JohnChaimanis,ManagingDirector

PrivateRenewableInves:ng–presentedto

KENDALL INVESTMENTS

Confidential – Not an Offering Document

!

KENDALL

I N F R A S T R U C T U R E KSI

The Challenge�•  Asapopula:on,wearedriventoacleanerenergylandscape(foranumberofreasons)

•  Aseduca:onalins:tu:ons,wecaneffectchangebyspendingdollars:–  Oncampusthroughopera:ngbudgets,and–  Societallythroughendowmentinves:ng

•  “CleanTech”soundsgreat–butisapoorclassifica:onandconfusesinfinitelydifferentindustries,businessmodels,andmaturityoftechnologies.

Reward/Risk

LessRisky/HighReturn

CleanTechPublicEqui:es

Pre-com-mercial/newtech-nology

Dev-elop-mentstage

(Green-field)Infra

Projects YieldCo(Circa2015)

ContractedPrivate

RenewableProjects

(commerciallyproven)

GreenBonds

RiskofLossLineProprietarytoJohnChaimanis2014-2016KendallSustainableInfrastructure,LLC

MoreRisky/Highlikelihoodoftotalloss

ReturnExpecta:o

n

Conceptualrendering–nottoscale

Risk / Return: Various Public and Private �Clean-Tech & Renewable Investments�

8%

2%

15%

20%

40%*

*Returnexpecta:onsareindica:veandvaryEachinvestmentbearsit’sownrisk/returnprofile

Risk

Development Permitting Const. Operations

Risk Profile

Power Contract Signed

DevelopmentDollarsatRisk.

Graphic:ProprietarytoKendallSustainableInfrastructure,LLC

Investment Risk Profile�of a US Located Contracted Renewable Project �

utilizing Commercially Viable Technology (e.g. PV/Wind)�

•  Allrenewableprojectshavegeneralphasesoflife•  The:meatwhichadollarisinvestedintoarenewable“project”materially

determinestheriskoflossofthatdollar,andthepoten:alreturn•  Notwoprojectsareiden:cal,andeachinvestmentmusttakeintoaccount

hundredsofspecificaeributesofeachproject

ProprietarytoJohnChaimanis,KendallSustainableInfrastructure2005-2016

Note:Graphicisillustra:ve.Projectdevelopmentisnotlinearandtheaeributesofaspecificprojectwillimpacttheriskprofile.

ProjectFinance.

Private Infrastructure vs. Public YieldCo �

5

($800,000)'

($600,000)'

($400,000)'

($200,000)'

$0''

$200,000''

$400,000''

$600,000''

$800,000''

$1,000,000''

$1,200,000''

1' 2' 3' 4' 5' 6' 7' 8' 9' 10'

Capital'Cost'

Free'Cash'Flow'

Cumula1ve'Cash'Dist'

PrivateVehicleRenewableInfrastructure

PubliclyListedRenewableInfrastructure(YieldCo)

Contracted Renewables Redefine �the Asset Allocation Model �

2013RiskAlloca:onFrameworkCambridgeAssociates

EnergyInvestmentshavetradi:onallybeenthoughtofas“DiversifiedGrowth”andgroupedwithpeersofPrivateBuy-out,VentureCapital,andOpportunis:cRealEstate,thenbenchmarkedagainstPublicEqui:es

Whereas,PrivateContractedRenewablesusingCommerciallyViableTechnologyperformmuchmorerelatedtoRealAssets&FixedIncome

Private Investing in “Clean Energy”�

1.  Clean-techisnotanappropriateinvestmentclassifica:onbyitself.

2.  Inprinciple,owningcontractedRenewableRealAssetscanproduceaveryaerac:veregularcashyieldinginvestment.

3.  Inreality,the:mingoftheinvestmentintheproject,thestructureoftheinvestment,thecountlessunderlyingdetails,andthecounterpar:esinvolvedintheinvestmentmateriallyimpacttheriskinessandreturnofarenewableprojectinvestment.