MICROCAPITAL BRIEF: Accion to Launch $60m Frontier Investment Fund, Invest in Indian Microfinance, Other Ventures

Frontier Investments Group, an investment vehicle of US-based nonprofit Accion, recently announced plans to launch the Frontier Investment Fund, which reportedly will have a pool of between USD 60 million and USD 75 million and focus on emerging economies, especially India. The fund will reportedly finance both microfinance ventures and those outside of the microfinance sector, including a potential USD 2 million investment in an unnamed low-income housing project. Unused capital from Accion’s Gateway Fund, a microfinance investment fund of which USD 19 million of USD 25 million has not been deployed, may also be transferred to the new fund.

Accion has previously invested in three Indian companies through its Gateway Fund: Swadhaar FinServe Private Limited, a non-banking subsidiary company of Swadhar FinAcces that caters to poor people urban areas; Saija Finance Private Limited, a non-banking finance company that provides microfinance services in northern India; and Vindhya e-Infomedia, an information technology company that hires mainly “differently abled and qualified” employees.

As of 2010, Accion’s network serves 3.18 million active clients and has an active loan portfolio of USD 3.81 billion.

By Charlotte Newman, Research Associate

About Accion Frontier Investments Group
Frontier Investments Group is a venture equity fund focused on microfinance. Frontier Investments invests in new technologies and business models that can enhance the way financial services are delivered to poor people. Frontier Investments seeks innovations that will improve the efficiency, reach and scope of financial services at the base of the economic pyramid. The size of the fund is not available. Frontier Investments Group is an affiliate of Accion, a private, US-based nonprofit organization with the mission of giving people the financial tools necessary for poverty alleviation, such as microenterprise loans, business training and other financial services. As of 2010, Accion’s network serves 3.18 million active clients and has an active loan portfolio of USD 3.81 billion.

About Accion
Accion is a private, US-based nonprofit organization with the mission of alleviating poverty by providing financial products such as microenterprise loans and business training. Accion was founded in 1961 and issued its first microloan in 1973 in Brazil. Accion’s partner microfinance institutions provide loans to men and women entrepreneurs in the US and 21 countries in Latin America, Asia and Africa. As of 2010, Accion’s network serves 3.18 million active clients and has an active loan portfolio of USD 3.81 billion.

Sources and Additional Resources:

Dealcurry.com: “Frontier Investments to Set Up $75m Fund,” http://www.dealcurry.com/20120524-Frontier-Investments-To-Set-Up-75Mn-Fund.htm

MicroCapital.org story, June 25, 2012, “MICROCAPITAL BRIEF: Swarn Pragati Housing Microfinance, Accion Invest $4.5m in Saija Equity in Finance of India,” https://www.microcapital.org/microcapital-brief-swarna-pragati-housing-microfinance-accion-invest-4-5m-in-saija-equity-in-finance-of-india/

MicroCapital.org story, April 5, 2012, “MICROCAPITAL BRIEF: Accion Launches $10m Venture Lab to Invest in Microfinance Institutions, Other Financial Inclusion Start-Ups,” https://www.microcapital.org/microcapital-brief-accion-launches-10m-venture-lab-to-invest-in-microfinance-institutions-other-financial-inclusion-start-ups/

MicroCapital Universe Profile: Accion Frontier Investments Group
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=ACCION+Frontier+Investments+Group

MicroCapital Universe Profile: Accion Gateway Fund
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=ACCION+Gateway+Fund%2C+LLC

MicroCapital Universe Profile: Swadhaar FinServe Private Limited
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Swadhaar+FinServe+Private+Limited

MicroCapital Universe Profile: Saija Finance Private Limited
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Saija+Finance+Private+Limited

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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