NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

DAI announced today that it has acquired MicroVest Capital Management (“MicroVest”), one of the world’s leading lenders to responsible finance institutions—an acquisition that will expand the capabilities of DAI’s investment management arm, DAI Capital.

Founded in 2003, MicroVest is a registered investment adviser that allocates private investments to financial institutions that serve disadvantaged and underbanked enterprises in emerging markets. The company has disbursed more than US$1 billion to some 200 financial institutions across 60 countries to help create economic opportunities and facilitate financial inclusion.

Active in more than 100 countries, employee-owned DAI works with governments, donors, corporations, and philanthropies to deliver integrated development solutions across technical disciplines including economic development, sustainable business, climate change and the environment, governance, gender, and health.

The combination of DAI and MicroVest reflects the two firms’ shared commitment to mobilize private sector capital to create jobs, reduce poverty, and advance the UN Sustainable Development Goals.

“This acquisition is about driving productive investment and economic growth in the places that need it most,” said DAI President and CEO Jim Boomgard. “Combining with MicroVest adds a rich vein of expertise to DAI’s existing asset management team, connects that combined team to a wider network of investors, and provides DAI a platform on which to build a world class, high-impact asset management business.”

MicroVest, DAI’s first acquisition in the asset management space, will enhance DAI Capital’s ability to mobilize and deploy private capital in frontier and emerging markets. The transaction complements DAI’s recent acquisition of Magister Advisors, an investment advisor focused on the Africa and MENA region. As part of DAI Capital, MicroVest will retain its management team and continue to benefit from the leadership of MicroVest Founder, Gil Crawford.

“I am delighted to join forces with DAI for this next phase of MicroVest’s growth,” said Crawford. “In its 50 years of operation, DAI has found the right formula to balance a global perspective with local insights. DAI’s local networks and technical domain expertise represent an infusion of new, added value to MicroVest’s investors, portfolio companies, and stakeholders.”

DAI Board member Elizabeth Littlefield—former President and CEO of OPIC (now the Development Finance Corporation, or DFC)—welcomed the announcement. “Promoting sustainable development on a scale that truly makes a difference to people and planet requires mobilizing vastly greater sums of private funds,” said Littlefield. “The marriage of DAI’s global development expertise and MicroVest’s investment acumen is the right intersection of the right networks at the right time.”

Photo courtesy of Micheile Henderson.