African Social Development Fund

The Overseas Private Investment Corporation ("OPIC") is inviting proposals from experienced private equity fund managers for the formation and management of one or more investment funds that will invest in Africa. OPIC will provide financing for funds generally ranging between $25 million and $150 million in total capital.

Each fund proposal will be evaluated based on the fund’s ability to make a significant contribution to social and economic development in Africa, as well as its ability to deliver positive financial returns.  To foster this “double bottom line” approach, OPIC will consider innovative fund structures including, consortiums, special purpose vehicles, vehicles with first-loss or other “patient” capital, and structures or collaborative proposals with grants or technical assistance that could be used for development of portfolio companies. 

OPIC has engaged Dalberg Global Development Advisors (“Dalberg”), an independent strategy advisor, to assist in evaluating proposals received in response to this Call for Proposals (“Call”).

 

Purpose of Call

OPIC seeks to finance one or more selected funds to invest in companies that will make a significant contribution to improve employment opportunities and the social well-being of people in Africa while delivering positive financial returns for investors.  The purpose of this Call is to identify qualified fund managers who are able to accomplish both of these objectives. 

Fund Investment Focus

Proposals can include, but are not limited to, any of the following:  (a) small and medium-sized enterprises across all sectors, including social sectors described below; (b) enterprises of any size that advance social development or improve social infrastructure by investing in sectors such as water and sanitation, health, education, agribusiness (excluding biofuels), and energy access (e.g., green technologies, rural and renewable energy); and (c) enterprises of any size that provide goods and services to rural and other underserved markets (e.g., telecommunications, transportation, energy access).  Proposals that otherwise best meet the OPIC Selection Criteria will also be considered, however, proposals exclusively focusing on real estate, including housing, or microfinance strategies will be excluded from this Call.

Fund Geographic Focus

Funds may invest in any or all OPIC eligible countries throughout Africa (including the country of South Africa and the North African region). 

Fund Structure and Capitalization

OPIC generally provides financing of between one third and one half of a fund’s total capitalization, depending upon the fund strategy and return objectives.  OPIC’s financing will be provided in the form of senior long-term loans or direct guaranties to eligible investors (see FAQs for more detail). The balance of the capital can be a blend of public and private equity and/or grants raised from private institutional investors, foundations, socially-oriented investors, international financial institutions, or other interested parties.  Innovative fund structures that are designed to meet this “double bottom line” objective will be considered.

OPIC Selection Process

The selection process under this Call for Proposals will be as follows:

1. Non-Qualifying Proposals: With Dalberg’s assistance, OPIC will evaluate each proposal to determine if it was submitted in accordance with the requirements set forth in the Call.  All non-qualifying proposals (not subject to a waiver for cure of minor information deficiencies) will be rejected at this time and the proposing firms so notified.
2. Selection of Finalists: An OPIC Evaluation Committee comprised of OPIC staff and assisted by Dalberg will evaluate the remaining proposals.  Based on the Selection Criteria set forth below, the Evaluation Committee will select finalists for further consideration.  Finalists will be notified promptly by OPIC, will be invited to a due diligence interview with the Evaluation Committee in Washington, D.C., and will be expected to be available for on-site due diligence visits by OPIC and Dalberg shortly thereafter.
3. Recommendations: Upon the completion of due diligence, the Evaluation Committee will make its recommendation for selecting one or more funds to the OPIC Investment Committee and the OPIC Board of Directors.  The Evaluation Committee reserves the right not to recommend any of the finalists.

OPIC Selection Criteria

In assessing proposals, OPIC will consider, among other things, the following criteria with respect to each proposal:

1. the credibility and consistency of the fund manager’s investment strategy and the proposed fund’s exit strategies;
2. the expected social and economic impact of the proposed fund strategy in its target countries/region;
3. the track record of the prospective fund management team in investing risk capital in Africa or other emerging markets;
4. the fund manager’s deal sourcing, deal management and deal monitoring capabilities in its target countries including details of local presence(directly or through local alliances);
5. the experience, depth, and cohesiveness of the fund management team;
6. the fund manager’s experience as a fiduciary in managing institutional capital, meeting reporting requirements, and administration;
7. the ability of the fund manager to raise sufficient capital to close the proposed fund within a reasonable time; and
8. the proposed financial structure of the fund including the OPIC financing requested, including leverage.

OPIC may make its determination with respect to any proposal based solely on the written submission.

Minimum Requirements

Each proposal must provide substantially all of the information requested in the Questionnaire accompanying the Call.

Additional Information from OPIC

Periodically, OPIC may post additional information on its Internet web site in the form of Supplements to the Call. Any information so designated on OPIC's web site may supplement or modify, and will be considered a part of, the information set forth in the Call.

Confidentiality

OPIC intends to post a list of the applicant’s Sponsor names on its website.  However, OPIC maintains strict confidentiality with respect to all business confidential information.  OPIC will not, however, treat as confidential or proprietary general ideas and concepts contained within any proposal.  For the benefit of the Call finalists and the process, OPIC may choose to share their proposals with other potential interested investors, but will ask for written permission from the Call finalists before doing so. 

Deadline for Proposals:

Proposals must be submitted both in written form and electronically by 5:00 P.M., Eastern Daylight Time, on August 8, 2007.

OPIC reserves the right, in its sole discretion: (1) not to consider any proposal submitted after the deadline, and (2) to extend the deadline.

OPIC anticipates that it will evaluate promptly all proposals received and requires Call finalists to be available to visit OPIC in Washington D.C. between September 24th and October 5th, 2007, and to receive an on-site due diligence team from OPIC and Dalberg during the period of October 22nd to November 2nd, 2007.  For more detail with respect to the proposed schedule please see the Due Diligence Timeline.

How to Submit a Proposal

To submit a proposal, you must complete the following three steps:

1. Proceed to the "Submit Proposals" link located on the website. Complete the required and optional information on the Registration Form.  Click the "Submit" button to transmit your information to OPIC.
2. Send fifteen (15) printed copies of the proposal and one (1) electronic copy of all files on a CD or DVD to: Overseas Private Investment Corporation, Investment Funds Department, 1100 New York Avenue, NW, Washington, DC, 20527, Attn: African Social Development Fund. These must be received by OPIC by 5:00 P.M., Eastern Daylight Time, August 8, 2007.
3. Please submit three (3) printed copies and one (1) electronic copy of the proposal to Andrew Stern, Dalberg Global Development Advisors, 818 18th St. NW, Washington, DC  20006, and via e-mail to andrew@dalberg.com by 5:00 P.M. Eastern Daylight Time, August 8, 2007 .  

Supplementing Proposals

Proposals submitted may be supplemented at any time up to the deadline for submission of proposals.

Information on OPIC's Funds

To obtain a description of OPIC's Investment Funds, please visit the OPIC's Investment Funds page on the OPIC web site.

Questions Relating to this Call

All questions concerning the Call must be received by OPIC by 3:00 p.m. EDT on August 1, 2007 (the "Inquiry Deadline") using the " Submit Comment/Questions" form on this web site. Questions received in accordance with this section will be answered and posted to the Supplemental Information page. As all applicants will be able to view the questions and answers, applicants should be cognizant of divulging proprietary information in their questions. Questions submitted after the Inquiry Deadline will not be considered.

Incurring Costs

OPIC will not be liable for any costs incurred in connection with the submission of a proposal.

Rejection of Proposals

OPIC reserves the right not to select any of the proposals and to re-initiate the Call, or to suggest that proposals be supplemented or combined with other proposals without reinitiating the selection process. The issuance of the Call does not obligate OPIC to provide support to any proposal or any selected fund.

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