Microfinance Investor Buys into LatAm

Microfinance-focused investor Bamboo Finance has acquired a $105m controlling stake in equity fund Accion Investments, and with that, stakes in Peru’s Mibanco, Banco Popular in Honduras, and Paraguay’s Banco Vision totaling nearly $60m. In the transaction, the investment firm took nearly 10% in Mibanco, and almost 30% in Banco Popular, as well as preferred convertible shares for an undisclosed amount in Banco Vision, says Xavier Pierluca, CIO at Bamboo Finance. The majority of Accion’s investments are in Latin America, which has more mature microfinance companies, he says, with others in Africa. Microfinance institutions are maturing and requiring increasing amounts of capital, Pierluca says, adding that his firm sees consolidation across the sector and also among investment vehicles that target the sector. Kirkland & Ellis advised Bamboo, Goodman Proctor represented Accion International, the non-profit from which Accion Investments emerged, and Goodman Proctor represented the other shareholders of Accion Investments. Luxembourg-based Bamboo manages $250m and has an office in Bogota.