Last Friday, Unitus, which provides capital and expertise to microfinance institutions in developing countries, announced that it is closing its doors to its Seattle headquarters and is redirecting its efforts from non-profit microfinance to new social ventures.  This comes as a big suprise, as Unitus has directed $40 million in donations and $30 million in investment capital to microfinance partners over the last 10 years.  Joseph Grenny, chair of the board states:

“For the past decade, Unitus has been working to increase access to capital for the working poor, under the central premise that this vast, underserved segment of the world’s population was a good investment and could be well-served by commercial capital providers. We are gratified that this core belief has been validated—capital markets have embraced microfinance to the extent that there are tens of billions of dollars in microfinance capital now available annually, with additional providers entering the marketplace at an aggressive clip. We now feel that there is greater need for our capital and energy in other areas—which we are currently exploring—aligned with our overarching mission of alleviating poverty through opportunity.”

Ed Bland, the president and COO of Unitus said:

“The fact that we have become largely unnecessary in the microfinance arena is fantastic news and is a tribute to our generous, enlightened donors and the phenomenal staff at Unitus, who worked tirelessly to validate and refine the microfinance model, and advance the operations of our partners. Brigit Helms, our outgoing CEO, merits our gratitude for her outstanding leadership in surveying the global socio-economic landscape, evaluating future options for Unitus and working with the staff to assure that our partners are on solid footing. Outgoing members of the Unitus team can now leave with the assurance that they have contributed to a tremendous legacy of success here, prepared to make a continuing positive difference in the world.”

As Unitus transitions away from microfinance to other strategic areas, Geoff Woolley, a former Unitus board member, will serve as future CEO for the reinvented organization. Bland will remain in his role as acting President and COO. Helms will serve as a key advisor during the organization’s transition. The Unitus Board and executive team are currently considering various strategic opportunities, with the goal to maximize the socio-economic impact for those currently not being served in today’s marketplace.

Unitus has always been a big player in the microfinance industry, especially here in Seattle.  I’ve seen a couple of other news articles on the web with interviews from Unitus employees which all reiterate that Unitus is leaving microfinance in a positive light, and is not leaving a sinking ship.  It hasn’t been announced yet what the new social ventures that Unitus will be involved in are, but I am really eager to see what new initiative is drawing them away from microfinance.  Although it is a big loss having Unitus leave, as long as all of the press releases are true, it’s for the greater good.  I guess we’ll just have to wait and see…

Sources:
Seattle Times
Unitus