Equity and quasi-equity
MicroVentures’ affiliates acquire equity stakes in selected high-potential MFIs investing in common and/or preferred shares, establishing a long term partnership while seeking a competitive return on equity. When needed, a portion of MicroVentures’ investment in the risk capital of the MFI can take the form or quasi-equity instruments.
As strategic shareholders, MicroVentures affiliates play an active role and assist the MFIs in the development of their growth strategy.
Debt Instruments
MicroVentures’ affiliates provide loans to consolidated MFIs showing high quality fundamentals who need credit to finance their growth. MicroVentures applies commercial conditions and is able to disburse loans in both foreign and local currencies.
Debt investments may also be considered as the first step in the context of a bridge agreement, where MicroVentures’ affiliates get the option to invest in the MFI’s equity in the future.
This applies in particular when a non-regulated small MFI is planning to evolve into a regulated NBFC
(non-banking financial company).
Technical Assistance Services
In the context of a medium-long term strategic partnership, MicroVentures affiliates can support the institution through technical assistance and capacity building activities, delivered by service providers specialized in the microfinance industry.
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