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Impact Investment Exchange and KKR Announce Partnership



  Impact Investment Exchange and KKR Announce Partnership

 Work with East Bali Cashews leads to $900,000 investment, creating jobs and
                                social impact

Business Wire

SINGAPORE -- October 22, 2013

Impact Investment Exchange Asia (IIX), a leader in social sector development
through impact investment, and KKR, a leading global investment firm, marked
the successful completion of its technical assistance project with East Bali
Cashews (EBC), based in the rural village of Ban in Bali’s Karangasem
District.

Social Enterprises are businesses which actively create a positive return to
society. EBC, founded in 2012, is the first large-scale cashew processing
facility in Bali and uses sustainable, eco-friendly business practices to
process unshelled cashews, package and sell them under the brand name
Alamente. EBC creates employment for women from farmer households who are
mostly illiterate and have never had formal, salaried employment.

KKR and IIX worked with EBC as it was preparing to expand its capacity by
providing technical assistance in developing EBC’s financial model and
business plan, assessing the appropriate capital structure and liquidity
requirements for the business and developing an investment structure for new
funds. IIX coordinated the overall project and its non-for-profit sister
organization, Shujog, developed a social impact assessment. The KKR team
included two private equity professionals from the Singapore office, and
another from Sydney.

As a result of this effort, East Bali Cashews raised $900,000 in new
financing. Now, it is building a second factory, purchasing 16 additional
machines, tripling the size of its warehouse and hiring 100 new employees.

Shujog’s social impact assessment found that for every dollar invested on EBC
activities in 2013, the company created an additional 24 cents in social
value, such as by hiring additional villagers and providing them first-time
wages.

The direct beneficiaries of this social impact include the company’s current
130 employees, plus over 100 additional employees that EBC will hire as it
expands over the coming year. Employees now enjoy more assets and income,
improved health, increased mobility and financial security, and increased
social capital and emotional well-being. By 2015, with its capital raising and
expansion, EBC’s impact proposition is projected to double.

EBC founder Aaron Fishman said: “By working with KKR, IIX and Shujog, we got
to the next level in terms of funding and expansion. Their commitment to us
enabled us to grow faster than we could have on our own. When potential
investors learned that KKR professionals had reviewed, verified and counseled
us on our business plan, we had a ‘stamp of approval’ in raising funds we
never had before.”

IIX Managing Director Robert Kraybill, said: “Many social enterprises in Asia
have achieved proof of concept, but need assistance to scale. IIX and Shujog
look to provide these resources. KKR joining this effort was invaluable in
that it brought world-class investment expertise to our team, enhancing our
ability to provide the support EBC needed at the right time. That support has
now been leveraged to raise nearly $1mn, which will positively impact the
lives of hundreds.”

KKR Public Affairs Director for Asia Pacific, Steven Okun, said, “In IIX and
East Bali Cashews, we found two partners committed to building businesses
focusing on operational value-add with the aim of creating a social impact.
KKR is pleased to have partnered with such forward-looking organizations, and
looks forward to future opportunities to support Impact Investing in Asia.”

KKR, East Bali Cashews, IIX and Shujog presented this project at a panel
session at the PublicAffairsAsia SharingValueAsia Conference taking place in
Singapore.

                                    # # #

About East Bali Cashews

Based in the rural village of Ban in Bali’s Karangasem District Indonesia,
East Bali Cashews uses sustainable, eco-friendly business practices to process
unshelled cashews, package and sell them to the domestic and international
markets under the brand name of Alamente. They are the first large-scale
cashew processing facility in Bali. They have processed over 50 tons of
quality cashews with current revenue of approximately US$ 35,000 per month.
East Bali Cashews works towards creating strong social impact on the
communities through job creation focusing on women and environmental impact
through using renewable energy sources to power the processing facility.

About IIX and Shujog

Impact Investment Exchange Asia (IIX) is a Singapore-based organization with a
mission to provide Social Enterprises (SEs) in Asia greater access to capital,
allowing them to more rapidly expand the impact of their activities. IIX
offers three investment platforms – Impact Incubator, Impact Partners and
Impact Exchange. Impact Incubator focuses on raising seed capital for start-up
SEs while Impact Partners is a private placement platform dedicated to
growth-stage SEs that are seeking expansion capital. IIX also recently
announced the launch of Impact Exchange, operated by the Stock Exchange of
Mauritius in collaboration with IIX. Impact Exchange is the world’s first
“social stock exchange”, a regulated stock exchange dedicated to listing and
trading securities issued by mature SEs and other socially-driven
organizations.

IIX’s sister not-for-profit company, Shujog, focuses on growing the Social
Enterprise (SE) space in Asia. Shujog equips SEs, investors, and other members
of the SE ecosystem with innovative tools to magnify the impact and scale the
quantity of Asian SEs. Shujog also broadens the knowledge base and shares best
practices across continents by co-hosting the largest Asia-based forum for
impact investment. Through its impact assessment, advocacy, and research work,
Shujog achieves its mission to strengthen, deepen and expand the impact SEs
deliver in vulnerable communities.

About KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading
global investment firm with US$83.5 billion in assets under management as of
June 30, 2013. With offices around the world, KKR manages assets through a
variety of investment funds and accounts covering multiple asset classes. KKR
has seven offices across Asia Pacific, with its Southeast Asia regional
headquarters based in Singapore. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active oversight
and monitoring of its investments. KKR complements its investment expertise
and strengthens interactions with fund investors through its client
relationships and capital markets platform. KKR & Co L.P. is publicly traded
on the New York Stock Exchange (NYSE:KKR), and "KKR," as used in this release,
includes its subsidiaries, their managed investment funds and accounts, and/or
their affiliated investment vehicles, as appropriate.

Contact:

IIX/Shujog
Emily Perkin, +65 6221 7051
eperkin@shujog.org
or
KKR
Steven R. Okun, +65-6922-5800
steven.okun@kkr.com
or
Edelman Indonesia (for KKR and East Bali Cashews)
Wulan Suling, +62-21-721-59000
wulan.suling@edelman.com
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