L IQUID A SSETS : I NVESTING FOR I MPACT IN THE C OLORADO R IVER B ASIN M ARCH 4, 2016

T HE F INANCING G AP FOR C ONSERVATION 2

S PECTRUM OF I MPACT INVESTING 3

N INE B LUEPRINTS FOR I MPACT I NVESTMENT 4 −Repurpose models from other natural resource markets −Better align incentives −Inject capital to undertake investments or jumpstart public investment A PPROACHES THAT : −Scalable −Systemic −Innovative −Profitable A ND THAT ARE :

C OMPARING S TRATEGIES : R ETURN, I MPACT, AND M ARKET S IZE 5 Low High Medium LowMediumHigh * Bubble size: Market Size (reflects both deal volume and addressable opportunity) S TRATEGIES BY E XPECTED F INANCIAL R ETURN, I MPACT, AND M ARKET S IZE *

E XAMPLE : F OREST H EALTH T REATMENTS VIA P AY - FOR -P ERFORMANCE 6 Verification of treatments Verification agreement Reduced risk of wildfires and potential for increased stream flow Funds forest treatments to reduce wildfire risk, and provide watershed maintenance Principal Payment Provider US Forest Service, utility, or Fed/State finance program Evaluator (Third-party or Utility) Investment Vehicle (LLC) Private Investor-funded Contractors Foresters thin and manage watershed Reduced Fire Risk/Increased Water Yield 2 Secondary / Interest Payment Watershed Fund 5 1 Pay-for- performance Contracts to restore forest health and generate water savings