An Analysis of Program Related Investment and Exit Strategy in Microfinance

Client: Ford Foundation
Faculty: Paul Smoke
Team: Shari Ben-Haim,Shanthini Black, C.K. Chung, Mairleth Isabel Wright
Year: 2005
The Ford Foundation is reviewing exit strategies for program related investments (PRIs) to support its microfinance program. The Capstone team is supporting this effort by conducting a literature review of PRIs, conducting interviews with microfinance practitioners and funders, carrying out a comprehensive review of Ford’s own practices by examining their PRI portfolio and interviewing Ford staff, analyzing a survey of Ford’s micro finance grantees, and reviewing the exit strategies of other social investors and how they impact grantees. The team is using this information to provide a constructive critique of current practices and to make recommendations on how to better employ exit strategies, contributing to the wider discussion on effective use of PRI’s in development finance.