Equity at Triple Jump

Equity is one of the instruments we at Triple Jump can offer to assist our partners in their development. Triple Jump has been offering equity actively since 2006 through the ASN-Novib Microcredit Fund, and since 2008 through the NOTS Fund. When considering potential investments, what we look for first and foremost are a shared vision and shared values.

A Relationship of Mutual Trust
Becoming a shareholder implies a special relationship of mutual trust. At Triple Jump we aim to have this type of privileged relationship with all of our clients. This develops over the years, and often begins with a loan or subordinated debt. Nonetheless, this does not preclude us from becoming a shareholder from the beginning of the relationship, if this is perceived as mutually desirable.

Adding Value
Once we join in the capital of an MFI, we seek to add value by participating in the institution’s board, either with experienced Triple Jump staff or an expert from our extensive network. Our staff and network of experts have a mix of skills to help contribute to the governance of the MFI. As a member of the board, we take our role seriously, and participate actively in the governance of the institution. Given our focus on second and third tier microfinance institutions, we have a network of experts who can assist our partners with specific issues, for example transformation or the introduction of savings products.

Patient Capital
We are longer-term, value investors. Longer-term because the funds we manage are open-ended, meaning that we do not have a strict deadline for exit. This allows us to be patient, and to work with our partners on their medium and long-term strategy. It also means that we do not invest based on short-term market speculation, but rather that we will look at the MFI’s inherent potential to grow and incorporate more micro-entrepreneurs into the financial system.

Social Performance
When we participate in the capital of an MFI, we aim to help the MFI fulfill its own social mission as well as ensure that it has implemented at least a minimum of client protection measures. Triple Jump has endorsed the Client Protection Principles and developed an in-house social performance assessment tool which can be used to identify the strong points and gaps in an MFI’s social performance. Additionally, Triple Jump Advisory Services can help MFIs implement social performance within their organizations.

Types of Shareholders
When we participate in an institution’s capital, we always take a minority stake. We believe in autonomous development and a diversified governance structure. Preferably, MFIs should have a mix of local and foreign owners, and possibly the MFI’s own staff may share in the capital of the institution as well, through an ESOP. We can help prospective investees to find the right mix of investors, and help them access socially responsible capital markets.

Conclusion
Together with our investees, we focus on preserving their mission while working towards increased economies of scale, which in turn can help the MFI to offer an increasing variety of efficiently priced products including loans, savings, insurance, pensions and remittance services. Implementing these types of products takes funding, time and expertise. As a shareholder, Triple Jump seeks to provide all three.