The Apax Foundation, the charitable arm of the London-based private equity firm, Apax Partners, has agreed to issue a capital increase to purchase a 20-percent stake in Finance in Motion, a Frankfurt-based asset management firm focused on development finance, including microfinance. The amount that the Apax Foundation is paying has not been disclosed. Finance in Motion will now be able to benefit from Apax’s global network, investor base and private equity expertise to develop new products and services in development finance. Finance in Motion advises investment funds with total committed capital of over EUR 800 million, the equivalent of over USD 1 billion. It is the sole adviser to the European Fund for Southeast Europe (EFSE), a microfinance investment fund with committed capital in excess of EUR 720 million, the equivalent of over USD 965 million.
By Christopher Maggio, Research Assistant
About
Apax Foundation
Description
The Apax Foundation is the charitable arm of Apax Partners, a London-based private equity firm. It has supported various microfinance-related projects including Grameen America, a nonprofit microfinance organization that lends in the United States, and Shivia, a UK-based microfinance charity working in India and Nepal. It mainly provides grants and private equity.
About
Finance in Motion
Description
Finance in Motion is a Frankfurt-based asset management firm focused on development finance. This includes micro-, small and medium-sized enterprise (MSME) financing, housing financing and financing projects for energy efficiency. It is the sole adviser to the European Fund for Southeast Europe (EFSE), a microfinance investment fund with committed capital in excess of EUR 720 million, the equivalent of over USD 965 million. As of March 25, 2010, Finance in Motion advises investment funds with total committed capital of over EUR 800 million, the equivalent of over USD 1 billion.
About
European Fund for Southeast Europe (EFSE)
Description
The European Fund for Southeast Europe (EFSE) aims to foster economic development in the southeastern Europe region by providing financial services to micro- and small enterprises and to private low-income households via qualified local financial institutions. EFSE was set up in 2005, with KfW, a German development bank, as the fund initiator and Oppenheim Asset Management S. à r. l. as the fund manager.
Additional Resources
MicroCapital’s Microfinance Universe profile: Apax Foundation
MicroCapital’s Microfinance Universe profile: Finance in Motion
MicroCapital’s Microfinance Universe profile: European Fund for Southeast Europe (EFSE)
Press Release
Apax Foundation becomes shareholder in Finance in Motion
Frankfurt/Main, London, March 25, 2010 – The Apax Foundation, the
charity of global private equity firm Apax Partners, and Finance in
Motion GmbH (Finance in Motion), Frankfurt/Main, Germany, today
announced that they have signed an agreement whereby the Apax Foundation
purchases a 20 per cent stake in the share capital of Finance in Motion.
The investment takes place through a capital increase in Finance in Motion.
The relationship will allow Finance in Motion to draw on Apax Partner’s
global network and market presence, base of investors and private equity
know-how to develop new commercially viable products and services in
development finance, particularly in the area of equity investments.
Finance in Motion is an asset management firm exclusively focused on
development finance. It offers specialized investment advisory services
in the management of investment vehicles that have a positive social
impact in developing countries and emerging economies and generate a
financial return for investors. The company focuses on micro, small and
medium enterprise financing, housing financing, as well as on financing
of energy efficiency measures and renewable energy projects. Advising
investment funds with a total committed capital of over EUR 800 million,
Finance in Motion is one of the world’s leading asset managers in the
field of development finance.
“The Apax Foundation’s charitable donations are focused on social
enterprise projects around the world. We wanted to bolster our support
for this area by investing up to 20 per cent of the Foundation’s assets
in social investments as opposed to straight commercial investments. Our
investment in Finance in Motion is the first such and we are delighted
to be investing in a way that will generate a positive social impact as
well as a financial return”, said Michael Phillips, Managing Partner of
Apax Partners and Trustee of the Apax Foundation.
“We are delighted with the addition of the Apax Foundation as an
investor in our company. With this step, Finance in Motion has acquired
a very valuable partner who shares our commitment to social values. We
look forward to our fruitful cooperation to enhance our range of
services and products, helping the investment vehicles we advise to
achieve an even greater development impact in combination with sound
financial performance”, explains Florian Meister, Managing Director at
Finance in Motion.
Strengthening of the supervisory board
Through this investment, the supervisory board of Finance in Motion will
be expanded and strengthened with the appointment of Michael Phillips as
the representative of the Apax Foundation. In addition to Michael
Phillips, the supervisory board includes Chairman Dr. Klaus Maurer,
Development Finance Expert, Deputy Chairman Dr. Wolfgang Leoni, Managing
Director at Sal. Oppenheim Jr. & Cie. Verwaltungs AG, and Dr. Christian
Cornett, Lawyer and Partner in the corporate department at the law firm
SJ Berwin LLP.
The company is majority-owned by management and staff. Sylvia Wisniwski,
Elvira Lefting and Florian Meister form the executive management of the
company. The company has over 55 employees. In addition to its main
office in Frankfurt/Main, the company has seven offices in Southeast
Europe. Besides the Apax Foundation, the company is also backed by the
German private bank Sal. Oppenheim as co-founder and shareholder.
Fund Advisor of the European Fund for Southeast Europe
Finance in Motion is the sole fund advisor for the European Fund for
Southeast Europe (EFSE). Established by KfW as a public-private
partnership, EFSE has become the world’s largest microfinance investment
fund with committed capital in excess of EUR 720 million. The company is
also the investment advisor of the Green for Growth Fund, Southeast
Europe (GGF), formerly Southeast Europe Energy Efficiency Fund, with
close to EUR 100 million in committed capital. Initiated by KfW and EIB
as a public-private partnership, GGF *promotes energy efficiency and
renewable energy projects in Southeast Europe including Turkey.
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