Strategy
   

Early-stage identification
CMI’s unique combination of established microfinance expertise with corporate finance and private equity expertise enables it to identify, select and invest in promising, emerging MFIs, assist them in adopting ‘best practice’ credit methodologies and operating procedures and thereby helping them grow and prosper.

Equity
Primarily, investments will be made in newly issued equity of Greenfield institutions, recently established institutions and/or in existing institutions that need additional growth capital. CMI offers equity and equity-linked securities, enabling these MFIs to accelerate their expansion and grow into profitable institutions. This equity partnership enables MFIs to expand rapidly and, over time, realize attractive financial returns.

Pro-active support
Each of CMI’s investments is complemented by the transfer of specific expertise. CMI can effectively coach and support the management and staff of such high-potential MFIs through its team of in-house ASA experts possessing best-practice microfinance expertise. By investing in equity, CMI is effectively forging a partnership between itself and the MFI.

Exit
CMI seeks to realize capital gains for its shareholders by selling its holdings, in private or public sales, five to seven years after initial investment, depending on the development of each investment and the liquidity of the market for selling these stakes. Exits should provide optimal benefits for CMI as well as for the MFI it exits from.