BlueOrchard plans to expand microfinance

| July 22, 2010 | 0 Comments
BlueOrchard plans to expand microfinance

BlueOrchard, the world’s biggest private sector investor in microfinance loans, has raised $195 million for a fund to help microfinance institutions (MFIs) expand and modernise.

The private equity fund will buy minority stakes in MFIs to pay for their expansion and modernisation.

BlueOrchard claims many MFIs need capital injections to improve their corporate governance and risk management systems.

With a targeted return of 20% per year, BlueOrchard said the fund is a way for investors to help people out of poverty while getting a good return for their money.

Other microfinance fund managers are planning to follow BlueOrchard’s lead.

Belgium-based Incofin and Germany-based Finance in Motion are both planning to raise similar funds.

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