MICROCAPITAL BRIEF: MicroVest Capital Management Announces Close of $60m Microvest II, a Microfinance Equity Fund

MicroVest Capital Management recently announced the closing of MicroVest II with USD 60 million in commitments. The fund will serve as a capital intermediary between investors and financial institutions that serve the poor. Lead investors in the fund include International Finance Corporation, a member of the World Bank Group that mobilizes capital for private sector development, and Kinnevick New Ventures AB, a venture capital fund.

“We are excited to be working with our investors in providing market-leading microfinance institutions with steady and patient capital support, especially in these turbulent economic times,” noted Gil Crawford, CEO of MicroVest. “Capital from the fund will allow these institutions to increase their outreach and product offerings to the working poor, ensuring that entrepreneurial individuals are afforded a stake in their own economies.”

By Jay Kumar, Research Assistant

About MicroVest Capital Management:
Launched in 2004 with USD 15 million, MicroVest is a family of funds that invest in microfinance institutions in emerging markets. It manages approximately USD 100 million in assets currently. MicroVest is headquartered in Bethesda, MD and was founded by CARE, MEDA and the Seed Capital Development Fund, three non-profit organizations.

About International Finance Corporation (IFC):
IFC is a member of the World Bank Group, created to support financial private sector development, mobilize private capital, and provide advisory and risk mitigation services to businesses and services. The group uses loan and debt securities, equity investments and guarantees as instruments of poverty alleviation. It “invests in companies and financial institutions in emerging markets” as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approves investments.”In 2009, IFC made new investments in developing countries that reached a total of USD 14.5 billion.

About Kinnevick New Ventures AB:
Established in 1936, Kinnevick New Ventures AB manages a portfolio of investments focused around three business areas. These include: “Major Listed Holdings”, which includes Millicom International Cellular, Tele2, Modern Times Group MTG, Metro International, Transcom WorldWide; “Major Unlisted Holdings”, which includes the cartonboard and paper company Korsnäs; and “New Ventures”, which is active in finding new investments in small and mid sized companies which has a significant growth potential.

Additional Sources:

1.) http://www.microvestfund.com/news/MVIIClose-PressRelease.pdf

2.) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kin…

3.) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)

4.) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mic…

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