Print this pagePrint

Press Release

Friday, September 21, 2007

OPIC Board Approves $33 Million for Investment Fund Targeting Water and Energy Sectors in Middle East and North Africa

WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment Corporation (OPIC) approved $33 million in OPIC financing to support a new private equity investment fund designed to improve performance of the water and energy sectors in the Middle East and North Africa (MENA), and to invest in environmentally-friendly technologies in the region.

The Catalyst Private Equity Fund is investing in small and medium-sized enterprises (SMEs) in the energy and water industrial and technology sectors in Jordan, Lebanon, Egypt, West Bank and certain OPIC-eligible countries in the MENA region – one of the world’s largest markets for oil/gas industrial and technology products and water treatment technologies, particularly desalination. Capital may be made available for other high-priority OPIC-eligible countries, such as Pakistan and Afghanistan. The fund has a target capitalization of $100 million.

The fund will also target investments in companies that develop technologies that benefit the environment, such as water treatment and alternative energy technologies.

OPIC selected as fund manager Catalyst Investment Management Company, established in 2005. The firm has already invested in solar technology and oil/gas tool manufacturing companies in Jordan and North Africa.

OPIC President and CEO Robert Mosbacher, Jr. said the fund should foster economic diversification in the MENA region, by focusing on SMEs that are currently undercapitalized. It should also have a significant impact on the transfer of technology: the fund will work closely the portfolio companies’ management, to help recruit personnel, establish new markets, and institutionalize management processes.

“Private equity financing in the MENA region is limited, especially for SMEs in the sectors targeted by this fund,” Mosbacher said. “The mission of the fund is to become a catalyst for the creation of globally competitive technology and product sectors in the MENA region, and to generate competitive returns through the establishment of industrial, energy and water technology and product firms. Investments in companies that serve these sectors will increase efficiencies in the market, ultimately leading to lower prices for suppliers and consumers.”

“The fund will have the added benefit of investing in environmentally-friendly technologies in these sectors. OPIC is pleased to support the establishment of an investment fund with so many positive developmental benefits for the MENA region,” Mosbacher added.


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.