Significant increase of the NAV of the two funds Mikro Fund and Alternative
20 May 2021 – Mikro Kapital, a company specializing in impact finance and microfinance with offices in Zürich and operating in 14 countries under the leadership of its President Vincenzo Trani, closed 2020 with its own funds, Mikro Fund and Alternative, which reached a total asset value of 838 million euros, up 25% compared to 2019.
Despite a particularly challenging year at the global and regional levels and a macro scenario that has shown signs of decline, microcredit is confirmed as a resilient and profitable asset class. This is due to the diversification of the alternative component of the portfolio, which can combine economic and social objectives with the ability to generate consistently positive returns.
In 2020, the total net profit of Mikro Fund and Alternative reached 20 million euros, with the NAV of the two funds growing respectively by 18.4% and 1.1%. The company also consolidated the number of its investors, equal to over 900 between Europe and Russia.
Adequate diversification and in-depth credit analysis processes have also allowed Mikro Kapital to achieve excellent results in the PAR90 + metric, the indicator that certifies the quality of underlying loans. This figure significantly outperformed industry standards in 2020, confirming the quality of the selection process of the SMEs to which Mikro Kapital provides credit in the countries along the Silk Road, reaching 2.2% for Mikro Fund and 1.8% for Alternative. They were respectively at 3.9% and 2.7% last year at the outbreak of the pandemic.Vincenzo Trani, President of Mikro Kapital, stated: “2020 was one of the most successful years in Mikro Kapital’s history, demonstrating the resilience of microfinance as an asset class and its decorrelation and reduced exposure to the volatility of international markets. Our goal is to continue to work hard to identify interesting opportunities that allow us to maintain the great confidence that professional investors have shown in our work “.
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Mikro KapitalFounded in 2008, Mikro Kapital Management S.A. is focused on impact finance and microfinance. Mikro Kapital operates through two Special Purpose Vehicles (SPV): Mikro Fund and Alternative. Both Luxembourg securitization funds invest in their portfolio of Micro Finance Institutions, which provide loans to small and micro businesses in Russia, Belarus and emerging countries along the Silk Road. Mikro Fund and Alternatives raise financial resources from European Institutional and Private Investors through the issuance of short and medium-term debt securities. (Total assets 838 million euros at 31.12.2020). Mikro Kapital is part of the European Microfinance Network (EMN) and benefits from partnerships with the European Bank for Reconstruction and Development (EBRD), Luxflag, the Italian National Microcredit Institute (ENM), as well as collaborations with major international investors such as the European Investment Fund.