MICROCAPITAL BRIEF: Maj Invest Raising Additional $25m for Financial Inclusion Fund II for Microfinance in Bolivia, Colombia, Ecuador, Peru

Maj Invest Group, a Denmark-based asset management and private equity firm, recently announced plans to grow its Maj Invest Financial Inclusion Fund II by USD 25 million to invest in Bolivia, Colombia, Ecuador and Peru. The fund already has two active investments totaling USD 75 million: an equity stake in MicroCred Holding, a French microfinance investment company targeting entrepreneurs in Africa and China, and a stake in Peru-based Diviso Grupo Financiero.

Kasper Svarrer, who manages Maj Invest’s emerging-market equities, says that the fund will target the “top segment [of] very professionally-run, very mature” microfinance institutions in the region. As of 2015, Maj Invest’s asset management arm reports total assets under management of approximately USD 6 billion, and its equity arm reports USD 1.5 billion in committed capital under eight private equity funds, two of which are focused on microfinance. For that same year, Maj Invest reports pre-tax return on equity of 24.8 percent.

By Michelle Dold, Research Associate

About Maj Invest Group

Maj Invest Group is an asset management and private equity firm based in Copenhagen, Denmark, whose primary clients are institutional investors and funds investing in unlisted equities. Maj Invest provides investment advisory services to eight private equity funds, two of which are focused on microfinance in Africa, Asia and Latin America: Maj Invest Financial Inclusion Fund II and Danish Microfinance Partners. As of 2015, Maj Invest’s asset management arm reports total assets under management of approximately USD 6 billion, and its equity arm reports USD 1.5 billion in committed capital. For that same year, Maj Invest reports pre-tax return on equity of 24.8 percent.

About Maj Invest Financial Inclusion Fund II K/S

Maj Invest Financial Inclusion Fund II has two active investments totaling USD 75 million as of 2016. It is jointly owned by Danish entities including the following: 1) Pensionskassernes Administration A/S (40 percent); 2) Christian Augustinus Fabrikker A/S (33 percent); and 3) Koldingvej 2 Billund A/S (20 percent).

About Danish Microfinance Partners K/S

Danish Microfinance Partners has five active investments totaling DKK 400 million (USD 60.4 million) as of 2016. It is jointly owned by the following: 1) Pensionskassernes Administration A/S (50 percent); Investeringsfonden for Udviklingslande (25 percent); and 3) Pensionskassen For Børne- og Ungdomspædagoger (25 percent).

Sources and Additional Information:

[1] Maj: “Maj Invest Expanding in Latin America”,
http://majinvest.com/en/about-maj-invest/news/maj-invest-expanding-in-latin-america/

[2] MicroCapital Universe Profile: Maj Invest

[3] MicroCapital Universe Profile: Maj Invest Financial Inclusion Fund II

[4] MicroCapital Universe Profile: Danish Microfinance Partners

[5] MicroCapital Universe Profile: MicroCred Group

[6] MicroCapital Universe Profile: Diviso Grupo Financiero (Diviso)

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