tackles major problems of
                                                           environmental degradation and waste disposal



                                                                                 FUND STRATEGIC

                                                                                    Funding, Projects, Access to Technology,
                                                   SA Development Corporations      Policy and Regulations
South Africa may invest as
much as US$800m (ZAR5bn) in
developing an ethanol industry                     NIP/Offset Contractors           Funding, Projects
as rising oil prices prompt the          PARTNER
government to look for
                                                   Incubators                       Projects, Access to Technology
cheaper sources of vehicle
fuel. This is the announcement
of a national initiative.                          Universities and Technikons      Projects, Access to Technology
RIAN COETZEE, Head of Agro-Industries
     SBU at the Industrial Development
          Corporation (IDC), 16/03/06.             CSIR                             Projects, Access to Technology

                                                   NGO/Mulitlateral Grant Funding   Funding

                                                                               PIPELINE HIGHLIGHTS

                                                      Deal 1
                                                      A cluster of renewable and energy efficiency infrastructure projects within the Eastern
                                                      Cape Province of South Africa, replicable nationally. These include 15 to 25 year power
                                                      purchase agreements for landfill gas flaring projects, an energy efficiency project, a wind
National Bio-fuels Initiative: Project                farm, and a 10-year solar water heater roll-out to residential houses.
Description and Development Stage.
To produce 1 billion litres of fuel grade             Deal 2
ethanol from multiple feedstock to                    A technology company that is a composite natural fibre board manufacturer geared to
achieve a 10% blend in retail petrol.                 provide environmentally friendly products that can be cut, shaped, laminated and/or
Similar opportunities for bio-diesel.                 printed on and used for a number of applications. The company has three principal
DME must regulate blend to support                    products: X-Core - a multi-purpose composite wafer made from paper corrugated
market. Price support to cater for                    honeycomb; X-Board - made by sandwiching X-Core between two outer layers of
exchange rate volatility. High impact on              laminate; Mondi Xtreme - a 100% natural fibre-based board.
job creation. Potential to replace 10%
of gasoline in petrol. Import saving in               Deal 3
the region of ZAR1 billion on crude oil.              A large-scale coconut oil feedstock biodiesel project based in Mozambique. The model is
 Extract from government’s presentation on ASGISA     a decentralized community-private partnership that involves local grower associations
 (the ZAR37bn Accelerated, Shared Growth Initiative
        for South Africa programme), February 2006.
                                                      with their own crushers and related training and social support services. The project will
                                                      empower around 5,000 community members and targets the production of 900 million
                                                      litres of biodiesel per annum by 2013.

                                                      Deal 4
                                                      A joint venture with a leading coal mining consortium and carbon broker in South Africa
                                                      to jointly develop and finance a suite of around 650MW of electricity through
                                                      co-generation technologies from large industrial plants throughout South Africa. The deal
                                                      will enjoy a secure 15-year power purchase agreement with the national utility, Eskom.


                                   INSPIRED EVOLUTION
If the government were to          INVESTMENT MANAGEMENT
mandate a bio-diesel blend of
1 percent to 5 percent today,
the value of the country’s         Cape Town (Head Office)                    London
                                   Contact:   Mr Christopher Clarke           Contact:   Mr Wayne Keast
bio-diesel market would
                                   Title:     Chief Executive Officer         Title:     Executive Director
exceed ZAR2bn.
                                   Tel:       +27 21 702 1290                 Tel:       +44 (0) 207 355 7804
       Quote in Business Report,
               16th March 2006.    Fax:       +27 21 702 1483                 Mobile:    +44 7990 570 077
                                   Mobile:    +27 82 496 0522                 Email:

                                   Contact:   Dr Zuko Kubukeli
                                   Title:     Executive Director
                                   Tel:       +27 11 883 8036
                                   Mobile:    +27 82 925 2966