Program Related Investments: Our Investments
As of the end of 2007, our Foundation made two Program Related Investments (PRIs): MicroVest I, and Pico Bonito LLP. We intend to invest in one to two additional PRIs per year for the next three to five years.
MicroVest I, LP - Debt
MicroVest Capital Management is developing a mainstream commercial market for microfinance by creating an instrument that offers significant return to investors while financing the working poor. MicroVest I is a private debt and equity fund that invests in carefully selected microfinance institutions.
MicroVest I invests through debt, subordinated debt, equity, and loan guarantees. In addition to equity investments, debt obligations in the form of renewable notes are also offered. Based on the expected investment portfolio mix, MicroVest is targeting a gross portfolio yield of 10–11%, resulting in a yield of approximately 7-8% for its equity investors, and approximately 3-5% for its debt investors. This PRI was made as a note to the MicroVest I Debt portion of the fund.
MicroVest I allocates capital to carefully selected Micro Finance Institutions supporting social entrepreneurs leading micro enterprises. Our Foundation's program supporting social entrepreneurs worldwide is aligned with this investment.
Pico Bonito, LLP
Pico Bonito, LLC is a limited liability company incorporated in the state of Delaware, USA and was formed for the purpose of investing in Pico Bonito-Ecologic, SrL, a Honduran operating company that will acquire certain land areas in and around the Pico Bonito National Park, La Ceiba, Honduras to reforest these areas for the benefit of the local communities and national interests while creating various forestry, agro forestry, and carbon credit based products for distribution and sale.
This equity investment is helping to pioneer an innovative and unique business model that combines sustainable forest management, community development, and forest restoration and conservation. This PRI is aligned with both programs of our Foundation.