By Jasmina Glisovic, Henry Gonzalez, Yasemin Saltuk and Frederic de Mariz

Abstract

Toward the end of 2010, the asset quality of many microfinance institutions (MFIs) began to recover from a crisis of client over-indebtedness and unsustainable growth, particularly in India, Bosnia, and Nicaragua. During 2011 and into 2012, this recovery continued to bring higher microfinance equity transaction volumes. Based on the responses gathered in this year’s survey, the private equity (PE) markets experienced an important increase in deal activity from the slower pace recorded in 2010. Large transactions in Latin America and the Caribbean (LAC) as well as strong flows from development finance institutions (DFIs) in India drove the increase in both the volume and the number of transactions. This is the fourth annual Microfinance Valuation Report co-authored by CGAP and J.P. Morgan.

Read the full paper at SSRN.