MICROCAPITAL BRIEF: India-based Elevar Seeks to Raise $75m for Third Impact-Investing Private Equity Fund, Receives Commitment from Omidyar Network

Elevar Equity, an India-based private equity fund that is focused on “impact investing,” is seeking to raise USD 75 million for its third fund by the end of 2014. Elevar reportedly has received commitments of unspecified amounts from two investors, including US-based investment firm Omidyar Network. The identity of the second investor has not been disclosed. The purpose for the third fund has not been specified. Impact investing seeks to develop the social and environmental health of a community while pursuing financial returns.

Founded in 2006, Elevar manages two private equity funds with assets totaling USD 94 million invested in 16 microfinance institutions (MFIs) and other organizations primarily in India and Latin America. As of December 2012, Omidyar Network reported total assets of USD 255 million.

By Meraj Husain, Research Associate

About Elevar Equity Advisors

Elevar Equity Advisors is headquartered in the Indian city of Bangalore and also has an office in Seattle in the US state of Washington. The organization makes investments in development-focused ventures. Founded in 2006, Elevar manages two private equity funds with assets totaling USD 94 million invested in 16 microfinance institutions (MFIs) and other organizations primarily in India and Latin America. In 2008, Elevar stopped placing new investments in microfinance in favor of supporting other types of firms that seek to reduce poverty.

About Elevar Equity II

Elevar Equity II is a fund that was launched by Elevar Equity in 2008 when United Arab Emirates-based Legatum and US-based Omidyar Network each committed USD 20 million to the fund. The fund makes equity investments in high-growth microfinance institutions (MFIs) and entrepreneurs building companies providing services and products in emerging markets. Elevar Equity II is the successor to the Unitus Equity Fund (closed in 2007), which Elevar managed on behalf of Unitus, a non-governmental organization (NGO) with offices in India and the US.

About Omidyar Network

Founded in the US in 2004, Omidyar Network is an investment firm that provides investments and grants to “socially responsible” organizations in the areas of microfinance, entrepreneurship, property rights, social media, marketplaces and government transparency. Omidyar invests in organizations that are aligned with its goals and “have potential for large-scale impact, have proven leadership, and exemplify innovation.” As of December 2012, Omidyar Network reported total assets of USD 255 million.

About Unitus Equity Fund

The Unitus Equity Fund I is a private equity fund that makes equity investments in financial institutions (MFIs). The fund is supported by nonprofit Unitus and managed by Elevar Equity. The fund invests in India and Latin America.

Sources and Additional Resources

[1] Business Standard: “Elevar Equity to raise third fund, targets $75 mn,” http://www.business-standard.com/article/companies/elevar-equity-to-raise-third-fund-targets-75-mn-114021201688_1.html

MicroCapital, February 6, 2012, “Indian Microfinance Institution Ujjivan Financial Services Raises $25m in Equity from FMO, Wolfensohn, LOK, IFIF, Sequoia, Elevar,” https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-ujjivan-financial-services-raises-25m-in-equity-from-fmo-wolfensohn-lok-ifif-sequoia-unitus-elevar/

MicroCapital, March 16, 2010, “Elevar Equity, a Bangalore-based Private Equity Fund Raises $70m for Microfinance-focused Fund for Investments in India, Mexico, the Philippines and Peru,” https://www.microcapital.org/microcapital-brief-elevar-equity-a-bangalore-based-private-equity-fund-raises-70m-for-microfinance-focused-fund-for-investments-in-india-mexico-the-philippines-and-peru/

MicroCapital Universe Profile: Elevar Equity Advisors
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Elevar+Equity+Advisors

MicroCapital Universe Profile: Elevar Equity II
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Elevar+Equity+II

MicroCapital Universe Profile: Omidyar Network
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Omidyar+Network

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

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