MICROCAPITAL BRIEF: Bamboo Finance of Luxembourg Acquires Accion Investment Fund for $105m

Bamboo Finance, a commercial investment firm based in Luxembourg, recently acquired Accion Investment Fund, a for-profit equity fund affiliated with the US-based nonprofit organization Accion, for USD 105 million. According to the President and Chief Executive Officer of Accion, Michael Schlein, higher levels of financial inclusion can be reached if, “we harness the private capital markets,” and this “transaction demonstrates the power of double-bottom-line impact investing, which is a cornerstone of our strategy.” Enrique Ferraro, managing director of Accion Investment Fund, also mentioned that 90 percent of the fund’s capital was from public entities when it was established in 2003, whereas that share has fallen to 10 percent as private investors that are attracted to socially responsible investments have entered the fund.

Accion Investment Fund, which was established to offer long-term investors equity exposure to MFIs in emerging markets, reports capital commitments of USD 86 million as of 2012. Accion was founded in 1961 with the mission of alleviating poverty by providing financial products such as microenterprise loans and business training. As of 2011, Accion reports total assets of USD 325 million and an active loan portfolio of USD 5.5 billion serving 5.1 million borrowers. It currently is involved with 62 microfinance institutions (MFIs) in 31 countries in Latin America, Asia and Africa.

Bamboo Finance was founded in 2007 and manages a total of 36 funds worth USD 250 million worldwide as of 2012. Bamboo supports organizations that offer services to low-income communities in areas such as housing, healthcare, education, finance, energy, water and sanitation. The Bamboo Financial Inclusion Fund, which was also created in 2007 and aims at investing in MFIs, currently manages investments of USD 195 million from institutional and individual investors.

By Sarah Benali, Research Associate

In the UK, a borrower may choose her loan from the offerings of a mortgage broker.

About Bamboo Finance

Founded in 2007, Bamboo Finance is a commercial investment firm based in Luxembourg. It has offices in Colombia, Luxembourg, Singapore, Switzerland and United States. Bamboo manages a total of 36 funds worth USD 250 million worldwide. Bamboo invests in organizations offering services to low- income communities in areas such as housing, healthcare, education, finance, energy, water and sanitation. The Bamboo Financial Inclusion Fund, which was launched in 2007, invests globally in microfinance institutions (MFIs) and microfinance funds and represents USD 195 million in total commitments from institutional and individual investors. Bamboo Finance acquired Accion Investment Fund, a US-based equity fund that provides capital to MFIs, for USD 105 million in November 2012.

About Accion Investment Fund
Accion Investment Fund, a for-profit equity fund started by US-based nonprofit Accion in 2003, provides equity capital to microfinance institutions (MFIs). It was established to offer long-term investors equity exposure to MFIs in emerging markets, with the aim of creating moderate financial returns. As of 2012, the fund reports capital commitments of USD 86 million. In 2012, the fund was acquired by Bamboo Finance of Luxembourg.

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, helping 62 microfinance institutions (MFIs) in 31 countries in Latin America, Asia and Africa. As of 2011, Accion reports total assets of USD 325 million and an active loan portfolio of USD 5.5 billion serving 5.1 million borrowers.

Sources and Additional Resources

Accion Press Release: “Bamboo Finance Acquires Accion Investment Fund in a US$ 105 Million Landmark Transaction,” November 2012, http://www.accion.org/page.aspx?pid=4281

MicroCapital.org story: “MICROCAPITAL BRIEF: Accion Launches Microfinance Portfolio Management Service ‘Avanza’,” August 2, 2012, https://www.microcapital.org/microcapital-brief-accion-launches-microfinance-portfolio-management-service-avanza/

MicroCapital.org story: “MICROCAPITAL BRIEF: Accion Buys 9% of Microfinance Institution CrediConfia of Mexico for $1.9m”, July 26, 2012, https://www.microcapital.org/microcapital-brief-accion-buys-9-of-microfinance-institution-crediconfia-of-mexico-for-1-9m/

MicroCapital Universe Profile: Accion Investment Fund

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Accion+Investment+Fund

MicroCapital Universe Profile: Accion

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Accion

MicroCapital Universe Profile: Bamboo Finance

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bamboo+Finance

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