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DWM Microfinance Equity Fund I

Luxembourg

Last updated 13 May 2020, by Impactyield.

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The DWM Microfinance Equity Fund, launched in 2009, takes equity stakes in inclusive financial institutions in emerging and frontier markets. This includes microfinance institutions, small and medium enterprise (SME) lenders, and education and housing lenders that serve the Bottom of the Pyramid. The Fund aims to deliver risk-adjusted capital gains to institutional investors as well as positive social and economic impact. The Fund was fully invested within its 3 year investment period.


Fund style

Not listed


Financial description

The Fund has $82 million AUM with equity stakes in 16 inclusive financial institutions in 10 countries. The average investment size is USD 4.5 million.
DWM seeks to drive value in portfolio companies across the following areas: governance and control, management capacity, operations, balance sheet and business strategy. DWM's preferred exit strategy is through strategic buyers.

15 years

of track record

2009

the year funded

82,000,000 USD

AUM

Interested in this fund?
Log in or create an account to request more information.

Gain a deeper and comprehensive understanding of how this fund generates positive impact in the themes and SDGs that matter to you, with insights provided by our dedicated team of expert analysts, and receive notifications about new available impact products, exciting investment opportunities, and relevant updates in the world of impact investing.

Asset manager

Developing World Markets

Website

Headquarters location:

Other funds managed by this asset manager: DWM Microfinance Fund J

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Safe and affordable housing

Free primary and secondary education

Promote policies to support job creation and growing enterprises

Increase access to financial services and markets

Impact Category

Key performance indicators

Fund overview

Asset manager: Developing World Markets

Product track record: Fund has 15 years of track record

Target IRR: n.a.

Committed Capital: n.a.

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage:

Inception year: 2009

Vintage year: 2009

Target region: ,

Target close date: n.a.

Product term: 8 year term +2x 1 year extensions

Assets under management: 82,000,000 USD (US Dollar)

Investment size: Min: 0; Max: 0; Avg: 4,500,000

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 16

Fund investments to date exited or repaid: 2

Management fee: n.a.

Carried interest: n.a.

Hurdle rate: 7%%

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: TIAA-CREF, APG, SNS Asset Management

Limited Partner / Investor Type: Pension Funds, Other Institutional Investors

Contact

E-mail: kathryn@dwmarkets.com

Website: https://www.dwmarkets.com/

Phone number: 203-655-5453

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Brad Swanson

Partner, Private Equity Manager

Simone Balch

Director, Investor Development & Relations

Impact Performance

n.a.

Impact thesis

The Fund invests in microfinance institutions, small & medium enterprise (SME) lenders, and other inclusive financial institutions including education and housing lenders in emerging and frontier countries. According to the World Bank, more than 2.5 billion people lack access to basic formal financial services in developing countries. The Fund's mission is to address this sizable and particularly under-penetrated market segment.
DWM is committed to ensuring its investment decisions create socially positive results for the global community. DWM's investment philosophy also includes the protection of microfinance borrowers who represent the ultimate impact of our investments into MFIs. In addition, DWM is committed to incorporating Environmental, Social, and Corporate Governance issues into our investments and other activities. DWM has been and continues to be an early supporter of key industry initiatives including: Principles for Responsible Investment, The Smart Campaign, IRIS, the Global Impact Investing Ratings System (GIIRS), Microfinance Information Exchange and MFTransparency.
DWM developed a social impact measurement questionnaire and scorecard (Social IQs) in collaboration with SNS Asset Management and Oikocredit to collect and analyze social performance of portfolio institutions. DWM uses the Social IQs to evaluate potential investments during the pre-investment due diligence process and then on an annual basis once an investment is made.

Impact Management

n.a.

Financial benchmark

Term Description:

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