MicroVest Invests in Rentek to Facilitate MSME Growth in Colombia

To support the post-COVID-19 recovery for Colombian MSMEs, MicroVest Capital Management (MicroVest) has invested in Rentek, a financial services company specializing in commercial and industrial machinery leasing, business lending, factoring, and vehicle financing.

The $2.5m investment will support the company’s ability to expand access to financing for underserved small businesses and support their liquidity needs in a post-COVID environment.

Colombia remains one of the countries with the highest income inequality and labor market informality in Latin America (World Bank) and recently experienced one of the most severe economic recessions in its history. MSMEs in Colombia are responsible for 80% of all employment in the country, with micro-enterprises alone accounting for more than half (OECD). Of the estimated 2.5 million MSMEs in Colombia, 94.7% are microenterprises with less than 10 employees (Colombian Confederation of Chambers of Commerce) who often cite a lack of access to capital as a key challenge.

The banking sector in Colombia remains focused on serving large corporates and households at the top of the income distribution, which often leaves SMEs unable to establish a primary banking relationship.

This is MicroVest's second loan cycle with the company.

DISCLOSURE INFORMATION

The information contained here has been written for MicroVest Capital Management, LLC (“MicroVest”) and no representation or warranty, expressed or implied is made by MicroVest as to the accuracy or completeness of the information contained herein. The portfolio company highlighted is for informational purposes only and does not represent all of the portfolio holdings and it should not be assumed that investments in the portfolio company identified and discussed were or will be profitable. The information presented on this page is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to purchase an interest in any MicroVest product (the “Funds”), and nothing herein should be construed as such. Any such offer or solicitation will be made only by means of delivery of a definitive private offering memorandum which contains a description of the significant risks involved in such an investment. Prospective investors should request a copy of the relevant Memorandum and review all offering materials carefully prior to making an investment.