Press release

DWM Exits Its 5.1% Equity Stake in Inecobank CJSC


Aleem Remtula
Partner, Private Equity

New York, NY and Stamford, CT

Feb 26, 2024

DWM’s Inclusive Finance Equity Fund (IFEF II) has successfully exited its 5.1% equity stake in Inecobank CJSC to IM Partners CJSC, an entity owned by a group of Inecobank’s management team members. The vehicle will allow top management to participate in the shareholding and play a critical role in Inecobank’s future growth strategy. DWM has a longstanding partnership with Inecobank through both private debt and equity investments. DWM became a shareholder in Inecobank in 2019 to support financial inclusion in Armenia. Inecobank’s experienced management team, strong financial and impact track record and digital leadership in the Armenian market were key elements underpinning IFEF II’s investment. In particular, Inecobank’s category leading mobile banking app, automated and point of sale lending products, contactless payment solutions, and first choice bank for SMEs have driven ease of use, access and affordability for its loyal customer base. Over DWM’s 5-year hold period, Inecobank experienced a 2.2x growth in digital customers and 3.4x growth in net income. The exit to Inecobank’s management represents a highly impactful exit for DWM and an important milestone in the company’s evolution. By expanding management ownership, the sale will serve to empower the bank’s employees with an opportunity to participate in the governance, value creation and value capture associated with their efforts.

“DWM is pleased to have been part of Inecobank’s growth trajectory through its equity investment,” said Aleem Remtula, Partner and Head of Private Equity at DWM. “Inecobank’s experienced management team, strong financial and impact track record and digital leadership in the Armenian market were key elements driving our investment, and the company’s strong performance year-on-year has borne out the investment thesis. We are glad to exit DWM’s stake to key members of Inecobank’s management team especially as it ensures continued stewardship in the next phase of the company’s journey.”

“I am very pleased to announce this transaction,” said Inecobank Founder and Chairman of the Board Avetis Baloyan. “Since 2003, Inecobank has attracted high-quality, international equity investors among Armenian banks and has been able to ensure successful exits for all investors during this period. This purchase by the management concludes our 20-year strategic vision and allows the bank to move into the next stage of its development and growth. We strongly believe in the idea of partnership and are very proud to have collaborated with DWM to have the management team expand its ownership stake in the bank and partner with the founders in the next phase of our journey.”

About Inecobank:

Inecobank CJSC is one of the leading banks in the Southern Caucasus region, offering a full range of banking services, including digital banking solutions to individuals, SMEs and corporate clients. Over 28 years of its existence, Inecobank has introduced completely new banking services and innovative solutions in the Armenian market, serving more than 560,000 customers including 300,000 online users today. Its mission is to create opportunities for people to realize their goals by providing financial services in line with their needs.

About DWM:

Founded in 1994, Developing World Markets (DWM) seeks investible solutions that sustainably address the social, environmental, and economic needs of the developing world. DWM began impact investing in 1999 and shifted exclusively to impact investments in 2007. DWM has over two decades of experience in emerging and frontier markets. Through DWM Asset Management, LLC, the firm’s SEC-registered investment adviser, DWM has originated and managed over $2.5 billion of private debt and private equity in impact-oriented enterprises, including over 1,000 loan disbursements and 25 private equity stakes in more than 60 emerging and frontier countries.

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