Lok Advisory Services, an Indian firm that manages two microfinance investment vehicles (MIVs) based in Mauritius, has reportedly announced the first close of USD 52 million for its second fund, Lok Capital II. The CDC Group, the UK government’s development finance institution, participated with an investment of USD 10 million and will remain as an investor for ten years. The International Finance Corporation, the World Bank Group’s private investment branch, has also reportedly expressed interest in investing. The fund is seeking to reach USD 80 million. Lok Capital II is slated to invest in microfinance institutions (MFIs) in India as does Lok’s first fund, Lok Capital I [1]. Lok Advisory is a subsidiary of the nonprofit Lok Foundation of New York.

About the CDC Group: The CDC Group is a development finance institution (DFI), owned by the UK government’s Department for International Development. The organization’s mission is to foster growth in sustainable businesses and to help raise living standards in developing countries. It invests in funds focused on the emerging markets of southern Asia and sub-Saharan Africa. At the end of 2008, CDC’s portfolio was worth EUR 928 million (USD 1.3 billion). As of 2010, CDC’s Microfinance Investments total USD 120 million.

About Lok Capital: Lok Capital is a microfinance fund based in Mauritius that provides equity and equity-linked investments to microfinance institutions (MFIs) in India. In addition to the venture capital fund, Lok I, the Lok Group includes the Lok Foundation of New York and the Foundation’s subsidiary Lok Advisory Services. Lok I was launched in 2006 with USD 22 million. Investors include ACCION International, Commonwealth Development Corporation (CDC), Developpement International Desjardins, Netherlands Development Company (FMO), International Finance Corporation (IFC), KfW, and responsAbility. The average investment size ranges from USD 500,000 to USD 3 million. The Lok Foundation provides technical assistance to Indian MFIs. Lok II was founded in 2010.

About Lok II: Based in Mauritius, Lok II is a venture capital fund managed by Lok Advisory Services that invests primarily in Indian microfinance institutions (MIFs). It was founded in 2010 and is sponsored by the Lok Foundation, a nonprofit corporation based in New York. The CDC Group, the UK government’s development finance institution, made an equity investment of USD 10 million.

By Diana Baide, Research Assistant

[1] VCCircle. “Lok Capital Makes First Close of Second Fund At $52M” by Madhav Chanchani

http://www.vccircle.com/500/news/lok-capital-makes-first-close-of-second-fund-at-52m

MicroCapital. “MICROCAPITAL BRIEF: United Kingdom CDC Group Invests $10m in Lok Capital II, Private Equity Fund Focused on Microfinance in India” by Trevor Kwong, 28 October 2010

http://www.microcapital.org/microcapital-brief-united-kingdoms-cdc-group-invests-10m-in-lok-capital-ii-private-equity-fund-focused-on-microfinance-in-india/

MicroCapital’s Microfinance Universe profile: CDC Group

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CDC+Group

MicroCapital’s Microfinance Universe profile: Lok Capital LLC

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lok+Capital+LLC

MicroCapital’s Microfinance Universe profile: Lok II

http://www.microcapital.org/microfinanceuniverse/tiki

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