Last updated 12 May 2020, by Impactyield.
The fund invests globally in developing countries. The target regions are Latin- and Central America, Central- and Southeast Asia as well as Africa. The fund concentrates its investments on small -and midsized microfinance institutes (MFIs), with a particular focus on those active in rural areas.
Besides the financial indicators, Invest in Visions pays close attention to the social governance of an institute, e.g. a transparent business policy, empowerment of women or avoidance of over-indebtedness and usury.
The MFIs are thus the link between the fund and the final borrowers. Correspondingly conscientious and thorough is the selection process.
This starts with a country study and continues with an evaluation of the finance- and microfinance sector and an analysis of the respective MFI. The MFI's finances and quality of management is scrupulously screened - also through a visit on site. Further is the credit-, default- and currency risk taken into account.
Not least is checked if the particular institute follows the root idea of microfinance, i.e. the access to financial services for the poor and an ethical business practice.
A continuous monitoring of the social standards is guaranteed through an internal rating system and annual visits.
The fund is the first German microfinance fund licensed for public distribution. The fund is not open to American investors at this point. It is an open-end fund with the possibility of monthly purchases and quarterly redemptions.
The financial strategy of the fund is the lending of credit to small and midsize microfinance institutions Tier 2 and Tier 3 (MFIs). The fund receives the loan back with interest within a period of (average) two years.
Some internal and legal requirements apply:
The fund invests a maximum 10% of the fund assets into one MFI and maximum 15% of the fund assets into one country.
95% of the fund assets can be invested in unsecured loans with regulated microfinance institutions or up to 75% of its assets can be invested in unsecuritized loans in unregulated microfinance institutions.
The fund does not invest into equity.
of track record
the year funded
Key performance indicators
Asset manager: Invest in Visions
Product track record: Fund has 12 years of track record
Target IRR: 3.5%
Committed Capital: 325 EUR (Euro)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Germany
Product status: Open - committed capital
Inception year: 2011
Vintage year: n.a.
Target region: Africa, Emerging countries
Target close date: n.a.
Product term: open end
Assets under management: 500,000,000 EUR (Euro)
Investment size: Min: 500,000; Max: 0; Avg: 1,000,000
Currency of investments: EUR (Euro)
Currency for fund / product figures: EUR (Euro)
Fund investments to date: 50
Fund investments to date exited or repaid: 15
Management fee: 0.9%
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors, Retail Investors
Phone number: +49 (0) 69 69 76 72 31
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We guarantee the achievement of our social objectives through our rigorous internal social rating system. The social indicators we assess include among others:
- Fair commercial practices
- Product diversity
- Environmental protection
- Range of impact
- Personnel Management
- Engagement of Management
- Protection of the customer
Further does the fund management visit the loan partners annually and re-assesses the social indicators on site.
We firmly believe in the social benefits of microfinance, in particular microfinance loans. Not only does it give a borrower the ability to expand its enterprise and makes them a business partner rather than a mere beneficiary, microfinance brings along positive spin-offs such as entrepreneurial thinking and practice, the creation of new employment, empowerment of women and economic development.
Symbiotics Microfinance Index (SMX)
Bottom/Base of the PyramidCommunity Investing/Localdevelopment financefinanceHuman Rightsimpact financeLabormicrocreditMicrofinancemicroinsurancemicrosavingMinorities/Previously Excluded Populationsmobile bankingOtherresponsible financeRuralUrbanWomen