Investment process

The investment managers are led by the MEF’s Investment Committee, convening on a monthly basis and composed of reputable professionals of the microfinance industry Dr. Klaus Glaubitt, Mr. Syed Aftab Ahmed and Mr. Karlo de Waal.

Initial screening conducted by the three Investment Managers

IC Decision to allocate MFIs to one Investment Manager
The Investment managers present to the Investment Committee a form disclosing the key MFI information, the investors and the initial terms negotiated with the MFIs. Before launching the negotiation process the Investment Managers need to secure a positive decision from the Investment Committee prior to carrying out the MFI Investments.
Submission of investment proposal
The Investment Managers will conduct a due diligence and submit an investment proposal indicating, among other, the following elements: that the MFI meets the minimum underwriting eligibility criteria; main transaction features: amount, proposed minimum pricing; shareholders and lenders of the MFI; and any specific additional section as may be requested by the IC.
IC Approval
Signature of the loan agreement + disbursment
If approved, the Investment Manager will prepare, negotiate and execute the legal documentation which will typically include financial, social and environmental covenants and reporting requirements.
Monitoring and reporting
As required in the loan agreement the MFIs must provide the Fund with meaningful and reliable reporting on their activities on a regular basis. Based on this information the Fund will monitor that all MFIs comply with the terms and conditions of the loan agreement:
  • On a monthly basis, the Investment Managers shall provide the Fund with key figures on the MFIs as well as covenants
  • On an annual basis, the MFIs provide the Fund with their annual financial information as well as with its environmental and social reporting

For further information, please contact any one of the three investment managers.