CLSA Capital Partners, the alternative asset management arm of CLSA (Credit Lyonnais Securities Asia) Asia-Pacific Markets, has bought a minority stake in Equitas Micro Finance India Private Limited (Equitas), a Chennai-based microfinance institution (MFI), for USD 24 million. The percentage ownership taken up by CLSA Capital Partners through the investment has not been disclosed.
Equitas intends to use the capital to expand by opening new branches across India, a representative from CLSA Capital Partners said in a statement. Equitas currently has a gross loan portfolio of about USD 130 million with over 900,000 customers, located primarily in south India.
CLSA Capital Partners made the investment in Equitas through one of its funds, Aria Investment Partners III, a pan-Asian private equity fund that raised USD 333 million last month.
By: Christine Chang, Research Associate
About Equitas Micro Finance India Private Limited:
Equitas is a microfinance institution (MFI) that was created in December 2007 and is located in Chennai, India. The MFI provides microcredit to low income households in India. According to a recent NASDAQ article Equitas has a gross loan portfolio of about USD 130 million, which represents a 200 percent increase since March 2009 Microfinance Information Exchange (MIX) data, with over 900,000 customers, which represents a 165 percent increase since March 2009 MIX data. According to the MIX Market, as of March 31, 2009, Equitas had total assets of USD 61.3 million, return on assets of 1.5 percent and return on equity of 4.0 percent.
About CLSA Capital Partners:
CLSA Capital Partners is the alternative asset management arm of CLSA (Credit Lyonnais Securities Asia) Asia-Pacific Markets, an Asia-based independent brokerage and investment group. CLSA Capital Partners has over USD 2.5 billion in funds under management and offices in Hong Kong, Singapore, Tokyo, Shanghai, Beijing and Mumbai.
Additional Resources:
NASDAQ.com: CLSA Capital Partners Invests US$24 Million In Indian Microfinance Firm, April 1, 2010: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201004010422dowjonesdjonline000373&title=clsa-capital-partners-invests-us24-million-in-indian-microfinance-firm
MicroCapital Universe: Equitas Micro Finance India Private Limited: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Equitas+Micro+Finance+India+Private+Limited
MicroCapital Universe: CLSA Capital Partners: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CLSA+Capital+Partners
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