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Press Release

Thursday, April 29, 2004

OPIC Board Approves $65 Million for Central and Eastern Europe Investment Fund

WASHINGTON, D.C. – The board of directors of the Overseas Private Investment Corporation (OPIC) today approved an investment guaranty of $65 million for the support of a private equity investment fund for central and Eastern Europe managed by Advent International Corporation. The target capitalization of the fund is approximately $350 million.

The investment fund will deploy risk capital for investments in privately-held companies in fund-eligible countries. Fund investments will provide capital for new business development and existing company expansion, restructuring and privatization in the region.

Advent International Corporation is one of the largest and oldest private equity firms in the United States. Since its inception in 1984, Advent has raised $6 billion in cumulative capital, and has invested in 500 companies in 35 countries. Advent was one of the first private equity firms to establish a regional network in central and Eastern Europe, with offices in Poland, Hungary, the Czech Republic, Romania and Slovakia.

“OPIC’s participation in this fund represents the latest in many ongoing Bush Administration and OPIC efforts to stimulate investment and trade in central and eastern Europe, following in particular OPIC’s investment conference for Emerging Europe in March,” OPIC President and CEO Dr. Peter Watson said. “OPIC also recognizes the valuable support countries in the region provided the United States for its effort in Iraq, and in the international war against terrorism.”

Included among the countries and regions eligible for the fund’s investments are Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Poland, Romania, Serbia and Montenegro, Slovakia, Slovenia, and Kosovo.


OPIC is the U.S. Government’s development finance institution.  It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy.  Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad.  OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

 

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.