Funding Sources

Since 2005, Global Partnerships has launched three microfinance funds that have helped us both increase our impact and provide a financial and social return for investors. Both our donors and investors are critical to this strategy. Donors provide the "equity layer" of a fund that helps us raise the capital from institutional and individual investors. Donors also support all our operations and programs. 

Once the capital is raised for a fund, our program staff and Nicaragua-based field team work together to conduct in-depth due diligence to identify microfinance institutions (MFIs) that meet our criteria for financial stability and social impact. All investments must be approved by board-level investment and social impact committees, and after an investment is made we provide in-depth monitoring of financial and social progress to sustain and improve bottom-line performance of our microfinance partners.  

Here's a brief summary of Global Partnerships' three funds.

Global Partnerships Microfinance Fund 2005 (MFF 2005) is a $2.0 million fund composed of $200,000 in philanthropic capital as equity leveraged 10 times by $1.8 million in private capital from qualified individual and institutional investors. GP MFF 2005 is currently invested in eight partners in four Latin American countries.

Global Partnerships Microfinance Fund 2006 (MFF 2006) is an $8.5 million fund composed of $255,000 in philanthropic capital as equity leveraged at a ratio of 32 to 1 by $8,245,000 in socially motivated debt capital from qualified individual and institutional investors. The fund closed in March 2007 and was disbursed to 14 qualified MFI partners in six countries.

Global Partnerships Microfinance Fund 2008 (MFF 2008) is a $20 million fund composed of $1.5 million in philanthropic capital as equity leveraged by $18.5 million in socially motivated investment capital from qualified individual and institutional investors. The fund closed in November 2008 and will expand Global Partnerships' support to almost 30 partners in eight countries.