Aavishkaar Goodwell II is a follow-on fund sponsored by the same Indian-Dutch joint venture of Aavishkaar and Goodwell Microfinance Development Company (“Goodwell”). Aavishkaar was founded in 2006 as an India dedicated private equity management company, while Goodwell was founded in 2004 as a social investment firm focused on high impact and high return investment solutions. The Fund will be managed by AGI Services Ltd. (the “Fund Manager” or “AGI”), which is led by five partners based out of India and the Netherlands, and has a large investment team in India consisting of 10 investment professionals.

The project is a proposed equity commitment of up to $15 million, not to exceed 20% of the Fund’s total commitments.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

* These investment figures are indicative

Aavishkaar Goodwell II is domiciled under the laws of Mauritius but will target microfinance companies located in India. Aavishkaar Goodwell II’s Fund Manager, AGI, is also domiciled in Mauritius, but will have sub-advisory agreements with Aavishkaar Venture Management Services (“AVMS”) based in Mumbai, India and Goodwell Investments B.V. (together, the “Sub-advisors”) based in the Netherlands.

Aavishkhaar Goodwell II will have the following development contributions: i) increase access to finance for low-income families in rural areas and low-income states, ii) provide support to a local emerging fund manager expand its reach into new geographies, iii) develop commercial proof of concept for MFI funds model, and iv) through the Fund, invest in growth companies that are expected to create economic benefits and employment opportunities for the community.

IFC is expected to have the following additionality: (i) Catalyze fund raising - IFC's support will put a stamp of approval and allow the Fund to reach a viable first closing; (ii) Terms & governance - IFC will play a critical role in shaping terms and governance along international best practice; (iii) Demonstration effect - IFC's support of Aavishkaar Goodwell II and active participation on the Fund's Advisory Committee will ensure best practice corporate governance at the Fund and portfolio company level; (iv) E&S standards - IFC will help disseminate robust environment and social practices at the portfolio company level;

This project involves IFC support for the business of Microfinance and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Aavishkaar is an existing client of IFC and has an SEMS in place. Considering the nature of activities supported, the project will be required to:

· Upgrade, if needed, the existing SEMS, prior to commitment, that is satisfactory to IFC, and that ensures that all its investments are screened and processed to avoid supporting activities on the Microfinance exclusion list;
· Identify qualified persons to manage and implement the procedure;
· Commit to establish a similar screening process to avoid supporting activities on the IFC Microfinance Exclusion List in the investee MFIs;
· Demonstrate commitment and resources to implementing the procedure;
· Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and
· Submit a periodic report to IFC as per a format to be provided by IFC.