Investment philosophy

 

LMDF invests in emerging microfinance institutions who work hard to make the life of micro-entrepreneurs better. We help those promising microfinance institutions to become strong and reliable partners for micro-entrepreneurs who need a reliable and fair offering of basic financial services – micro-credits, a safe place to store your money, transfers and micro-insurance.

These three elements set us a bit apart from the mainstream: As an investment fund with a strong social vision, our actions are focused on emerging microfinance institutions with a strong social mission and a great potential for development.
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Emerging MFIs

  • Entities with an established business model in the local microfinance sector
  • Absence of funding is an obstacle to growth and reaching more beneficiaries

Strong social vocation

  • Institutions with strong social vision and mission directed towards the development of women, youth, rural populations and the most excluded

Complementarity

  • Orientation towards niche and under-developed markets
  • Addressing some of the challenging areas of financial inclusion

An innovative partnership: ADA – LMDF

LMDF as a regulated investment fund has entered into a strategic partnership with ADA, an NGO with a long experience in the microfinance sector. ADA  is responsible for the investment proposals, due diligence and monitoring of microfinance institutions.

ADA has a team solely dedicated to LMDF, but it is also more than just an investment adviser. ADA is active in the development of MFIs through innovation, capacity building and peer to peer learning, as well as sector  level interventions that address regulatory  or legal frameworks. It also has specific expertise in Western Africa. ADA’s work as an investment adviser benefits from synergies through the information and networks the other activities create.