Jean philippe tbli financial inclusion presentation final
-
Upload
tbli-conference -
Category
Economy & Finance
-
view
118 -
download
2
Transcript of Jean philippe tbli financial inclusion presentation final
Confidential04/12/2023
1
A Global Private Equity Firm
• 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 Nairobi
$250MPrivate Equity
46 Investments
30 Countries
4Regional Hubs
Bamboo Finance is a commercial private equity investor specializing in business models that benefit low-income communities in emerging markets.
Confidential04/12/2023
2
A $200 Million Financial Inclusion Private Equity Portfolio
Objective: Support Sector Growth Through Private Equity
Deliver Commercial Returns
Raise What Could Be Profitably Deployed
Deploy Multiple Strategies based on Geography
Financial Inclusion Fund I
Confidential04/12/2023
3
Financial Inclusion Fund Portfolio Today
Lebanon
Uganda
Kenya
Ghana
Mongolia
El Salvador
Zambia
South Africa
Bolivia
Argentina
Bamboo Financial Inclusion Fund I Portfolio Companies
Offices
Guatemala
Panama
India
Peru
Ecuador
Nigeria
Honduras
KyrgyzstanRomania
Jordan
Cameroon
Colombia
Singapore
SwitzerlandAlbania
PolandRussia
Mexico
Luxembourg
Philippines
Palestine Iraq
Nairobi
31 Investments Operating in 28 Countries
Confidential04/12/2023
4
Financial Inclusion Fund Financial Returns
An exit delivering a 23% IRR2011
An exit delivering a 26% IRR and 2x Cash Multiple An exit delivering a 24% IRR and 2x Cash Multiple
2013
2014 - 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
Confidential04/12/2023
5
Financial Inclusion Fund Impact Returns
Pho
to S
ara
h D
jari
• 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.
SYSTEMS & PROCESSES
MONITORING AND MEASUREMENT
BEST PRACTICES AND FIELD BUILDING
Financial Inclusion Portfolio Outreach*
*As of 9/30/12
Confidential04/12/2023
6
Lessons Learned
COUNTRY AND REGIONAL DIVERSIFICATION IS CRITICAL TO PORTFOLIO BUILDING STRATEGY
DEPENDENCE OF ECONOMY ON CONCENTRATED EXPORT SECTORAND REMITTANCES IS A MAJOR RISK FACTOR
LESSONS LEARNED
SOME COUNTRIES HAVE UNDERDEVELOPED CAPACITY SOME COUNTRIES ARE CROWDED AND COMPETITIVE
EXCEPT IN NICHES
THE MICROFINANCE/MSME ACTIVITY PROVES TO BE COUNTERCYCLICAL
POLITICAL STABILITY AND INTERFERENCE WITH REGULATORY AUTHORITIES
Confidential04/12/2023
7
Lessons Learned: Asmitha
Increased Stability
Less Dependence
on International
Funding
Transparency Savings
Focus on the transformation of credit-only institutions into regulated organizations and full-fledged banks.
Bamboo became their first institutional investor in 2008
Asmitha started operations in Andhra Pradesh as a NBFC (non-deposit taking institution)
in 2002
Confidential04/12/2023
8
The Next $200M in Private Equity
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 services
Objective: Accelerate financial inclusion through multi level, multi channel private equity investing
Financial Inclusion Fund II
Confidential04/12/2023
9
1
2
3
4
5
RAPIDLY GROWING MARKET
QUALITY LOAN PORTFOLIOS
LOW LEVELS OF LEVERAGE
INCREASING EXITS WITH A GROWING INTEREST FROM A VARIETY OF BUYERS
PROFITABLE AND SCALABLE
DIVERSIFICATION
The Next $200M in Private Equity The Investment Case
Confidential04/12/2023
10
The Next $200 Million
Key Performance Indicators 2007 2009 2011Yearly Average
2006-2011
Gross Loan Portfolio Growth 72%* 34%*
Debt/Equity Ratio 4.23* 4.12*
Portfolio > at risk 30 days 1.73%* 2.21%*
Return on Equity 18.8%* 18.8%*
Price/Book Value Multiple 1.2* 1.4*
21%*
4.21*
3.38%*
10.22%*
1.7*
31%
4.28
3.67%
16.42%
Not available
Performance Driven
* Annualized average growth for the 2 previous years. JPMorgan/CGAP, Global Microfinance Survey 2012
Bamboo Finance Overview
A Mixture of Mature and Growth Stage MFIs
Confidential04/12/2023
11
The Next $200 Million
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 countries
Asia
• 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 Myanmar
Africa
• An enhanced regulatory framework in some countries
• Demand is outpacing supply in most countries
• Supply is disorganized
• Creation of regional holding structures to maximize efficiencies
• Targeting organizations with assets above $30M
Global Diversification
Confidential04/12/2023
12 The Opportunity: Xac Bank Example
Loan PortfolioGrowth Trajectory
Responsible lending contributed to low defaults
Historically strong profitability
• 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
Confidential04/12/2023
13
The Opportunity: Xac Bank Example
Bamboo 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 impact
Confidential04/12/2023
14
Access 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
The Opportunity in Financial Inclusion