Finethic Microfinance SICAR (the French acronym for risk capital investment company) is a microfinance investment vehicle (MIV) established in 2005 and based in Switzerland. It aims to use microfinance as a tool to serve disadvantaged people. Finethic allots all its management fees to the Finethic Foundation, which supports projects targeting education, health and eradicating child labor in developing countries.The Foundation also funds microentrepreneurial projects.In April 2011, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector.
Finethic does not report to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse. The Finethic initiative is designed to ally finance with ethics. Through microfinance, it uses finance as a tool to serve the disadvantaged by offering institutional and private investors the opportunity to invest their money in support of micro-businesses around the world. These investments are made by purchasing shares in the investment fund Finethic Microfinance SICAR of Luxembourg. Another socially responsible aspect of this investment vehicle is the way in which Finethic Microfinance SICAR uses its management fees, which are fully allotted to the Finethic Foundation. This Swiss non-profit foundation operates under the surveillance of the Swiss Federal Supervisory Board for Foundations in Berne.
|Investment Name||Finethic SICAR|
|Nature of Business||Microfinance fund of funds|
|Impact||Access to finance for the base of the pyramid|
|Entrepreneur||Jacques Grivel; Paul Blyth|
|Investment Date||June 2012|
|Total Investment Round||Open fund|
|Panahpur Investment||Euro 100,000|
|Nature of Investment||Equity in SICAR|
|Target Return||2-3% IRR|
|Estimated Redemption||Liquid investment|