In a recent press release, Microfinance Investment Services (MICROFIS), a France-based market platform for investors in “responsible finance,” reports that the Paris Commercial Court has dismissed a petition against MICROFIS that was filed jointly by two France-based organizations: PlaNet Finance, a nonprofit that works to alleviate poverty through microfinance, and social investment advisory firm PlaNIS responsAbility SAS, which is held by PlaNet Finance, Switzerland’s responsAbility Social Investments AG and Natixis Asset Management of France [1][2]. The petition reportedly accused MICROFIS of “parasitism and unfair business competition.”
MICROFIS reports that the court declared the petition “nul and void for unsubstantiated interest” and has further instructed PlaNIS to pay for MICROFIS’ legal costs and court expenses associated with the case. PlaNet Finance has responded that the ruling by the court dismissed the claims of all involved with the case “without favoring any party (PlaNet Finance, PlaNIS or MICROFIS)” and that PlaNIS has been instructed to pay part of the legal fees only inasmuch is standard practice mandated by French law [3]. PlaNet Finance further clarified that responsAbility Social Investments AG is not involved with the case.
PlaNet Finance works in approximately 80 countries and is comprised of eight independent units that provide microfinance-focused services such as rating, advisory, venture capital investing, software and training. As of 2009, the latest information available, PlaNIS reported to the US-based nonprofit Microfinance Information Exchange (MIX) a team of 13 investment professionals monitoring investments from seven funds distributed across approximately 75 microfinance institutions (MFIs) in 30 countries in Asia, Latin America and Western Africa, representing a total loan portfolio of approximately USD 165 million.
By Nisha Koul, Research Associate
About Microfinance Investment Services (MICROFIS): MICROFIS is a France-based market infrastructure organization aimed at providing financing facilities to microfinance institutions worldwide from European financial institutions by pooling origination, structuring and liquidity resources. It structures and services microfinance investments and bonds – as defined by the French Economic Modernisation Act “Loi de Modernisation Economique” – to be listed on the NYSE Alternext stock exchange. Financial details on MICROFIS are not available.
About PlaNet Finance: Founded in 1998 in Paris, France, PlaNet Finance is a nongovernmental organization (NGO) with the mission of alleviating poverty through microfinance development. PlaNet Finance is active in approximately 80 countries as of 2008 and is comprised of eight independent units: PlaNet Finance Advisory Services, which provides technical and advisory services; Planet Rating, a microfinance rating agency; PlaNIS responsAbility SAS, which specializes in advisory services and structuring and managing microfinance funds; MicroCred, an investor in microfinance; PlaNet Guarantee, which specializes in microinsurance; FinanCites, a social venture capital company; MicroFit, a microfinance software unit; and PlaNet University, a microfinance training provider.
About PlaNIS responsAbility SAS: PlaNIS responsAbility SAS was originally established by French nonprofit organization (NGO) Planet Finance as PlaNIS and now counts responsAbility Social Investments AG, an investment company based in Switzerland, and Impact Nord Sud Développement, a fund managed by French Equity Fund Natixis Asset Management, as significant shareholders. The firm provides investment advisory services to social investment funds that invest in microfinance. Its services include advising funds on sourcing, conducting due diligence and performing risk assessments on microfinance institutions (MFIs). According to the US-based nonprofit Microfinance Information Exchange (MIX), as of 2009, PlaNIS reported a team of 13 investment professionals monitoring investments from seven funds distributed across approximately 75 MFIs in 30 countries in Asia, Latin America and Western Africa and representing a total loan portfolio of approximately USD 165 million.
About responsAbility Social Investments AG: Founded in 2003, responsAbility Social Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and markets in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.
About Natixis Asset Management: Natixis, a French corporate and investment bank created in November 2006 from the merger of the asset management and investment banking operations of Natexis Banque Populaire and IXIS (Groupe Caisse d’Epargne), reported total assets of EUR 458 billion (USD 634 billion) as of 2010. It manages Impact Nord Sud Développement, a fund that has invested in microfinance advisory firm PlaNIS responsAbility SAS.
Sources and Additional Resources:
[1] La Tribune Story (in French), October 13, “Planet Finance et Planis déboutées face à Microfis,” http://www.latribune.fr/entreprises-finance/banques-finance/industrie-financiere/20111013trib000656507/planet-finance-et-planis-deboutees-face-a-microfis.html
[2] Press Release submitted by MICROFIS to MicroCapital in October 2011.
[3] Press Release submitted by PlaNet Finance to MicroCapital in October 2011.
MicroCapital.org story, August 5, 2011, “MICROCAPITAL BRIEF: MICROFIS Obtains Approval as “Listing Sponsor” from NYSE Alternext Stock Exchange, Announces Partnership with Microfinance Rating Agency MicroRate,” https://www.microcapital.org/microcapital-brief-microfis-obtains-approval-as-%e2%80%9clisting-sponsor%e2%80%9d-from-nyse-alternext-stock-exchange-announces-partnership-with-microfinance-rating-agency-microrate/
MicroCapital.org story, February 8, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments Announces Equity Investment in PlaNet Finance Investment Services (PlaNIS),” https://www.microcapital.org/microcapital-brief-responsability-social-investments-announces-equity-investment-in-planet-finance-investment-services-planis/
MicroCapital Universe Profile: Microfinance Investment Services (MICROFIS), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MICROFIS
MicroCapital Universe Profile: PlaNet Finance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PlaNet+Finance
MicroCapital Universe Profile: PlaNIS responsAbility SAS, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PlaNIS+responsAbility+SAS
MicroCapital Universe Profile: responsibility Social Investments AG, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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