What is Antares Equity Participation Fund?

Antares Equity Participation Fund “Antares” is a limited partnership established in Delaware, United States of America.  The fund operates from San José, Costa Rica where its Fund Manager, Omtrix, is domiciled. 
Antares is commencing operations with an initial committed capital of US$5 million.  It is conceived as the primary instrument of a focused effort to generate a deeper and more liquid secondary market for MFI’s equity shares. The funds have been committed mostly by the Gray Ghost Microfinance Fund (GG) as the founding investor.  GG stands ready to increase its investment to US$15 million if Antares’ market making activities so require. 
The Fund is an investment vehicle created to acquire equity and quasi-equity instruments in microfinance institutions (MFIs) primarily through secondary market purchases.  It is expected that most of these investments will take place in Latin American and Caribbean countries, although shares of MFIs in other regions are being considered as well. To achieve this goal, Antares may play different roles:

• Serving itself as a market maker on a limited basis, with the ability to buy, hold or sell shares, help assemble blocks of shares, and operate as a central point of information on availability and valuation of MFI assets.

• Creating a vehicle that would exchange holdings in any given MFI for its own shares.  The diversified nature of the vehicle’s holding would not only smooth cash flow and reduce risk, but further will make it easier for smaller or less active Socially Responsible Investors (SRIs) to invest in micro-finance.

• Providing investors an opportunity of buying/holding a ready made portfolio rather than concentrating their funding on one particular MFI.  Additionally, the diversified nature and cash flow of such portfolio would make it a more attractive security for loans, either to the vehicle or to individual investors who could be interested in pledging their shares.

• Increasing liquidity as well as economies of scale, with regards to:  a) pursuing opportunities, b) timing (freedom to be patient and/or be opportunistic), and c) creating opportunities (shareholders agreements, etc.). 

Antares through the acquisition of such shares and resale after a reasonable holding period would aim at serving as a vehicle that contributes liquidity to the industry, helps deepen the market by generating more arms’ length price data, and generates a return to its investors.