Gray Ghost Purchases IBD and Norfund shares in LACIF, marking maturation of the ...

Jul 2006
Atlanta, USA , July, 14 2006 - The Gray Ghost Microfinance fund today announced the purchase of all shares held by the Inter-American Development Bank (IDB) and the Norwegian Investment Fund for Developing Countries (Norfund) in the Latin American Challenge Investment Fund (LACIF).

The Gray Ghost Microfinance fund today announced the purchase of all shares held by the Inter-American Development Bank (IDB) and the Norwegian Investment Fund for Developing Countries (Norfund) in the Latin American Challenge Investment Fund (LACIF).

The close of the transaction marks one of the first examples of private investors stepping in to provide an exit to sponsoring investors through a secondary market purchase of shares in a microfinance investment fund.  The purchase reflects Gray Ghost’s strategy of enhancing the liquidity of microfinance assets, and raising the profile of well-managed and high performing microfinance funds in the private investor community. 

“For us this transaction is the first of many which we hope will enable founding investors, including official institutions, to recycle their capital and redeploy it to new and innovative initiatives,” said Paul DiLeo, Chief Executive Officer of the Gray Ghost Microfinance Fund.

“The transaction clearly demonstrates how mature microfinance funds can capitalize on their track record and re-orient themselves towards the private capital markets,” he added.

The completion of the transaction gives Gray Ghost a 41% stake in LACIF and is expected to earn an attractive return relative to other U.S fixed income alternative investments. 

LACIF is the leading debt fund focused on Latin American microfinance institutions (MFIs). The fund was established in 1998 and is scheduled to mature at the end of 2008. Based in Lima, LACIF is managed by Cyrano Management, one of a handful of experienced microfinance fund managers worldwide. With assets valued at $20.4MM, the fund currently has loans outstanding to some fifteen (15) microfinance institutions in Peru, Ecuador, Nicaragua and El Salvador.

“Latin America has provided some of the best returns in microfinance and prospects in the region continue to be strong; however we see this transaction as part of a broader initiative between all parties involved to help expand and deepen microfinance around the world,” emphasized DiLeo.

Gray Ghost aims to increase the engagement of private capital in microfinance by supporting attractive funds and other investment vehicles which promote liquidity in the industry.


About Cyrano Management

Cyrano Management is an investment management firm based in Lima, Peru The fund specializes in managing funds that on-lend to microfinance institutions in Central and South America.
For more information on Cyrano visit

About The Inter-American Development Bank

The Washington, DC-based Inter-American Development Bank is the leading source of multilateral financing for economic and social development programs in  Latin America and the Caribbean.
Over the past three decades it has provided more than $1 billion for micro-enterprise and microfinance related projects in the region.
For more information on the IDB and its work, visit

About The Norwegian Investment Fund for Developing Countries

The Norwegian Investment Fund for Developing Countries – Norfund – is a state-owned development finance institution. With roughly NOK 3.5 billion (USD 560 million) under management, its investments are made directly together with Norwegian and foreign partners or via local investment funds. Norfund owns 36,75 per cent of Aureos Capital, which has raised and/or manages 23 equity funds in Africa, Asia and Central America with currently USD 533 million under management. Together with Statkraft, Norfund owns the SN Power company, which acquires, develops and operates hydropower projects in developing countries.For more information on Norfund and its work, visit

About Gray Ghost Microfinance Fund, Inc.

The Gray Ghost Microfinance Fund, Inc., is a $75 million, for-profit portfolio of investments aimed at connecting private social investors with microfinance opportunities worldwide. As a fund of funds Gray Ghost hopes to educate the investment community about the dual benefits of microfinance investing as both a means of growing individual wealth and alleviating poverty. The Gray Ghost Microfinance Fund is committed to enriching lives, both financially and spiritually, on both sides of the investment relationship. For more information on the Gray Ghost Microfinance Fund and its work, visit


This communication is issued for information purposes only and is not intended to be an offer to sell nor a solicitation of offers to purchase shares of the funds specified herein, in any jurisdiction to any persons or entities where prohibited by law. Investment in the fund or funds is subject to investment risks and past performance is no guarantee of future results.

Source : Gray Ghost Fund

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