FR
Investor Resources ↓
Finethic Microfinance Fund
A differentiated floating-rate private debt strategy investing in underserved microfinance institutions across emerging markets—designed to deliver resilient income while financing real economic growth.
Explore the Investment Case →Executive summary
Microfinance offers exposure to local lending activity, with return drivers that are structurally different from listed equity and bond markets.
Finethic focuses on Tier 2 and Tier 3 microfinance institutions, where funding gaps are often larger and additionality can be stronger.
Floating-rate exposure, widening financing gaps and growing private debt allocations create a timely entry point.
Investment case
Why microfinance?
Microfinance debt combines a distinctive financial profile with direct exposure to productive economic activity.
Historically, fully hedged microfinance debt has delivered stable returns with remarkably low volatility—resulting in one of the highest Sharpe ratios across major asset classes.
Over the past decade, fully hedged microfinance debt has maintained very low correlation with global equities and traditional fixed income, making it a powerful diversifier for institutional portfolios.
Microfinance debt directs institutional capital to entrepreneurs, small businesses and underserved communities across emerging markets. By financing productive economic activity at the grassroots level, it drives inclusive growth, advances financial inclusion and contributes to lasting poverty reduction.
The social impact of microfinance worldwide
People gaining access to financial services thanks to investors in the PAIF Microfinance universe.
Of final borrowers are women, fostering economic and social empowerment.
Global presence across low- and middle-income countries in all regions.
Partners financed by PAIF Microfinance funds to support their growth and impact.
Average loan amount granted to entrepreneurs and micro-enterprises to grow their activities.
Of loans are repaid, reflecting client resilience and the viability of the model.
Source: Tameo — Private Asset Impact Fund Report 2024 (analysis based on 84 responding asset managers). Aggregate data from PAIF funds specialised in microfinance as of 31 December 2024.
Why Finethic?
Finethic combines specialist credit expertise and a focused strategy to unlock opportunities that many investors overlook.
Get in touch to know moreWe focus on Tier 2 & 3 institutions that are essential to local economies but often overlooked by traditional investors.
Our floating-rate strategy helps protect income and enhance resilience in a higher-rate world.
Managed by Enabling Qapital, with emerging-market credit expertise and deep local networks.
Every investment is evaluated for both financial performance and additionality of impact.
Why now?
Finethic is not simply a microfinance fund. It is a strategy whose relevance has increased because the investment landscape has changed.
Find out moreFloating-rate lending has become structurally more attractive.
Demand for capital from MFIs far exceeds available funding.
Investors are seeking resilient income and real economy exposure.
Social Impact
One investment. Thousands of institutions. Millions of lives impacted.
See our impact →Investment
from Finethic
Microfinance institutions
financed
Entrepreneurs
financed
Lives positively
impacted
Insights