Direct Investments for specialized investors
The Loans Account is designed for specialized fund managers and institutional investors wanting to provide direct private investments to financial institutions active in Micro or Small Enterprise Impact finance in emerging markets. The account will give you access to a full range of services to assist your investment processes, including selection, origination, monitoring, servicing and expert knowledge support.
We will design an advisory mandate tailored on your investment objectives. We will define together your positioning and focus which will bring competitive advantages to your investment strategy. Based on your eligibility criteria, this account will help facilitate your investment step by step through its standardized and proven investment process.
- 1005 Institutions Researched
- 71 Countries
- 4,885 mUSD Disbursed
- 3683 Closed Transaction
- 1,939 mUSD Outstanding
- 272 Investees
Symbiotics has developed a standardized procedure to perform due diligence and risk assessment on microfinance investments. This thorough and proven process has assisted more than 27+ asset managers and institutional investors in more than 1000 microfinance transactions.
Symbiotics’ investment analysts receive three years of audited and non-audited financial and operational information, both in paper format or electronically, in addition to all legal due diligence elements. The compilation and analysis of this information produces a ten to fifteen page Institution Desk Review report.
Pursuant to the Desk Review, Symbiotics’ investment analysts travel on-site to perform the credit risk analysis, through interviews and credit scorings. The methodology covers both past quantitative performance and a qualitative assessment of future risk, compiling 55 indicators. The output report is a two to three-page Credit Risk report.
Following the desk review and credit risk analysis, Symbiotics’ investment analysts perform a Social Responsibility assessment based on key institutional components (governance, people, products, clients, community, environment), which produces a two to three-page output report on Social Responsibility.
Symbiotics’ investment analysts collect monthly key indicators on each financial institution monitored. The analysts then produce indicators, ratios, graphs and qualitative follow-up of key risk factors which are updated monthly, after having exchanged with the institution on key elements of change.
Through our investment selection process, we seek to identify innovative and solid microfinance institutions and best -in-class small enterprise impact institutions and funds in emerging markets to find and close investment opportunities in line with the investment strategies and guidelines of our clients.
The Symbiotics‘ team has developed a global pipeline of investment opportunities: collecting, aggregating and filtering funding needs of financial institutions which have a Funding Account. Each investment opportunity is posted on the Investment secured internet platform and pre-negotiated based on current market conditions.
The Investment Proposals are available for institutional investors, with: 1) a top down approach, if proactively developed by the client; 2) a bottom up approach on a first come first serve basis, if emerging from the financial institutions; 3) on a horizontal or transversal basis, through syndications of different institutional investors for larger transactions. In any case, the client which has booked an investment proposal will have online access to terms and conditions of the transaction and all the relevant documents on the investee.
2.3Negotiation & Closing
Symbiotics represents the institutional investor during its negotiation with a given financial institution, and advises him/her accordingly, through both industry and transaction expertise, until all terms and conditions are finalized. The investment operations’ team is then in charge of making the closing and clearing all obligations and required precedents.
Syminvest provides a centralized platform for your portfolio monitoring and risk management. Symbiotics also handles all the servicing related to your deals, including transaction compliance, payment collection, portfolio reporting, risk monitoring and valuation.
Symbiotics is in charge of payment collection, including all reminders, follow-ups and confirmations with the institutions engaged in the payment value chain. In case of default, the investment operations’ team will be in charge of managing any technical or payment defaults, including work-out procedures.
Symbiotics performs monthly institutional monitoring and transaction risk assessments, including legal covenant compliance reviews. The risk management team may require additional on-site reviews, covenant renegotiations and other measures required by the client.
Symbiotics advises the client in relation to valuing the transaction at any given moment and produces the portfolio reporting necessary for him/her to close his accounts and produce periodic reporting to his investors.