Gawa Microfinance Fund I
Last updated 12 May 2020, by Impactyield.
The Gawa Fund is co-managed by US based Treetops Capital and it currently is performing as initially projected. The fund managers are “triple bottom line investors,” dedicated to generating financial and social returns through market-based solutions that create value for clients at the bottom of the pyramid. The Gawa Fund’s mission is to help increase access to sustainable finance to underbanked micro, small, and medium enterprises in developing countries. Gawa invests in both debt and equity of microfinance and small & medium enterprise (SME) focused financial institutions, as well as businesses adjacent to financial inclusion. The geographic focus is Latin America, Asia, and Sub-Saharan Africa. Our team has extensive experience in private equity and debt investing, microfinance and SME lending, emerging market financial institutions, corporate and structured finance, and technology. The Fund was closed at EUR 20 million (US$27 million), which took place in October 2010. Currently, the Fund is fully invested.
Gawa invests throughout the capital structure of its target institutions, including senior and subordinated debt, equity, and convertibles. Debt is provided in local currency and costs of hedging are absorbed by the Fund so as not to pass on foreign exchange risk to the institution or its end clients. GAWA is a strategic investor that aims to help improve the financial and social performance of institutions by providing active management support and technical assistance.
of track record
the year funded
Key performance indicators
Asset manager: GAWA Capital
Product track record: Fund has 13 years of track record
Target IRR: 12%
Committed Capital: 27,000,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Luxembourg
Product status: Closed - no longer investing
Inception year: 2010
Vintage year: 2011
Target region: Africa, Emerging countries
Target close date: 01/10/2010
Product term: 10 years
Assets under management: 27,000,000 USD (US Dollar)
Investment size: Min: 500,000; Max: 4,000,000; Avg: 2,000,000
Co-investment policy: LPs have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 7
Fund investments to date exited or repaid: 3
Management fee: 2.15%
Carried interest: 20%
Hurdle rate: 6%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Family Office, Other Institutional Investors
Phone number: 646-257-2479
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Sr. VP, Treetops Capital
Investing in the Gawa fund creates both a social and developmental impact. From a social perspective, our investments in microfinance institutions provide capital that is used to increase access to finance for low-income microentrepreneurs, as well as improve the range and quality of services provided to them. A key social benefit of microfinance can often be increased income generation, which in turn can help improve a family’s well-being through improved nutrition, health, and education. Other products such as savings and microinsuarnce help to build / safeguard assets and protect the borrower in the event of an emergency.
Gawa also has the potential to make a developmental impact through its investments in small and medium enterprise (SME) lending financial institutions. SMEs often lack access to finance in emerging markets but yet contribute significantly to economic growth and GDP, and play an important role in fostering linkages throughout economic value chains.
The Gawa managers believe that the financial institutions that are best-positioned to make an impact on their clients' lives are those that are customer-centric, transparent, and well-governed.