MICROCAPITAL STORY: Dutch SNS Asset Management Fundraising for Second SNS Institutional Microfinance Fund to be run by American Developing World Markets (DWM)

According to the Responsible Investor, an online magazine, SNS Asset Management is currently fundraising for a EUR 100m successor to the SNS Institutional Microfinance Fund. The new fund, which will be run by Developing World Markets (DWM), was created because of the overwhelming demand among Dutch institutional investors for the first iteration.

Identical to the first SNS Institutional Microfinance Fund in structure, the new fund will invest 70 percent in MFI debt and 30 percent in equity. The original fund was only open to Dutch Institutional Investors and, although it is unclear if the same restrictions will apply, “SNS has not so far sought capital outside of the Netherlands.” Further details on the new fund were not readily available.

The original fund was eventually capped at EUR 160m and made investments in Armenia, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Cambodia, Georgia, Nicaragua, Peru, Mexico, Kosovo, Bolivia, and Ecuador. To learn more about the first SNS Institutional Microfinance Fund, please read this previous MicroCapital story.

SNS Asset Management is a subsidiary of SNS REAAL, a Dutch banking and insurance company. SNS Asset Management controls EUR 19b in assets spread across a number of funds. The first SNS Institutional Microfinance Fund was the company’s first fund dedicated to microfinance. While some shares of SNS REAAL are publicly traded, the Stichting Beheer SNS REAAL foundation, previously the sole owner of SNS REAAL, still maintains control of 54.3 percent of the company. The foundation is privately owned and further information was not readily available.

By Greg Casey, Research Assistant

Additional Resources:

Responsible Investor: “SNS Asset Management: the growing pains and gains of microfinance”

MicroCapital story, December 10, 2007: “Micro Finance Bank of Azerbaijan Receives First Private Investor Loan in Manat Currency (AZN)”

MicroCapital story, June 18, 2007: “SNS REAAL’s SNS Asset Management of the Netherlands, Developing World Markets (DWM), and Triple Jump Conclude Investment Opportunity of SNS Institutional Microfinance Fund”

MicroCapital story, February 16, 2007: “SNS Asset Management launches a micro-credit fund: SNS Institutional Microfinance Fund in Partnership with Developing World Markets and Triple Jump”

SNS Asset Management: Home

SNS Asset Management: SNS Institutional Microfinance Fund

SNS REAAL: Home

Developing World Markets: Home

DWM Press Release: “€ 125 million ($170 million) First Closing of the SNS Institutional Microfinance Fund” (available here)