This Checklist is designed to help you prepare a proposal in response to the Global Engagement Call for Proposals. OPIC will use the information that you provide to evaluate your request for funding. While recognizing the time and energy required preparing a proposal, OPIC requests a comprehensive application so that it can make a fair and well-informed decision about your proposal. OPIC may select finalist candidates based on the information provided in their proposals alone and may choose not to ask for additional information in making its decisions. By asking for a standardized and complete Checklist of information, OPIC believes all candidates will have a fair and transparent opportunity to submit a full proposal.
The Checklist covers the following required items:
(i) Power Point slide deck or similarly formatted presentation document covering topics described in Section A;
(ii) Answers to the questions in Sections B-D, drafted in a Word document; and
(iii) The three attachments described in Section E.
Please note that more detailed information will be requested from you if your proposal is shortlisted for further consideration by OPIC.
Certain capitalized terms not defined in this Checklist are defined in the Call for Proposals.
A. Power Point Slide Deck Presenting General Information about the Fund
As part of your submission, please include a PowerPoint slide deck or similarly formatted presentation that covers all relevant aspects of your offering. The submitted document should include the following sections; it is expected that there will be 2-5 slides in each section of the slide presentation. You may use an existing marketing slide deck, building on it as needed, provided that all these topics are addressed.
1. General partner/management firm history and overview
a. Year founded
b. Location(s)
c. Overview of various products and businesses that the firm is involved in
d. Any links or overlaps with other offerings from the firm
e. Legal structure and ownership of the firm (provide diagram showing entity ownership)
2. Investment strategy
a. Strategy statement and rationale
b. Control/non-control, leverage used
c. Average deal size (or range)
d. Number of investments
e. Geographic focus
f. Sector focus
g. Exit strategy
h. Target returns
3. Team overview and organizational chart
a. Organizational chart for all locations
b. Backgrounds and prior experience for all key team members
4. High level track record
a. A summary of prior funds, and fund level realized and unrealized returns
5. Portfolio overview
a. Bullet point summary of each active portfolio company, including the nature of business, time of investment and current status
6. Pipeline summary
a. Name/code name, industry/business description, expected investment size, geography, size of company, exit strategy
7. Fund structure and key terms, including the following:
a. Target and cap for fund size
b. Term and investment period
c. Legal structure and domicile/jurisdiction
d. Anticipated next closing date
e. Anticipated final closing date
f. Management fee and carried interest
g. Preferred return for equity investors
h. Any special terms
8. Key attractions of the offering
a. Why is the offering attractive for OPIC (keeping in mind its role as a private equity investor and as a development agency)
9. Contact information for the fund manager
a. Name, address, email address and telephone number for the primary contact
In addition, please provide answers to questions in Sections B-D in a Word document:
B. Investment Strategy and Process
a. What is the Fund's target size, including the proposed OPIC financing? Please indicate the amount of OPIC financing.
b. Describe the Fund's procedures and practices for evaluating the background, track record, and reputation of investment targets and their management for the purpose of preventing the Fund from investing in companies being used for or engaged in money laundering, corruption, terrorism financing, or criminal activities, or entering into transactions with or for the benefit of persons on international or national sanctions lists.
c. Discuss any key legal, tax, regulatory or other issues associated with the Fund's types of investments, including examples where appropriate. Please indicate whether there are any existing or potential barriers to investing or to repatriation of proceeds back to the Fund and the investors.
d. Describe the developmental impact you believe the Fund will make (e.g. creation of jobs, environmental and/or social impact).
e. Do you require portfolio companies or borrowers to adhere to other minimum standards regarding their labor, human rights, and social or environmental risks to their stakeholders? If so, please describe both the requirements and how they are implemented.
C. Organization and Governance
a. Describe how the manager and the team were initially formed, and provide a brief history of how they have evolved to date.
b. Please provide details related to the ownership of the Fund's management company/general partner, including ownership percentages. Please address any ownership by U.S. citizens.
c. What is the total number of firm employees? How many are investment professionals?
d. Discuss staff turnover and provide names, current e-mail addresses, phone numbers, and reasons for departure for those professionals who have left the firm over the last five years.
e. Describe the firm's compensation structure (e.g. salary, bonus, carried interest, other). For those Funds utilizing carried interest, how was it split among the management team in previous vehicles? Who made the decision and how? How will the carried interest be split among the management team in this Fund? What are the vesting provisions for the carried interest (if applicable)?
f. How much capital (in dollar terms and as a percentage of the Fund) will your firm, its partners or its affiliates commit to the Fund? How is this commitment allocated among the team, and how will it be funded (e.g. cash, loans)? Will any other affiliates co-invest with the Fund and, if so, how much (amount, percentage) and on what conditions (if any)?
g. Outline the Fund's investment approval process, and identify the Fund's investment committee members.
h. Describe any other entities (e.g. Limited Partner Advisory Committee) that may play a role in the Fund's governance structure.
i. Please describe any potential conflicts of which you are aware. How do you plan to resolve potential conflicts of interest within the Fund, or with other investment vehicles managed by your organization or its affiliates?
j. Does the Fund manager/general partner have a parent or other affiliated institution? If so, describe any economic sharing arrangements. Identify any existing or contemplated contractual arrangements between the Fund sponsor/manager/general partner and third parties (including parents or affiliates) and describe the terms thereof.
k. If the Fund plans to co-invest in any transactions with another investment vehicle, please provide an explanation of the process for sharing investments. Are there any restrictions against investing in a portfolio company from a previous fund?
l. Please provide details on any substantive litigation or regulatory actions brought against the manager or its principals. In addition, please provide the same for any portfolio companies.
D. Fundraising
a. List the key limited partners in your current and prior funds and/or investors you are currently fundraising from, to the extent they allow themselves to be identified.
b. Give a sense of: (i) the types of investors they are (e.g. family offices, endowments, individuals, pensions); and (ii) what region(s) of the world they are located in. Please be sure to discuss any fundraising from U.S. investors.
E. Attachments
Please provide the following attachments with your proposal:
Attachment 1: Complete Track Record Table.
Attachment 2: Provide Curricula Vitae of all senior professionals and investment professionals.
Attachment 3: If available, include fund offering memorandum and / or fund due diligence questionnaire.
It is OPIC's policy to keep business information provided in response to a Call for Proposals confidential, except as required by law or court order (and authorities responsible for the supervision or examination of OPIC). Furthermore, confidential commercial and financial information is exempt from otherwise required disclosure under the Freedom of Information Act (5 U.S.C. Section 552) if it is determined that disclosure would cause competitive harm. OPIC regulations implementing this exemption may be found at 22 C.F.R. Section 706.31 and 706.32.
You may facilitate identification of information that you are submitting to OPIC as, in your opinion, exempt from disclosure by clearly marking, in capital letters, "PRIVILEGED BUSINESS INFORMATION" on documents, records or items of information that you regard as containing trade secrets or confidential or privileged commercial or financial information.
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