Norwegian Microfinance Initiative (NMI), a microfinance joint venture between two government agencies, the Norwegian Investment Fund for Developing Countries (Norfund) and the Norwegian Agency for Development Cooperation (Norad) and several private institutions, has established two investment funds: NMI Global Fund and NMI Frontier Fund. A total of USD 100 million has been committed by NMI’s owners, half of which was committed by Norfund. The funds are expected to make their initial investments during the first quarter of 2009.
NMI Global Fund will invest on more mature microfinance institutions in order to stimulate rapid growth. The NMI Global Fund will primarily invest through other investment funds and in partnership with other fund managers. The NMI Frontier Fund will invest in new and emerging microfinance institutions through direct investments as well as investments in other funds and partnerships with other fund managers. NMI will make equity investments in portfolio companies and seek to be actively involved investors. Specific countries or geographic areas of focus were not named.
As MicroCapital reported in June, the Norwegian Microfinance Initiative was launched with an initial investment of USD 117 million provided by Norfund, Norad, and private investors Ferd, DnB NOR Bank, Storebrand, and KLP. After NMI’s launch, Richard Weingarten was appointed its managing director. Most recently, Mr. Weingarten served as executive secretary of the United Nations Capital Development Fund (UNCDF), an independent investment fund affiliated with the United Nations Development Programme. UNCDF makes investments in the world’s least developed countries, including investments in microfinance institutions. Mr. Weingarten’s background also includes investment banking, venture capital and law. He has served as the Senior Vice President for finance and development at the College Board, a non-profit organization, and Managing Director at Bear Stearns.
By Iyanna Holmes, Research Assistant
Additional Resources:
MICROCAPITAL STORY: June 12, 2008, Norwegian Governmental Agency Norfund Teams with Private Firms Ferd, DnB NOR Bank, Storebrand and Kommunal Landspensjonskasse (KLP) to Establish $117m Norwegian Microfinance Initiative (NMI) Fund
Private Equity Wire: Norwegian Microfinance Initiative Launches Global and Frontier Funds
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