S M A L L H O L D E R B U S I N E S S E S I N N I C A RA G U A

V A T I C A N S E S S I O N : I N V E S T I N G F O R T H E P O O R

1 6 J U N E 2 0 1 4© Board of Trustees of Santa Clara University

© Board of Trustees of Santa Clara University

I N S P I R E D BY I M PA C T

• Equity exits are difficult to achieve in base-of-pyramid markets

• For micro-enterprises, access to capital remains stubbornly difficult or too expensive

• Involvement by local banks requires a pledge of substantial assets (that the poor do not have)

• Capacity development needed at *every stage* © Board of Trustees of Santa Clara

University

O B S E RVAT I O N S F R O M T H E F I E L D

© Board of Trustees of Santa Clara University

D I V I D E N D F R O M G E N D E R L E N S

VA R I A B L E PAY M E N T O B L I G AT I O N( D E M A N D D I V I D E N D )

…Bringing financial inclusion to women-led businesses

Image courtesy of Madre

B A C VA R I A B L E PAY M E N T O B L I G AT I O N T R U S T

$600,000 pool of capital for the pilot stage $25,000 - $50,000 loan size Focusing on women-led businesses

51% owners or principal managers Average $150K annual revenue in Nicaragua

5-year term Target IRR is 10% - 15% Screening done by Agora and BAC VPO is a Demand Dividend structure

Image courtesy of Madre