MICROCAPITAL BRIEF: Goldman Sachs, International Finance Corporation (IFC) Announce $600m Fund for Women-owned Small, Medium-Sized Enterprises (SMEs)

The International Finance Corporation (IFC), the private-investment arm of the US-based World Bank Group, and US-based investment bank Goldman Sachs Group (GS) recently announced the establishment of the “Women Entrepreneurs Opportunity Facility,” a USD 600 million credit fund aimed at supporting women-owned small and medium-sized enterprises (SMEs) in emerging economies. The initiative is part of GS’ “10,000 Women” program that was launched in March 2008 and is intended to teach business and management skills as well as facilitate access to capital for 10,000 women living in unspecified low- and moderate-income countries.

IFC has pledged USD 100 million as an initial deposit, and GS has agreed to invest USD 32 million. The fund will be managed by IFC, and the sponsors reportedly intend to raise an additional USD 468 million from private and public investors over an undisclosed amount of time.

IFC has 182 member countries and as of fiscal year-end 2013 reported total assets of USD 77.5 billion. As of December 2013, GS reported total assets of USD 912 billion, return on assets (ROA) of 0.87 percent and return on equity (ROE) of 11 percent.

By A’kos Szebeni, Research Associate

About International Finance Corporation (IFC)

A US-based multilateral development bank and member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of fiscal year-end 2013, IFC reported total assets of USD 77.5 billion.

About Goldman Sachs Group (GS)

The Goldman Sachs Group (GS) is a US-based financial institution offering investment banking, investment management and financial advisory services to corporations, financial institutions, governments and retail clients. Founded in 1869, the firm is headquartered in New York and maintains offices in 23 countries worldwide. As of December 2013, GS reported total assets of USD 912 billion, return on assets (ROA) of 0.87 percent and return on equity (ROE) of 11.0 percent.

Sources and Additional Resources:

[1] International Finance Corporation (IFC) press release, “IFC and Goldman Sachs 10,000 Women Launch $600 Million Global Facility for Female Entrepreneurs,” http://ifcext.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/46E12EAD05D0619B85257C9200595A41

MicroCapital, January 27, 2014, “International Finance Corporation (IFC) to Loan $150m to Yes Bank of India for On-lending to Women-Owned Micro-, Small, Medium-Sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-loan-150m-to-yes-bank-of-india-for-on-lending-to-women-owned-micro-small-medium-sized-enterprises-msmes/

MicroCapital, November 26, 2013, “International Finance Corporation (IFC) Issues $165m in Bonds to Support Women-owned Businesses,”
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-issues-165m-in-bonds-to-support-women-owned-businesses/

MicroCapital, February 8, 2013, “International Finance Corporation (IFC), Yes Bank to Create Fund for Small Businesses in India,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-yes-bank-to-create-fund-for-small-businesses-in-india/

MicroCapital, September 24, 2009, “Exxon Mobil, Goldman Sachs, Pro Mujer, Women for Women Commit to Giving Microfinance, Business Training to Women at Clinton Global Initiative Meeting,” https://www.microcapital.org/press-release-united-states-exxon-mobil-goldman-sachs-pro-mujer-women-for-women-commit-to-giving-microfinance-business-training-to-women-at-clinton-global-initiative-meeting/

MicroCapital, March 7, 2008, “Goldman Sachs To Invest $100m in Management Education to Help Women Microfinance Clients Move to Next Level Reports BusinessWeek,” https://www.microcapital.org/news-wire-usa-goldman-sachs-to-invest-100m-in-management-education-to-help-women-microfinance-clients-move-to-next-level-reports-businessweek/

MicroCapital Universe Profile: International Finance Corporation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation

MicroCapital Universe Profile: Goldman Sachs Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Goldman+Sachs+Group

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