MICROCAPITAL BRIEF: MicroVest to Manage Calvert Foundation’s $50m Microfinance Investment Portfolio

Calvert Foundation, a US-based nonprofit organization specializing in social impact investment, recently announced that MicroVest Capital Management, a US-based private microfinance investment firm, will manage its USD 50 million microfinance investment portfolio. The move, valid as of January 1, 2014, is intended to reduce Calvert Foundation’s operating expenses while taking advantage of MicroVest‘s expertise. MicroVest is managing the existing loan portfolio of Calvert Foundation, but as its existing loans mature, the proceeds will be reinvested into MicroVest’s five funds.

As of 2013, the Calvert Foundation has approximately USD 180 million invested in 200 community organizations. As of September 2013, MicroVest has USD 222 million in assets under management.

By Tejas Jain, Research Associate

  About Calvert Foundation

Founded in 1995, Calvert Foundation, a US-based nonprofit Community Development Financial Institution (CDFI), provides loans to organizations that provide affordable housing, microfinance, small business loans and community facilities. Calvert Foundation’s fund is offered by the Calvert Social Investment Foundation, a private US-based foundation launched in 1995 with the support of the Ford, MacArthur and Mott Foundations. Investment in the fund comes in the form of donations and notes held by individuals and organizations, including Washington Mutual Bank, Ameritas Life Insurance Corporation and Gray Ghost Microfinance Fund. As of 2013, the Calvert Foundation has approximately USD 180 million invested in 200 community organizations.

About MicroVest Capital Management

Launched in 2004 with USD 15 million in capital, MicroVest is a family of funds that invest in microfinance institutions (MFIs) in emerging markets. MicroVest is headquartered in Washington, DC, and was founded by three nonprofit organizations: CARE International, a US-based humanitarian agency; Seed Capital Development Fund Limited, a US-based charity that promotes economic development through microfinance; and Mennonite Economic Development Associates, a Canadian organization that provides financial and technical assistance to microentrepreneurs. As of September 2013, MicroVest has USD 222 million in assets under management.

Sources and Additional Resources:

Calvert Foundation, “Calvert Foundation and MicroVest Capital Management Announce Partnership for Microfinance Investments”
http://www.calvertfoundation.org/press/releases/459-microvest-partnership

MicroCapital Article, November 27, 2012, “MicroVest GMG Capital Management Acquires Minlam Microfinance Fund”
https://www.microcapital.org/microcapital-brief-microvest-gmg-capital-management-acquires-minlam-microfinance-fund/

MicroCapital Article, March 20, 2012, “Calvert, Citi Foundations Launch Women Investing in Women Initiative (WIN-WIN) Channeling $20m to Microfinance”
https://www.microcapital.org/microcapital-brief-calvert-citi-foundations-launch-women-investing-in-women-initiative-win-win-channeling-20m-to-microfinance/

MicroCapital Article, June 23, 2011, “Spurned by Commercial Banks, Indian Microfinance Institutions (MFIs) Raise Funds from Social Investors IFC, ACCION, MicroVest, ShoreCap, Aavishkaar, BlueOrchard”
www.microcapital.org/microcapital-brief-spurned-by-commercial-banks-indian-microfinance-institutions-mfis-raise-funds-from-social-investors-ifc-accion-microvest-shorecap-aavishkaar-blueorchard/

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

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

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