MICROCAPITAL BRIEF: Switzerland’s Azure Partners Launches Azure Global Microfinance Fund

Azure Partners, a Swiss company specializing in “socially responsible investments,” has launched Azure Global Microfinance Fund, a microfinance-focused “fund of funds” that will accept investments from both private and institutional investors [1]. A fund of funds is defined as an “investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities.” The fund will invest 65 percent in debt funds, 25 percent in private equity and 10 percent in cash. The fund targets annual returns of 5 to 6 percent.

Mr Jack Lowe co-founded Azure Partners with Mr Vincent Oswald, both of whom were formerly with Geneva-based microfinance investment company BlueOrchard. Mr Lowe argues that “Microfinance has three distinct advantages for the investor: negative correlation with most other asset classes, extremely low volatility and enormous geographic diversification in emerging markets…. This combination of factors has provided historic returns of 4-8 per cent for debt funds and 12-18 per cent for private equity funds. The sector has never experienced a negative yearly performance.”

As of January 2012, the Azure Global Microfinance Fund has made three investments and reports a “pipeline of 10 investable funds” [2]. The amount of funds raised by Azure Global Microfinance Fund has not been made public. The fund received the LuxFLAG Microfinance Label from Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector.

By Nisha Koul, Research Associate

About Azure Partners: Azure Partners is a Swiss company specializing in socially responsible investments. It focuses mainly on microfinance and acts as investment advisor to the Azure Global Microfinance Fund. As of January 2012, the Azure Global Microfinance Fund has made three investments and reports a “pipeline of 10 investable funds.” The size of the fund has not been made public.

Sources and Additional Resources:

[1] Financial Times, “Microfinance men launch fund of funds,” http://www.ft.com/intl/cms/s/0/cf573ec0-42c3-11e1-93ea-00144feab49a.html#axzz1kUrKPJZS

[2] Azure Partners, “Azure Global Microfinance Fund,” http://www.azure-partners.com/docs/Azure_partners.pdf

MicroCapital.org story, January 18, 2012, “MICROCAPITAL BRIEF: FINCA International Launches For-Profit Subsidiary: FINCA Microfinance Holdings LLC,” https://www.microcapital.org/microcapital-brief-finca-international-launches-for-profit-subsidiary-finca-microfinance-holdings-llc/

MicroCapital.org story, January 10, 2012, “MICROCAPITAL BRIEF: Private Equity Investors Wary As Return on Equity for Indian Microfinance Institutions Drops from Over 45% to Under 20%,” https://www.microcapital.org/microcapital-brief-private-equity-investors-wary-as-return-on-equity-for-indian-microfinance-institutions-drops-from-over-45-to-under-20/

MicroCapital Universe Profile: Azure Partners, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Azure+Partners

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

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