Microfinance

Creating positive impact in parts of the world where it is needed the most

What we do & How we do it - in brief

Trill Impact Microfinance is an investment advisory strategy which further advances Trill Impact’s purpose to be a thought leader and force for positive change, delivering social and environmental benefits in parts of the world where it is needed the most.

The UN mentions microfinance and financial inclusion as key to reach a number of the UN Sustainable Development Goals (SDGs).

Trill Impact Microfinance advises on private credit loans to microfinance institutions (MFIs) to support microentrepreneurs and low-income households and thereby provides solutions to some of the larger global challenges addressed by the SDGs, including Access to Finance, Women’s Economic Opportunities, Clean Energy Access and Agriculture & Rural Development.

Through the global reach and relationships of Developing World Markets (DWM), Trill Impact can offer qualified investors exposure to diversified portfolios of microfinance and other impact finance institutions in Emerging & Frontier Markets.

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Microfinance in practice
Investment strategy
The microentrepreneurs

» Listen to the "Let's talk microfinance podcast"

Viktor Andersson, Head of Microfinance, has extensive experience managing large microfinance investment portfolios and sourcing impact transactions in Latin America, Africa, and Asia.

By partnering with Developing World Markets, DWM, Trill Impact Microfinance has access to the expertise of one of the leading global impact investment firms, one with a longstanding track record in microfinance and impact transactions since 1999.

DWM, headquartered in Stamford, Connecticut, USA, is an emerging and frontier markets investment originator and manager with extensive capabilities through its 12 offices across Latin America, Eastern Europe, Africa, Middle East and Asia and global staff, with living/working experience in more than 40 developing countries and fluency in more than 20 languages. Through this partnership, Trill Impact Microfinance has access to DWM’s expertise in sourcing of transactions, managing relationships on the ground, and fund management activities.

How we make it happen

We create Real Returns and Lasting Impact through our proprietary Return on Impact Toolbox. In Trill Impact's Microfinance investment advisory strategy this means:

SOURCE to WIN - By facilitating lending to the best microfinance and impact finance institutions worldwide, we provide financial services to micro entrepreneurs and low-income households to help them grow and develop. We aim to create positive impact in the societies where they operate while at the same time deliver financial returns to investors.

MANAGE to SUCCEED - We increase financial inclusion while creating returns for our investors. Trill Impact believes that channeling debt finance to microfinance and other impact finance institutions is an effective way to create impact on scale, reaching millions of microentrepreneurs and low-income households.

MEASURE to IMPROVE - We actively support and track progress to generate impact and financial outcomes through measuring and managing relevant KPIs, in collaboration with DWM.

TEAM to LAST - To succeed, we have together with our partner DWM built a team with extensive hands-on experience from working with impact private debt investments in Emerging & Frontier Markets and a culture and processes specially tailored to create Real Returns and Lasting Impact.

Why Microfinance

Vast investment needs in developing countries: With less than ten years until 2030, developing countries face important and complex challenges around the Sustainable Development Goals (SDGs), not least how to finance the investments needed to achieve them. The annual investment gap in developing countries has been estimated at around US$2.5 trillion per year.
The majority of the world's population lives in low-income households:
Of this group, 500 million are however economically active. They earn their livelihoods by being self-employed or by working in microenterprises, i.e. very small businesses which may employ up to 5 people.
A large number of microentrepreneurs in developing countries have unmet financing needs: They often fail to secure the capital they need implying missed opportunities for growth because they do not have access to financial resources – e.g. loans or a safe place to hold savings.
Microfinance is part of the solution: Microfinance provides financial services to millions of low-income entrepreneurs primarily in developing countries. For investors, microfinance has the potential to produce double-bottom-line returns (both financial and social) because it enables microentrepreneurs to earn a living for themselves while repaying investors with interest. According to research, microfinance investments also provide investors with a unique opportunity for portfolio diversification, with low correlation to other assets classes, and stable returns.

Sources: UNCTAD’s World Investment Report (2014); UNDP, Evaluation Office; LUMINIS, The Power of Clarity