Elevar Equity II, LP

Elevar Equity II, LP (formerly “Unitus Equity Fund II, L.P.”) is the second fund for Elevar Equity, a follow up to Unitus Equity Fund, LP.

In selecting its investments, the Fund will place strong emphasis on the quality of the company’s leadership and management and the ability to push a culture of innovation focused on delivering essential products and services to disfranchised communities . The Fund maintains a rigorous company selection and investment due diligence process to evaluate MFIs and other companies.

The Fund will generally seek 20-30% ownership stakes in companies although it will make investments outside of these percentages if the General Partner determines it to be within the interest of the Fund. The Fund will adopt a venture capital approach and target younger, growth oriented and promising MFIs and companies primarily in India, Asia and Latin America. It is estimated that the majority of the Fund’s MFI portfolio companies will initially service between 2,500-100,000 clients (a range currently estimated to include 33% of all MFIs globally). These MFIs will have recently transformed into regulated institutions or are structured as for-profit entities capable of contributing to the expansion of a sustainable financial system to serve the Poor. Non-MFI investments are expected to be in early stage companies in areas of high demand for underserved markets (eg housing, information services and SME finance) with high growth potential.

Financial description

In terms of valuations, fund management has experience valuing companies from early stage ventures to mature companies. Importantly, fund management has direct experience valuing both mainstream financial services companies and fast growth microfinance institutions. While investing in UEF MFI portfolio companies, Fund management were instrumental in shifting the Indian MFI valuation methodology from balance sheet multiples to per customer metrics.
Fund management will seek seats on the board of directors of its portfolio companies and in that capacity will provide governance and ensure active engagement with senior management teams of portfolio companies.
The fund intends to allocate approximately 15% of its capital to early stage companies, 25% to mid-stage companies, and 60% to established, high-growth going concerns; however actual allocations may differ depending on industry and market trends.