Incofin floats ProPulse Fund to back microfinance cos, targets institutions

Thursday, July 31, 2014

Incofin has backed microfinance firms such as Annapurna, Fusion and Grameen Koota in India.

Impact investor Incofin Investment Management (IM) has launched a new global fund dedicated to invest in microfinance firms in developing and emerging countries. Although the firm has not stated a target corpus for the fund, it said this is being specifically targeted at institutional investors as against many impact funds which tend to source money from high net-worth individuals and families.

Christened ProPulse Fund, it is designed to make debt investments in microfinance institutions and will address the large demand for local currency loans.

It will invest in developing countries in Africa and Middle East, South America, Central America and the Caribbean, Central and Eastern Europe, Newly Independent States (NIS) besides South Asia and Southeast Asia. The ProPulse Fund plans to make its first investments in the Caucasus region and in Central America.

The fund has already received investment from a large European pension fund and it is chasing stable single digit returns with low volatility and offers frequent redemption possibilities in combination with exposure to a diversified portfolio in terms of regions, countries and investees.

Source: VCCircle (link opens in a new window)

Base of the Pyramid, credit scoring, financial inclusion, microfinance