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Value creation

The funds contribute significantly to improving the management of the microfinance institutions by:

  • contributing to the growth and consolidation strategy
  • supporting the legal transformation to become a commercial, regulated entity
  • sharing best practices of the industry
  • contributing to improved governance

Additionally, the funds' participation can be considered a rubber stamp for the microfinance institution in relation to international investors and national regulators, making equity funding more attractive and decreasing the cost of debt funding.

The funds also contribute to the microfinance industry by facilitating financing from institutional investors such as Danish and international pension funds that traditionally have not allocated capital to the industry.

Also read about our investment strategy