MICROCAPITAL BRIEF: Microfinance Investment Vehicle BlueOrchard Private Equity Fund Completes First Distribution to Investors of $7.5m

BlueOrchard Private Equity Fund (BOPE Fund), an investment vehicle of Switzerland-based, commercial microfinance intermediary Blue Orchard, has announced its first distribution to investors. The USD 7.5 million distribution comes three years after the fund’s first close and includes proceeds from a partial exit from indirect shareholding in TenGer Financial Group, the single owner of XacBank, a Mongolian community development bank and microfinance institution (MFI). BOPE Fund remains a direct shareholder of TenGer Financial Group which reported total assets of MNT 322 billion (USD 256 million).

Jean-Philippe de Schrevel, Founder and CEO of BlueOrchard Investments and general partner of BOPE Fund, stated, “We seek to combine social and financial returns with a long-term vision and commitment for the sustainable development of the microfinance sector [1].” Xavier Pierluca, CIO of BlueOrchard Investments, added “helping portfolio companies to better meet the needs of their low-income clients while supporting them to increase efficiencies and implement best practices has proven to be the right strategy for the BOPE Fund [1].” The BOPE Fund has invested in 12 microfinance institutions and funds and is still in its investment period. As of year-end 2010, BOPE Fund has USD 195 million in total commitments from institutional and individual investors.

By: Alexandra Pattee, Research Associate

About Blue Orchard Private Equity Fund (BOPE Fund): BlueOrchard Private Equity Fund (BOPE Fund) was registered in Luxembourg in December 2007 and acquires minority stakes in the capital of microbanks while aiming to play an active governance role at the board level. As of December 2010, BOPE Fund has USD 195 million in total commitments from institutional and individual investors. BOPE Fund is managed by BlueOrchard, a Switzerland-based, commercial microfinance intermediary that provides loans to microfinance institutions through its subsidiary BlueOrchard Finance SA and invests in the equity of microfinance institutions and microfinance network funds through its subsidiary BlueOrchard Investments SA BlueOrchard had approximately USD 980 million under management as of June 2009.

About XacBank: XacBank is a community development bank and microfinance institution (MFI) founded in 1998 that aims to become a leading financial institution “by providing inclusive and value adding financial services to the citizens and expatriates, institutions and enterprises of Mongolia, while maintaining its leadership in the global microfinance industry.” As of 2009, XacBank reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 223 million, a gross loan portfolio of USD 137 million, approximately 73,100 borrowers, return on assets (ROA) of 0.91 percent and return on equity (ROE) of 9.29 percent.

About TenGer Financial Group: TenGer Financial Group of Mongolia was created by the 2001 merger of Goviin Ehlel and XAC, two non-bank financial institutions that served micro-, small and medium-sized enterprises. TenGer Financial Group is the parent company of XacBank LLC, XacLeasing LLC, Horus Nomadic Solutions LLC and TenGer Insurance LLC. TenGer Financial Group is owned by local and international investors including EIT Capital Management LLC, the International Finance Corporation (IFC), European Bank for Reconstruction and Development (EBRD), Mercy Corps, Triodos Bank Group, BlueOrchard Private Equity Fund and several local nongovernmental organizations (NGOs). As of 2009, TenGer Financial Group reported total assets of MNT 322 billion (USD 256 million).

Sources and Resources:

[1] BlueOrchard Press Release “BlueOrchard Private Equity Fund completes highly successful first exit” Submitted directly to MicroCapital

MicroCapital.org Article, February 11, 2011, “Belgian Incofin Loans $1.5m to TenGer Financial Group of Mongolia”, https://www.microcapital.org/microcapital-brief-belgian-incofin-loans-1-5m-to-tenger-financial-group-of-mongolia-2/

MicroCapital.org Article, February 8, 2011, “responsAbility Social Investments Makes Loans Totaling $12.5m to Belarusian Bank for Small Business (BBSB) of Belarus, Khan Bank of Mongolia, XacBank of Mongolia”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-makes-loans-totaling-12-5m-to-belarusian-bank-for-small-business-bbsb-of-belarus-khan-bank-of-mongolia-xacbank-of-mongolia/

MicroCapital.org Article, December 8, 2010, “BlueOrchard Loans $2.5m to Microfinance Institutions Prasac, Hattha Kaksekar Limited (HKL) of Cambodia”, https://www.microcapital.org/microcapital-brief-blueorchard-loans-2-5m-to-microfinance-institutions-prasac-hattha-kaksekar-limited-hkl-of-cambodia/

MicroCapital.org Article, November 17, 2010, “Microfinance Investment Manager BlueOrchard Invests $5.5m in Fondo de Desarrollo Local (FDL) of Nicaragua, First Allied Savings and Loans Limited (FASL) of Ghana and AB Microfinance Bank of Nigeria”, https://www.microcapital.org/microcapital-brief-microfinance-investment-manager-blueorchard-invests-5-5m-in-fondo-de-desarrollo-local-fdl-of-nicaragua-first-allied-savings-and-loans-limited-fasl-of-ghana-and-access-bank-of/

MicroCapital.org Article, November 1, 2010, “Microfinance Investment Manager BlueOrchard Finance Invests $8m in Caja Municipal de Ahorro y Crodito (CMAC) Ica and Crear Arequipa of Peru, Pro Mujer Bolivia and Fundacion para el Desarrollo Socioeconomico Rural (FUNDESER) of Nicaragua”, https://www.microcapital.org/microcapital-brief-microfinance-investment-manager-blueorchard-finance-invests-8m-in-caja-municipal-de-ahorro-y-credito-cmac-ica-and-crear-arequipa-of-peru-pro-mujer-bolivia-and-fundacion-para-el/

MicroCapital.org Article, September 20, 2010, “Microfinance Investment Manager BlueOrchard Finance Invests $8m in Armeconombank of Armenia, Hattha Kaksekar Limited of Cambodia and KazMicrofinance of Kazakhstan”, https://www.microcapital.org/microcapital-brief-microfinance-investment-manager-blueorchard-finance-invests-8m-in-armeconombank-of-armenia-hattha-kaksekar-limited-of-cambodia-and-kazmicrofinance-of-kazakhstan/

MicroCapital.org Article, September 15, 2010, “BlueOrchard Finance Loans $1.77m to Peruvian Microfinance Institution (MFI) EDPYME Alternativa”, https://www.microcapital.org/microcapital-brief-blueorchard-finance-loans-1-77m-to-peruvian-microfinance-institution-mfi-edpyme-alternativa-2/

MicroCapital.org Article, September 14, 2010, “BlueOrchard Finance Loans $2.5m to Peruvian Microfinance Institution (MFI) Confianza and Ecuadorian MFI Fundacion para el Desarrollo Microempresarial (D-Miro)”, https://www.microcapital.org/microcapital-brief-blueorchard-finance-loans-2-5m-to-peruvian-microfinance-institution-mfi-confianza-and-ecuadorian-mfi-fundacion-para-el-desarrollo-microempresarial-d-miro/

MicroCapital.org Article, September 14, 2010, “BlueOrchard Finance Loans $1.77m to Peruvian Microfinance Institution (MFI) EDPYME Alternativa”, https://www.microcapital.org/microcapital-brief-blueorchard-finance-loans-1-77m-to-peruvian-microfinance-institution-mfi-edpyme-alternativa/

MicroCapital.org Article, September 13, 2010, “BlueOrchard Invests $8.7m in Eastern European Microfinance Institutions KEP Trust of Kosovo and ProCredit Bank of Romania”, https://www.microcapital.org/microcapital-brief-blueorchard-invests-8-7m-in-eastern-european-microfinance-institutions-kep-trust-of-kosovo-and-procredit-bank-of-romania/

MicroCapital’s Microfinance Universe: Blue Orchard Private Equity Fund (BOPE Fund), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=blue+orchard+private+equity+fund

MicroCapital’s Microfinance Universe: XacBank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=XacBank

MicroCapital’s Microfinance Universe: TenGer Financial Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=TenGer+Financial+Group

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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