MicroRate’s sixth annual global microfinance investment survey brings interesting findings to the microfinance community. This survey summarizes the dramatic growth of microfinance investment vehicles (MIVs) during the past six years, and finds that the microfinance sector has grown 12% during 2010 as compared to 22% during 2009.  The global financial crisis that began in 2008 was the major contributing for the decline of MFIs’ demand for funds.  However, improving economic conditions in emerging markets led to a return of MFI demand for funding that has increased steadily in2011. Interestingly, the survey reveals that government regulation, negative publicity of microfinance and lack of demand from investable MFIs were the main factors that hindered microfinance sector growth. Moreover, this survey finds that Latin America and the Caribbean (LAC) and Europe and Central Asia continue to account for the majority of microfinance investments globally, receiving a combined total of 73% of all microfinance investment in 2010.

In terms of MIV investors, BlueOrchard continues to be the largest multi-fund manager of microfinance assets with $777 million of its $1.06 billion total assets invested in microfinance. BlueOrchard is followed by responsAbility with $634 million in microfinance assets. These two managers held the same relative positions at the end of 2009. According to the survey respondents, there is a positive investment outlook for the quality and quantity of growth for the MIV industry for the remainder of 2011 and 2012.

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