The Overseas Private Investment Corporation ("OPIC") is inviting proposals from qualified private equity fund managers for the formation and management of one or more investment funds ("Fund" or "Funds") that plan to invest in new, expanding or privatizing companies in emerging market countries that are eligible for OPIC support*.
OPIC will consider providing financing of between $35 million and $150 million per each selected Fund, depending on the Fund's needs and request. OPIC financing will generally represent no more than 33% of the Fund's total capitalization, but may be more or less depending on the structure and the needs of the Fund.
OPIC has engaged Altius Associates, an independent strategy advisor ("Advisor"), to assist in evaluating proposals received in response to this Call for Proposals ("Call").
On-Site Due Diligence Period
November 1, 2011
November 1 – December 23, 2011, 5:00 PM EST
January 12, 2012, 5:00 PM EST
February 27 – March 2, 2012
March 19 – April 4, 2012
OPIC reserves the right to extend its interview, on-site due diligence, and board approval calendar as appropriate.
Eligible Fund Investments
• Latin America
• Central and Eastern Europe
• Middle East
• Direct Equity
• Convertible Loans
• Mezzanine Debt
• Debt Funds (e.g. asset restructuring, credit)
• Loans with Equity Warrants or Options
• Fund of Funds
Purpose of Call
OPIC seeks to finance one or more selected Funds to facilitate the investment of private equity capital in companies or projects in OPIC-eligible countries for new business development, existing company expansion, restructuring, and/or privatization. In its selection process, which is performed through a transparent and competitive process, OPIC will seek to respond to policy initiatives and market needs, and to maintain a balanced, diversified portfolio. To this end, OPIC may announce future Global Engagement Calls at its discretion.
OPIC Participation in Selected Funds
OPIC will consider providing between $35 million and $150 million in financing to each selected Fund
OPIC's commitment will generally represent no more than 33% of a Fund's total capitalization
OPIC's financing will be structured as a senior loan to the Fund (see FAQs for more detail)
The balance of Fund capitalization will consist of equity raised from private or institutional investors, international financial institutions, and other interested parties
Fund's Investment Thesis and Characteristics
The Fund is not necessarily expected to be sector- or geography- specific, although target sector(s) / geography(ies) should be described in the Fund's submission.
The Fund's thesis should reflect the manager's prior successful experience and track record
The Fund should target a total minimum fund size of at least $100 million
Growth equity has historically been and will remain an investment strategy of high interest to OPIC, but OPIC will consider other private equity strategies, including buyouts, mezzanine/expansion credit, special situations, and funds of funds
Funds must be privately owned and managed
From time to time prior to December 23, 2011, OPIC may announce on its internet website that special consideration will be given to specific geographies and/or sectors to meet its portfolio allocation needs or policy objectives.
Credibility and thoughtfulness of proposal; consistency and clarity of investment thesis and proposed exit strategies
Previous track record of Fund management team making long-term risk investments in emerging markets, and its in-country or regional experience
Experience, depth, credibility and cohesiveness of Fund management team and details of local presence for management and monitoring purposes
Competitive position of Fund manager, including deal sourcing, value addition, reputation and capital market access
Ability of Fund manager to raise sufficient equity capital to close the proposed fund in a reasonable amount of time
Fund manager's experience as a fiduciary in managing institutional capital, meeting reporting requirements and administering a fund
Amount, terms and conditions of the requested OPIC financing
Demonstration of how the proposed fund and its investments have a developmental impact
Emphasis will be given to funds with demonstrated track record, ability to return capital to investors in an attractive and timely manner, and history of fundraising ability and/or indication of current fundraising results.
Each proposal will be reviewed. Those not meeting the requirements set forth in the Call, (not subject to a waiver for cure of minor information deficiencies) will be rejected and the proposing firms so notified.
Selection of Finalists
An Evaluation Committee comprising OPIC staff and assisted by the Advisor will evaluate the remaining proposals and select finalists for further consideration. Selected finalists should be prepared for additional due diligence interviews in Washington, D.C. with the Evaluation Committee during the week of February 27, 2012, and for on-site due diligence visits by OPIC and the Advisor between March 19 and April 4, 2012. OPIC reserves the right to change these dates and/or announce additional dates.
Recommendations & Approvals
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, as appropriate. The Evaluation Committee reserves the right not to recommend any of the finalists.
OPIC may select finalists based solely on the written submission. Applicants are strongly encouraged to use the Checklist in preparing and submitting their proposal and related documents.
Submitting a Proposal
1) Follow the Checklist in putting together your proposal.
2) Set up a User Account.
Complete the information requested in the "User Account" form and select the "Submit" button to transmit that information to OPIC. After setting up your account, you will receive an email from OPIC containing a link that will allow you to activate the account so you can log in. Please create a User Account as soon as possible if you intend to submit a proposal, but both creation of the User Account and the subsequent submission steps outlined below can occur at any point up until the January 12, 2012 5:00 PM EST deadline.
3) Submit your proposal online.
Once you have activated your account, log in and select "Submit a Proposal." Through your User Account, you may view your submissions and upload an unlimited number of documents at any time up until you click the "Submit" button or the submission deadline of January 12, 2012, 5:00 PM EST, whichever comes first. Click the "Add Document" button in order to upload a document. Click the "Save" button when you want to save the documents that you have already uploaded. Once you are ready to send your completed proposal to OPIC, click "I certify that this proposal is complete" and click the "Submit" button. Once you click "Submit", your proposal will be sent to OPIC and will no longer be available for editing and you will not be able to submit any more documents. Please ensure your proposal is complete before you click "Submit".
4) Hard copies also required.
Please submit five (5) hard copies of the complete proposal and one (1) electronic copy of all files (including Attachments) on a CD, DVD, or flash drive to: Overseas Private Investment Corporation, Investment Funds Department, 1100 New York Avenue, NW, Washington, DC, 20527, Attn: Global Engagement Call. OPIC must receive all submissions by 5:00 P.M., EST, January 12, 2012. Note that all documents should be mailed at once, and no supplemental submissions will be accepted unless OPIC specifically requests additional material.
Please submit two (2) printed copies of the proposal and one (1) electronic copy of all files (including Attachments) on a CD, DVD, or flash drive to: Altius Associates, 6641 West Broad Street, Suite 402, Richmond, VA, 23230, Attn: Global Engagement Call by 5:00 P.M., EST, January 12, 2012. Note that all documents should be mailed at once, and no supplemental submissions will be accepted unless OPIC specifically requests additional material.
OPIC reserves the right, in its sole discretion: (1) not to consider any proposal submitted after the deadline, and (2) to extend the deadline.
Questions Relating to this Call
Applicants are welcome to submit questions about the Call to OPIC at any time through December 23, 2011 (the "Inquiry Deadline") through the Submit a Question link. In order to preserve the transparent nature of the process, OPIC will answer certain questions on the Supplemental Information page so that the answers are publically available. Given that all applicants will be able to view these questions and answers, applicants should be cognizant of divulging proprietary information in their questions. OPIC will not consider questions submitted after the Inquiry Deadline.
OPIC Political Risk Insurance for Private Equity Investment Funds
OPIC can insure either all of the individual investments in portfolio companies as they are made by a Fund for the benefit of all of the investors in the Fund or the specific beneficial interests of a select group of investors in a Fund for the individual investments in portfolio companies as they are made by a Fund. This can be done through either direct insurance with OPIC or through an OPIC‐sponsored PRI facility in partnership with a private sector insurer that is backed with a reinsurance facility and OPIC's AAA rating. The OPIC‐sponsored reinsurance PRI facility is used when the insured party is not a U.S. entity. The coverage provided can be as broad or as narrow as needed and can include protection against governmental actions and political violence that causes losses to the Funds investments in any portfolio company.
Click here for more information.
• At a minimum, each proposal must provide substantially all of the information requested in the Checklist accompanying the Call.
• OPIC may post additional information about the Call on its internet website in the form of Supplements to the Call. This information may supplement or modify, and will be considered a part of, the information originally set forth in the Call.
• OPIC maintains strict confidentiality with respect to all business confidential information in accordance with federal law. However, OPIC will not treat as confidential or proprietary general ideas and concepts contained within any proposal. You may upload documents to your User Account (see "Submitting a Proposal" above) at any time up to the January 12, 2012 5:00 PM EST deadline for submission of proposals. A proposal may not be edited or supplemented once it is submitted.
• To obtain a description of the OPIC Investment Funds Program, please visit OPIC's Investment Funds website.
• OPIC will not be liable for any costs incurred in connection with the submission of a proposal.
• 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.
• OPIC reserves the right to change the dates in the Call's schedule.
NOTICE: This is a United States Government computer system, and is provided only for authorized use. It may be monitored for all lawful purposes, including for management of the system and for protection against unauthorized access. During monitoring, information may be examined, recorded, copied, and used for authorized purposes. All information, including personal information, placed on or sent over this system may be monitored. Use of this system, authorized or unauthorized, constitutes consent to such monitoring. Unauthorized access or use may subject you to criminal prosecution. Evidence of unauthorized use collected during monitoring may be used for administrative, criminal or other adverse action. Use of this system constitutes consent to monitoring for these purposes.