Unitus closes Seattle headquarters

Microfinance nonprofit Unitus is closing its Seattle headquarters and laying off more than 40 employees after almost 10 years of operation.

Unitus, which provides capital and expertise to microfinance institutions in developing countries, has staff and field offices in Bangalore, India, and Nairobi, Kenya, which will also be closed, the nonprofit said Friday.

The move came as a surprise to many, as Unitus in October had hired Brigit Helms, with the International Finance Corp. in Jakarta, Indonesia, to serve as chief executive after an extensive search, and has programs and partnerships under way.

"We now feel that there is greater need for our capital and energy in other areas," board Chairman Joseph Grenny said in a statement. Capital markets have embraced microfinance, with tens of billions of dollars in capital annually for the working poor, validating the group's core aim, he said.

Unitus had net assets of $11.3 million at the end of 2009, according to its audited financial statement. It received $6.4 million in contributions and grants.

In 2006, Unitus also launched Unitus Equity Fund, a separate for-profit entity to bring private capital investments into microfinance. Its second fund, now called Elevar Equity, had raised $70 million earlier this year.

"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," Unitus President Ed Bland said in a statement on the group's website.

Unitus said it will shift its remaining assets into "new early-stage, poverty-focused philanthropic activities," which it hasn't yet identified.

Ex-Unitus board member Geoff Woolley will head the "reinvented organization," Bland will continue as acting president and chief operating officer, and Helms will be a adviser during the transition, the group said.

Unitus said it has directed $40 million in donations and almost $30 million in investment capital to strategic microfinance partners in Asia, Africa and Latin America.

Kristi Heim: kheim@seattletimes.com