Impulse Microfinance Investment Fund is a private investment fund formed with the objective of investing in commercially viable MFIs which offer financial services to micro-enterprises and small and medium-sized enterprises in developing countries.
Impulse Microfinance Investment Fund is a private investment fund formed with the objective of investing in commercially viable MFIs which offer financial services to micro-enterprises and small and medium-sized enterprises in developing countries
The Investment Fund will specialize in one investment segment, namely microfinance, wherein a number of sub-categories can be identified. These microfinance investees can have different legal forms, such as:
- Microfinance NGOs
- Transformed Microfinance Institutions, such as Non-Bank Financial institutions
- Credit Unions
- Microfinance banks, such as Community Banks
- Specialized small-business banks
- Finance companies specializing in microfinance
- Microfinance investment funds
The geographic area of operation of the Investment Fund shall include all countries which qualify as "Developing Countries" and "Countries in Transition" according to the DAC-List of the OECD. Country risk and currency exposure will be part of any investment analysis.
Impulse invests in MFIs that gear their service offerings to the needs of local micro-entrepreneurs and that seek to optimize the social impact of their operations. When analyzing investment requests, Impulse evaluates both financial and social indicators. The audit of the social performance of the MFIs addresses five aspects:
- Social mission and vision
- Scale and outreach
- Quality of customer services
- Human resources
- Environment and contribution to the community
The MFIs in the Impulse portfolio are healthy and efficient financial institutions: they have limited delinquency, they keep their overhead under control, and they are profitable.