Living in Peace takes a role of a middle man to bridge between individual investors and microfinance borrowers. Between individual investors and microfinance borrowers, there are brokerage firms in Japan and microfinance institutions in various countries. In order to increase financial access to all, which leads to poverty reduction, LIP finds microfinance institutions in need of more capital to increase borrowers and create a microfinance investment fund. Since we do not have a license to deal financial transaction, once we find partner microfinance institutions, the task of the financial transaction, include collecting investment from an individual investor, pass over to a partner brokerage firm. We are in charge of finding the partner microfinance institutions to create the microfinance investment fund, then monitoring the partner and reporting the performance to the investors.

Figure: Where we stand

Process to create a microfinance investment fund

LIP leads the investment process from deal sourcing, conducting due diligence, investment conditions negotiations to monitoring.

When we choose our partner, we focused on three criteria;
I. The organization has mission to provide equal opportunity and poverty reduction
II. The organization keeps financial strength
III. The organization has healthy organizational governance

Fund Achievement

 

Name of MFIs Country Fund size Currency Fund start Fund end
SAMIC Cambodia 37,081,800 USD 2010/01/01 2012/12/31
98,696,400 KHR 2013/04/01 2019/05/31
Seilanithih Cambodia 29,398,950 USD 2011/01/01 2013/12/31
TYM Vietnam 64,156,050 VND 2012/05/01 2017/04/30