FUND MANAGEMENT

Investment Strategy

• Treetops can invest throughout the capital structure, including debt, equity, and hybrid investments.

• Debt funding is provided in local currency and hedged so as not to pass on the FX risk to the institution or end clients.

• We adopt a value added approach to equity investments, to leverage our expertise and relationships to improve the performance of the target company. Specifically, we help institutions to optimize their capital structure, introduce technology that helps reduce transaction costs and increases scalability, improve risk management and corporate governance practices, and prepare for access to capital markets.

Investment Targets

• Potential investees include sustainable financial institutions that have a social mission and focus a significant portion of their business on serving micro, small, or medium enterprises.

• Our team focuses on institutions that are well-governed and customer-centric with prudent management teams.

Social Performance and Reporting

• The team believes that financial sustainability and social performance are intertwined; institutions that perform well across various social categories – including outreach, customer service, quality and range of financial products, transparency, governance, etc – also tend to be more financially sustainable. This is especially true in more penetrated and competitive microfinance markets.

• Our team completes a thorough social due diligence across a range of categories and indicators, and reports on our Social Performance on a Quarterly and Yearly basis. Prior to investing, we require institutions to complete a detailed Social Report created by the Social Performance Task Force, and evaluate and update it yearly to choose a “Best Performer” and “Most Improved” institution.