ACCION Gateway Microfinance Investment Vehicles Fund Invests in Lok Capital and AfriCapSource: ACCION International.
Original press release available here.
BOSTON, November 13 – ACCION International, a pioneer and leader in global microfinance, today announced that its Gateway Microfinance Investment Vehicles Fund (GMIV) has invested in Lok Capital, LLC and has participated in the recapitalization of AfriCap Microfinance Investment Company, Ltd., both Mauritius-based investment companies.
ACCION’s GMIV participates in investment vehicles in order to support the global microfinance industry and to promote the development of world-class microfinance investment managers. ACCION’s involvement in both Lok Capital and AfriCap includes a governance presence on the board of directors of both companies.
ACCION’s investment in Lok Capital, a fund that pioneers equity investments in Indian microfinance institutions (MFIs), will bring the firm’s total resources to $14.5 million. Lok Advisory Services (LAS), a team of professionals based in India, will act as investment advisors to the fund. MFIs that receive equity investment from Lok also benefit from capacity-building consulting from technical assistance providers, including ACCION.
ACCION has also recently participated in the recapitalization of the AfriCap Microfinance Investment Company, an investment fund founded by ACCION, Canadian microfinance organization Calmeadow, and others. AfriCap, the first African private equity fund dedicated to the microfinance industry, has established a solid track record, including two exits with an average internal rate of return in excess of 30%; participation in the listing of Equity Bank Limited, the first IPO of a MFI in Africa; transformation into a permanent capital investment company; and an increase in capital to $50M in its second round of investment.
“Both Lok Capital and AfriCap are effective value-added investors in MFIs, facilitating new levels of outreach, commercial viability and corporate governance,” said Lauren Burnhill, senior vice president of ACCION’s Financial Markets and Services department. “These investments are an ideal fit for ACCION, which establishes and strengthens the connection between the needs of the microfinance industry and the resources of the capital markets.”
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