Thursday, June 21, 2012
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment Corporation (OPIC), the U.S Government’s development finance institution, approved $66 million in financing for a new investment fund designed to provide much-needed growth capital to small and medium-sized enterprises (SMEs) in Brazil.
The fund, DGF Capital III, will make investments intended to expand company product lines, promote investment in new equipment and facilities, improve corporate governance standards, and enhance financial reporting and controls. It will focus on companies with leading market positions in high-growth sectors such as business services, information technology, healthcare, and consumer goods. The fund has a target capitalization of $200 million.
“Brazilian small and medium-sized businesses are underserved by private equity financing – a fact which prevents them from realizing their full potential and effectively contributing to the country’s economy,” said OPIC President and CEO Elizabeth Littlefield. “This fund will help Brazil unlock some of that potential, by investing precisely in those SMEs which stand the best chance to emerge as leaders in their respective industries.”
OPIC selected as fund manager DGF Investimentos, a pioneering, independent Brazilian private equity firm with approximately $300 million in assets under management. DGF Investimentos’ partners have built a solid track record of 27 investments and 15 exits since 1998. Closing of OPIC’s financing is subject to certain conditions and negotiation of final terms.
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 more than $200 billion of investment in over 4,000 projects, generated an estimated $75 billion in U.S. exports and supported more than 276,000 American jobs.