LMDF invests in emerging microfinance institutions that work hard to provide a better life for micro-entrepreneurs. We help these promising institutions to become solid partners for micro-entrepreneurs who need a reliable and fair supply of basic financial services: microcredit, a safe place to keep their money, money transfer and micro-insurance.
ADA – the partner NGO of the Fund
As a regulated investment fund, the LMDF has entered a strategic partnership with ADA, an NGO with more than 25 years of experience in the microfinance sector. ADA is responsible for the investment proposals, due diligence, and oversight of microfinance institutions.
The NGO has a team exclusively dedicated to LMDF but is also much more than just an investment adviser. ADA is active in the development of MFIs through innovation, capacity building and learning between peer to peer lending, as well as sector-level interventions responding to regulatory or legal frameworks. ADA also has specific expertise in West Africa. The work of this NGO as an investment adviser benefits from synergies through information and networks that other activities create.
The Luxembourg state and the NGO ADA
ADA and the Luxembourg state (Ministry of Finance and Ministry of Foreign Affairs) have a strong presence in the Fund and were the driving forces behind its creation. Their investment in Class A and Class Abis shares, shares which cannot be redeemed, ensure a presence in the governance of the Fund and ensure that the LMDF is in line with its social mission.
Strong involvement of the financial sector
The Fund has been supported by a series of important players in the financial sector since its creation in 2009 and counts the BIL, BGL BNP Paribas, BCEE, Banque de Luxembourg, CBP Quilvest, Banque Fortuna, Foyer and La Luxembourgeoise among its founding partners. Beyond financial commitments, partner banks are active in the governance of the Fund and ensure that investment decisions, risk management and compliance are executed with care.
Luxembourg citizens and civil society
Civil society has an important place in the Fund with ADA being a founding shareholder and key partner. ETIKA and SOS Faim are other organisations that have decided to invest in LMDF to support its investment philosophy. The risk protection mechanism put in place allows private investors to invest in microfinance. This opens the door to many Luxembourg citizens who have invested in LMDF because they identify with our vision and our mission.