Legatum, Omidyar Launch Microfinance Fund
Each firm is investing $20 million in the fund.
May 13, 2008
Legatum, a private firm that invests in global capital markets and initiatives that support social development, and Omidyar Network, a philanthropic investment firm, are launching a $40 million co-investment fund, Unitus Equity Fund II. Each firm is investing $20 million in the fund.
UEF II will provide capital to growth-orientated microfinance institutions (MFIs) that are run by visionary and entrepreneurial leaders. The fund will also expand the focus of its predecessor fund UEF I by investing in companies offering products and services that enable the world’s poor to create opportunities for them and their community.
“The microfinance industry is at a tipping point,” said Philip Vassiliou, managing director of Legatum. “With the application of patient, long-term capital from investors, we believe it is possible to accelerate the roll out of low cost credit to the world’s poor,” he said.
“This joint investment with Omidyar Network reflects our shared belief that enterprise offers one of the best long-term solutions to poverty. Our co-investment in the Unitus Equity Fund II reflects Legatum’s confidence in its management team, who have a proven track record of success investing in MFIs around the globe,” Vassiliou said.
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