Microfinance Gateway>Microfinance Investment Vehicle: An Emerging Asset class (MFInsights)

affiliate language sites: Français عربي Español

Home

Library

Jobs

Training and Events

Organizations

Consultants

Library » Microfinance Investment Vehicle: An Emerging Asset class (MFInsights)

Microfinance Investment Vehicle: An Emerging Asset class (MFInsights)
Nov 2006, MicroRate

MicroRateÃ¢â?¬â?¢s evaluation finds MIVs as a rapidly evolving industry with over enthusiasm for microfinance.

This study reviews Microfinance Investment Vehicle (MIV), an intermediary that mobilizes funds from investors to microfinance institutions (MFIs) in the developing countries.

The study further describes two survey carried out by MicroRate to generate information about MIVs and meet the information needs of investors. Some of the results and findings from the MIV survey are as under:

The MIVÃ¢â?¬â?¢s growth rates have been driven by active distribution, financial innovation, and high involvement from International Finance Institutions and the private sector;
Economies of scale appearing with 13 funds have total asset of more then US$20million;
The fastest growing MIVs are the largest and over 70% of growth comes from just 6 MIVs;
Geographically , MIV microfinance portfolio is heavily concentrated in Latin America;
Commercial MIVs tend to invest in debt financing;
The highest growth rates are registered by those MIVÃ¢â?¬â?¢s which have better resource placement in MFIs;
There exists tremendous diversity. Only a small number are Ã¢â?¬Å?fundsÃ¢â?¬Â? others are specialized investment vehicles like Collateralized Debt Obligation (CDO).

Finally the study concludes with the trends and implications:

Shift to more commercial source of funding will continue and accelerate;
As MIVÃ¢â?¬â?¢s grow theyÃ¢â?¬â?¢ll have to deal with social investors seeking real double bottom line returns;
More information on MIVÃ¢â?¬â?¢s would be required to compare performance and judge MIVÃ¢â?¬â?¢s;
MIVÃ¢â?¬â?¢s are a fast growing industry with eagerness for microfinance which might result in increased bad investment decisions.

Add Review


*First Name:		*Last Name:
Organization:
*Email:
*Country:
(rollover stars to select rating)
Review Title:

Review Text:
I do not want my name, email, or organization to appear with my review. (Country will always appear with posted reviews.)

By clicking "Submit" you confirm that you have read and consent to our Privacy Policy and Terms and Conditions.

Download this Document

Publisher(s):
MicroRate Inc.