Legatum, an international private investment group, and the Omidyar Network, a philanthropic investment firm, will invest USD 40 million in Unitus Equity Fund II, a newly created private equity fund that will provide capital to microfinance institutions (MFIs) with an emphasis on growth.
The fund is led by the same team that was behind its predecessor, the Unitus Equity Fund I (UEF I). However, it will expand the focus of UEF I by investing in companies that “offer products and services that enable the world’s poor to create opportunities for themselves and their communities,” according to a statement.
“Our co-investment in the Unitus Equity Fund II reflects Legatum’s confidence in its management team, who have a proven track record of success investing in MFIs around the globe,” said Philip Vassiliou, managing director of Legatum.
Legatum and Omidyar will each be contributing USD 20 million to the investment. The announcement comes on the heels of Omidyar’s USD 9 million grant to Unitus, UEF II’s affiliated non-profit, in April.
Last week, MicroCapital reported on a new documentary released by Legatum and a number of partners about the Pioneers of Prosperity Africa competition, which awarded USD 350,000 in prizes.
The Legatum Group, founded in 2006 in Dubai, United Arab Emirates, is primarily a commercial investment firm that is also involved in advancing sustainable development. Its Web site does not maintain financial information about the organization.
Based in California, the Omidyar Network comprises a 501(c)(3) non-profit and a limited liability company (LLC) – making grants through the non-profit entity and investments in for-profits through the LLC. It grants to and invests in ideas and organizations that are expected to generate both financial value and social returns, including microfinance, scientific innovation, participatory media, and information networks. As reported in its 2006 tax return, the organization had USD 284.2 million in assets.
By Stephen Son
Additional Resources:
PR Newswire: “Legatum and Omidyar Network Invest USD 40 Million as Co-Anchors of Unitus”
MicroCapital.org article, April 29, 2008: “Omidyar Network Granting $9m to Microfinance Non-Profit Unitus”
MicroCapital.org article, May 13, 2008: “Documentary on Legatum Pioneers of Prosperity Africa Prize Released, Involves $350k Award for East African Entrepreneurship Sponsored by Legatum and John Templeton Foundation”
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