How would IFMR Capital convince a traditional class of capital market investors to invest in securitized microloans?
How would IFMR Capital convince a traditional class of capital market investors to invest in securitized microloans?
The Ciber Case Series
The Sanford C. Bernstein & Co. Center for Leadership and Ethics Case Series
In 2009 IFMR Capital sought to create new funding options for microfinance institutions by using a structured finance approach to attract a new class of capital market investors, including pension funds, bank treasury desks, mutual funds, and private wealth financiers. But what financial structure would be most attractive to these nonbank funders? Would the existing market infrastructure be sufficient to support the new financial structure? How would IFMR Capital ensure that the interests of all participants were aligned correctly? Would microloan securitization be scalable? In this case, students analyze the components of the launch of IFMR Trust Pioneer II to answer these questions.
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