David wedick

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TBLI CONFERENCE™ is the prime annual global networking and learning event on Environment, Social, Governance (ESG) and Impact Investing.

TBLI CONFERENCE USA New York 2013
Monday and Tuesday, June 17-18, 2013

Speakers:
Paul Rose
Vice President of the Royal Geographical Society
Richard L. Kauffman
Chairman for Energy Policy and Finance for the State of New York - Governor of New York's Office and Cabinet - United States of America
Martin Rapaport is chairman of the Rapaport Group and founder of the Rapaport Diamond Report

Published in: Economy & Finance, Business
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David wedick

  1. 1. MICROVEST ® |INVESTING IN ONE WORLD 1 *See final page for important disclaimers and other information LIFI Deck vSLIFI1.3.pptm David Wedick, Business Development Manager MicroVest Capital Management, LLC Stories from the field: How Microfinance became the first risk-adjusted scalable impact investment
  2. 2. MICROVEST ® |INVESTING IN ONE WORLD 2 *See final page for important disclaimers and other information LIFI Deck vSLIFI1.3.pptm  The information contained in this document has been provided by MicroVest Capital Management, LLC (“MicroVest”) and no representation or warranty, expressed or implied is made by MicroVest as to the accuracy or completeness of the information contained herein.  MicroVest wishes to caution the reader that any forward-looking statements, such as with respect to MicroVest’s plans and strategies, MicroVest’s anticipated capital investments, possible changes in market forces, and other statements contained herein, including financial projections, regarding matters that are not historical facts, are only predictions and estimates regarding future events and circumstances. Market conditions and MicroVest’s actual results may differ materially from the market conditions and results discussed in these statements.  This document is being distributed for information purposes only. The information and prospective terms discussed herein are preliminary, and are subject to change. This does not constitute an offer or a solicitation to purchase or sell any security, and nothing herein should be construed as such. Such an offer or solicitation can only be made pursuant to the delivery of a definitive private placement memorandum and related documents.
  3. 3. MICROVEST ® |INVESTING IN ONE WORLD 3 *See final page for important disclaimers and other information LIFI Deck vSLIFI1.3.pptm 1 Derived median; MFI data at 12/31/11 as reported by the top 500 MFIs (by portfolio size) in 2011 on the MIX (www.mixmarket.org). Data includes MFIs that practice group lending and individual lending methodologies. MFIs have been excluded from analysis if lacking data for any of the following metrics: total assets, gross loan portfolio, ROA, ROE, D/E, portfolio yield (nominal), write-offs. Other LIFIs may deviate materially from this profile. Gross loan portfolio $25m Number of active borrowers 37,000 Average loan balance per borrower $987 Number of clients per loan officer 274 Percentage of women borrowers 60% • Other types of LIFIs may have a materially different profile An average Microfinance Institution (MFI)1 Investment Universe
  4. 4. MICROVEST ® |INVESTING IN ONE WORLD 4 *See final page for important disclaimers and other information LIFI Deck vSLIFI1.3.pptm Attractive ROE High portfolio yield High operating costs Low write-offs Moderate leverage 1 Data is for MFIs, since operational information is more readily available. Other LIFIs may exhibit different profiles. Derived MFI data reported by the largest 100 MFIs each year between 2004-2011 on the MIX (www.mixmarket.org). MFIs have been excluded from analysis if lacking data for any of the following metrics: total assets, gross loan portfolio, ROA, ROE, D/E, portfolio yield (nominal), write-offs. Some averages have been rounded down/up for display purposes. A typical MFI asset1 2004-2007 2008-2011 Portfolio Yield 26% 24% Operating Expenses -14% -13% Cost of Funds -7% -7% Write-offs -1% -2% ROA 4% 2% ROE 26% 14% Core business model of an MFI – one type of LIFI Returns held up well during the recent financial crisis Investment Universe
  5. 5. MICROVEST ® |INVESTING IN ONE WORLD 5 *See final page for important disclaimers and other information LIFI Deck vSLIFI1.3.pptm Microfinance market is $60bn+ and regionally diversified1 Latin America is the largest market 1 Dataset = Total loan portfolio at 12.31.11 of all MFIs reporting to Mix Market in 2011 (www.mixmarket.org), excluding Harbin Bank ($10bn). Sub-Saharan Africa 7% East Asia Pacific 17% Eastern Europe & Central Asia, 17% Latin America & Caribbean 46% Middle East & North Africa 2% South Asia 12%
  6. 6. MICROVEST ® |INVESTING IN ONE WORLD 6 *See final page for important disclaimers and other information LIFI Deck vSLIFI1.3.pptm $300bn+ global demand for microfinance1 Current supply of $60bn2 meets less than 1/5 of demand 1 $300bn total market demand estimated by CGAP,IFC (World Bank) & MicroCapital Monitor http://www.microcapital.org/downloads/whitepapers/Geneva.pdf 2 Dataset = Total loan portfolio of all MFIs reporting to Mix Market 2011 data (www.mixmarket.org) Harbin Bank ($10bn). $300 bn1 $60bn2 Total estimated demand Current Supply
  7. 7. MICROVEST ® |INVESTING IN ONE WORLD 7 *See final page for important disclaimers and other information LIFI Deck vSLIFI1.3.pptm 37% 31% 36% 16% 39% 51% 47% 30% 13% 0% 20% 40% 60% 80% 100% Low-income country Middle-income country High-income country Residual - inc. large enterprise & public sector SME Informal Emerging market SMEs have a $700-850bn funding gap Demand for SME finance is 2-3x bigger than microfinance 1 All data from IFC 2010 Report – “The SME Banking Knowledge Guide” http://www.ifc.org/ifcext/gfm.nsf/AttachmentsByTitle/SMEBankingGuide2010-E.pdf/$FILE/SMEBankingGuide2010-E.pdf IFC 2010 report1 highlights: • SME sector is under-developed in low-income countries and the largest contributor to the economy of middle and high-income countries • Lack of capital is the most common constraint to growth in SMEs Comparative size of formal, SME and informal sectors1:
  8. 8. MICROVEST ® |INVESTING IN ONE WORLD 8 *See final page for important disclaimers and other information LIFI Deck vSLIFI1.3.pptm Final Page: Important disclaimers and other information Itshouldbenotedthatpastperformanceisnotindicativeoffuturereturns. Investors’performancewillvarydependingonindividualdatesofadmission. Figures presentedwithinthisdocumentareestimated,unaudited,subjecttochange,andmaybederivedfrominternalMicroVestcalculations. Itshouldbenotedthattheexcess returnvs.3MonthLiboraregrossfiguresanddonotreflectthedeductionofadvisoryfeesandanInvestor’sreturnwillbereducedbyadvisoryfeesandother managementexpenses. ThedatapresentedonLIFIsdonotreflecttheactualperformanceorprofileofanyparticularMicroVestproduct. TheLIFIdataissetforthforillustrativepurposesonlyand arenotnecessarilyindicativeofthefutureperformanceofanyMicroVestproductorofthecharacteristicsofLIFIswhichmaybeincludedinanyMicroVestportfolio. No representationisbeingmadethatanyoftheMicroVestproductswillorarelikelytoachievearisk/returnrecordsimilartothoseshown. Infact,therecanbesharp differencesbetweentherisk/returnprofilepresentedandtheactualresultsachievedbyaMicroVestproduct. Information(dataonMFIs)includedinthisreportis(i) basedonmaterialsthatarepubliclyavailableandhasnotbeenindependentlyverified;(ii)mayderivefromself-reportedMFIdatathatisnotpubliclyavailable,and(iii)is subjecttochangeatanytimeatthesolediscretionofMicroVest. DataonMFIsarepresentedforillustrativepurposesonlyanddonotreflectactualcharacteristicsof particularinvestments. Anyindicesandotherfinancialbenchmarksshownareprovidedforillustrativepurposesonly,areunmanaged,reflectreinvestmentofincomeanddividendsanddonot reflecttheimpactofadvisoryfees. Investorscannotinvestdirectlyinanindex. Comparisonstoindexeshavelimitationsbecauseindexeshavevolatilityandothermaterial characteristicsthatmaydifferfromaparticularMicroVestproduct. Forexample,aMicroVestproductmaytypicallyholdsubstantiallyfewersecuritiesthanarecontained inanindex. IndicesalsomaycontainsecuritiesortypesofsecuritiesthatarenotcomparabletothosetradedbyaMicroVestproduct. Therefore,aMicroVestproduct’s performancemaydiffersubstantiallyfromtheperformanceofanindex. Becauseofthesedifferences,indicesshouldnotberelieduponasanaccuratemeasureof comparison. Inaddition,datausedinthebenchmarksareobtainedfromsourcesconsideredtobereliable,butMicroVestmakesnorepresentationsorguaranteeswith regardtotheaccuracyofsuchdata. ThisdocumentisforinformationalpurposesonlyandisneitheranoffertosellnorasolicitationofanoffertopurchaseaninterestinanyMicroVestproduct. Anysuch offerorsolicitationwillbemadeonlybymeansoftherelevantproduct’sofferingmemorandum,whichcontainsadescriptionofthesignificantrisksinvolvedinsuch investment. Prospectiveinvestorsshouldrequestacopyoftherelevantmemorandumandreviewallofferingmaterialscarefullypriortomakinganinvestmentinany MicroVestproduct. Therecanbenoguaranteethatinvestmentobjectiveswillbeobtained. AnyinvestmentinMicroVestisspeculative,involvesahighdegree ofriskand isilliquid. AninvestorinMicroVestcouldloseall,asignificantportionorsomeamountofitsinvestment. MicroVest’sperformanceissubjecttovolatility. Inaddition,the feesandexpensesmayoffsetprofits. Thereisnosecondarymarketforinvestors’interestsandnoneisexpectedtodevelop. Therearerestrictionsonwithdrawingand transferringinterestsfromMicroVest. Inmakinganinvestmentdecision,youmustrelyonyourownexaminationofMicroVestandthetermsoftheoffering. Youshould notconstruethecontentsoftheenclosedmaterialsaslegal,tax,investmentorotheradvice. Eachprospectiveinvestorshouldconsulthis/herownprofessionaladvisersas tothesuitabilityandproprietyofaninvestmentinanyoftheMicroVestproducts.

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