JPMorgan Chase Joins UK Government’s DFID and CDC to Announce $20 Million Combined Investment in Novastar Ventures

  JPMorgan Chase Joins UK Government’s DFID and CDC to Announce $20 Million
  Combined Investment in Novastar Ventures

     Capital Commitment to support Early-Stage Businesses in East African
                                 Communities

Business Wire

LONDON -- April 7, 2014

JPMorgan Chase and the UK Department for International Development will kick
start promising businesses in East Africa through a new joint investment in
Novastar Ventures.

The new $5 million investment by JPMorgan Chase will be matched by an
additional $15 million from DFID as part of its first ever Impact Investment
Fund. Launched in 2013, the fund is managed by the CDC, the UK’s own
Development Finance Institution.

The investment will develop and grow early-stage businesses that bring the
most basic human needs to some of the poorest communities in East Africa, such
as healthcare, energy, housing, education and sanitation. The announcement
follows Novastar’s recent investment in Bridge International Academies, which
provides affordable, primary education to low-income populations. Since 2009,
Bridge has built more than 250 schools in Kenya and has hired over 3,000
employees from some of Kenya's poorest communities.

“We are delighted to have Novastar join our latest investment round,” said Jay
Kimmelman, Cofounder and CEO of Bridge International Academies. “Novastar's
founding partners have supported Bridge since our very early days. Their
values are closely tied with ours – seeking innovative business-based
solutions to sustainably solve some of the world’s greatest problems. Their
investment and their experience will be invaluable as we enter our next phase
of expansion.”

Novastar’s investment portfolio is diverse and includes rapidly growing
businesses supplying fuel-efficient cookstoves in Kenya and Ethiopia, and
franchise sanitation facilities in Nairobi’s urban slums. Novastar seeks to
develop fully commercial businesses that adapt and deploy innovative business
models to profitably serve proven demand for basic goods and services,
improving access, affordability and quality. Novastar’s investments are
expected to benefit more than 2 million low-income households in East Africa
over the next decade.

“We’re looking for the next generation of exceptional entrepreneurs who are
designing and executing innovative business models to profitably serve
low-income consumer markets in East Africa,” said Steve Beck, Managing
Director of Novastar. “By supporting these entrepreneurs and the growth of
their ventures, we aim to generate long-term capital appreciation for our
investors and significant, scalable benefits to these consumers and producers.
In so doing, we hope to attract more entrepreneurship and private capital into
the emerging economies of East Africa.”

The investment follows DFID’s appointment of Novastar as the first beneficiary
of its Impact Investment Fund in January 2014. The UK’s £75 million Impact
Fund is expected to benefit five million people over the next thirteen years,
by providing capital to fund innovative enterprises that serve the poor as
employees, producers and consumers.

“Our joint investment will ensure promising businesses get the support they
need to create jobs and deliver much needed services like health and
education,” said Justine Greening, Secretary of State for International
Development. “Sharing our joint knowledge and expertise on development and
sound investment choices will improve the lives of many of the poorest people
across East Africa.”

“Impact investments have the potential to transform the lives of millions of
the poorest people in Africa and South Asia,” said Diana Noble, CDC’s Chief
Executive. “Novastar will now be able to provide early-stage funding to
businesses in East Africa that provide vital jobs, goods and services. When
CDC commits its capital to impact investment, we’re looking for teams, like
Novastar, who are able to raise money from other commercial investors.”

“We are very proud to partner with the UK Government in providing investment
to Novastar and the critically important businesses they support in East
Africa,” said Peter L. Scher, Executive Vice President and head of Corporate
Responsibility at JPMorgan Chase. “Our firm has made a substantial commitment
to supporting market-driven solutions to some of the world’s most pressing
social, economic and environmental challenges.Novastar’s management team has
an accomplished record of financing start-ups that seek to improve the basic
quality of life for people in East African communities. We’re thrilled that
our investment can help expand their efforts.”

The investment in Novastar is further demonstration of JPMorgan Chase’s
dedication to building and delivering innovative solutions to address social
and environmental challenges in partnership with governmental and
philanthropic organizations. Late last year JPMorgan Chase and the Bill &
Melinda Gates Foundation announced a new $108 million investment fund to
advance late-stage global health technologies, like vaccines, in low-income
countries. Since its launch in 2007, JPMorgan Chase has committed more than
$50 million in capital to a number of funds making investments in Africa and
other parts of the world including the African Agricultural Capital Fund,
LeapFrog Financial Inclusion Funds I and II, and MicroVest II.

Notes to editors

1. Case-studies and supporting images of previous Novastar investments
available on request.

2. JPMorgan Chase’s $5 million investment brings total private sector funding
to $10 million in Novastar, boosted by $15 million in investment from DFID.

3. The US$15 million allocation from the UK Government is taken from DFID’s
£75 million impact investment fund managed by the CDC. DFID’s Impact Programme
aims to foster the development of the impact investment market in Sub-Saharan
Africa and South Asia and to attract new investors into it by:

  *Testing and demonstrating the development impact and financial viability
    of this type of investment
  *Improving the way that social impact is measured and information about it
    is shared
  *Providing capital and specialist advice on a competitive basis to enable
    impact investment managers to raise more capital and deploy it more
    effectively.
  *DFID is providing up to £165 million over 13 years (2012/13 to 2025/26) to
    catalyse the market for impact investment in Sub-Saharan Africa and South
    Asia. The programme is coordinated by a Programme Coordination Unit (PCU),
    which has been commercially tendered to PricewaterhouseCoopers LLP (PwC),
    working in partnership with CDC and the Global Impact Investing Network
    (GIIN). 

    http://www.theimpactprogramme.org.uk/

About JPMorgan Chase

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm
with assets of $2.4 trillion and operations worldwide. The Firm is a leader in
investment banking, financial services for consumers and small businesses,
commercial banking, financial transaction processing, asset management and
private equity. A component of the Dow Jones Industrial Average, JPMorgan
Chase & Co. serves millions of consumers in the United States and many of the
world's most prominent corporate, institutional and government clients under
its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is
available at www.jpmorganchase.com.

About DFID

The UK’s Department for International Development leads the British
Government’s fight against world poverty. Find out more at www.gov.uk/dfid

About CDC

CDC is the UK government-owned development finance institution that uses its
own balance sheet to invest in the developing countries of Africa and South
Asia. It has net assets of £2.8bn. CDC’s mission is to support the building of
businesses in Africa and South Asia, creating jobs and making a lasting
difference to people’s lives in some of the world’s poorest places. Under its
strategy, announced in September 2012, CDC provides debt and direct investment
to businesses as well as acting as a fund-of-funds investor. CDC now only
makes new investment commitments in Africa and South Asia J.P. Morgan Chase &
Co.

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Contact:

Media:
J.P. Morgan
Elizabeth Seymour, +44 (0)20 7742 5351
Elizabeth.c.seymour@jpmorgan.com
or
CDC
Rhyddid Carter, +44 (0)20 7963 47
rcarter@cdcgroup.com
or
DFID
Kenny Ferguson, +44 (0)20 7023 0314
Kenny-Ferguson@DFID.gov.uk
or
Novastar Ventures
Steve Beck, +1 484 686 7055
steve@novastarventures.com
 
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