Antares Boosts the Secondary Market for Microfinance Institution Shares

Atlanta, USA , October, 31 2006 - The Gray Ghost Fund, founding investor of the Antares Fund, today announced that Antares has completed three secondary market purchases of equity of microfinance institutions.

In August of this year Antares purchased 965 shares of Financiera de Desarrollo S.A. (FINDESA), taking a 4.5% equity stake in the institution. Based in Nicaragua, FINDESA is a regulated microfinance institutions (MFI) which focuses on funding rural and urban micro and small enterprises. It is estimated that FINDESA accounts for 8% of the Nicaraguan Microfinance market and as of July 2006 had a total of 42,147 clients, 21 branches and 58 credit officers. FINDESA is rated by Fitch as BBB+.

“We believe that there is considerable hidden value in the shares of MFIs and thus are confident that we can make a reasonable return by buying and selling such shares" said Alex Silva, CEO of Omtrix and manager of The Antares Fund.

Last month, Antares bought equity positions in two Peruvian MFIs, Edpyme Confianza (Confianza) and Edpyme Crear Tacna (Crear Tacna). The fund purchased 3,861 shares in Confianza, acquiring a 2.42% ownership holding in the MFI. A total of 57,100 shares were purchased in Crear Tacna giving Antares an 8.42% equity interest.

Both Confianza and Crear Tacna are growing networks and as of June 2006, Confianza had 5 branches and 2 special offices, with plans to open 10 more branches before the end of this year. Crear Tacna also has 5 established branches with approval to open 2 more branches in Lima within the coming months.

Up until now there has been a limited secondary market activity in MFI shares and this illiquidity is, in Gray Ghost’s view, an important factor discouraging more private investment in microfinance institutions. Antares is intended to contribute to the development of a market for these shares, while capturing value in existing illiquid MFI holdings, as well as benefiting from appreciation during the holding period.

“From the outset, our intent as a founding investor in Antares has been to encourage a deeper and more liquid secondary market in MFI equity shares”, said Paul DiLeo, Chief Executive Officer of The Gray Ghost Fund. “We recognize the importance of risk capital and the key role that equity participation plays in helping MFIs build their operational efficiencies and meet the scale of demand in the industry,” he added.