Goodwell West Africa, a private equity fund managed by Netherlands-based social investment company Goodwell Investments and Nigeria-based investment management and advisory firm Alitheia Capital, has announced that it will be investing equity of an unspecified amount in Microcred Microfinance Bank (MFB) Nigeria, a member of the France-based MicroCred Group [1]. MicroCred Group is a unit of France-based NGO PlaNet Finance, which has both for-profit and nonprofit arms. MicroCred Nigeria provides financial services to micro- and small businesses that have been excluded from formal financial systems. This investment is expected to support the geographical expansion of the MFB.
As of 2013, MicroCred Nigeria reported outstanding loans of EUR 6.4 million (USD 8.7 million), savings of EUR 1.5 million (USD 2 million) and approximately 23,400 clients. As of the same period, Goodwell Investments supports 16 companies in India and Africa, and as of 2012 it reported fund assets of USD 70 million, including USD 16 million allocated to microfinance. Financial information on Alitheia Capital is not available.
By Nisha Koul, Research Associate
About MicroCred Nigeria: MicroCred Microfinance Bank Nigeria, based in Kaduna, Nigeria, was founded in 2009 by MicroCred Group, an investment company of France-based NGO PlaNet Finance. It aims to provide financial services to micro- and small businesses that have traditionally been excluded from formal financial systems. As of 2013, MicroCred Nigeria reported loans of EUR 6.4 million (USD 8.7 million), savings of EUR 1.5 million (USD 2 million) and approximately 23,400 clients.
About MicroCred Group: MicroCred Group was created in 2005 by French NGO PlaNet Finance and three investors: the International Finance Corporation (IFC), Société Générale and AXA Belgium. Those founding shareholders were joined by the Agence Française de Développement (French Development Agency) and the European Investment Bank (EIB) in 2007 and Developing World Markets (DWM) in 2008. MicroCred Group invests in, manages and provides technical support to microfinance institutions (MFIs). The Group has operations in China, Cote D’Ivoire, Madagascar, Nigeria and Senegal. As of December 2011, MicroCred Group reported total assets of EUR 108 million (USD 147 million), an outstanding loan portfolio of EUR 80 million (USD 110 million), a savings portfolio of EUR 28 million (USD 38 million) and approximately 120,000 clients.
About PlaNet Finance: Founded in 1998 in Paris, France, PlaNet Finance is an NGO with the mission of alleviating poverty through microfinance. PlaNet Finance is active in approximately 80 countries as of 2012 and is comprised of nine for-profit and nonprofit units: PlaNet Finance Advisory Services, which provides technical and advisory services; Planet Rating, a microfinance rating agency; PlaNIS responsAbility SAS, which specializes in advisory services and structuring and managing microfinance funds; MicroCred, an investor in microfinance; PlaNet Guarantee, which specializes in microinsurance; FinanCites, a social venture capital company; PlaNet University, a microfinance training provider; and MicroWorld, an internet-based platform allowing the public to make small loans for the benefit of microentrepreneurs.
About Goodwell Investments: Based in the Netherlands, Goodwell Investments is a for-profit social investment company focused on access to finance and “sustainable” development. It invests in organizations that it deems socially and commercially sustainable. Goodwell Investments has built and manages microfinance equity investment companies in partnership with organizations in India and West Africa. These companies are managed as joint ventures between Goodwell Investments and local teams. Goodwell Investments is the lead investor in Aavishkaar Goodwell, a business development company in India. Goodwell Investments is also an investor in Goodwell West Africa, a business development company in Africa. As of 2013, Goodwell Investments supports 17 companies in India and Africa, and as of 2012 it reported fund assets of USD 70 million, including USD 16 million allocated to microfinance.
About Goodwell West Africa: Goodwell West Africa is a private equity fund that invests in microfinance organizations that are deemed socially responsible and “entrepreneurial.” Goodwell West Africa is a partnership between Netherlands-based Goodwell Investments and Nigeria-based Alithea Capital. No financial information is available for Goodwell West Africa.
About Alitheia Capital: Alitheia Capital is a for-profit investment manager and advisor based in Lagos, Nigeria, whose mission is to broaden the ownership of businesses and real estate by enabling socially sustainable investing. Its business services include fund management, project/business incubation and corporate strategy and development. Alitheia Capital, in partnership with Netherlands-based Goodwell Investments, manages the microfinance investment vehicle Goodwell West Africa. Financial information about Alitheia is not available.
Sources and Additional Resources:
[1] Goodwell Investments Press Release, “MicroCred Nigeria receives investment from Goodwell West Africa,” http://www.goodwell.nl/userfiles/files/Microcred%20Nigeria%20-%20Goodwell%20press%20release%20October%202012_.pdf
MicroCapital Story, June 26, 2013, “ResponsAbility Loans $9.5m to MicroCred Nanchong of China,” https://www.microcapital.org/microcapital-brief-responsability-loans-9-5m-to-microcred-nanchong-of-china/
MicroCapital Story,May 25, 2012, “ResponsAbility Reaches Deals Totaling $7m with Microfinance Institutions KWFT, MicroCred Ivory Coast, PRIDE,” https://www.microcapital.org/microcapital-brief-responsability-reaches-deals-totaling-7m-with-microfinance-institutions-kwft-microcred-ivory-coast-pride/
MicroCapital Story,April 19, 2011, “MicroCred Group of France Releases 2010 Financial Results, Announces Plans for 2011,” https://www.microcapital.org/microcapital-brief-microcred-group-of-france-releases-2010-financial-results-announces-plans-for-2011/
MicroCapital Story,April 8, 2011, “MicroCred Holding, MicroCred China Receive Capital Increases Totaling $31m, Including Participation From AXA Belgium, Developing World Markets, IFC, KfW,” https://www.microcapital.org/microcapital-brief-microcred-holding-microcred-china-receive-capital-increases-totaling-31m-including-participation-from-axa-belgium-developing-world-markets-ifc-kfw/
MicroCapital Universe Profile: MicroCred Nigeria, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroCred+Nigeria#MicroCred_Nigeria
MicroCapital Universe Profile: MicroCred Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroCred
MicroCapital Universe Profile: PlaNet Finance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PlaNet+Finance
MicroCapital Universe Profile: responsAbility Social Investments AG, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility
MicroCapital Universe Profile: Goodwell Investments BV, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Goodwell+Investments+BV
MicroCapital Universe Profile: Alitheia Capital, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Alitheia+Capital
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: Invest International Places $11m in Equity Fund uMunthu II to Support Rapidly Expanding SMEs in Africa
- MICROCAPITAL BRIEF: Global Partnerships, Goodwell, Oikocredit Invest $8.5m in Equity in Good Nature Agro to Boost Profits of Small Farms in Southern Africa
- MICROCAPITAL BRIEF: Whole Planet Foundation Offering Interest-free Wholesale Funding for Microfinance in Latin America, Caribbean
- MICROCAPITAL BRIEF: Joliba Capital Raises $58m in Equity from FMO, IFC, Proparco to Support SMEs, Mid-caps in Central, West Africa
- MICROFINANCE EVENT: ANDE Annual Conference; September 12-14, 2023; Accra, Ghana
