Etimos Fund – Global Microfinance Debt
Last updated 12 May 2020, by Impactyield.
Based on the successful experience of Consorzio Etimos, an Italian microfinance investment vehicle with more than 20 years of experience in microfinance institutions and producers’ organizations investments, ETIMOS FUND has been launched in April 2011 in order to meet the considerable funding demands of microfinance institutions and producers organizations working with Consorzio Etimos over the past two decades. Consorzio ETIMOS is currently the Investment Advisor of the Fund.
ETIMOS FUND – Global Microfinance Debt is a sub-fund under the umbrella fund ETIMOS FUND, an open-ended SICAV-SIF with multiple compartments. The overall objective of the umbrella fund is to offer to socially responsible investors financially and socially sound investments to contribute to the sustainable development of emerging market economies by facilitating investments in micro and small enterprises and producers. The Global Microfinance Debt sub-fund seeks to achieve this purpose investing in microfinance institutions providing financial services to low-income people and boosting micro, small and medium enterprises, and in producers’ cooperatives fair trade oriented and/or organic oriented.
Etimos Fund – Global Microfinance Debt aims to achieve its objective investing on a broadly diversified basis in short-to medium-term senior debt instruments: the Sub-Fund invests up to 90% of its assets in senior debt instruments in USD and Euro. This will include senior loans granted by the Fund to microfinance institutions. At least 10% of its assets will be invested in liquid assets.
The fund is open to well-informed investors and it is denominated in Euro.
The assumed Sub-Fund investment amount per investment project will typically be between EUR 0.5 million and EUR 5 million, but is bound by the single client exposure and other applicable investment restrictions.
The Sub-Fund offers a range of financial services to microfinance institutions and to fair trade/organic oriented producers. The beneficiaries institutions are mainly domiciled in developing and transition countries.
Investments in USD will be hedged to a large extent against EUR by the Currency Risk Manager. The hedging technique used is based on EUR/USD forward exchange contracts at the time of investment with a roll at each Valuation Day + 2 business days.
No dividend is expected to be paid to the Shareholders. The net results of the investments of the Sub-Fund and the net realized profits will not be distributed but will automatically be reinvested in the Sub-Fund.
of track record
the year funded
Key performance indicators
Asset manager: Consorzio Etimos Sc
Product track record: Fund has 8 years of track record
Target IRR: 5%
Committed Capital: 3,300,000 EUR (Euro)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Luxembourg
Product status: Open - post first close
Inception year: 2015
Vintage year: n.a.
Target region: Global
Target close date: n.a.
Product term: Open-ended fund, monthly liquidity
Assets under management: 20,000,000 EUR (Euro)
Investment size: Min: 500,000; Max: 5,000,000; Avg: 1,500,000
Currency of investments: EUR (Euro)
Currency for fund / product figures: EUR (Euro)
Fund investments to date: 4
Fund investments to date exited or repaid: 4
Management fee: 2%
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: 0039 049 8755116
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Etimos Fund - Global Microfinance Debt firmly believes it contributes to the sustainable development of emerging market economies and transition countries by facilitating investments in micro and small enterprises and producers directly investing in microfinance institutions and producers' organizations. The main purpose of Etimos Fund - Global Microfinance Debt is to build an inclusive financial sector, ensure people the possibility to utilize their opportunities and talents and to boost their micro and small businesses in order to improve their living conditions and self-confidence. Etimos Fund - Global Microfinance Debt wants to contribute to poverty alleviation and local economy development.
For this reason, on the basis of its due-diligences, Etimos Fund - Global Microfinance Debt aims to identify organizations that offer these people appropriate products and services, in respect of all its stakeholders (shareholders, clients, employees, communities, and environment). Consorzio Etimos, Etimos Fund – Global Microfinance Debt Investment Manager, developed internally its social performance evaluation tools; it developed a participatory approach with the microfinance institutions and it is part of the Smart Campaign and the Social Performance Task Force.
The current internal social performance assessment tool is called "Social Impact Assessment Form" (S.I.A.F.) and it is submitted during the due-diligence process.
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