February 19, 2009 FinAlternative
CDC Group, the U.K. government-backed private equity emerging markets fund of funds, is making new commitments totaling US$35 million to two funds investing in microfinance.
The group has allocated US$20 million to the India Financial Inclusion Fund, managed by Caspian Capital Partners, which provides growth capital and strategic support to existing and start-up microfinance institutions, ranging from small non-profit organizations to large commercial banks. The fund invests solely in India, with an emphasis on towns in rural areas with low microfinance penetration.
CDC also committed US$15 million to Catalyst Microfinance Investors, which will invest in a network of rapidly growing greenfield microfinance institutions in India, Pakistan, Nigeria and Ghana.
“Around 400 million people do not have access to formal, affordable financial services in India,” said Hywel Rees-Jones, managing director at CDC. “The India Financial Inclusion Fund will improve funding to microfinance institutions, bringing improved credit opportunities in much needed regions. Caspian Capital Partners have proven their ability to increase microfinance penetration in India, contributing to the growth of the sector and making a lasting developmental impact in rural regions.”
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