Generate financial returns
Since the early 1990s, Morgan Stanley’s Asia Private Equity business (MSPE) has made investments in a number of fast-growing businesses in the Asia-Pacific region, including those focused on inclusive finance. MSPE’s investment into CreditEase in 2011, a peer-to-peer (P2P) lending facilitator in China, is an example.
CreditEase is a national leader in China’s microfinance industry. In 2006, the company pioneered the P2P lending model in the country, introducing credit products to the vastly underbanked middle class and rural consumers. Previously, these consumers relied on informal channels for credit, as the traditional products offered by banks were suitable only for high- and middle-income consumers.
Through the investment partnership with MSPE, CreditEase was able to access Morgan Stanley’s global platforms, including the Institute for Sustainable Investing, and collaborate with the company’s risk management, asset management and investment banking operations. By December 2015, CreditEase had over 40,000 employees across 232 cities and 96 rural areas in China, serving several million borrowers. Investing in CreditEase’s growth has been a financially attractive proposition for Morgan Stanley, too – CreditEase’s online P2P lending unit, Yirendai, successfully listed its shares on the New York Stock Exchange in December 2015.
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