© 2011 Liquidnet Holdings, Inc.

Change the World by Transforming Traditional Donors into Social Investors

© 2011 Liquidnet Holdings, Inc.

Liquidnet is the premier global marketplace for institutional investors.

Since 2007, the company has devoted a percentage of revenues to social causes through an award-winning corporate social engagement program called Liquidnet For Good.

© 2011 Liquidnet Holdings, Inc.

Liquidnet For Good includes robust employee engagement efforts, sustainability programs, and a signature project: a holistic living, learning and healing community for orphaned and vulnerable youth in Rwanda.

Now, we’re also leveraging our core competency.

© 2011 Liquidnet Holdings, Inc.

Through our Markets for Good initiative, Liquidnet

is applying what we do best in our business to the

social sector.

Through our Markets for Good initiative, Liquidnet

is applying what we do best in our business to the

social sector.

LEVERAGING LIQUIDNET’S CORE COMPETENCY

Liquidnet’s core competency is to use technology and the power of collaboration to remove inefficiencies in a fragmented marketplace.

Liquidnet’s core competency is to use technology and the power of collaboration to remove inefficiencies in a fragmented marketplace.

© 2011 Liquidnet Holdings, Inc.

Market: n. 1. a place where buyers and sellers convene for trade.

MARKET DEFINITION

© 2011 Liquidnet Holdings, Inc.

THE PROMISE OF MARKETS

In a more perfect world, markets would efficiently distribute money – in the form of debt, equity and philanthropic grants – to organizations that are sustainably achieving the greatest social impact.

© 2011 Liquidnet Holdings, Inc.

THE SPECTRUM OF MARKETS

© 2011 Liquidnet Holdings, Inc.

THE SPECTRUM OF MARKETS

FINANCIAL CAPITALMARKETS

Financial Return

Financial Performance Measurement

• Debt• Equity

• Retail (mutual funds, online brokers)• Institutional (Exchanges, Alternative

Trading Systems)

About 5%

FINANCIALCAPITALMARKETS

$50 Trillion

SOCIALLY RESPONSIBLE

INVESTINGSocial Screening and Shareholder Advocacy

$7 Trillion

RETURN

MEASUREMENT

PLATFORMS

INVESTMENTTYPE

AVERAGETRANSACTION

COST

MARKET SIZE

“MARKETS FOR GOOD”

© 2011 Liquidnet Holdings, Inc.

Markets for Good aims to address the

CHALLENGESIN THE PHILANTHROPIC ECOSYSTEM:

© 2011 Liquidnet Holdings, Inc.

How might we make it easier and cheaper for nonprofits

to raise money?

© 2011 Liquidnet Holdings, Inc.

How might we make it easier for donors to find effective

nonprofits to donate to?

© 2011 Liquidnet Holdings, Inc.

How might we ensure thathigher-performing nonprofits are receiving enough donations

so that they can effectively meet their mission?

© 2011 Liquidnet Holdings, Inc.

GIVING MARKETS TODAY

© 2011 Liquidnet Holdings, Inc.

Source: Giving USA Foundation (2007) Sources: Foundation Center, Slate, via Disrupting Philanthropy: Technology and the Future of the Social Sector, by Lucy Bernholz with Edward Skloot and Barry Varela

BILLIONS OF DROPS IN MILLIONS OF BUCKETS

© 2011 Liquidnet Holdings, Inc.

Source: Giving USA Foundation (2007) Sources: Foundation Center, Slate, via Disrupting Philanthropy: Technology and the Future of the Social Sector, by Lucy Bernholz with Edward Skloot and Barry Varela

THE LONG TAIL OF GIVING

© 2011 Liquidnet Holdings, Inc.

LITTLE GIVING BASED ON PERFORMANCE

Source: Hope Consulting, Money for Good: The US Market for Impact Investments and Charitable Gifts from Individual Donors and Investors, May 2010

© 2011 Liquidnet Holdings, Inc.

UNDERSTANDING DONORS

If we understand the various motivations driving donors, we can more fully engage them in social investing.

Source: Hope Consulting, Money for Good: The US Market for Impact Investments and Charitable Gifts from Individual Donors and Investors, May 2010

© 2011 Liquidnet Holdings, Inc.

TOMORROW: GIVING MARKETS

With enough demand from donors and sufficient supply of information about nonprofits, we might transform the philanthropic ecosystem into giving markets.

TRANSACTION PLATFORM FOR INFORMATION & INVESTING

RETURN:“I demand a high social return on my investment and I know that I am making an impact.”

RETURN:“We can demonstrate that we are making a difference and

are able to attract more funding to continue to do so.”

RETURN:“My needs are being met and I

have a voice.”

© 2011 Liquidnet Holdings, Inc.

LIQUIDNET IMPACT CHALLENGE TO NET IMPACT MEMBERS:

How can we turn traditional donors into social investors who demand a high social return on their investment?

© 2011 Liquidnet Holdings, Inc.

SOCIAL INVESTORS BETTER WORLD

DrivingDrivingSocial Investors

Social Investors

Efficiently to

Efficiently toMore CapitalMore Capital Leads toLeads to

Higher Performing Nonprofits

Higher Performing Nonprofits

A Better WorldA Better World

© 2011 Liquidnet Holdings, Inc.

LEARN MORE

marketsforgood.com

@marketsforgood