Geneva, 21 January 2021 – Mikro Kapital, a securitization funds management company active in the field of microfinance and sharing economy, has launched a new Alternative Investment Fund called MIKRO KAPITAL FUND A (MKFA) in partnership with BENDURA FUND MANAGEMENT BETA AG. The new financial vehicle allows investors to acquire exposure to the real economies of both developed and emerging markets along the Silk Road by investing in the financial success of Mikro Kapital, that is active in investments in micro-credit, micro-leasing and sharing projects being offered in a selected group of European and Asian countries.
The fund, managed by BENDURA FUND MANAGEMENT BETA AG, a financial boutique specialised in alternative investments and based in Liechtenstein, allows to acquire via debt instruments a balanced exposure to equity and debt of Mikro Kapital and gives access to a market with considerable entrance barriers that is growing strongly and offers an attractive risk-return profile. The entrance barriers result from the necessity of local roots and know-how which are an indispensable prerequisite to operate in the microfinance market in developing countries. Both requirements are provided by Mikro Kapital’s portfolio companies and expertise. The fund is open ended and provides investors access to a fairly uncorrelated asset class inducing diversification opportunities. Moreover, Microfinance as an asset class showed historically a very low volatility.
By launching this investment vehicle, Mikro Kapital is introducing a new financial product offering high yield opportunities combined with a special attention on sustainability. From its foundation, the company has been conscious that in many developing markets there is a real need to improve the average living standard and to close the gap with the developed world, this became one of its main objectives. By collecting funds in developed countries and providing banking and sharing services to micro, small, and medium enterprises (SMEs) in less-developed countries, Mikro Kapital fosters economic growth and poverty decrease. Under the United Nations Principles of Responsible Investment (PRI), Mikro Kapital offers to its fund investors an exposure to SMEs that are credit worthy and have high growth potential. SMEs are one of the most important engines of economic development, employment and innovation. To be in compliance with sustainability objectives, the investments of the fund must meet the following criteria: financial profitability, impact on development, limited environmental impact, mature corporate governance.
“The microcredit market is one of the most dynamic in the world, with some estimates indicating a growth of over $196 billion by 2025, an increase of about 15.1%. This vital sector can also represent an interesting asset class for investors, offering diversification, collateralisation, and social impact. This is why we are particularly pleased with the launch of this new investment fund, which will represent an excellent alternative for professional investors who have these three goals, in addition to reducing the volatility of their portfolio“, commented Vincenzo Trani, founder and president of Mikro Kapital.
Mikro Kapital provides microfinance services in 14 countries through its portfolio companies with a loan default rate of historically less than 1% thanks to the outstanding selection and monitoring process of SMEs. The company was founded more than ten years ago by Vincenzo Trani, drawing on his experience as senior advisor of the European Bank for Reconstruction and Development (EBRD) in Russia. Since 4 June 2019, President Trani has also presided over the Italian-Russian Chamber of Commerce.
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Mikro Kapital Management S.A. is a Luxembourg based securitization funds management company specialized in impact finance and microfinancing, with a total value of ongoing securitization transactions exceeding EUR 710 million (as of 30.09.2020). The main securitization funds managed by Mikro Kapital Management S.A. are MIKRO FUND and ALTERNATIVE, which invest in Russia, Belarus and emerging countries along the “silk road”. Both funds securitize loans issued by local microfinance institutions and other microfinancing players, raising capital from professional and institutional investors through issue of debt securities. Mikro Kapital is a part of the European Microfinance Network and boasts partnerships and memberships with the European Bank for Reconstruction and Development (EBRD), LuxFlag, the Italian National Institute of Microcredit (ENM), as well as collaborations with major international investors such as European Investment Fund.
Bendura Fund Management Beta AG
BENDURA FUND MANAGEMENT BETA AG is an Alternative Investment Fund Manager (AIFM) headquartered in Liechtenstein and a subsidiary of BENDURA BANK AG. The company is BENDURA’s centre of excellence for providing Alternative Investment Fund solutions. With expertise and dedication, the company creates customer value by providing services and vehicles for unconventional investment categories like private equity, microfinance, real estate, or any other alternative investment. Its services range from standard to particularly tailored investment fund solutions and from continuously managing portfolios to administrating funds. The company is headed by a small number of outstanding experts and practitioners of different fields.