Creation Investments-Backed Peru Microfinance Company Los Andes Completes $10 Million Capital Raise for Strategic M&A and Digital Transformation

CHICAGO and LIMA, Peru, Aug. 2, 2024 /PRNewswire/ -- Creation Investments Capital Management, LLC, a leading global impact investor in emerging markets, today announced that Peruvian microfinance company Los Andes has closed a $10 million capital round led by Accion Digital Transformation Fund. The capital raise will support the strategic M&A and digital transformation plans of Los Andes, which serves micro and small entrepreneurs in rural Peru.

Creation Investments first invested in Los Andes in 2016 and has led several subsequent funding rounds.  From offices in Chicago, Mexico City, and Bangalore, Creation Investments currently manages $2.1 billion in assets. Since its inception in 2007, Creation has invested in 31 portfolio companies operating across eight countries and is focused on financial services and financial inclusion for the unbanked and underbanked population in emerging markets.

Managed by Accion Impact Management, the Accion Digital Transformation Fund builds on global nonprofit Accion's experience supporting banks and finance companies around the world the globe to connect millions of people and small businesses into the digital economy. Their expertise and investment capital, as part of their digital transformation strategy, will provide valuable strategic support for Los Andes' digital transformation efforts. Los Andes will draw on lessons from across Accion's global work to help deliver new digital products and increase the use of digital processes.

Los Andes has over 26 years of experience in the microfinance sector in rural Peru. The company serves around 85,000 borrowers and over 227,000 savings clients. Through digital transformation and enablement, Los Andes aims to significantly expand its client base among the country's 2.1 million micro, small, and medium enterprises.  Los Andes sees significant opportunity to consolidate the microfinance sector through strategic M&A, driving scale and greater social impact.

"We are excited to welcome Accion Digital Transformation Fund as a key shareholder in Los Andes to bolster the company's growth plan driven by strategic M&A and digital transformation," said Bryan Wagner, Creation Partner and Los Andes Board Member. "Los Andes has demonstrated the ability to maintain profitability while promoting financial inclusion in the most underserved areas of rural Peru."  

Rosanna Ramos-Velita, Los Andes Board Chair, added, "As a women-led board and organization with the goal of promoting financial services to women in rural areas of Peru, we are thrilled to welcome Accion as a new partner and continue our work with Creation Investments."

About Los Andes

Los Andes is a microfinance entity with over 26 years of experience, which aims to support and serve Peru's most vulnerable population through financial inclusion. It is profitable and has achieved substantial growth over its history. Currently, it has 101 branches for its 85,000 borrowers, 40% of which are rural and 47% of which are women. Los Andes aspires to become Peru's leading rural bank. Additionally, Rosanna Ramos-Velita, the board chair of Los Andes, is the first woman to head a Peruvian financial institution and is among Forbes' 50 most empowered women in Peru. More at www.losandes.pe.

About Accion

Accion is a global nonprofit on a mission to create a fair and inclusive economy for the nearly two billion people who are failed by the global financial system. We develop and scale responsible digital financial solutions for small business owners, smallholder farmers, and women, so they can make informed decisions and improve their lives. Through targeted investment strategies, advisory, and expert thought leadership, we work with local partners to develop and scale cheaper, more accessible, and customer-friendly financial solutions. Since 1961, Accion has helped build more than 267 financial service providers serving low-income clients in 75 countries, reaching 440 million people. More at www.accion.org.

About Accion Impact Management

Accion Impact Management is Accion's platform for impact investments in financial inclusion leveraging third-party capital. It is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Please note that registration with the SEC does not imply a certain level of skill or training. Accion Impact Management is staffed by a team of expert investment professionals, working to harness the capital markets to provide high-quality and affordable financial services to people who are currently excluded from the financial system. Managed by Accion Impact Management, the $152.5 million Accion Digital Transformation Fund invests in banks and finance companies serving micro, small, and medium enterprises across South and Southeast Asia, Latin America, and Africa, providing growth capital and strategic support for digital transformation. More at https://accion.org/accionimpactmanagement.

About Creation Investments

Creation Investments Capital Management, LLC is a leading global impact investment manager in emerging markets. Creation Investments seeks out the next generation of financial services firms focused on increasing access to capital and providing financial products to the unbanked and underbanked in emerging markets. The firm aims to improve the lives of those living at the bottom of the economic pyramid, reducing poverty and its ill effects in the developing world through market-based solutions. Creation Investments is headquartered in Chicago and has offices in Bangalore, Dallas, and Mexico City. As of March. 31, 2024, Creation Investments had $2.1 billion in assets under management. To learn more, visit www.creationinvestments.com.

Media Contacts for Creation Investments:

Margaret Kirch Cohen
Newton Park PR, LLC
M: +1 847-507-2229
[email protected]

Rich Chimberg
Newton Park PR, LLC
M: +1 617-312-4281
[email protected]

SOURCE Creation Investments Capital Management, LLC