MICROCAPITAL BRIEF: Gray Matters Capital Invests Equity in Unitus Capital

Unitus Capital (UC), a Bangalore-based financial services firm that specializes in capital market services for microfinance institutions (MFIs) and other social enterprises in Asia, recently announced that Gray Matters Capital (GMC), a US-based private foundation, invested an undisclosed amount in UC to fund social businesses that both assist poor clients and generate financial returns. UC has notified MicroCapital that the transaction was an equity buy. UC is an affiliate of Unitus Labs, a US-based nonprofit organization that focuses on reducing global poverty through economic self-empowerment. As of 2010, Unitus reported total assets of approximately USD 9 million.

Between 2008 and 2013, Unitus Capital reports having raised USD 800 million for 40 clients across Asia, impacting 32 million poor people. GMC reports having invested in 80 companies since 2001. Additional financial information for UC and GMC have not been reported.

By Jennifer Young, Research Associate

About Unitus Capital
Unitus Capital (UC) is a financial advisory firm based in Bangalore, India, that specializes in capital market services for microfinance institutions (MFIs) and other social enterprises in Asia. With offices in Australia, China, Singapore and the UK, UC is an affiliate of US-based NGO Unitus Labs. UC invests in Asia in sectors spanning microfinance, renewable energy, health care, education, agriculture and affordable housing. Between 2008 and 2013, Unitus Capital reports having raised USD 800 million for 40 clients across Asia, impacting 32 million poor people.

About Gray Matters Capital
Gray Matters Capital (GMC) is a US-based private operating foundation that serves the impact investment market by assisting investors and entrepreneurs in the efforts to support poor clients worldwide. GMC is an affiliate of Gray Ghost Ventures (GGV), a US-based impact investment firm. As of 2006, GMC received an investment of USD 3.8 million by the Gray Ghost Fund, a for-profit microfinance fund and subsidiary of GGV. GMC reports having invested in 80 companies since 2001. Financial information for GMC has not been reported.

About Unitus Labs
Founded in 2001, Unitus Labs (UL) is a nonprofit organization with headquarters in the US and India as Unitus Incorporated. UL aims to reduce poverty via economic self-empowerment whereas Unitus Incorporated was more narrowly focused on providing funding and consulting services to microfinance institutions. As of 2010, UL reported total assets of approximately USD 9 million, partnered with 22 microfinance institutions and served approximately 12 million partner clients.

About Unitus
Unitus is a group of enterprises based in India and the US state of Washington that share a goal of reducing global poverty. As of 2012, Unitus works with 23 microfinance institutions (MFIs) in India, Southeast Asia, East Africa and Latin America. Unitus includes Unitus Labs, a US-based nonprofit organization that focuses on reducing poverty through economic self-empowerment; Unitus Investment Management, a US-based nonprofit that manages investments intended to reduce poverty; Unitus Capital, an India-based financial advisory firm; Unitus Equity Fund, a privately-funded venture-stage equity fund focused on microfinance; United Seed Fund, which provides early-stage equity capital to startup businesses; and Unitus Impact, an early-stage impact investing firm. As of 2009, Unitus held total assets of USD 19.4 million. As of July 2010, it has worked with approximately 12 million families. More recent financial data are not available. Between 2004 and 2010, Unitus Capital reports having arranged USD 25 million in debt capital for microfinance institutions (MFIs). As of 2010, Unitus Labs reported total assets of approximately USD 9 million.

About Gray Ghost Fund
Founded in 2003 by impact investor, Bob Pattillo, Gray Ghost Fund (GGF) is the for-profit microfinance fund management arm of Gray Ghost Ventures, a US-based impact investment firm. GGF invests exclusively in microfinance funds that supply start-up and expansion capital to microfinance institutions (MFIs). The GGF portfolio is managed by Grassroots Capital Management. As of 2006, GGF reported a portfolio of USD 75 million, total commitments of USD 39.3 million in 15 funds and total disbursements of USD 23 million. GGF also reported an investment of USD 3.8 million managed by Gray Matters Capital, a US-based private operating foundation an affiliate of GGV that serves the impact investment market. More recent financial information is not available.

Sources and Additional Resources

Information provided to MicroCapital by Unitus Capital.

Unitus Capital Press Release, “Bob Patiillo and Gray Matters Capital (GMC) Invest in Unitus Capital,” http://unituscapital.com/updates/bob-pattillo-and-gray-matters-capital-gmc-invest-in-unitus-capital/

MicroCapital Story, May 25, 2013, “MICROCAPITAL BRIEF: Nine Indian Impact Investment Companies Forming “Indian Impact Investor Council,’” https://www.microcapital.org/microcapital-brief-nine-indian-impact-investment-companies-forming-indian-impact-investor-council/

MicroCapital Story, April 12, 2013, “MICROCAPITAL BRIEF: Indian Microfinance Institution Satin Creditcare Sells 20% Equity Stake for $8m from Danish Microfinance Partners, MicroVest II, ShoreCap II; Lok Capital Exits,” https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-satin-creditcare-sells-20-equity-stake-for-8m-from-danish-microfinance-partners-microvest-ii-shorecap-ii-lok-capital-exits/

MicroCapital Story, November 13, 2012, “MICROCAPITAL BRIEF: Private Equity Firms Investing in Indian Microfinance Institutions (MFIs) After Two-Year Hiatus,” https://www.microcapital.org/microcapital-brief-private-equity-firms-investing-in-indian-microfinance-institutions-mfis-after-two-year-hiatus/

MicroCapital Story, October 4, 2012, “MICROCAPITAL BRIEF: Sonata Finance of India Raises $6m in Equity from Creation Investments, Michael and Susan Dell Foundation, Individual Investors,” https://www.microcapital.org/microcapital-brief-sonata-finance-of-india-raises-6m-in-equity-from-creation-investments-michael-and-susan-dell-foundation-individual-investors/

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

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

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

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

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

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