Where would Antares invest?

Antares expects that most of its investments would come from the secondary market, specifically purchases from stakeholders that are willing to sell all or part of their holdings.  Through the purchases of such shares and their resale after a reasonable holding period, Antares aims at contributing to generate some liquidity to the industry, help deepen the market by generating more arm’s length price data, and also obtaining a return for its investors.
Antares will focus on financial intermediaries whose main line of business is lending money to micro and small enterprises.  This category includes among others, commercial banks and non-financial companies serving micro entrepreneurs.  Though most of its investments will be in Latin America and the Caribbean, Antares expects that a portion of its portfolio will be located in other regions.

Typically, Antares would invest in strong, mature MFIs, normally paying or soon expected to pay dividends.  The Fund will seek MFIs with a strong management team and successful track record in the management of financial services institutions and/or microfinance.  The MFI must have a clear definition of roles and responsibilities at all levels of the organization, including the critical relationship between the Board of Directors and Management, and a clear institutional vision duly communicated to the staff and the market. Basically, Antares will focus on strongly governed and solidly operated MFIs.  In specific cases, Antares could also collaborate with like-minded investors in the capitalization of newly created/converted MFIs that are expected to have upside potential, or in effecting mergers. 

ANTARES EQUITY PARTICIPATION FUND

As of March 31, 2007 Antares Equity Participation Fund had invested through secondary market operations in the equity (common shares) of 6 regulated and private owned microfinance institutions (MFIs). As of today, Antares has invested a total of US$2,846,525.

The following is a detail of Antares’ investments and sales in IMFs made by Antares since inception:

Findesa

Date of Investment: August 21, 2006
Current Shareholding: 3.90%
Findesa is a non-banking regulated entity since 2002. It provides funding to rural and urban Nicaraguan micro and small enterprises through its 19 branches. On August 21, 2006 Antares purchased 965 shares through a secondary market operation. As of December 31, 2006 Antares EFF had a 3.90% shareholding in Findesa.

EDPYME Confianza

Date of Investment: September 9, 2006
Current Shareholding: 2.39%
EDPYME Confianza became a regulated entity in 1998, when the Securities and Banking Superintendence of Peru authorized Confianza, to operate in the departments of Junin and Huancavelica. It has been able to attract funding from both local and international sources. Among some of its shareholders are Alterfin, FOLADE, INCOFIN, SIDI, Volksvermogen, NOVIB and Oikocredit (53.80% altogether), and more recently Triple Jump. Antares’ original investment comprised Type A and Type C shares. During 2006’s last quarter, through an ESOP, Antares sold to Directors and Employees of Confianza its Type C shares, representing a 2.8% of Confianza’s total capital. As of December 31, 2006 Antares shareholding in Confianza was 2.39%.

EDPYME CREAR TACNA

Date of Investment: September 21, 2006
Type of Investment: Equity
Current Shareholding: 8.23%
Crear Tacna became an EDPYME (Development Entity for Small and Micro Enterprises) in 1998. Antares became the first international institutional shareholder in Crear Tacna when it bought shares from the founding NGO: Habitat Tacna Siglo XXI. Until then, all the equity funding had been made by local entrepreneurs. As of December 31, 2006 Antares had an 8.23% shareholding in EDPYME Crear Tacna.

BANCO SOLIDARIO

Date of Investment: October 8, 2006
Type of Investment: Equity
Current Shareholding: 2.14%
Banco Solidario became a bank in 1996, supported by foreign investors such as ACCION International, Andean Development Corporation, CARE, ProFund International and Fundación Alternativa. Banco Solidario has 43 branches throughout Ecuador from which it offers widespread products such as individual loans, solidary group loans, rural credits, saving and bank accounts, etc. As of December 31, 2006 Antares had a 2.14% stakeholding in Banco Solidario.

SOGESOL

Date of investment: November 8, 2006
Type of investment: Equity
Current shareholding: 10.14%
Sogebank is Haiti’s largest commercial bank; created in 1986 by the acquisition of two branches from the Royal Bank of Canada. Sogesol is a service company that generates and manages microfinance loans for Sogebank. Antares Fund is currently the owner of a 10.14% stakeholding in Sogesol.

BancoSol

Date of investment: January 29, 2007
Type of Investment: Equity
Current Shareholding: 4.00%
Banco Solidario established in 1992, is today one of the leading microfinance banks in Bolivia. As of today BancoSol has 48 branches throughout 7 departments. Antares stakeholding was bought from an international institutional investor. As of March 31, 2007 Antares had a 4% stakeholding in BancoSol.