FINCA Microfinance Holdings, LLC

To access the capital needed to expand its offerings to current clients, and reach millions more people with life-changing financial services, FINCA has launched FINCA Microfinance Holdings, LLC (FMH), a subsidiary of FINCA International.

FMH is a first-of-its-kind, socially-responsible investment partnership for microfinance which allows FINCA to bring in equity partners from among a small number of carefully-selected, socially-responsible investors who share the same poverty alleviation mission and who, for more than a decade, have invested hundreds of thousands of dollars in FINCA. The strength of FINCA’s global network gave these socially-responsible investors the confidence needed to partner with FINCA, investing up to $75 million over a three-year period

Enormous care was taken to protect FINCA’s poverty alleviation mission during the creation of FMH.

>> No employee or Board member of FINCA will be allowed to invest, have an equity interest in, or benefit financially from, FMH, as specifically defined in the legal documents establishing FMH.

>> FINCA will hold the majority position in FMH, and maintain veto power over any changes to the mission.

>> FMH will hold all FINCA subsidiaries, keeping its network intact, and continuing to utilize global skills, experience and control systems.

>> FINCA’s current leadership will manage the nonprofit, the holding company and the network to ensure mission compliance. The network will also benefit from improved technical assistance support and expertise.

Through the creation of FMH, current and future clients will benefit from new financial and life enhancement services, like savings accounts, rural and housing loans, and micro-insurance, for example, that can be used to build safer, more secure livelihoods. FMH will help FINCA substantially increase the number of people who can be reached with these services, and create efficiencies in the FINCA network that will drive down the costs of providing these services. The cost savings accrued will, in turn, be passed on to clients.

Fact Sheet 

For more information, contact Chikako Kuno, Director of Capital Markets, at 202.682.1510, or chikako.kuno@FINCA.org