Wall Street Journal Features Microfinance Investment as “A New Way to Do Well by Doing Good”

Microfinance investment as a stand-alone category made headlines in today’s Wall Street Journal. While this article probably represents the culmination of a break-out year for microfinance investment, we still have a lot of work to do. The Journal describes the investment options as “small change”.

Quoting from the WSJ

Small Change

Here is a sampling of microfinance investment vehicles. Several Web sites, such as www.mixmarket.org and www.microcapital.org, also list a number of investments.

INVESTMENT

MINIMUM

COMMENT

Calvert Foundation Community Investment Notes www.calvertfoundation.org

$1,000

Investors can earmark the notes to be invested in microfinance initiatives. Notes can earn up to 3%, depending on the note term.

Oikocredit USA Global Community Note www.oikocredit.org

$1,000

The capital raised from the notes is used to help finance various microlenders. Investors can choose returns of up to 2%.

MicroVest I Fund www.microvestfund.com

$100,000. Only available to accredited investors.

Fund makes both debt and equity investments in microlenders. Equity partners can expect to earn 7% to 9% annualized returns, while debt investors might earn 4.5% to 6%.

Accion Investments www.accion.org

$250,000. Only available to accredited investors.

Makes equity investments in microlenders and expects to generate about 8% to 10% annual returns.

Grameen Foundation USA Growth Guarantees www.gfusa.org

$1 million minimum letter of credit.

Guarantors do not contribute any money or get an upfront charitable deduction. Instead, they provide letters of credit which help guarantee loans by the lenders in developing countries.

INVESTMENT	MINIMUM	COMMENT
Calvert Foundation Community Investment Notes www.calvertfoundation.org	$1,000	Investors can earmark the notes to be invested in microfinance initiatives. Notes can earn up to 3%, depending on the note term.
Oikocredit USA Global Community Note www.oikocredit.org	$1,000	The capital raised from the notes is used to help finance various microlenders. Investors can choose returns of up to 2%.
MicroVest I Fund www.microvestfund.com	$100,000. Only available to accredited investors.	Fund makes both debt and equity investments in microlenders. Equity partners can expect to earn 7% to 9% annualized returns, while debt investors might earn 4.5% to 6%.
Accion Investments www.accion.org	$250,000. Only available to accredited investors.	Makes equity investments in microlenders and expects to generate about 8% to 10% annual returns.
Grameen Foundation USA Growth Guarantees www.gfusa.org	$1 million minimum letter of credit.	Guarantors do not contribute any money or get an upfront charitable deduction. Instead, they provide letters of credit which help guarantee loans by the lenders in developing countries.

Small Change

Similar Posts: