Training Program
Training Course Description
The comprehensive, interactive 3-day course considered key aspects of investment in microfinance institutions in developing countries in general – and South Asia specifically - from the perspective of the management and board of the MFI. The course included basics in investing and focused on typical debt and equity transactions that are necessary for growing MFIs. Among the topics included were: key financial performance measures used by investors, trends in microfinance capital markets, types of investors and their expectations, transformation from NGOs to for-profit institutions, valuation of the MFI, negotiating the term sheet, closing and exits.
Methodology
The course utilized presentations and case studies, supported by key readings from the field of microfinance. The course included in-class assignments, focused discussions of institutions’ financials and experiences, demonstrations of different methods of valuation, and a simulated negotiation of the terms of a transaction based on a term sheet from a fictitious investor.
Expectations
All participants were expected to attend for the full three days and share performance data and management issues from their MFI, which were treated in a confidential manner for learning purposes only. All participants were expected to have a working knowledge of basic financial performance ratios used in microfinance.
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