MICROCAPITAL BRIEF: Equator Capital Takes Equity Stake in Nigeria’s Fortis Microfinance Bank via ShoreCap II Fund

Equator Capital Partners, an “impact” fund manager based in the US city of Chicago, Illinois, recently invested an undisclosed sum to acquire a minority stake in Fortis Microfinance Bank PLC, a microfinance institution (MFI) based in Abuja, Nigeria [1]. Equator Capital Partners closed this investment through its Mauritius-based private equity fund, ShoreCap II Limited. This is the fund’s fourth investment in Africa, with these investments reaching 10 sub-Saharan African countries [1].

Felix Achibiri, the Chairman of Fortis Microfinance Bank PLC, said “The investment by ShoreCap II Limited is a huge vote of confidence in the vision of the Bank to become the dominant microfinance bank in Nigeria, as we expand our reach to under-served communities all across the country” [1].

As of March 2016, ShoreCap II has USD 80.3 million in committed capital. As of March 2013, Equator Capital Partners had generated USD 2.48 billion in outstanding loans for small business owners since its inception. As of 2014, Fortis Microfinance Bank PLC reported assets of USD 90 million, a gross loan portfolio of USD 64.8 million outstanding to 60,000 borrowers, and deposits of USD 64.9 million from approximately 185,000 depositors.

By Meredith Steih, Research Associate

About Equator Capital Partners

Equator Capital Partners LLC is an “impact” fund manager based in the US city of Chicago, Illinois, that is focused on “inclusive finance”. The organization has invested in 21 financial institutions in 25 countries through two impact investment funds, ShoreCap International Limited, which closed in 2014 and ShoreCap II, Limited [2]. As of March 2016, ShoreCap II has USD 80.3 million in committed capital.

About Fortis Microfinance Bank PLC

Established in 2007, Fortis Microfinance Bank PLC is a microfinance institution based in Abuja, Nigeria. In 2002, the MFI reportedly became the “first private sector-led Microfinance Bank” listed on the Nigerian Stock Exchange [1]. The bank operates 14 branches in the country. As of 2014, it reported assets of USD 90 million, a gross loan portfolio of USD 64.8 million outstanding to 60,000 borrowers, and deposits of USD 64.9 million from approximately 185,000 depositors.
Sources and Additional Resources

[1] Information provided to MicroCapital by Equator Capital Partners.

[2] “Portfolio Overview,” Equator Capital Partners, http://www.equatorcap.net/portfolio

MicroCapital Universe Profile: Equator Capital Partners 

MicroCapital Universe Profile: Fortis Microfinance Bank PLC

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