Seattle-based Unitus Equity Fund has raised USD 56 million that it plans to invest solely in commercial microfinance institutions throughout the world. Key stakeholders in the private equity fund include Legatum Group and Omidyar Network, each investing USD 20 million. The remaining USD 16 million was provided by an undisclosed source. Omidyar’s investment in the fund comes in the wake of an April 2008 MicroCapital report that Omidyar awarded a USD 9 million grant to Unitus, a nonprofit that is affiliated with the private equity fund. Omidyar’s grant supported Unitus’ three year expansion plan.
Unitus Equity Fund is affiliated with Unitus, an international nonprofit that provides technical assistance to microfinance institutions. Unitus’ 2006 financial statements report USD 13.3 million (p.20) in total assets, and a gross loan portfolio of USD 115.4 million (p.13). In March 2008, MicroCapital reported that the total clients served by partners and beneficiaries of Unitus surpassed the 3 million mark. This story and other MicroCapital stories tracking Unitus may be found here.
Based in California, the Omidyar Network is legally comprised of both a 501(c)(3) non-profit and a limited liability company (LLC) – awarding grants through its non-profit entity and equity investments in commercial MFIs through its LLC. Omidyar invests in organizations that generate financial and social returns including microfinance institutions, as well as participatory media and information networks. As of FY 2006, the organization held USD 284.2 million in assets, as reported in its IRS 990 form.
Legatum Capital was founded in December 2006 in Dubai, following the de-merger of Sovereign Global Investment, Legatum’s parent company. As of May 2008, the investment firm held microfinance investments totaling USD 57.9 million, according to microfinance information provider MIX Market. Legatum has a history of large microfinance equity deals. In October 2007, MicroCapital reported on Legatum’s USD 8.4 million investment in Intellecap, a firm that provides advisory services to organizations seeking both financial and social returns on investment, including microfinance institutions. In May 2007, MicroCapital reported that Legatum made a USD 27 million equity investment in Indian microlender Share Microfin Limited. These stories and other MicroCapital stories covering Legatum may be found here.
By Ryan Benson, Research Assistant
Additional Resources:
MICROCAPITAL STORY: Legatum Invests $8.4m Mumbai-based Microfinance Investment Consultant, Intellecap, by Elizabeth Nelson, October 10, 2007.
MICROCAPITAL STORY: Unitus Inc., a U.S. Nonprofit, Doubles Reach of Its Global Microfinance Partner Network in 2007, by Stephen Son, March 4, 2008.
MICROCAPITAL STORY: Omidyar Network Granting $9m to Microfinance Non-Profit Unitus, by Stephen Son, April 29, 2008.
MICROCAPITAL STORY: SHARE Microfin Ltd. Receives Historically Largest Indian Microfinance Equity Investment from Legatum and Aavishkaar Goodwell, May 17, 2007.
East Bay Business Times: Unitus launches fund with $56M, by Eric Engleman and Clay Holtzman, June 20, 2008.
Unitus: Home
Omidyar: Home
Legatum: Home
MICROCAPITAL: Microfinance Networks
MIX Profile: Legatum
MIX Profile: Unitus
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