Document summary
This edition of the series analysing the recent experience of unsustainable growth and the risk of client over-indebtedness in several countries has given the sector a better appreciation of the growth limits. Microfinance valuations in the public/private markets are converging with those of traditional financial institutions. Despite a challenging environment, the equity market remained vibrant in 2010 with US$205m in private equity investments. Latin America and the Caribbean represented the biggest share of investments with 56% of the total transaction value. The overall slowdown though in the sector’s growth is causing equity investors to revise their return expectations downwards.