Building a Stronger Innovation Ecosystem in the Triangle Region

1. Building a Stronger Innovation Ecosystem in the Triangle Region • Moderator: Professor Maryann Feldman, Professor, UNC Department of Public Policy • Panelists: • Bob Creeden, Executive Director, The Blackstone Entrepreneurs Network • Philip Culpepper, Chatham Park Master Planner • Jeff Garwood, Managing Member, Liberation Capital • Bob Geolas, President and CEO, Research Triangle Foundation of North Carolina • Prof. Thomas Meyer, Arey Distinguished Professor of Chemistry and • Director of UNC's Energy Frontiers Research Center UNC Friday Center • Redbud Auditorium

2. Bob Creeden Executive Director Bob.creeden@blackstoneen.org 508-361-1914

3. The Network The Network Bob Creeden: Blackstone Entrepreneurs Network • Founded in January 2012 with funding from Blackstone Foundation • Collaborations with UNC Chapel Hill, NCSU, NCCU, Duke, and CED Mission: • Identify marketable innovations from universities and regional start-ups with high growth potential • Connect opportunities with region’s most successful serial entrepreneur(s) for “team” coaching • Support entrepreneurship and innovation in the Triangle region, resulting in more high growth companies producing innovation, revenue and jobs

4. “Coaching, Connections, Capital”.” Network Resources: • EIRs - 12 total to date • 23 Companies; Raised $750M+, Exit Values - $4.5B+ • Fellows – 16 this year; MBA with 5-6 years experience • Due diligence projects, analytics support • Strategic Partners – university and community resources • Blackstone Charitable Foundation and Blackstone Group Bob Creeden: Blackstone Entrepreneurs Network

5. Network Companies Make Up Network Companies Make up Bob Creeden: Blackstone Entrepreneurs Network

6. Funds Raised: 2012 - 2013 25 Companies - 2013 In-Region Investment - $3.1 million Out – region Investment - $40.5 million Bob Creeden: Blackstone Entrepreneurs Network

7. Philip Culpepper Chatham Park, Master Planner

8. Philip Culpepper: Chatham Park

9. Investment Overview Investment Focus Investment Strategy • Project/Asset Finance for Water, Energy & Waste infrastructure • Targeting small projects that are underserved by the capital markets. $10B+ market opportunity for decentralized infrastructure • Geographic concentration in North America and Europe • Investing in hard assets with predictable annual cash flows; • Liquidity from regular operating cash flows, asset/portfolio re-financing, and ultimately asset/portfolio sale; no subsidies/grants assumed in the cash flows • Modular, Repeatable, Decentralized Infrastructure • Strong cash-flowing assets requiring no subsidies or grants • Exclusive investment relationship with qualified partners for multiple plants over multiple years • 100% equity until projects are generating cash, then lever • Rigorous risk management Investment Activity Strong, Experienced Global Team • Renewable Energy Fund 1 • $54MM committed fund; closed June 2011 • $9MM returned/re-invested during the investment period • Investments include: Plastic-to-Fuel, Wastewater, FOG-to-Fuel • Renewable Energy Fund 2 • $72MM committed fund; closed June 2013 • Special Investment Vehicles (outside the funds) • $9.5MM equity investment in Desalitech, a innovative desalination technology company • Former CEO/Executives of multi-billion dollar global businesses • Recognized industry experts in water, energy, & materials • Proven record on structuring, managing and harvesting investments … over $10B of capital deployed in project/asset finance, structured finance and M&A • 9 years transaction period as a team at Liberation Capital and at the General Electric Company Jeff Garwood: Liberation Capital

10. PRIVATE AND CONFIDENTIAL Liberation Capital Member Team Jeff Garwood is the Managing Member of Liberation Capital, LLC. An 18-year veteran of GE, he led GE Water, a $2.5B global infrastructure business, as President and CEO, led GE Fanuc, a leader in industrial automation, as President, was the President of GE’s Garrett Aviation Services business, and held a variety of, management and M&A roles. Jeff began his career at Dupont and McKinsey & Co, and was COO at Commerx and Youcentric. He graduated Summa Cum Laude from NC State University with a B.Sc. In Chemical Engineering, and received a MBA from the University of North Carolina. Frederic Schmuckis a Member of Liberation Capital, LLC. He is formerly a 16 year veteran and Senior Vice President of GE’s Capital Markets team, and has structured over $10B in asset securitizations, and $.5B in project finance equity globally, focused predominantly on renewable energy and water projects. Fred holds an MBA (Finance) from the Wharton School at the University of Pennsylvania, and a B.A. in Finance from Northeastern University. Earl Jones is a Member of Liberation Capital, LLC. He is formerly a Senior Executive at GE, serving in a variety of leadership roles. Earl was the Global Commercial Leader for GE Water & Process Technologies, responsible for Sales, Partnerships, Risk, and Project Development. Earl led the eHealth Solutions business for GE Healthcare IT, and was the Lean Six Sigma Leader for GE for Supply-chain and Manufacturing. Prior to GE, Earl was a Partner in management consulting, a supply-chain leader at Dell, and served honorably as a Submarine Officer in the US Navy. Earl holds a M.S. in EE/CS and an MBA from M.I.T., and a B.Sc. in EE from the US Naval Academy. Jeff Garwood: Liberation Capital

11. PRIVATE AND CONFIDENTIAL Investment Strategy • Attractive return potential; target opportunities have 25% IRR returns, or higher • Packaged, repeatable: mitigates tech risk, minimize EPC risk • Mobile/Moveable: mitigates commercial risk • Speed to Revenue: limits site engineering and construction • Well Understood Technologies: mitigates risk Invest in Projects with Modular, Repeatable, Decentralized Solutions Water, Energy and Waste-to-Value Building Pipeline Through Commercial Partnerships Rigorous Investment Management Process • Water: difficult to treat industrial waste water; desalination • Energy: decentralized solar & wind; unconventional gas-to-electricity; renewable fuels • Waste-to-Value: decentralized waste product conversion to fuel, materials, and chemicals • Multi-national and SMB Technology companies, EPCs, and Developers • Multi-project, multi-year investment horizons for exclusive for third-party project finance and asset finance; no one-off projects • Strategic partners have pre-agreed upfront to project economics: CAPEX/OPEX • Ability for the Liberation Capital team to add value • Strong, proven risk assessment processes based on GE Capital process methodology • Comprehensive, repeatable partnership/project contracting • Investment analysis assumes no leverage, no subsidies and no ‘green’ premium • Investments are 100% project equity; leverage and enhancements after plants are operational and generating operating cash-flows • Deal size up to $20MM, with co-invest for larger projects or where concentration is a concern. Jeff Garwood: Liberation Capital

12. Bob Geolas Research Triangle Foundation of North Carolina

13. Thomas Meyer Arey Distinguished Professor of Chemistry Director of UNC’s Energy Frontiers Research Center

14. DOE-BES • ($17.5 M/5 yrs) • DSPEC devices for solar • energy conversion • 2009-2014 • Timeline: Energy and Environment/RTP • 2007-2008: Research Triangle Energy Consortium- Duke, NCSU, RTI, UNC-CH • (Vik Rao- Executive Director) • -Vice Chancellor/VP sponsorship • -Seek collaborations, partnerships for large scale initiatives • RTI Solar Fuels Institute – RTEC • sponsorship; proposal to DOE $125M for 5 yrs • Research Triangle Solar Fuels Institute • (Trainham) – Research Consortium (RTI)