Creation Investments Social Ventures Fund I, a private equity microfinance fund, recently announced that on December 15, 2010, it made a final close. Seventy-four US and European institutional investors have committed a total of USD 31.8 million to the fund, which makes equity investments in microfinance institutions (MFIs) and lenders to small and medium-sized enterprises in Latin America and Europe. The fund is managed by Creation Investments Capital Management Limited Liability Corporation (LLC), an investment management company based in Chicago, Illinois, which was founded in 2007.
The fund invests specifically in organizations that are committed to alleviating poverty by providing financial services to unbanked individuals and businesses. While most of the organizations that receive funding from the Creation Investments Social Ventures Fund I engage in lending, several of them also provide additional services and products such as microinsurance, savings and remittance services. The fund targets MFIs with high growth potential and mature MFIs that are transitioning out of ownership by larger organizations into independent institutions. As of November 2010, the aggregate loan portfolio of the MFIs that the fund invests in totaled USD 95 million, with approximately 30,000 active borrowers [1].
By Julie Moksim, Research Associate
About Creation Investments Capital Management Limited Liability Corporation (LLC): Creation Investments Capital Management LLC is an alternative investment management company that was established in 2007. The company’s mission is to alleviate global poverty by making direct, for-profit investments in organizations that engage in economic development. Creation Investments manages the Creation Investments Social Ventures Fund I, which invests in microfinance institutions (MFIs) in Latin America and Europe. The company is headquartered in Chicago. In 2010, the fund closed with investments of USD 31.8 million. It does not report financial data to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.
[1] Creation Investments Capital Management Limited Liability Corporation (LLC): “Creation Investment Social Ventures Fund I Announces a Final Fund Closing of $32m in Committed Capital” by Patrick Fisher, January 14, 2011, http://creationinvestments.com/news/creation-investment-social-ventures-fund-announces-final-fund-closing-32-million-committed-capital/
MicroCapital’s Microfinance Universe Profile: Creation Investments Capital Management Limited Liability Corporation (LLC)
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