MICROCAPITAL BRIEF: BlueOrchard Closes Its Private Equity Fund With $195m in Total Commitments from Institutional and Individual Microfinance Investors

BlueOrchard, a Swiss-based microfinance intermediary, has recently closed its BlueOrchard Private Equity Fund with USD 195 million in total commitments from institutional and individual investors. The BlueOrchard Private Equity Fund is a SICAV registered in Luxembourg in December 2007. It seeks to forge long-term partnerships with microfinance institutions (MFIs) across the world. It acquires minority stakes in MFIs and aims to play an active governance role by sharing international experience, information, networks and knowledge.

FinanceMarkets.co.uk, an online business publication, cites BlueOrchard’s position that with a targeted return of 20 percent per year, the fund is a way for investors to help people out of poverty while getting a good return for their money.

About BlueOrchard:

BlueOrchard is a Swiss-based, commercial microfinance intermediary that provides loans to microfinance institutions through its subsidiary BlueOrchard Finance S.A. and invests in the equity of microfinance institutions and microfinance network funds through its subsidiary BlueOrchard Investments S.A. BlueOrchard had approximately USD 980 million under management as of June 2009.

About BlueOrchard Private Equity Fund:

The BlueOrchard Private Equity Fund was established in 2007 to provide capital injections in the microfinance industry. Approximately 80 percent of funding is from European and US institutional investors and 20 percent is from individual investors. The main focus of the fund is to work with leading regulated, fast growing microfinance banks through direct participations in their capital or through the creation of holding companies. As of July 2010 the fund has been closed with USD 195 million in total commitments from institutional and individual investors.

By Matthew Fox, Research Assistant

Sources and Additional Resources:

FinanceMarkets.co.uk: BlueOrchard Plans to Expand Microfinance, 22 July 2010: http://www.financemarkets.co.uk/2010/07/22/blueorchard-plans-to-expand-microfinance/

MicroCapital Universe: BlueOrchard: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BlueOrchard

MicroCapital Universe: BlueOrchard Private Equity Fund: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BlueOrchard+Private+Equity+Fund

MicroCapital Universe: Incofin: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+(Incofin+IM)

MicroCapital Universe: Finance In Motion: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Finance+in+Motion

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