We are very excited to announce the recent release of a joint paper by CGAP and the Center for Financial Inclusion at Accion (CFI). This report analyzes how equity investors can exit responsibly from microfinance institutions in which they have invested. “The Art of the Responsible Exit in Microfinance Equity Sales” provides a framework for development-oriented investors to use in evaluating their exit options and balancing their exit tradeoffs.

Based on interviews with 50 industry experts and an analysis of six case studies of equity sales, the report explores the concept of a responsible exit along four strategic decisions: when to sell, who to sell to, with what conditions and at what price.

Many microfinance investors have committed to responsible finance principles. With equity holdings increasingly maturing, they will be facing questions of how to ensure continued responsible behavior by microfinance institutions and the healthy development of the broader market. As the practice of selling equity in microfinance institutions is still evolving, the report draws on emerging investor experiences to highlight key exit-related decision points that investors will face, rather than setting out specific guidelines.

Press Release: http://bit.ly/QEDL1W

Blog: http://cfi-blog.org/2014/04/23/passing-the-baton-but-to-whom-considerations-for-investors/

Paper: http://www.cgap.org/sites/default/files/Forum-Art-of-the-Responsible-Exit-April-2014.pdf

We hope you enjoy this paper and that it will encourage further industry discussion on this topic!