ACCION Investments in Microfinance, SPC (Accion Investments)

Cayman Islands

Last updated 13 May 2020, by Impactyield.

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Accion Investments, an offshore segregated portfolio company, has been sponsored by Accion to provide equity and quasi-equity financing to microfinance institutions (MFIs) worldwide. With capital and capital commitments of US $86 million, Accion Investments’ investors include both multi- and bi-lateral governmental entities as well as private investors from the United States and Europe. A seven-member board of directors representing its largest shareholders governs Accion Investments.

Accion Investments invests in MFIs worldwide that meet stringent investment criteria related to their operations, management and financial strength. With a parallel technical assistance facility that has US$2 million in commitments, Accion Investments can provide the ongoing technical support to institutions that is vital to their long-term growth. The investment company also plays an active role in the corporate governance of these MFIs through representation on their boards of directors.

Accion Investments has retained the services of Accion Investments Management Company, LLC (AIMCO), a Boston-based, wholly owned subsidiary of Accion International, to provide management services to the company.


Fund status

Fund style

Not listed


Financial description

Accion Investments' objective is to provide its Shareholders with capital appreciation by investing in microfinance-focused institutions in Latin America and the Caribbean, and Africa. Microfinance is the provision of a broad range of banking and/or financial services, including the provision of credit, to low-and-moderate income businesses or households, all of whom currently are not adequately served by the traditional formal financial sector, which activity is intended to result in increased profits and higher incomes to business owners, workers, their families and communities. Accion Investments’ principal investment strategy is to invest in the equity and equity-related securities issued by microfinance-focused financial institutions that are considered to be or have the potential to become commercially viable. In addition, the Accion Investments may extend term loans as a bridge to equity.

20 years

of track record

2003

the year funded

n.a.

AUM

Asset manager

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Increase access to financial services and markets

Impact Category

n.a.

Key performance indicators

Fund overview

Asset manager: Accion

Product track record: Fund has 20 years of track record

Target IRR: 15.6%

Committed Capital: 0 USD (US Dollar)

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

Fund domicile:

Product status:

Style/Stage:

Inception year: 2003

Vintage year: n.a.

Target region: ,

Target close date: n.a.

Product term: 10 year term

Assets under management: n.a.

Investment size: Min: 0; Max: 0; Avg: 3,000,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 12

Fund investments to date exited or repaid: 12

Management fee: 2.85%

Carried interest: 20%

Hurdle rate: n.a.

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: Accion International, BIO, KfW, IFC, FMO

Limited Partner / Investor Type: Development Finance Institution (DFI), Family Office

Contact

E-mail: kmounts@accion.org jrosenberg@accion.org mpeterson@accion.org

Website: https://www.accion.org/

Phone number: 202-393-5113

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Impact Performance

n.a.

Impact thesis

Accion Investments seeks to be build sustainable MFIs by providing a sound equity base and creating profitable entities able to fund their own growth through retention of earnings or by attracting new capital. Sustainability also means having a plan for committed local managers and owners to take a prominent role in the development of the business. Accion Investments seeks to partner with local business leaders and professionals who will be able to guide the company in the long term. In some cases, in start-up MFIs, Accion Investments will seek for Accion to take a prominent role in the initial management of the MFI; however, in the long term, Accion Investments sees locals as the ultimate managers and owners of portfolio companies.
Finally, part of Accion Investments’ mission is to attract capital to microfinance. To do this, it must seek to develop a portfolio of strong, profitable, transparent MFIs that provide Accion Investments with an appropriate mix of current income to cover costs, long term capital gains to generate returns, and social impact, all in the context of equity investment. Thus, Accion Investments seeks a balanced portfolio of anchor MFI investments able to pay dividends in the short term, NGOs converting to regulated MFIs that will be profitable and able to pay dividends in the medium term, and start-ups that will take time to grow and mature, but will provide dividends and capital gains in the medium to long term.

Impact Management

n.a.

Financial benchmark

Term Description:

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