Loan Guarantee Microfinance Investment Vehicle
United States of America
Last updated 12 May 2020, by Impactyield.
Emerging countries (256) / Africa (127) / Eastern Africa (50)
MCE is a non-profit public benefit corporation that utilizes a loan guarantee model to help people living in poverty access credit and other financial services on fair terms globally.
By leveraging the balance sheets of high net-worth individuals and foundations, MCE borrows private sector capital, primarily through commercial loans from U.S. banks, which it then carefully deploys to microfinance institutions (MFIs) across the developing world.
Under its unique model, MCE has disbursed more than $95 million in loans to MFIs, which have in turn made more than 351,000 loans (valued at $157 million) to people living in poverty since its founding in 2006.
MCE takes a business-driven, social enterprise approach to its financial sustainability by covering its lean budget with earned revenue and maintaining a prudent level of liquidity reserves. MCE has been financially self-sufficient (in the black) since 2006. MCE currently has 84 Guarantors representing $103 million in loan guarantees. Over $50 million in loans have successfully matured and MCE’s portfolio companies currently have a 99.3% repayment rate. MCE maintains a ratio of 2:1 for Guarantees to portfolio value and this, along with the strong creditworthiness of its Guarantors, allows it to unlock traditionally domestic, private-sector debt capital to fund MFI loans.
of track record
the year funded
Key performance indicators
Asset manager: MCE Social Capital
Product track record: Fund has 17 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - committed capital
Inception year: 2006
Vintage year: 2006
Target region: Africa, Eastern Africa, Emerging countries
Target close date: n.a.
Product term: 10 year term
Assets under management: 50,000,000 USD (US Dollar)
Investment size: Min: 75,000; Max: 2,000,000; Avg: 602,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 70
Fund investments to date exited or repaid: 83
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: n.a.
Phone number: 4152304330.00
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Director of Strategy and General Counsel
Director of Portfolio Management
MCE prioritizes loans to organizations that serve a high percentage of women, operate in rural communities, and offer clients additional services like savings, mobile banking, business and health education, healthcare, or insurance (78% of MCE’s end borrowers are women and 79% live in rural areas).
Bottom/Base of the PyramidCommunity Investing/LocalRuralWomen