ACTIAM Institutional Microfinance Fund I
Last updated 12 May 2020, by Impactyield.
The first ACTIAM Institutional Microfinance Fund was launched in April 2007. The fund is a closed-end mutual fund, solely open for professional investors. Through investments in microfinance institutions, the Fund aims to include small self-employed entrepreneurs and farmers in developing countries in economic activity while generating a market based return.
The ACTIAM Institutional Microfinance Fund has been developed in partnership with Developing World Markets (DWM). ACTIAM acts as fund manager and DWM as the investment manager.
The Fund provides debt, equity and equity related funding to Microfinance institutions (MFIs) in developing and transition countries. MFIs provide credit and related financial services to individuals and small enterprises. The assets, income levels and/or cash flows of potential microfinance clients are usually too small to be eligible for financing from mainstream banks. In this way, the seemingly “unbankable” can participate in the economy and increase the standard of living for themselves and their families. In the last decades MFIs have managed to provide financial services to ‘the bottom of the pyramid’ while making a balanced return on their loans.
As the potential for MFIs to attract deposits is limited, they are dependent on external funding. This is where ACTIAM Impact Investing – among others – steps in with its ACTIAM Institutional Microfinance Funds.
The Fund is managed as a mixed investment fund investing in a wide range of debt instruments as well as in equity and equity related instruments. Also within the instruments significant flexibility is designed, for example in terms of tenor and level of subordination, to provide maximum flexibility for both the MFIs and the Fund to fill the MFI’s funding gap and to provide the Fund with an attractive financial return. In addition to direct investments in MFIs the Fund will be able to invest in microfinance related assets such as securitization notes and participations in micro loan portfolios. The net return of the Fund is targeted at EURIBOR +/+ 3-8% or the fixed rate equivalent of 6-11%. The return stems from the accrued interest on debt investments, appreciation of equity stakes at the time of exit and foreign currency gains.
of track record
the year funded
ACTIAM Impact Investing
Headquarters location: Netherlands
Other funds managed by this asset manager: ACTIAM Institutional Microfinance Fund IIIACTIAM-FMO SME Finance FundACTIAM Institutional Microfinance Fund II
Key performance indicators
Asset manager: ACTIAM Impact Investing
Product track record: Fund has 16 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: Netherlands
Product status: Closed - still investing
Inception year: 2007
Vintage year: 2007
Target region: Africa, Emerging countries
Target close date: 01/05/2007
Product term: 7 year term (with a possible extension of 2 years)
Assets under management: 160,000,000 EUR (Euro)
Investment size: Min: 18,248; Max: 6,493,506; Avg: 1,417,648
Currency of investments: EUR (Euro)
Currency for fund / product figures: EUR (Euro)
Fund investments to date: 178
Fund investments to date exited or repaid: 18
Management fee: 1.7%
Carried interest: 20%
Hurdle rate: 7%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Pension Funds, Other Institutional Investors
Phone number: 31302914218.00
If you wish to have your details removed from this database please email firstname.lastname@example.org
The MFIs invested in provide financial services to low income clients. Raising micro entrepreneurs' income levels is part of the Fund's premise.
Widely accepted research has shown a positive impact on income and quality of life for a significant percentage of poor micro entrepreneurs and their families as a direct result of access to microfinance. Microfinance allows people previously excluded from financial services, to start or expand businesses, to smooth their income through savings and to mitigate risks by using micro-insurances. Accordingly, the Fund Manager believes that this financing will result in improvements in the income level and quality of life of thousands of microfinance clients in the countries where the microfinance investments are made.