By Sam Mendelson and Daniel Rozas, April 2018.

With the growing maturity of the microfinance industry, a question that has come into sharper focus is how social investors committed to advancing responsible finance practices should “exit responsibly” from the microfinance institutions (MFIs) – and, increasingly, the broader category of financial service providers (FSPs) and other companies working in financial inclusion – in which they have invested.

Leveraging an industry consultation process, this research provides a consolidated investors’ own emerging principles and procedures in assessing potential buyers, and uses the findings to produce a Conceptual Framework for Buyer Selection in financial inclusion equity exits. The framework serves as a resource for investors embarking on an equity sale, providing them with a concrete, industry-recognized framework to evaluate an exit.

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