Microfinance as an Emerging Asset Class

Abstract

This case demonstrates the internal paradox of conflicting interests and motives central to the collaboration between microfinance as it enters into the realm of mainstream investment and commercial funding and simultaneously struggles to adhere to its roots in social development. The focus of this report is on commercial or private funding, or monetary capital that is privately owned by institutional investors and invested via intermediaries. This project utilizes a combination of quantitative and qualitative information to evaluate the microfinance landscape that appeals to the investors. With this knowledge, I hope to suggest targeted strategies to incentivize and promote increased microfinance investment among institutional investors, commercial banks, and "the Street" to better foster partnerships to benefit both financial and social objectives.