Equity as a funding instrument is particularly important to the responsible development of financial markets. At its core, it supports the growth and diversification of microfinance institutions (MFIs) and other financial institutions that serve the poor, and it is especially vital to the expansion of deposit services. But beyond that, equity holdings can add value when paired with active governance. First, they offer development-minded shareholders the opportunity to provide leadership to partner MFIs, including guidance to ensure that the overall strategy and specific products and practices are responsible. Second, they can promote responsible development of the broader market to the extent that they demonstrate the viability of responsible MFI business models (including by sharing relevant information on partner MFIs’ performance with other market actors) and crowd in additional investors with goals and funding types that are appropriate for microfinance. This point is especially important for development finance institutions (DFIs), which are owned by donor governments and thus are mandated to be catalytic and “additional” in promoting private sector development. Most microfinance investment intermediaries (MIIs) and DFIs have committed explicitly to do right by clients through industry initiatives such as the Smart Campaign and the Principles for Investors in Inclusive Finance (PIIF), which urge and support them to choose partners carefully and integrate specific responsible finance practices throughout their investment processes. Equity exits are not a new phenomenon in a sector where the first funds were created well over a decade ago and a number of sales have already happened (Glisovic, Gonzalez, Saltuk, and Rozier de Mariz 2012). They are also expected to accelerate. According to MicroRate/Luminis, between 2014 and 2016, at least two equity and six hybrid funds worth nearly $600 million are scheduled to mature.