The following microfinance investment funds are profiled in this brief:
Kinnevik
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kinnevik
Locfund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Locfund#Locfund
Lok Capital LLC
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lok+Capital+LLC
Legatum Ventures
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Legatum+Ventures
Kinnevik
Overview:
Kinnevik is an investment company that invests in a variety of assets, including microfinance institutions.
Description:
Kinnevik was established in 1936 as an investment company. The company manages a portfolio of investments focused around three comprehensive business areas: Major Listed Holdings which includes Millicom International Cellular, Tele2, Modern Times Group MTG, Metro International and Transcom Worldwide; Major Unlisted Holdings which includes the cartonboard and paper company Korsnas; and New Ventures which is active in finding new investments in small and mid-sized companies. Kinnevik has made two investments in microfinance, one in MicroVest II, an equity fund focusing on microfinance, and one in Bayport, a microfinance institution (MFI) located in Africa.
Microfinance Information Exchange (MIX) Profile:
http://mixmarket.org/funders/kinnevik
Organization’s Website:
http://www.kinnevik.se/en/Investments/New-Ventures/
Just the Facts:
Country of Incorporation: Sweden
Year Founded: 1936
Fund Assets (as of day/month/year): SEK 35.9 billion (USD 5.1 billion as of 31/December/2008)
Number of MFI Investments (as of day/month/year): 1 (as of 30/November/2009)
Area of Operation: Global
Instruments: Equity
Fund Currency: SEK
Contact Information:
Investment AB Kinnevik
P.O. Box 2094
SE-103 13 Stockholm
SWEDEN
Phone: +46 0 8 562 000 00
Fax: +46 0 8 20 37 74
E-mail: info@kinnevik.se
Additional Resources:
Press Releases from Kinnevik
http://www.kinnevik.se/en/Investor-Media/Pressmeddelanden/
Kinnevik Invests $10m in Microfinance Equity Fund MicroVest II (June 2009)
https://www.microcapital.org/microcapital-story-kinnevik-invests-10m-in-m…
Kinnevik Invests $14m in African Microfinance Institution Bayport Financial Services (October 2007)
https://www.microcapital.org/microcapital-story-kinnevik-invests-14m-in-a…
Locfund
Overview:
Locfund is a microfinance investment vehicle, which mobilizes capital for microfinance institutions (MFIs).
Description:
Locfund provides local-currency loans to microfinance institutions (MFIs) in Latin America and the Caribbean. Locfund loans amounts between USD 250,000 and USD 1.5 million. Locfund’s managing offices are in La Paz, Bolivia, and San Jose, Costa Rica. Locfund includes a technical assistance facility that aims to manage the risks realting to assets/liabilities management.
Microfinance Information Exchange (MIX) Profile:
http://mixmarket.org/funders/locfund
Organization’s Website:
http://www.locfund.com/en/default.html
Just the Facts:
Country of Incorporation: Bolivia
Year Founded: 2007
Fund Assets (as of day/month/year): USD 30.1 million (as of 31/December/2008)
Fund Assets Allocated to MFI Investment (as of day/month/year): USD 18.4 million (as of 31/December/2008)
Number of MFI Investments (as of day/month/year): 21 (as of 31/December/2008)
Area of Operation: Latin America and The Caribbean
Participant(s)/Backer(s)/Investor(s): Multilateral Investmend Fund (IDB/MIF), Netherlands Development Finance Company (FMO), Norwegian Investment Fund for Developing Countries (NORFUND), Andean Development Corporation (CAF), Gray Ghost Microfinance Fund, responsibility, Belgian Investment Company for Developing Countries (BIO), Hyos Invest Holding AG, BIM Microfinance SA
Instruments: Loans and Debt Securities, Technical Assistance
Fund Currency: Local Currency
Investment Horizon: 5 years
Fund Manager: Fernando Sanchez
Contact Information:
Bolivia
Torre Ketal, Avenida Sanchez
Bustamante, esquina Calle 15
Piso 4, Oficina 404
Calacoto, La Paz Bolivia
Telephone: +591 2 2113237
Fax: +591 2 2799290
Costa Rica
Centro Corporativo Plaza Roble
Edificio El Pórtico, Centro de Negocios, Piso 1
Escazú, San José
Telephone: +506 2 201 1492
Fax: +506 2 201 1414
Additional Resources:
A Blueprint for Other Regions (May 2009)
https://www.microfinanceinsights.com/comments_tab.asp?id=65
LOCFUND, A UNIQUE LOCAL CURRENCY FUND FOR MICROFINANCE INSTITUTIONS (June 2008)
http://www.wfdfi.org.pe/06_News_05_EDFI_10.htm
Venezuela-based Andean Development Cooperation Invests in Three Latin American Microfinance Institutions: Bolivian LOCFUND, Uruguay-based MICROFIN and MicroCred Mexico (April 2007)
https://www.microcapital.org/venezuela-based-andean-development-cooperati…
Lok Capital LLC
Overview:
Lok Capital LLC is a microfinance investment vehicle, which mobilizes capital for microfinance institutions (MFIs).
Description:
Lok Capital LLC is a limited-life limited-liability company based in Mauritius that provides equity and equity-linked investments to microfinance institutions (MFIs) in India. The fund was launched in 2006 with USD 22 million. Investors include ACCION International, Commonwealth Development Corporation (CDC), Developpement International Desjardins, Netherlands Development Company (FMO), International Finance Corporation (IFC), KfW, and responsAbility. The average investment size ranges from USD 500,000 to USD 3 million. The Lok Foundation was created along with Lok Capital LLC to provide specialized technical assistance to Indian MFIs.
Microfinance Information Exchange (MIX) Profile:
http://mixmarket.org/funders/lok-capital/files
Organization’s Website:
http://www.lokcapital.com/index.html
Just the Facts:
Country of Incorporation: Mauritius
Year Founded: 2006
Legal Status: Limited Liability Company
Fund Assets (as of day/month/year): USD 22 million (as of 31/December/2008)
Fund Assets Allocated to MFI Investment (as of day/month/year): USD 7.6 million (as of 31/December/2008)
Number of MFI Investments (as of day/month/year): 6 (as of 31/December/2008)
Area of Operation: India
Participant(s)/Backer(s)/Investor(s): ACCION International, Commonwealth Development Corporation (CDC), Developpement International Desjardins, Netherlands Development Company FMO, International Finance Corporation (IFC), KfW, responsAbility
Instruments: Equity, Technical Assistance
Fund Currency: USD
Investment Horizon: 10 years
Fund Manager: Lok Advisory Services (LAS)
Contact Information:
Lok Advisory Services Pvt. Ltd.
212A, 2nd Floor,
JMD Pacific Square
Sector- 15, Part 2
Gurgaon, Haryana, India – 122001
Phone: +91 124 470 9700
Fax: +91 124 470 9712
Additional Resources:
Latest News from Lok Capital
http://www.lokcapital.com/in-the-news.html
Lok Capital Invests US $1.5 M in Asirvad Microfinance Private Ltd of India (September 2009)
https://www.microcapital.org/microcapitalorg-story-lok-capital-invests-us…
Legatum Ventures
Overview:
Legatum Ventures is a private equity group that has several investments in the microfinance sector.
Description:
Legatum Ventures invests private capital in growing enterprises that are deemed to promote prosperity in the developing world. As of December 2009, Legatum has three investments related to microfinance: SHARE Microfin Limited of India, A.LITTLE.WORLD (ALW) of India, and Elevar Equity II.
Microfinance Information Exchange (MIX) Profile:
http://www.mixmarket.org/funders/legatum
Organization’s Website:
http://www.legatumventures.com/
Just the Facts:
Country of Incorporation: United Arab Emirates
Year Founded: 2007
Fund Assets Allocated to MFI Investment (as of day/month/year): USD 60.8 million (as of 31/December/08)
Number of MFI Investments (as of day/month/year): 3 (as of 14/December/09)
Area of Operation: India and Mexico
Participant(s)/Backer(s)/Investor(s): Legatum Group
Instruments: Equity
Fund Currency: USD
Contact Information:
Legatum Head Office
t: +971 4 317 5800
f: +971 4 317 5811
e: info@legatum.com
Additional Resources:
Latest news from Legatum Ventures
http://www.legatum.com/newsfilter.aspx?site=2
Legatum Awards $350k Prize to African Entrepreneurs (November 2008)
https://www.microcapital.org/press-release-legatum-awards-350k-prize-to-a…
A Little World (ALW) of India Closes Series of Financing Totaling $6.3m from Investors including the Bellwether Microfinance Fund, the India Financial Inclusion Fund and Legatum Ventures (September 2008)
https://www.microcapital.org/microcapital-story-a-little-world-alw-of-ind…
WHO’S WHO IN MICROFINANCE: The Legatum Group (September 2008)
https://www.microcapital.org/who’s-who-in-microfinance-the-legatum-group/
Investment Group Legatum and Omidyar Network Invest $40m in Unitus Equity Fund II (May 2008)
https://www.microcapital.org/microcapital-story-investment-group-legatum-…
New Zealand-based Billionaire’s Legatum group buys $4.5 million Stake in Indian Microfinance Firm (May 2007)
http://www.microcapitalmonitor.com/cblog/index.php?/archives/863-MICROCA…
SHARE Microfin Ltd. Receives Historically Largest Indian Microfinance Equity Investment from Legatum and Aavishkaar Goodwell (May 2007)
http://www.microcapitalmonitor.com/cblog/index.php?/archives/814-MICROCA…
Authored by Kenny Kline, Research Associate
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