Omtrix
has participated in the following initiatives:
1.
Management of ProFund Internacional (1994 – 2005)
In 1994, Omtrix was hired to establish and manage ProFund Internacional,
a US$ 22 million for-profit investment fund promoting the growth of regulated
and sustainable financial intermediaries whose main target market was
the small and microenterprise (SME) sector of Latin America and the Caribbean.
ProFund sought a high return on investment for its shareholders and increased
access to capital for micro and small entrepreneurs.
ProFund provided equity and quasi-equity resources to eligible financial institutions seeking to expand and improve their operations on a sustainable and large-scale basis. ProFund invested in twelve institutions in ten different countries and provided oversight and governance in a rapid-growth and unstable environment. Portfolios of investee institutions grew to a total of over US$ 800 million, and more than 900,000 SMEs were served by these institutions. As a closed-end fund, ProFund was liquidated after ten years according to the terms of its charter. It achieved a 6.65% internal rate of return, and these returns created a demonstration effect, with the number of financial intermediaries serving the target market increasing as other investors followed ProFund’s lead .
2.
Supervision of MFIs (2000 – 2004)
In 2000, Omtrix was contracted by the Multilateral Investment Fund (MIF)
of the Inter-American Development Bank (IADB) to supervise its microfinance
investment/loan portfolio of US$ 11.2 million in Latin America and the
Caribbean. The agreement included the oversight of financial institutions
located in Bolivia, Colombia, Dominican Republic, Panama, Trinidad and
Tobago, Uruguay and Venezuela.
Under this agreement, Omtrix was responsible for conducting site visits, preparing comprehensive quarterly and semi-annual reports on each operation, occasionally participating as MIF’s board representative in certain entities, as well as providing recommendations to the MIF on strategic decisions.
3.
Technical assistance to AfriCap Microventures, Ltd. (2000 – to date)
In 2000, Omtrix signed a consulting agreement with AfriCap Microventures
Ltd. to provide technical assistance for the establishment and implementation
of an investment fund focused on promoting the growth of regulated financial
institutions in Africa that specialize in providing services to micro
and small enterprises.
Under this contract, Omtrix has:
- Advised
on the selection and hiring of a locally-based (South Africa) Investment
Manager
-
Advised on the establishment and organization of AfriCap’s Governance
Structure
-
Contributed to the preparation of AfriCap’s Investment Policies
and Guidelines
- Aided in raising US$ 13.3 million in funds
Omtrix now provides advisory services for AfriCap. After only four years of existence, AfriCap is already profitable and recently returned US$ 1 million to investors. AfriCap II, a larger US$ 30 million fund, will be created to meet growing demand and cultivate new investment opportunities.
4.
Feasibility study on a Latin American Mortgage Finance Facility- LAMFF
(1999 – 2001)
From 1999 to 2001, Omtrix collaborated with Grupo Roble (El Salvador)
to prepare a feasibility study on the creation of a Latin American Mortgage
Finance Facility (LAMFF) for Central America, Dominican Republic, Ecuador
and Panama. As a wholesale second-tier lending institution, LAMFF would
have complemented depository institutions by purchasing and/or rediscounting
mortgage loans originated by primary market lenders. As a result, LAMFF
would have fostered the adoption of a market-based housing financing model
and the introduction of innovative instruments for the provision of affordable,
long-term resources to facilitate home purchases by low to moderate income
families. Omtrix completed the pre-feasibility study in mid 2001.
5.
Management of the Emergency Liquidity Facility- ELF (2002 – to date)
Since 2002, Omtrix has been working with the Multilateral Investment Fund
(MIF) of the Inter-American Development Bank (IADB) to define and structure
a facility that will help the microfinance sector in dealing with temporary
liquidity shortages caused by exogenous events. Omtrix was entrusted with
managing ELF, a US$ 11.5 million loan facility that serves as a lender
of last resort to MFIs located in Latin America and the Caribbean by providing
6 to 24 month loans to MFIs whose liquidity position has been affected
by unforeseen externally inflicted circumstances such as natural disasters
or economic shocks. In less than four years of operation, ELF provided
emergency loans totaling US$ 10.6 million to twelve MFIs. All loans are
current and/or have been paid as scheduled.
Omtrix is also responsible for managing a parallel US$ 780,000 Technical
Services Facility (TSF), which has provided technical diagnostics and
risk management plans to 47 MFIs in fourteen different countries to improve
their internal structure to better cope with future liquidity crises.
6.
Management of the Antares Fund (2006 – to date)
Omtrix recently developed and now serves as fund manager of the US$ 5
million Antares Fund, a for-profit equity participation facility sponsored
by Gray Ghost Microfinance Fund LLC. This Fund aims to foster a secondary
market for MFI shares by acquiring, holding, and trading participations
in MFIs. Omtrix identifies, conducts due diligence and structures potential
investments, as well as identifies potential buyers and conducts sales
negotiations.
The
Fund will invest in strong, mature MFIs principally in Latin America and
the Caribbean and with solid operations and market position. Antares anticipates
being a passive investor acquiring MFI shares mostly through secondary
market purchases, with minority holdings of 3% to 15%, and hopes to benefit
from value appreciation during the holding period and unlock and capture
value in existing illiquid MFI holdings.
7.
Management of the Short Term Liquidity Facility- STLF (2005 – to
date)
The Short Term Liquidity Facility was initiated in 2005 to provide short-term
loans to MFIs facing temporary liquidity gaps caused by unexpected funding
shortages. This US$ 5 million Facility complements ELF by serving as a
non-systemic “Lender of Last Resort.” Omtrix acts as the agent
for Gray Ghost Microfinance Fund for Social Investments. STLF has provided
eighteen loans to eleven MFIs totaling nearly US$ 9.2 million and has
proven its capacity for a fast turn-around of its operations (less than
two weeks). All loans are current and performing according to initial
terms.
8. Calmeadow (2005-to date)
Calmeadow is a registered Canadian NGO that for 20 years has supported innovative ideas in microfinance; ideas that promote greater levels of efficiency and outreach through the commercial provision of financial services to low-income borrowers and microentrepreneurs. From humble beginnings as a family charity, Calmeadow’s work has produced far reaching impacts on the global microfinance industry. Given the tremendous growth of the microfinance industry the role of Calmeadow has changed some. However, Calmeadow continues to focus on the bottlenecks and frontiers of this rapidly changing sector with the goal of promoting appropriate and efficient financial services for low-income individuals and their businesses provided by commercial financial institutions.
9. Risk Management Facility-RMF (February 2008-to date)
The Risk Management
Facility will principally address Market Risk, Credit Risk, Liquidity
Risk, and Operational Risk and will seek to adapt international standards,
such as the methodologies put forth in Basel II to the needs and realities
of regulated and unregulated microfinance institutions in the region.
Omtrix has been responsible for both the structuring and fundraising of
the facility. The financial plan for the facility has been recently completed
with funding from highly respected industry participants such as the State
Secretariat for Economic Affairs (SECO), Calmeadow, Appui au Dévelopment
Autonome (ADA), DOEN Foundation (DOEN), and Nederlandse Financierings-Maatschappij
voor Ontwikkelingslanden N.V. (FMO). Total funds committed amount to US$2,200,000.
These funds will be used to make technical assistance available, under
a cost participation scheme with participating MFIs, to close to 50 MFIs
over the course of five years.
10.
Board Representation
Omtrix engages in monitoring and representation on the Boards of various
MFIs for international investors such as the Inter-American Development
Bank, Multilateral Investment Fund, Desjardins and Triodos Bank.
11.
Short Term Consulting Projects
With its extensive knowledge and experience in the microfinance industry,
Omtrix has engaged in several short-term consulting projects, including
work for:
• Development Alternatives, Inc. (DAI): Appraisal of Centurion Fund-Russia as well as Fondo 5 de Mayo and DESPENO in Mexico
• UK’s Department for International Development (DFID): Bangladesh- Appraisal of INCOME Project
• Accion International: Appraisal of Capital Markets Unit
• FUSADES: Appraisal of Propemi Project
• The McCabe Foundation: Appraisal of the Friendship Bridge Program
