MICROCAPITAL BRIEF: Goodwell West Africa Invests Equity in Mainstreet Microfinance Bank of Nigeria

Goodwell West Africa, a private equity fund managed by Netherlands-based social investment company Goodwell Investments and Nigeria-based investment management and advisory firm Alitheia Capital, has announced that it will be making an equity investment of an unspecified amount in Mainstreet Microfinance Bank (MFB), a microfinance institution in Nigeria [1]. Mainstreet MFB, a subsidiary of Mainstreet Bank Limited, provides services to financially excluded individuals as well as micro- and small enterprises (MSEs). This investment marks Goodwell West Africa’s third investment in Nigeria and fifth in West Africa.

As of 2013, Mainstreet MFB reported total assets of NGN 4 billion (USD 25 million) and approximately 60,000 clients. As of the same period, Goodwell Investments supports 16 companies in India and Africa, and as of 2012 it reported fund assets of USD 70 million, including USD 16 million allocated to microfinance. Financial information on Alitheia Capital is not available.

By Nisha Koul, Research Associate

About Mainstreet Microfinance Bank: Established in 2009, Mainstreet Microfinance Bank (MFB) Limited is a Nigerian microfinance institution that was licensed by the Central Bank of Nigeria in 2011. It is a subsidiary of Mainstreet Bank Limited, a commercial bank in Nigeria. Mainstreet MFB’s primary objective is to enhance the socio-economic empowerment of the underbanked through the provision of financial services. As of 2013, Mainstreet MFB reported total assets of NGN 4 billion (USD 25 million) and approximately 60,000 clients.

About Goodwell Investments: Based in the Netherlands, Goodwell Investments is a for-profit social investment company focused on access to finance and “sustainable” development. It invests in organizations that it deems socially and commercially sustainable. Goodwell Investments has built and manages microfinance equity investment companies in partnership with organizations in India and West Africa. These companies are managed as joint ventures between Goodwell Investments and local teams. Goodwell Investments is the lead investor in Aavishkaar Goodwell, a business development company in India. Goodwell Investments is also an investor in Goodwell West Africa, a business development company in Africa. As of 2013, Goodwell Investments supports 16 companies in India and Africa, and as of 2012 it reported fund assets of USD 70 million, including USD 16 million allocated to microfinance.

About Goodwell West Africa: Goodwell West Africa is a private equity fund that aims to invest in “entrepreneurial based” microfinance organizations that are deemed socially responsible and commercially sustainable. Goodwell West Africa is a partnership between Netherlands-based Goodwell Investments and Nigeria-based Alithea Capital. No financial information is available for Goodwell West Africa.

About Alitheia Capital: Alitheia Capital is a for-profit investment manager and advisor based in Lagos, Nigeria, whose mission is to broaden the ownership of businesses and real estate by enabling socially sustainable investing. Its business services include fund management, project/business incubation and corporate strategy and development. Financial information about Alitheia is not available.

Sources and Additional Resources:

[1] Goodwell Investments Press Release sent to MicroCapital

MicroCapital Story, July 30, 2012, “Goodwell West Africa Microfinance Development, Adlevo, Omidyar, Acumen, Capricorn Fund Expansion of Paga Money Transfers Across Nigeria,” https://www.microcapital.org/microcapital-brief-goodwell-west-africa-microfinance-development-adlevo-omidyar-acumen-capricorn-fund-expansion-of-paga-money-transfers-across-nigeria/

MicroCapital Story, April 14, 2012, “Mainstreet Microfinance Bank of Nigeria to Utilize Mechanics Fund, Adopt International Financial Reporting Standards,” https://www.microcapital.org/microcapital-brief-mainstreet-microfinance-bank-of-nigeria-to-utilize-mechanics-fund-adopt-international-financial-reporting-standards/

MicroCapital Story, December 1, 2011, “Goodwell West Africa Invests $1m in Microfinance Provider Nwabiagya Community Bank of Ghana,” https://www.microcapital.org/microcapital-brief-goodwell-west-africa-invests-1m-in-microfinance-provider-nwabiagya-community-bank-of-ghana/

MicroCapital Universe Profile: Mainstreet Microfinance Bank

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mainstreet+Microfinance+Bank+Limited

MicroCapital Universe Profile: Goodwell Investments BV, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Goodwell+Investments+BV

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

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.

 

 

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