How Does GP Enter New Markets?
Global Perspectives | Spring 2010

Every country in Latin America regulates the microfinance industry differently, so each new country and partnership is different. Yet there are several key steps we take with each country and potential partner:

1. We research a range of microfinance institutions (MFIs) in the country to identify potential partners that follow a social enterprise model, meaning that they combine a sound business model with a focus on social impact. We also look for organizations where we could add value in terms of financial and managerial expertise.
   
2. If the potential partner looks to be a good match in terms of size, mission and management, and the country environment is conducive to investment, we plan a country visit to meet with MFI leaders, visit borrowers, evaluate the programs in action and make sure our organizations are aligned.
   
3. We examine the regulatory environment of the country. Is the microfinance regulatory environment conducive to the type of microfinance organizations we look to partner with? For example, we are now more likely to invest in Colombia because of some recent changes to government regulations on outside investment.
   
4. We conduct a lengthy due diligence process to evaluate a potential microfinance partner on a variety of financial and social criteria. Each new investment in a current or new partner also must be approved by our Investment and Impact committees.
   
   
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