The following will be discussed in this chapter: The emerging industry of inclusive finance, private equity for microfinance, TIAA-CREF and procredit, sequoia and SKS, securitization of microfinance portfolios, equity investments. | Microfinance for Bankers and Investors Summary of the Last Lecture Securitization of Microfinance Portfolios Equity Investments Private Equity for Microfinance Most investors new to microfinance equity will find it prudent to work through specialized equity funds set up specifically to invest in MFIs. The association of such funds, the Council of Microfinance Equity Funds, now has 25 members. Private Equity for Microfinance The total capitalization represented by CMEF is growing fast, not only because new funds are forming, but also because the old funds are launching recapitalizations much larger than their first rounds. Private Equity for Microfinance And this second generation of fundraising includes increasing numbers of private investors, though mostly still from the socially responsible arena. Private Equity for Microfinance For example, it took Stefan Harpe of Calmeadow, a Canadian nonprofit, more than three hard years of knocking on doors to raise the first $15 million . | Microfinance for Bankers and Investors Summary of the Last Lecture Securitization of Microfinance Portfolios Equity Investments Private Equity for Microfinance Most investors new to microfinance equity will find it prudent to work through specialized equity funds set up specifically to invest in MFIs. The association of such funds, the Council of Microfinance Equity Funds, now has 25 members. Private Equity for Microfinance The total capitalization represented by CMEF is growing fast, not only because new funds are forming, but also because the old funds are launching recapitalizations much larger than their first rounds. Private Equity for Microfinance And this second generation of fundraising includes increasing numbers of private investors, though mostly still from the socially responsible arena. Private Equity for Microfinance For example, it took Stefan Harpe of Calmeadow, a Canadian nonprofit, more than three hard years of knocking on doors to raise the first $15 million for Africap, a fund devoted to MFI equity in Africa, and Private Equity for Microfinance nearly all of that came from the public sector. After making 10 good, solid investments, and one standout success (Equity Bank, Kenya), Africap quickly put together its second round, $50 million, approximately half of it from new private investors. Private Equity for Microfinance Bob Patillo, a shopping center developer from Georgia who became interested in microfinance first through philanthropy and later as a social investor, has made it a personal challenge to draw private investors into microfinance. Private Equity for Microfinance Patillo recognized that private investors needed quicker exit, greater diversity, and the ability to turn fund management over to a specialist. Private Equity for Microfinance He conceived of a fund of funds that would foster trading of MFI equity. Investors in the fund of funds would be buying a mixed portfolio across the microfinance industry as a whole. Private
