The proportion of microfinance investment provided by holding companies or private equity funds is still very small compared to other MIVs due to limited opportunities for equity investment. In Switzerland, FIDES and Global Microfinance Group are holding companies investing in microfinance. Beyond Switzerland, the best known example is Procredit Holding. For this category of MIV the average deal size is US$ 1,8 million and they generally invest in Eastern Europe and Central Asia and Sub-Saharan Africa. Private equity MIVs provide equity and convertible debt to high growth MFIs. Development Financial Institutions were the first stakeholders investing in this kind of MIV contributing technical assistance to MFI development, growth, potential conversion to a regulated bank and in its strategic development by having a seat in its Board of Directors. Currently private equity MIVs are experiencing the highest growth rate of all MIVs and raise more and more interest from local private and institutional investors. In Switzerland, BlueOrchard recently launched a private equity fund of US$ 100 million and Symbiotics can arrange private equity investment opportunities. Their average deal size is US$ 1,5 million mainly investing in Latina America and the Caribbean, Eastern Europe and Central Asia.

• Fondos privados de inversión en capital

• Private equity funds

Source: The Consultative Group to Assist the Poor (CGAP) Focus Note Nbr. 44: Foreign Capital Investment in Microfinance