At Finance in Motion, we provide our partners with access to the specialized expertise of our teams. We offer a variety of services that cover a range of micro and small enterprise finance, as well as green finance.
Finance in Motion provides a variety of investment advisory services, assisting investors and development finance investment vehicles with optimizing their buy-side processes. Our investment advisory services include the following:
- Identifying and originating investments
- Investment preparation and structuring
- Execution of investments
- Ongoing monitoring and reporting of investment and development performance
Finance in Motion works with its investors to develop sound policies and procedures, incorporating best practices and specifics of the funds. The investment guidelines of each fund generally include the following steps:
Prior to entering into an investment, our locally-based staff ensures that the potential investee meets the minimum standards of eligibility. We investigate the compatibility of the investee in terms of both development impact and from a financial strength perspective as well as in terms of environmental, social and corporate governance issues, and client protection practices.
For every investment, we combine an off-site analysis with an on-site due diligence visit. The results of the analysis are reflected in the proposed investment structure (e.g., key commercial conditions, covenants, and complementary technical assistance) where appropriate.
Once complete, investment proposals are vetted internally. Investment decisions are approved by an investment committee, set up by the investors. After approval, we prepare contract execution. We regularly monitor and assess the risk profile of our investees and track the use of funds for the target group. The funds' investors are regularly updated with financial reports and other qualitative information, such as quarterly fact sheets. All funds are audited annually by internationally renowned audit firms.
The risk management services offered by Finance in Motion adds an important conrol dimension to the investment portfolios. Risk management has become an increasingly important topic since the onset of the global financial crisis in 2008.
Our risk management services include the following:
- Underwriting of investments
- Internal ratings of investees
- Continuous monitoring of the investment portfolio and operating environment
- Portfolio management (e.g., limit systems)
- Investment restructurings and work-outs
Finance in Motion offers a broad range of general fund advisory services to its investors and development finance investment vehicles as seen below:
- Concept development
- Fund structuring and planning
- Market intelligence and research
- Asset liability management, including FX risk management
- Transaction management
- A Management Information System (MIS) and reporting
- Marketing, corporate publishing and public relations
- Legal support
It is our belief that sector development requires meaningful technical assistance (TA) that goes hand-in-hand with the investment activities of our impact investment funds.
This is why - complementary to its investment advisory services - Finance in Motion offers full-fledged TA management. The use of TA alongside a development finance investment typically serves the purpose of strengthening the institutional capacities of the fund’s partner institutions, thereby increasing the developmental impact and outreach to the final target groups, while at the same time mitigating the funds’ risk exposure.
Our services range from the initial set-up to the day-to-day management of a successful TA facility. Specifically, our TA management services include the following:
- Setting up and administering a TA facility
- Supporting the fundraising process and donor coordination
- Assessing the TA needs of partner institutions
- Designing and structuring TA projects
- Selecting and contracting consultants
- Steering and monitoring project implementation
- Conceptualizing and managing development impact and conducting sector studies
The majority of the technical assistance provided is tailored to support individual investees/partner institutions so that they can better serve their markets. Technical assistance also supports financial sector development, responsible finance and financial education. Finally, applied research is used to increase market knowledge for impact investment funds, to innovate, and to ensure the relevance of the development finance being offered. This includes feasibility studies and market research.
The following principles of Finance in Motion’s TA remain constant and apply to all interventions, although the specifics of the assistance provided may vary according to the Fund mandate:
- Support and innovate in alignment with the development mission of each impact investment fund
- Ensure transparency and good governance
- Engage partners through needs-driven TA in order to achieve ownership
- Implement TA with a view toward replicability in geographic areas and business fields
- Work wherever possible with local TA professionals
- Deliver TA with speed, flexibility and efficiency
The following comprises the current topics covered by Finance in Motion’s TA unit: