This report highlights the trends and outlook for the industry. Based on interviews with executives of the major microfinance investment funds and a survey of the 102 active MIVs, this report examines the key factors that affected the microfinance fund market in 2011 and the trends that are likely to drive growth in 2012 and beyond.
The landscape of microfinance investment is changing. Once exclusively under the purview of multilateral financial institutions, governments, and non-profit organizations, microfinance investment opportunities have grown significantly for private investors and institutions.
2005 marked a turning point for the microfinance industry. The industry burst into public consciousness – the year of microcredit. One year later, one of its brightest lights was awarded the Nobel Peace Prize. Yet, in a number of countries, the first signs of structural problems began to appear, most notably in India, where the first cases of large scale defaults and related suicides appeared in southern India. As Damian von Stauffenberg remarked, “microfinance had entered its adolescence.” ... Read More
MicroRate’s Role Reversal Revisited: Are public development institutions still crowding out? finds development financial institutions (DFIs) are actively competing with private microfinance funds – also called microfinance investment vehicles or MIVs – harming the flow of private investment into the microfinance sector.
The State of Microfinance Investment 2011, surveys microfinance investment vehicles (MIVs) to highlight the trends and outlook for the industry. Based on interviews with executives of the major microfinance investment funds and a survey of the 101 active MIVs, this report examines the key factors that affected the microfinance fund market in 2010 and the trends that are likely to drive growth in 2011 and beyond.
This directory provides a list of organizations involved in the impact investing space.How Have Market Challenges Affected Microfinance Investment Funds? (CGAP, 2012)
Highlights from the CGAP market scanWhere does Latin America's microfinance industry stand today? (Inter-American Dialogue, 2012)
This Focus Note examines foreign investment in microfinance at a critical juncture in the industry, exploring the current investor landscape, including the role of development finance institutions (DFIs) and the growing interest of retail investors. Despite the financial crisis, in the past four years foreign investment in microfinance, including both debt and equity, has quadrupled to reach US$13 billion. The study concludes by calling for more transparency on the performance of microfinance asset managers.
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