MICROCAPITAL BRIEF: Lok Capital Closes Venture Fund, Lok II, at $65m

Lok Capital LLC, an India-based microfinance investment firm, has closed its second venture capital fund, Lok II, at USD 65 million. Lok II plans to invest in full-service financial institutions, microcredit, small-business lending, mobile payments, remittances, low-cost healthcare and education and vocational training markets. The fund aims to make investments of between USD 2 million to USD 4 million per investee with an investment horizon of four to six years. Investors in Lok II include the World Bank Group’s International Finance Corporation (IFC), UK-based development finance institution Commonwealth Development Corporation, state-owned German development bank Kreditanstalkt fur Wiederaufbau (KfW), Swiss investment company responsAbility, Netherlands-based development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), French development finance institution Proparco and Dutch microfinance investment vehicle ASN Novib. The amount of each firm’s investment in Lok II has not been disclosed.

Lok Capital I was launched in 2006 with USD 22 million and typically invests between USD 500,000 and USD 3 million in each investee.

About Lok Capital
Lok Capital LLC is a limited-life, limited-liability company based in India that provides equity and equity-linked investments to microfinance institutions (MFIs) in India. It consists of venture capital funds Lok I and Lok II and the Lok Foundation. Lok I was launched in 2006 with USD 22 million. Its investors include ACCION International, The Commonwealth Development Corporation (CDC), Developement International Desjardins, Netherlands Development Company (FMO in Dutch), International Finance Corporation (IFC), Kreditanstalt für Wiederaufbau (KfW) and responsAbility. Under Lok I, the fund’s investments generally range from USD 500,000 to USD 3 million. Lok II was closed in 2012 with USD 65 million. Investors included previous investors IFC, CDC, KfW, FMO and responsAbility along with new investors Proparco and ASN Novib. Under Lok II, the fund’s investments range from USD 2 million to USD 4 million. The Lok Foundation provides technical assistance to Indian MFIs.

About Lok II
Lok II is a venture capital fund managed by Lok Capital LLC, a microfinance investment firm based in India that invests primarily in Indian microfinance institutions (MFIs). It was founded in 2010 and is sponsored by the Lok Foundation, a non-profit corporation based in New York that provides technical assistance to MFIs. Lok II was closed in 2012 with USD 65 million. The International Finance Corporation (IFC), the investment arm of the World Bank, has committed USD 15 million in equity to the fund. The fund’s other investors are UK-based development finance institution Commonwealth Development Corporation, state-owned German development bank Kreditanstalkt fur Wiederaufbau (KfW), Swiss investment company responsAbility, Netherlands-based development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), French development finance institution Proparco and Dutch microfinance investment vehicle ASN Novib. The amounts of these firms’ investments in Lok II have not been disclosed.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

Financial Chronicle: “Lok Capital Raises $65m to Back Social Ventures,” http://www.mydigitalfc.com/companies/lok-capital-raises-65m-back-social-ventures-069

MicroCapital.org story, November 25, 2010, “MICROCAPITAL BRIEF: Lok Capital Announces $52m Close for Indian Microfinance Fund, Lok II,” https://www.microcapital.org/microcapital-brief-lok-capital-announces-52m-close-for-indian-microfinance-fund-lok-ii/

MicroCapital.org story, May 6, 2010, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Provides $15m Equity Investment to Lok II, an $80m Microfinance Fund that Will Invest in Microfinance Institutions (MFIs) in India,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-provides-15m-equity-investment-to-lok-ii-an-80m-microfinance-fund-that-will-invest-in-microfinance-institutions-mfis-in-india/

MicroCapital Universe Profile: Lok Capital https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lok+Capital+LLC#Description_140_word_limit_

MicroCapital Universe Profile: Lok II
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lok+II#Description_140_word_limit_

MicroCapital Universe Profile: International Finance Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: Commonwealth Development Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CDC+Group

MicroCapital Universe Profile: Kreditandstalkt fur Wiederaufbau
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW+Entwicklungsbank+%28KfW%29

MicroCapital Universe Profile: responsAbility
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

MicroCapital Universe Profile: Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29

MicroCapital Universe Profile: Proparco
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PROPARCO

MicroCapital Universe Profile: ASN Novib
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ASN-Novib+Fund

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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