About IAMFI


Mission: The International Association of Microfinance Investors (IAMFI) is a global membership organization dedicated to helping current and potential commercially oriented investors in microfinance to achieve their financial and social goals. Increasing the flow of capital to the microfinance sector expands access to financial services among the world’s financially excluded. IAMFI offers industry information from an objective viewpoint, conducts independent research, hosts educational and networking events, makes business-building connections and facilitates dialogue among industry leaders to improve the global environment for microfinance. 

Background: Microfinance provides financial services, primarily for income-generating purposes, to individuals who lack access to the formal banking sector.  As more microfinance institutions (MFIs) have proven their investment viability, microfinance funding has evolved from primarily donor to investor sources, and the flow of capital to the sector has grown dramatically, via direct investment in MFIs and indirect, or Limited Partner, investment via microfinance investment vehicles (MIVs).  Yet while total investment in the microfinance sector has expanded to over $ 65 billion, industry experts estimate that an additional $235 billion is needed to provide financial services to the world’s unbanked poor.

Despite the increase of private sector funds, the microfinance investment environment still exhibits characteristics of a nascent industry: lack of easily accessible of information, low level of transparency and an absence of many investor services common in more established asset classes.  Broadly accepted guidelines and standards remain undefined.  Individuals and organizations representing all elements of the microfinance ecosystem expressed support for the formation of an investor-oriented association to address the interests of market-driven investors and investment vehicles.  In response, in 2007 an inclusive Working Group created IAMFI to help investors deploy their capital more effectively in the fight against financial exclusion.

IAMFI launched in early 2008, receiving start-up capital from DOEN Foundation (Amsterdam), Gray Ghost Ventures and Gray Matters Capital (Atlanta) , and Omidyar Network (Redwood City).  IAMFI's Board of Directors  and Members are leaders in microfinance investment. 

Member Benefits: IAMFI members heighten their visibility in the sector, have direct access to timely information and interact more effectively with industry players.  Membership offers value to Limited Partner Investors, General Partner Investors and Industry Service Providers.  IAMFI has developed programs and services to meet members’ needs, such as the following benefits:

  • Access to a sophisticated, interactive web site providing a repository of third-party information and data      about microfinance investing, including a password-protected "members only" section (institutional members have access for up to 10 employees)
  • Scrubbed microfinance newsfeed delivered to members’ email inbox
  • Independent commentary on research and developments in the sector
  • Original research (investment performance, best practices, trend analysis, etc.)
  • Customized services to meet each member’s needs (introductions, meetings, joint activities)
  • Facilitation of speaking engagements and media opportunities for members
  • Educational activities (webinars, teleconferences, in-person meetings)
  • Issue-focused events for special interest groups within the membership
  • Discounts for international microfinance conferences and publications
  • Access to a voluntary Member Directory to facilitate networking
  • Participation in the establishment of criteria to advance best practices
  • Consensus-building on sector issues
  • Reference materials and tools for the industry
  • Investor-perspective input to industry organizations and their constituencies
  • Outreach to influencers to develop an enabling environment for microfinance investing

Research: IAMFI has produced 12 large and small pieces of proprietary research, including the industry’s first study on the incidence of default by MFIs to microfinance investment intermediaries (MIIs).  IAMFI maintains the industry’s only Microfinance Investment Database, gathering 20 data points on over 100 MIIs that are relevant to investors, such as asset size, return targets and performance, and fund expenses.  Other research topics include private equity investment, investment jurisdiction, Limited Partner investor due diligence, etc. Most IAMFI research is distributed to members and study participants only (may be made available for later purchase by non-members).  With Morgan Stanley’s sponsorship, the IAMFI Microfinance Lenders Working Group recently produced research on MFI workouts, including best practice recommendations and industry tools for the orderly restructuring of troubled MFI loans.  IAMFI has developed a robust research project list, based on member requests, which concentrates on building industry infrastructure to increase the sustainability of microfinance.

 

Events: Educational events include teleconferences, webinars and in-person meetings with industry leaders on topics such as industry trends, social performance measurement, debt and equity investment and risk management.  IAMFI hosts frequent educational and networking activities for members in the U.S. and Europe.  Its IAMFI Investor Network meetings adapt the venture capital pitch model to facilitate connections between fund managers and investors.  IAMFI’s events allow members to interact with each other and with IAMFI’s database of 1,200 names.  Please click herefor more information.

Membership:   IAMFI has 35 committed members and is growing. M embers reflect the broad microfinance investing ecosystem and include financial institutions, pension funds, family offices, foundations, endowments, asset managers , microfinance investment vehicle fund managers, development finance institutions, law firms, rating agencies and other s who  participate in market-driven microfinance investment. Please click here for more information on IAMFI’s members. Members joining IAMFI at this time receive the status of Charter Member.  Membership dues vary based on member type and microfinance activity.  More information on Membership is available here.