MicroVest Invests $4 Million in Banco Solidario to Bolster Access to Finance for Ecuador’s Microenterprises

To boost access to financing for Ecuador’s microentrepreneurs, MicroVest Capital Management (MicroVest) announced an investment in Banco Solidario, one of the leading microfinance institutions in the country. MicroVest's $4 million investment aims to support the expansion of the company’s lending portfolio and boost the liquidity needs of micro- and small businesses seeking working capital in the post-pandemic environment.

MSMEs account for more than 90% of companies and jobs in Ecuador, yet receive limited access to credit and financial services (IADB). The country’s microfinance gap is estimated at $2.2 billion (SME Finance Forum) and despite Ecuador’s economic challenges brought on by COVID-19, MicroVest continued to offer assistance to its clients in the form of payment deferrals, adjusted schedules, and extended grace periods to accommodate clients facing financial constraints. MicroVest's investment seeks to catalyze the flow of capital to promote liquidity and productivity among microenterprises, which has a direct impact on hyper-local job creation and economic growth.

Founded in 1996, Banco Solidario was one of the first banks in Latin America to specialize in microfinance. The institution offers productive financing, consumer loans, and savings products for lower-income, underserved segments of the Ecuadorian population and currently reaches more than 255k active borrowers, more than half of whom are women (55%).

Banco Solidario is one of DAI-AM’s longest standing portfolio companies. MicroVest made its first loan to the company in 2004.

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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.