Investment Strategy

The Gawa Microfinance Fund and the Global Financial Inclusion Fund aim to reach a market rate of return for our investors and to provide financial services to millions of un-banked people through the organizations we invest in. Both have a flexible approach to invest in the optimal part of the capital structure, in general terms the funds expects to deploy:
  • 65% in debt-like investments
    • Senior or subordinated and convertible debt
    • Typically 2 to 5 years maturity
  • 35% in equity-like investments
    • Both in preferred and common equity
    • With the intention of holding a seat on the board
    • Typically up to 7 years invested
Investments range between €1 ~ 3.5 million, tenor for senior debt will be 2~3 years and up to 5 years for subordinated debt. For equity investments, the funds intend to take a seat on the board and tipically take a minority stake. 

Both funds aim at being a strategic, long-term investor that will help improve the performance of institutions by providing active management support. The funds will work together with their investees to help them improve their governance and scale their operations. Additionally, the funds will carry out comprehensive social performance screening and monitoring throughout life of investment. 

Learn more about the investment targets and the Fund Partners.