Volume Growth and Valuation Contraction: Global Microfinance Equity Valuation Survey 2012
Toward the end of 2010, the asset quality of many microfinance institutions began to recover from a crisis of client over-indebtedness and unsustainable growth, particularly in India, Bosnia, and Nicaragua. During 2011 and into 2012, this recovery continued to bring higher microfinance equity transaction volumes. Based on the responses gathered in this year’s survey, the private equity markets experienced an important increase in deal activity from the slower pace recorded in 2010. Large transactions in Latin America and the Caribbean as well as strong flows from development finance institutions in India drove the increase in both the volume and the number of transactions.