MicroVest is dedicated to raising the standard of living and incomes of people in the developing world. A growing funding gap prevents hundreds of successful microfinance institutions from maximizing the number of loans made available to low-income entrepreneurs, traditionally excluded from the formal financial sector. MicroVest fights this trend by making capital markets work for the entrepreneurial poor while earning a strong social return for investors.
MicroVest provides capital to microfinance institutions, helps build capital markets for micro-enterprise systems, and supports self-sustaining financial institutions that serve the poor.
MicroVest I, LP is a fixed life limited partnership launched in January 2004. MVI, LP, managed by MicroVest Capital Management LLC, makes debt and equity investments in promising, existing microfinance institutions across broad geographic areas.
The mPower Investment Program provides smaller investors with an efficient, well-managed vehicle in which they can invest as little as $1,000, earn a financial return and further a commitment to economic justice.
MicroVest Capital Management is engaged to provide specialized advisory services to a number of other microfinance investment vehicles.
MicroVest I, LP funds 25 microfinance institutions providing financial services to over 900,000 clients. Over the last fiscal year, MicroVest I, LP's debt and equity financing generated an estimated US$117 million in micro-loans to entrepreneurs worldwide. This is an increase in client outreach of 20% over the prior fiscal year. Since inception, MicroVest I, LP has generated 300,000 micro-loans serving the most economically marginalized sectors of the world's population. MFIs financed by MVI, LP provide the majority (60%) of their financing to women.
MicroVest operates globally serving economically disenfranchised entrepreneurs.
In the year ending June 30, 3008, the MicroVest I, LP grew to $35.6 million, with investments in 25 microfinance institutions located in 14 countries with 2 regional facilities on five continents.
The portfolio is well diversified across geographic regions with 45 percent investments in Eastern Europe and Central Asian countries, specifically Azerbaijan (19 percent), Kazakhstan (5 percent) Kyrgyzstan (5 percent), regional facilities (5 percent) and additional investments in Bosnia and the Republic of Georgia. Forty percent of the microfinance portfolio is placed in Latin America and Caribbean including Peru (15 percent), Ecuador (9 percent) and El Salvador (8 percent) with additional investments in Nicaragua , Mexico, and Bolivia. The remaining 15 percent of the portfolio is located in Ghana, Mongolia, the US, and other areas.
Ekonomska Kredita Institucija (EKI) is a nonprofit microcredit organization that has been operating in the war-torn region of Bosnia & Herzegovina since 1996. In June 2005, MicroVest loaned EKI €600,000, enabling them to expand their operations. One of those who benefited from this loan is Jusuf Kastrati. After only scraping by working as a night security guard for years, he applied to EKI for a loan to buy a cow. Now, their single cow brings pride to the whole Kastrati family. Mrs. Kastrati says, “Now I can earn some additional money to invest in my children’s education and their welfare.” Full Story