An Analysis of Program Related Investment and Exit Strategy in Microfinance

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.