Private Equity

DWM is one of the largest managers in the world of committed capital for equity investments in inclusive finance. We aim to deliver superior social and financial returns to investors. We invest directly in leading MFIs, microfinance networks and regional vehicles, SME lenders, and in other inclusive financial institutions (IFINs) for low-income populations.

Our team comprises seasoned professionals with deep finance experience and strong social motivation. We look for industry-changing transactions, taking controlling stakes and bringing active corporate governance to our portfolio companies. Throughout our private equity business we apply best practices from corporate finance to try to bring the inclusive finance industry into the mainstream.

Investment Strategy

DWM seeks to control investment outcomes by taking large minority or majority stakes in IFINs. DWM follows an active management strategy by taking board seats and by engaging with management to improve performance, accelerate growth and develop industry leadership. Through our experience as a private equity manager, we seek to drive value in IFINs across five key pillars:

Governance and Control

  • Add/change board members
  • Create board committees
  • Implement a systematic approach to strategic decision making
  • Establish strong risk, audit and controls
  • Adjust HR and remuneration based on performance

Management Capacity

  • Hire new staff/ dismiss existing staff where necessary
  • Implement performance measurement
  • Mentor and train senior management through our international network
  • Evaluate via employee satisfaction and exit surveys based on performance

Operations

  • Improve credit processes
  • Adjust branch structure and incentives
  • Promote strong internal communication
  • Establish employee-wide training
  • Target sales strategy

Balance Sheet

  • Manage and control cash effectively
  • Assist with lender relationships
  • Match assets and liabilities
  • Access to liquidity facilities
  • Improve and manage leverage

Business Strategy

  • Use systematic market research
  • Structure and target expansion strategy
  • Expand branch network efficiently
  • Adapt products to meet market demand
  • Establish new services that enable clients to generate income

Read more about DWM's successful private equity strategy in an EMPEA case study on one of our portfolio companies.