MICROCAPITAL BRIEF: Bamboo Finance Raises $31m to Complete First Close of Financial Inclusion Fund II with Plans to Grow Savings Options

Bamboo Finance, a Luxembourg-based commercial investment firm, recently announced the first close of Financial Inclusion Fund II at USD 31 million, with the slate of investors including US-based financial services company Teachers Insurance and Annuity Association of America – College Retirement Equities Fund (TIAA-CREF) and European-based asset management company AXA Investment Managers (AXA IM). Financial Inclusion Fund II will make equity investments, particularly targeting financial services companies that serve microenterprises.

Xavier Pierluca, Chief Investment Officer at Bamboo Finance, said, “Our investment strategy for Financial Inclusion Fund II will leverage our experience, networks and proprietary pipeline to deliver attractive financial returns to our investors while enabling the low-income segments and [micro-, small and medium-sized enterprises] to access high quality and affordable financial services with a focus on increasing access to savings products” [1].

As of 2015, Bamboo Finance manages assets worth a total of USD 250 million deployed via two funds with a total of 46 investments. These investees serve low-income communities in sectors such as housing, healthcare, education, finance, energy, water and sanitation. Bamboo’s Financial Inclusion Fund I, launched in 2007, invests globally in microfinance institutions (MFIs) and microfinance funds with USD 195 million in total commitments from institutional and individual investors.

By Jeff Pierce, Research Associate

About Bamboo Finance

Founded in 2007, Bamboo Finance is a commercial investment firm based in Luxembourg. It has offices in Colombia, Singapore, Switzerland and the United States. As of 2015, Bamboo Finance manages assets worth a total of USD 250 million deployed via two funds with a total of 46 investments. These investees serve low-income communities in sectors such as housing, healthcare, education, finance, energy, water and sanitation. Bamboo’s Financial Inclusion Fund I, launched in 2007, invests globally in microfinance institutions (MFIs) and microfinance funds with USD 195 million in total commitments from institutional and individual investors. In November 2012, Bamboo Finance acquired US-based NGO Accion Investment Fund, which provides capital to MFIs, for USD 105 million.

Sources and Additional Resources:

[1] Bamboo Finance Press Release: “Bamboo Finance Announces the First Close of Financial Inclusion Fund II,” http://www.bamboofinance.com/wp-content/uploads/Bamboo-Finance-Press-Release-FINAL-04162015.pdf

MicroCapital Universe Profile: Bamboo Finance

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

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