BlueOrchard’s PE Fund assets touch $130m

Microfinance Focus, Aug. 2, 2009: Swiss fund manager BlueOrchard’s assets under management grew by nearly 30%  with 131 loans and eight private equity investments with microfinance institutions (MFIs) in over 40 countries and its partner MFIs reached nine million micro-entrepreneurs, majority of them women, said its annual report.

“BlueOrchard’s positive achievements and progress are rooted in the ever-growing professionalism, efficiency and transparency of our partner MFIs, as well as in the quality of the work performed by BlueOrchard itself. Thorough and transparent reporting to investors based on in-depth continuous monitoring of the financial, managerial and social performances of our partner MFIs convinced many institutional and individual investors to look seriously at the opportunities in microfinance markets,” said Ernst A. Brugger, chairman of the board.
Its Private Equity fund, after only one year of operations atthe end of 2008, touched $130 million in assets with 131 loans and eight private equity investments in microfinance institutions (MFIs) spread over 40 countries, said its annual report. It has already disbursed $22 million, committed $40 million and earmarked $63 million for follow-on investments over the next 3 to 5 years, the report said.
BlueOrchard invests in financial institutions providing microcredit for families and small businesses that do not have access to regular financial institutions. It has been providing loans to MFIs since 2001 and investing in equities of MFIs or network funds through BlueOrchard Investments since 2007. Its Dexia Microcredit Fund received 27 million euros in March from PGGM, the Dutch pension fund, meant for microfinance projects in Africa, Asia, Latin America and Eastern Europe.
Though its investment vehicle BlueOrchard Investments, the company made two major direct investments, four investments in other funds and in two start-up companies in 2008. Besides disbursing $22 million in the year, it has committed $40 million and earmarked $63 million for follow-on investments over the next 3 to 5 years. In 2008, its partner MFIs reached more than 9 million micro-entrepreneurs, a majority of them women, the report said.
BlueOrchard’s partner MFIs showed an average total asset growth of 45% in 2008, the report said. “We decided in early 2008 to further strengthen our set up and professional capacities in order to continue to deliver high quality solutions to our partner MFIs as well as to microfinance investors and to maintain our ability to further innovate in microfinance investing,” Jean-Pierre Klumpp, CEO of BlueOrcahrd Finance, said.

The report stated that “the majority of BlueOrchard’s partners MFIs were remarkably resourceful at implementing measures to safeguard the quality of their credit portfolio. Considering the magnitude of the crisis, 2009 will most likely continue to test the MFIs’ resilience and their capacity to improve their efficiency.”

Related Posts:

• Nicaraguan crisis continues to impact Dexia Microfinance Fund: BlueOrchard
• Dexia fund portfolio flat in October: BlueOrchard
• BlueOrchard’s Dexia Microcredit Fund flat in September
• Dexia Microcredit Fund posts positive result in January: BlueOrchard
• Dexia Fund posts positive result in Jan 2010: BlueOrchard
• BlueOrchard PE Fund invests Rs 50 cr in Asmitha Microfin
• BlueOrchard to manage US microfinance fund for Latin America, Caribbean
• MFIs expect demand for loans to recover in Q1: Dual Return Fund

© 2009, Microfinance News. All rights reserved. 2008-09