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Investment & Exit Strategies

The Lok Capital Group believes Indian Microfinance Institutions represent a compelling investment opportunity from both a commercial and social development standpoint. 

Indian microfinance institutions are demonstrating exciting annual double-digit growth across a range of operational metrics – client base, portfolio outstanding, revenue and earnings – as well as leading globally in efficiency, leverage, pricing, product development and social contribution.

 
     
 

However, with their phenomenal growth characteristics, both leading and emerging microfinance institutions continue to require equity capital and board level strategic input to rapidly scale while maintaining capital adequacy norms, attracting and retaining excellent management teams and taking advantage of new strategic alternatives.
 
Lok Capital sees itself as a financial and strategic bridge to help create and grow businesses that make a social impact in the area of financial inclusion in a commercially sustainable and scalable manner. We are open to exploring microfinance investments in India across regions, stages and business models.

 
 
 

We are enthusiastic advocates for our investees, whom we seek to empower with our capital, strategic advice, and combined 50 years of experience in the fields of private equity, investment banking, consulting, law and microfinance.

Above all, we place greatest emphasis and value on the relationships we build with the founders and promoters of our portfolio companies. We believe that achieving philosophical alignment with these entrepreneurs will allow us to together explore a range of attractive exit opportunities, which include public offerings, mergers, strategic sales, and divestment through an increasingly liquid secondary market for microfinance assets.