Bamboo Finance Announces the First Close of Financial Inclusion Fund II

Friday, April 17, 2015

Bamboo Finance, a private equity firm specializing in investing in business models that benefit low-income communities in growth markets, today announced the first close of $31 million in its second financial inclusion focused fund with investments from Teachers Insurance and Annuity Association of America (TIAA-CREF) and AXA-IM.

The Bamboo Financial Inclusion Fund II will make equity investments in the capital of banks and financial services companies targeting microenterprises, SMEs, the low and lower middle income segments as well as mobile money operators, correspondent banking businesses in growth markets where there remains significant exclusion from formal financial services globally in Africa, theMiddle East, Asia and Latin America.

Over the last seven years Bamboo Finance has built one of the largest and most diversified portfolios of financial inclusion private equity investments; representing 31 companies, 22 countries, $195 million and a track record of successful exits. “Our investment strategy for Financial Inclusion Fund II will leverage our experience, networks and proprietary pipeline to deliver attractive financial returns to our investors while enabling the low-income segments and MSMEs to access high quality and affordable financial services with a focus on increasing access to savings products,” said Xavier Pierluca, Chief Investment Officer, Bamboo Finance.

Microfinance institutions have translated lessons from the past decade into a diversified market of attractive investment opportunities with high quality loan portfolios, low levels of leverage, efficient operations and increasing interest from a variety of buyers including regional and international banks. Regulation has also accompanied this growth in most markets leading to improved governance. “These factors along with mobile technology adoption and new channels such as correspondent banking inspired the creation of the Bamboo Financial Inclusion Fund II. Microfinance has developed a lot over the last decade and is ready for the next generation of growth,” added Jean-Philippe de Schrevel, Chief Executive Officer, Bamboo Finance.

Source: Insurance News Net (link opens in a new window)

financial inclusion, impact investing, microfinance