Dutch pension fund ABP has invested USD 30 million in a global private equity microfinance fund from Grassroots Capital. The investment brings ABP’s total debt and equity holdings in microfinance to USD 215 million.
“This kind of investment is particularly suitable for a pension fund, as it aims to achieve double bottom line returns,” said Jan van Roekel, senior portfolio manager at the asset manager of ABP. “We believe that in most cases social and financial value creation through equity investment in microfinance requires continuous, on-the-ground engagement by operators who are knowledgeable in the local regulatory and capital market environments, and are familiar with the local microfinance industry. These qualities are provided by Grassroots Capital.”
“With a total global fund of over USD 117 million we will be able to invest in up to fifty separate microfinance institutions in parts of the world where there is limited access to financial services,” said David Fitzherbert, Managing Partner of Grassroots Capital.
ABP’s investment brings the amount raised by Grassroots Capital for its Global Microfinance Equity Fund (GMEF) to USD 117.5 million. Grassroots Capital has now closed fundraising for GMEF.
By: Christine Chang, Research Associate
About ABP:
ABP is the pension fund for employers and employees in service of the Dutch government and the educational sector. The company is headquartered in Heerlen, the Netherlands. ABP’s total debt and equity holding in microfinance is USD 215 million. ABP started investing in microfinance in 2005. As at December 31, 2009, ABP had total invested capital of EUR 208 billion (USD 280 billion). They target annual return on investment of 7 percent.
About Grassroots Capital:
The Grassroots Capital group is an investor in microfinance, with total assets under management of USD 200 million, spread across global and regional funds. Grassroots’ investment strategy is based on a network of regionally-based, operationally-focused investment managers. The firm’s aim is to deliver “double bottom-line” returns to its investors through a combination of long-term capital appreciation and measurable social impact.
Additional Resources:
ABP Press Release: ABP invests US$ 30 million in Grassroots Capital’s Global Microfinance Equity Fund, April 1, 2010: http://www.abp.nl/abp/abp/images/Persbericht_Microfinance_Grassroots_Capital_Eng_tcm108-103425.pdf
MicroCapital Universe: ABP: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ABP
MicroCapital Universe: Grassroots Capital: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grassroots+Capital
MicroCapital.org: NEWS WIRE: The Netherlands: Pension Fund PGGM Invests $60m in Grassroots Capital Global Microfinance Equity Fund, August 10, 2009: https://www.microcapital.org/news-wire-the-netherlands-pension-fund-pggm-invests-60m-in-grassroots-capital-global-microfinance-equity-fund/
Browse the MicroCapital Universe and add your entry to our wiki at https://www.microcapital.org/microfinanceuniverse/
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