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So this is an important moment, I think,
for the impact investing sector,

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and we need to really double down on
delivering deep impact with attractive

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financial returns.

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Luca, it's always wonderful to see you.

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Tell me about why you thought blended
finance was the right model that you

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needed for the impact you wanted to
create through GAWA Capital.

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So first of all,
thank you very much for inviting me.

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It's wonderful to be back at BCG.

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When we founded GAWA Capital,
we really had a very clear objective,

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which was delivering deep impact with
attractive financial returns.

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So blended finance came like a natural
answer to be able to deliver both of the

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things. At GAWA Capital,

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we use technical assistance,
which is one of the component of blended

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finance to really go deep and transform
our investees,

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so they're really able to do that kind of
impact work.

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But we also use first loss,
we use return enhancement kind of

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tranches to really provide the attractive
returns or at least to reduce the

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perceived risk that some of the large
institutional private investor have

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investing in difficult areas where we
invest.

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So we invest in Latin America,
we invest in India, we invest in climate,

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in agriculture.

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So sectors that can be perceived as risky,
and some of these instruments like I said,

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they can really help reduce either the
real risk or many times just the

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perceived risk.

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We all talk—we've been talking about
blended finance for a long time.

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Talking about it and making it happen are
two very different things.

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And you have succeeded in bringing
together a wide range of different

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stakeholders and build this blended
finance mechanism.

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What does it take to make that happen?

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So that takes patience and time as well.

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A couple of like key points there is that
you need to have a really detailed

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financial modeling as to be sure that
everybody can align on what their

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expected returns are—realistic expected
returns are.

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And the second one, the second,
I think the second principle is that you

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need to be very transparent about the
impact as well.

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There are some stakeholders such as the
catalytic capital providers that they

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really focus on the impact.

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So you really need to be extremely
transparent and direct on the kind of

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impact that you expect to achieve.

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Talk to me a little bit about your
fundraising.

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How is that going?

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Yes,
so we launched our fourth fund in

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February,
and with the second closing now in August,

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we just raised €140 million.

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Fantastic.

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Well,
we're always very proud of you as a BCG

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alum for being—doing such amazing things
at the leading edge in blended finance.

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Where are you going next?

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What's coming in this space?

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So this is an important moment, I think,
for the impact investing sector.

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And so, we, strategically,
we believe that we need to really double

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down on delivering deep impact with
attractive financial returns.

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That means that we've been hired more
technical people in our team.

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So we now have an agronomist,
we have a climate expert,

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we have a couple of financial inclusion
experts,

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and we also strengthen the investment
team.

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So with two teams working together,

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we really hope that we will be able to
continuing delivering the impact and

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attractive financial returns for the long
term.

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Fantastic.

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We wish you the very best,
and we're excited to see where this goes.

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Thank you very much for the time.

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Thank you to you, Shalini.