jean philippe tbli financial inclusion presentation final

Download Jean philippe tbli financial inclusion presentation final

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  • 1. 1A Global Private Equity FirmBamboo Finance is a commercial private equity investor specializing in business models that benefit low-income communities in emerging markets. Microfinance pioneers Management team with track record Diversified portfolio by geography and stage Demonstrated returns; funds target 20% IRR Offices in Geneva, Luxembourg, Singapore, Bogota and NairobiConfidential 11/26/2013$250M Private Equity46 Investments 30 Countries 4 Regional Hubs

2. 2A $200 Million Financial Inclusion Private Equity Portfolio Financial Inclusion Fund I Objective: Support Sector Growth Through Private Equity Deliver Commercial Returns Raise What Could Be Profitably Deployed Deploy Multiple Strategies based on GeographyConfidential 11/26/2013 3. 3Financial Inclusion Fund Portfolio Today 31 Investments Operating in 28 CountriesRussia PolandLuxembourg SwitzerlandRomaniaAlbaniaMongoliaLebanonPalestine Mexico Guatemala HondurasKyrgyzstanIraq JordanIndiaEl Salvador PhilippinesPanamaColombiaNigeria GhanaEcuadorUgandaCameroon Kenya PeruSingaporeNairobiZambia BoliviaArgentinaSouth AfricaBamboo Financial Inclusion Fund I Portfolio Companies OfficesConfidential 11/26/2013 4. 4Financial Inclusion Fund Financial Returns 2011 An exit delivering a 23% IRR2013 An exit delivering a 26% IRR and 2x Cash Multiple An exit delivering a 24% IRR and 2x Cash Multiple2014 - 2017 The forecasted growth (CAGR) of the book value for mature and transforming portfolio companies in the Financial Inclusion Fund is 17% and 40% for start-ups and transforming stage companies with several companies projected to IPO in the next three years .Bamboo Finance Overview Confidential 11/26/2013 5. 5Financial Inclusion Fund Impact Returns SYSTEMS & PROCESSESFinancial Inclusion Portfolio Outreach*MONITORING AND MEASUREMENT BEST PRACTICES AND FIELD BUILDING We developed an Impact Management System defining a comprehensive process to identify, measure, monitor and enhance impact in our investments.We developed and apply a proprietary social performance scorecard, ASPIRE.We engage with industry initiatives that promote best practices in the field of social performance, such as the UNPRI/PIIF, the SPTF the Smart Campaign and Micro Finance Transparency. Photo Sarah DjariConfidential 11/26/2013*As of 9/30/12 6. 6Lessons LearnedCOUNTRY AND REGIONAL DIVERSIFICATION IS CRITICAL TO PORTFOLIO BUILDING STRATEGY SOME COUNTRIES HAVE UNDERDEVELOPED CAPACITY SOME COUNTRIES ARE CROWDED AND COMPETITIVE EXCEPT IN NICHESLESSONS LEARNEDDEPENDENCE OF ECONOMY ON CONCENTRATED EXPORT SECTOR AND REMITTANCES IS A MAJOR RISK FACTOR THE MICROFINANCE/MSME ACTIVITY PROVES TO BE COUNTERCYCLICAL POLITICAL STABILITY AND INTERFERENCE WITH REGULATORY AUTHORITIESConfidential 11/26/2013 7. 7Lessons Learned: Asmitha Asmitha started operations in Andhra Pradesh as a NBFC (non-deposit taking institution) in 2002 Bamboo became their first institutional investor in 2008 Focus on the transformation of credit-only institutions into regulated organizations and full-fledged banks.Increased StabilityConfidential 11/26/2013Less Dependence on International FundingTransparencySavings 8. 8The Next $200M in Private Equity Financial Inclusion Fund IIObjective: Accelerate financial inclusion through multi level, multi channel private equity investing We estimate the absorptive capacity of the market is $2B over the next fund cycle Global, multi-stage vs. country or niche sector focus Focus on deposit-taking transformation 20% to adjacent servicesConfidential 11/26/2013 9. 9The Next $200M in Private Equity The Investment Case QUALITY LOAN PORTFOLIOSLOW LEVELS OF LEVERAGE5 4INCREASING EXITS WITH A GROWING INTEREST FROM A VARIETY OF BUYERS3DIVERSIFICATION2RAPIDLY GROWING MARKETConfidential 11/26/2013PROFITABLE AND SCALABLE1 10. 10The Next $200 Million Performance Driven A Mixture of Mature and Growth Stage MFIsKey Performance Indicators200720092011Yearly Average 2006-2011Gross Loan Portfolio Growth72%*21%*34%*31%Debt/Equity Ratio4.23*4.21*4.12*4.28Portfolio > at risk 30 days1.73%*3.38%*2.21%*3.67%Return on Equity18.8%*10.22%*18.8%*16.42%Price/Book Value Multiple1.2*1.7*1.4*Not available* Annualized average growth for the 2 previous years. JPMorgan/CGAP, Global Microfinance Survey 2012Bamboo Finance Overview Confidential 11/26/2013 11. 11The Next $200 Million Global Diversification Latin America Mature market with mature organizations Consolidation strategy through holding companies Domestic or cross border acquisitions led in cooperation with banks Regional expansion into new countriesConfidential 11/26/2013Asia Strong Demand Rise of family owned banks and credit-only structures Consolidation strategy on base assets above $25M Enter into underserved markets in China and MyanmarAfrica An enhanced regulatory framework in some countries Demand is outpacing supply in most countries Supply is disorganizedCreation of regional holding structures to maximize efficiencies Targeting organizations with assets above $30M 12. 12The Opportunity: Xac Bank Example Xac Bank is part of the major Mongolian financial group TenGer Financial Group (TFG). Started as a nonprofit microfinance lender in 2001 Has evolved into the fourth largest bank in Mongolia It is a fully regulated commercial bank, recognized for its transparency, governance and fair lending practices, with 500,000 customers in 21 provinces, 97 branches, and US$935 million in assets Loan Portfolio Growth TrajectoryConfidential 11/26/2013Responsible lending contributed to low defaultsHistorically strong profitability 13. 13The Opportunity: Xac Bank ExampleBamboo sold its stake in Xac Bank in 2013 Returns above 25% and 2x multiple Transaction demonstrates attractive financial returns can be combined with positive social impactConfidential 11/26/2013 14. 14The Opportunity in Financial InclusionAccess to Finance is Top 3 Driver of Growth in Low-Income Markets Consumer Demand in Low-Income Markets is Growing.There is a $400B Small and Medium Enterprise Funding Gap. Financial Access Investments Doubled in 2011 with attractive Valuations; Demand is Outpacing Supply.Economic Drivers Confidential 11/26/2013