Alitheia Capital, Goodwell Investments BV and JCS Investments have announced the first close of a USD 60 million equity fund focused on microfinance in Nigeria and Ghana. Investors include Dutch development bank FMO and a number of Dutch high net-worth individuals and institutional investors. Further financial details have not been released.

According to promoters of the fund, the goal of the fund is to “increase the outreach of commercial microfinance organizations and to provide a market rate of return to the investors.” Its strategy includes providing growth capital and managerial support to existing and early-stage microfinance institutions (MFIs). The fund expects to announce its first investment within the first quarter of 2010.

By: Stefanie Rubin, Research Assistant

About Alitheia Capital:

Alitheia is an investment manager and advisor based in Lagos, Nigeria, whose mission is to broaden the ownership of businesses and real estate by enabling socially sustainable investing. Alitheia creates investment structures, provides project management and develops businesses. Its business services include fund management, project/business incubation and corporate strategy and development. No financial details or information about investors is available about Alitheia.

About Goodwell Investments BV:

Goodwell Investments, based in the Netherlands, started operations in 2006 and is a for-profit business development company. It invests in entrepreneurial microfinance organizations on a socially and commercially sustainable basis. Goodwell Investments is the lead investor in Aavishkaar Goodwell, a business development company for the microfinance sector in India. No financial details or information about investors is available about Goodwell.

About JCS Investments:

JCS Investments is a Ghana-based financial services company licensed by the Securities and Exchange Commission. It operates as a fund manager and financial advisor. No financial details or information about investors is available about JCS Investments.

About the Netherlands Development Finance Company (FMO):

The Netherlands Development Finance Company (FMO) supports financial institutions and countries through “loans, participations, guarantees and other investment promotion activities.” It was founded by the “Dutch government, private sector, employers and employee organizations.” It has access to government funds and therefore can take higher risks with their investments including long-term finance. It also specializes in local currency finance.

Additional Resources:

Source Article: Guardian Newspapers: “Firms conclude first phase of $60m equity scheme for Nigeria, Ghana,” http://www.ngrguardiannews.com/business/article01/indexn2_html?pdate=151209&ptitle=Firms%20conclude%20first%20phase%20of%20$60m%20equity%20scheme%20for%20Nigeria,%20Ghana

Business Day: “N7.3bn Microfinance Equity Fund for Nigeria, Ghana,” http://news.myjoyonline.com/business/200905/29905.asp

MICROCAPITAL STORY: Alitheia Capital, Goodwell Investments and JCS Investments Limited Open West African Microfinance Fund Targeted at $50m: http://www.microcapital.org/microcapital-story-alitheia-capital-goodwell-investments-and-jcs-investments-limited-invest-496m-in-west-african-microfinance-equity-fund/

Alitheia Capital: http://www.thealitheia.com/

Goodwell Investments: http://www.goodwell.nl/

JCS Investments Limited: http://jcs.com.gh/

MicroCapital Universe: Netherlands Development Finance Company (FMO): http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Netherlands+Development+Finance+Company+%28FMO%29