GLOBAL PARTNERSHIPS CLOSES $20 MILLION MICROFINANCE FUND

Global Partnerships’ third microfinance fund will reach 1 million people in poverty

SEATTLE, Wash., USA (November 17, 2008) – In the face of growing need for capital worldwide, a $20 million microfinance investment fund was closed by Global Partnerships (GP), a Seattle-based nonprofit organization, that will significantly increase access to microcredit for people living in poverty in Latin America.

GP’s Microfinance Fund 2008 (MFF 2008) combines philanthropic donations with socially motivated capital to invest in the expanded reach of high-performing microfinance institutions (MFIs) committed to providing financial and social services to more people in poverty, including women and the rural poor. In combination with previous funds, MFF 2008 will expand the organization’s support to more than 30 partners in eight countries, reaching nearly 1 million people and impacting 5 million lives.

Generous contributions by both individuals and foundations, including the Western Union Foundation, the West Foundation and the Gilhousen Family Foundation, form the $1.5 million philanthropic equity layer of the fund.

Despite current challenges in global financial markets, 42 socially motivated investors committed to participating in MFF 2008. Those investors will receive a moderate financial return for investments ranging from $100,000 to $6 million. Investors include the Overseas Private Investment Corporation, the Multilateral Investment Fund of the Inter-American Development Bank, Seattle International Foundation, Linked Foundation, Maryknoll Fathers & Brothers, the John F. and Mary A. Geisse Foundation, Mercy Investment Program, Perls Foundation, Gilhousen Family Foundation, Sisters of Charity of Cincinnati and Adrian Dominican Sisters, along with 31 individuals. Their investments in MFF 2008 total more than $18.5 million. The law firms Orrick, Herrrington & Sutcliffe LLP and Strasburger & Price provided pro bono assistance to establish the fund.

The Fund, the third in the organization’s history, addresses a number of challenges faced by MFIs in seeking growth capital; it provides MFIs that are achieving exceptional levels of impact with much-needed “patient” capital — funding for longer terms and at rates more competitive than those offered by conventional capital markets. MFF 2008 will expand GP’s reach to more than 30 MFI partners in eight countries, including Bolivia, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua and Peru. GP selects MFI partners based on a number of criteria, including commitment to reaching underserved populations, growth potential and management quality. By lending growth capital and providing technical assistance, GP provides MFIs with needed resources to introduce innovative products and services that help people living in poverty.

Despite the success of this Microfinance Fund and others, only an estimated 15 percent of the people in Latin America who would benefit from microfinance are reached. Microfinance can dramatically improve the lives of borrowers who use the profits from their business to improve the living conditions for their entire households.

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About Global Partnerships
Global Partnerships is a nonprofit organization dedicated to expanding opportunity for people living in poverty. GP has more than $54 million in capital dedicated to mission and has offices in Seattle, Wash. and Managua, Nicaragua. For more information, please visit our Homepage.