Triple Jump news - Monday, May 02, 2011

ASN-Novib Fund sells stake in CREAR

MAY 2011 – On behalf of the ASN-Novib Fund, Triple Jump has sold the 6.8 % stake in Financiera Créditos Arequipa S.A. (‘Financiera CREAR’) to Compartamos S.A.B. de C.V. (‘Compartamos’).

CREAR is one of the most successful microfinance institutions (MFIs) in Peru. Compartamos is a Mexican Bank specialized in microfinance and is a clear market leader in its home country.

Triple Jump is extremely satisfied with the transaction. “Our philosophy is to help MFIs mature and reach the next level of development. CREAR has clearly reached a new phase and will benefit from the experience of its new owner,” says Steven Evers, Managing Director of Triple Jump. “The transaction also illustrates that we are able to implement our exit strategy successfully.”

The ASN-Novib Fund had a stake in CREAR since 2006. Triple Jump manages several other equity investments in Latin America and Asia and will increase its equity activity over the next few years.

Compartamos bought an 82.7% stake in CREAR. The transaction is subject to the approval of the Peruvian Banking and Insurance Commission and Private Pension Funds (AFP), as well as the finalization of the corresponding legal documents, with an expected conclusion during the second quarter of 2011.

Carlos Labarthe, Executive President of Compartamos said, “This transaction fills us with pride, while reinforcing Compartamos’ strategy. In Peru, we are witnessing a mature financial sector, as well as a potential market for group loans, which is currently underserved. CREAR is one of the strongest financial institutions in Lima and Arequipa.”
Peru has experienced one of the highest macroeconomic performances in Latin America, with GDP growth of 8.5% and inflation of 2.2% during 2010. According to the Economist Intelligence Unit publication, Peru is a leading country in terms of the business environment for the microfinance sector given its regulatory framework, investment climate and institutional development.