Portfolio Companies

Global Microfinance Group

Global Microfinance Group SA is a Swiss holding company formed in July 2004 to bring private capital to profitable growth opportunities in the rapidly expanding micro and small business finance industry. The mission of GMG is to induce economic development by resolving capital constraints to growth for micro and small business, while providing competitive returns to investors through a sustainable business model. GMG aims to achieve this through investment in (new or existing) specialised institutions providing financial services to micro and small businesses.

GMG is looking to tap an estimated potential market for credit by micro and small businesses of between USD 300 and 1000 billion, compared to a current installed base for micro loans of only USD 30 billion. To take advantage of openings for growth and consolidation in the microfinance industry, the Company actively seeks or creates opportunities by either (i) starting new institutions or (ii) acquiring or buying into existing entities with growth or turnaround potential. GMG thus acts as a hands-on, private equity company focusing on emerging market investments in a specific industry - microfinance.

The value proposition of GMG lies in supplying capital, know-how, management talent and corporate governance to new or early-stage microfinance institutions with significant growth potential. Its hands-on approach leverages the project management skills and financial expertise of a management and advisory team with a combined track-record of 100 years in microfinance. In this way, GMG provides a gateway for private capital to attractive investment opportunities in nascent microfinance institutions. The business model of GMG exploits economies of scale by spreading costs and sharing best practices across invested companies, while at the same time diversifying risk through investment in several geographical markets.

In the first stage of its development, GMG is looking to fill significant market gaps in major economies with exciting prospects for growth in Latin America – such as Argentina, Brazil and Mexico.

The first operational entity of GMG – Argentina Microfinanzas SA (“AMSA”) – was established in Argentina in August 2004 as a pilot project. AMSA is now entering the growth phase, and the capital raised by GMG to date was destined largely for the expansion of operations in Argentina. GMG cooperates with strategic partners and investors to develop AMSA and other ventures that are currently at the planning stage.

GMG expects to be able to extend its activities to other promising markets in Latin America and beyond by replicating a proven operating model and/or leveraging the institution-building experience of the GMG team in different emerging economies.

The long-term aim of GMG is to develop a diversified portfolio of micro and small business banks in emerging markets worldwide, moving forward with at least one or two new investments in greenfield or brownfield institutions per year from 2008. Once they have acquired the necessary scale, GMG and the underlying operational entities will seek to tap capital markets for debt and/or equity to finance future growth, thus providing investors with enhanced investment opportunities and attractive exit possibilities.