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Creation Investments Social Ventures Fund II, LP Announces An Oversubscribed Final Fund Closing of $75 Million

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FOR IMMEDIATE RELEASE

CHICAGO, IL – June 14, 2013 – Creation Investments Social Ventures Fund II, a global private equity fund focused on financial services and microfinance, completed its final closing on May 31, 2013 with total committed capital of $75 million USD.  The Fund was oversubscribed on its target of $60 million USD less than one year from launching, and hit its hard cap of $75 million USD with substantial investor support.

 

Creation Investments Capital Management, LLC, headquartered in Chicago, Illinois, is a leading impact investment fund manager with an overall investor base composed of over 100 US and European institutional and family office investors along with several high net worth individuals.  Over 90% of Fund I investors committed to Fund II, alongside a General Partner commitment of over $7.5 million.

 

To date, the Fund has deployed 35% of its committed capital, making equity investments in three Microfinance Institutions (MFIs) and Small-and-Medium Enterprise Lenders in Latin America and Asia.  Specifically, portfolio holdings include: Grupo Finclusion S.A.P.I. de C.V. SOFOM E.N.R. (Mexico), Sonata Finance Private Limited (India), and Grameen Financial Services Private Limited (India).

 

Each of the Fund’s portfolio companies is committed to providing financial services to under-banked individuals and businesses, helping to facilitate access to capital and economic development. Beyond small business lending, several of the Fund’s portfolio companies offer micro-insurance, micro-savings, money transfer, micro-pension products and other financial services. As of March 31, 2013, the total aggregate loan portfolio is $145 million USD with over 573,000 active borrowers.

 

Creation Investment Social Ventures Fund II seeks to make significant growth equity investments in earlier stage, high potential financial services providers in emerging markets, as well as buyout transactions in more mature MFIs transitioning out of NGO ownership. The Fund Manager seeks to add value and achieve greater scale through active management, in-market consolidation, and expansion of the financial product offering.  The Fund aims to allocate capital in three major geographic regions – Latin America, Asia, and Eastern Europe – resulting in a diverse, global portfolio in core emerging markets.

 

The Creation Investments team, led by Patrick Fisher and Ken Vander Weele, has proven its ability to originate unique impact investment transactions, recruit seasoned management for portfolio companies, access debt capital to fund growth, deliver technical assistance and technology to enhance systems, maintain a focus on responsible investment and client protection principles as a UN PRI signatory and Smart Campaign member, and add value through active involvement in all levels of the business.

 

“We are excited to have attracted a sophisticated set of private sector investors to the global financial inclusion space, providing them with the opportunity to maximize their financial and social returns through impact investments,” said Patrick Fisher, Managing Partner and Founder of Creation Investments.

 

Mayer Brown LLP served as legal advisor and KPMG LLP as tax advisor and auditor.  Silicon Valley Bank supports the Fund and the Fund Manager through its banking, credit and foreign exchange services. The General Partner is comprised of the Creation Investments team and affiliates of Promus Holdings, LLC, a Chicago based multi-family office and alternative assets manager in which Mr. Fisher is also a Partner.

 

About Creation Investments Capital Management, LLC:

Creation Investments is a leading alternative investment management company with a focus on private equity investments in Microfinance, Small-and-Medium Enterprise lenders, Emerging Market Banks, and other Financial Services Providers. Creation Investments sponsors and manages impact investment funds and one-off investments in social ventures, seeking to maximize financial and social returns on investment. For more information, go to: http://creationinvestments.com/

Mexico’s Compartamos Sees More Growth In Micro-Lending – WSJ.com

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MEXICO CITY (Dow Jones)–Mexico’s Compartamos SAB (CMPRF, COMPARC.MX) said Wednesday its net profit expanded 12% on the year in the first quarter as the microfinance lender grew its loan portfolio and attracted new clients.

Chief Financial Officer Patricio Diez told Dow Jones Newswires that the company is “very satisfied” with the results.

Compartamos grew its loan portfolio by 40% to 14.88 billion pesos ($1.13 billion) while expanding its client base by 23% to 2.47 million. Its net profit came to MXN503 million. In addition to Mexico, where 95% of Compartamos’ clients reside, the lender is also active in Guatemala and Peru.

Operating expenses rose 43%, to MXN1.18 billion, as the company opened 35 service branches, invested in new technology, added employees to service clients and spent more on advertising.

Diez said Compartamos sees a highly competitive environment among lenders to the low-income market segment, but not from large banks. “We have to always be focused on better products and services,” he said.

Compartamos has long aimed to loan in rural areas and to women, but is now beefing up its capabilities in urban and semiurban areas. The diversification into new markets and products has driven the lender’s rate of nonperforming loans higher, to 2.86% in March from 2.65% at end-2011 and 2.01% for first quarter 2011.

The vast majority of the lender’s clients in Mexico are women, whereas in Peru the split is more even between the two sexes, Diez said. Demand for credit in Guatemala is similar to the market Compartamos has in Mexico, mostly rural and mostly female.

Compartamos Profit Beats Estimates as Loan Portfolio Expands-Bloomberg

By Jonathan J. Levin – Apr 25, 2012 3:00 PM CT

Compartamos SAB (COMPARC*), the operator of microfinance companies in Mexico and Peru, posted first-quarter profit that beat analyst expectations.

Net income climbed 14.3 percent to 497 million pesos ($37.8 million) in the first three months of the year, the Mexico City- based company said today in an e-mailed statement. Banco Santander SA had projected profit would total 475.2 million pesos, according to an April 24 research note.

Outstanding loans rose 40 percent to 14.9 billion pesos, the company said.

Compartamos shares fell 2.1 percent to 15.35 pesos in Mexico City trading before release of the report.