Oslo-based Norwegian Microfinance Initiative, a strategic partnership between the country’s public and private sectors that seeks to help empower poor people and create jobs, wealth, and e
Oslo-based Norwegian Microfinance Initiative, a strategic partnership between the country’s public and private sectors that seeks to help empower poor people and create jobs, wealth, and economic and social sustainability in developing countries by providing financing directly and indirectly for microfinance institutions, has announced the creation of two investment funds, NMI Global Fund and NMI Frontier Fund.
NMI Global Fund will focus investment on more mature microfinance institutions in selected regions and countries. Its primary aim will be to support the rapid growth of these institutions, particularly in penetrating new markets and geographic areas and providing additional products and services to new and existing clients. In general the fund will invest through other investment funds and in partnership with other fund managers.
NMI Frontier Fund will invest primarily in new and emerging microfinance institutions and in the development of new financial products and services that can benefit poor and low-income people, and will restrict its activities to a limited number of countries.
The fund will seek to give some of the world’s poorest people access to a broader range of financial services. It will invest directly in emerging microfinance institutions as well as in other funds and in partnership with other fund managers. It will make equity investments in portfolio companies and seek to play an active role as an investor.
The total capital committed to the NMI Global Fund and NMI Frontier Fund is NOK600m (some USD100m). Norfund, a development finance institution owned by the government of Norway, has committed half of the total funding, and the private sector partners have provided the balance. The funds are expect to make their first investments in the first quarter of next year.
The private sector partners are Den norske Bank (through its Vital insurance and asset management subsidiary), Ferd, KLP and Storebrand, each of which offers investment and financial services industry experience and will be represented on Norwegian Microfinance Initiative’s board and investment committees.
The partnership will also provide professional and technical assistance to its portfolio companies through the NMI Professional Assistance Facility, a special facility funded through Norad, the Norwegian government’s international development agency, and administered by Norwegian Microfinance Initiative.
Richard Weingarten (photo), most recently the executive secretary of the United Nations Capital Development Fund, has been appointed managing director of Norwegian Microfinance Initiative. An independent investment fund affiliated with the United Nations Development Programme, UNCDF makes investments in the world’s least developed countries and helps them to build inclusive financial sectors in part by investing in microfinance institutions.
Weingarten, who has a background in investment banking, venture capital and law, was previously the senior vice-president for finance and development at the College Board, a New York-based non-profit organisation with more than 3,500 colleges and universities as members, having earlier been a managing director at Bear Stearns and director of corporate finance for the south-eastern US.
