MICROCAPITAL BRIEF: Incofin Sells 55% Equity Stake in Colombian Microfinance Institution Crezcamos to Its Founder, Mauricio Osorio

Belgium’s Incofin Investment Management recently informed MicroCapital that its Rural Impulse Funds I and II have sold all of their shares of Crezcamos, a Colombian microfinance institution (MFI), to Mauricio Osorio, the founder and general manager of Crezcamos. While the prices of the stakes, which totaled 55.2 percent of the shares of the MFI, were not disclosed, Incofin reports that each fund earned an “attractive double-digit return.”

Incofin first invested in Crezcamos in 2009 when the MFI had 5,000 clients and a loan portfolio of approximately COP 7.5 billion (USD 2.5 million). As of 2017, it has 110,000 clients, a loan portfolio of COP 260 billion (USD 90 million) and 60 branches, mainly in rural areas. A quarter of Crezcamos’s “loan portfolio is disbursed to clients with activities in the agricultural value chain.” The MFI also provides insurance and money transfer services.

In addition to investing in Crezcamos, Incofin provided the MFI with grant funding and in-kind support for governance improvements, expanding in rural areas and capacity building for non-executive staff.

As of 2017, Incofin manages assets worth USD 850 million through the following funds: Incofin CVSO, Impulse Microfinance Investment Fund, the Fairtrade Access Fund, Rural Impulse Funds I and II, VDK Loan Portfolio, The Belgian Investment Company account, Volksvermogen, agRIF and Invest in Visions.

The Rural Impulse Funds were advised on the transaction by Spain-based GBS Finanzas and Dentons Cardenas & Cardenas Abodagos, the Colombian unit of global law firm Dentons.

Sources and Additional Resources

Information provided directly to MicroCapital by Incofin

Crezcamos
http://www.crezcamos.com/

GBS Finanzas
http://www.gbsfinanzas.es/

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