Sources of Capital

For 12 years, Global Partnerships used philanthropic capital to invest in microfinance institution (MFI) partners in Latin America. In doing so, it built deep experience in selecting and capitalizing MFIs. Global Partnerships now raises capital to invest in its MFI partners through Microfinance Funds. These Funds combine socially-motivated private capital with impact-oriented philanthropic capital to dramatically expand the amount of capital available for investment in microfinance. Philanthropic donors who are principally interested in the proven social impact of microfinance are able to leverage their donations and thereby expand economic opportunity for many more poor people. Qualified, socially-motivated private investors invest capital and receive principal and interest back based on the performance of each Fund.

What makes this approach possible is the underlying entrepreneurship, spirit and resiliency of microentrepreneurs who have been building enterprises and repaying microloans for decades.

The Global Partnerships Microfinance Fund 2005 (GP MFF 2005) is a $2.0 million fund composed of $200,000 in philanthropic capital as equity leveraged 10 times by $1.8 million in private capital from qualified individual and institutional investors. GP MFF 2005 is currently invested in eight partners in four Latin American countries.

GP MFF 2006 is an $8.5 million fund composed of $255,000 in philanthropic capital as equity leveraged at a ratio of 32 to 1 by $8,245,000 in socially motivated debt capital from qualified individual and institutional investors. The fund closed in March 2007 and was disbursed to 14 qualified MFI partners in six countries.

To learn more about the performance of these funds, click here.