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In recent years, OPIC has experienced increased demand for financing from managers of investment vehicles that, due to their smaller size and/or specialist strategies, were often unsuccessful in OPIC’s mainstream calls for fund proposals. Similarly, because these strategies were structured as pooled investment vehicles, they were ineligible for the direct lending product offered by the Agency’s Small and Medium Enterprise Finance department.

To respond to this demand, OPIC launched the Innovative Financial Intermediaries Program (IFIP) in November 2013.   IFIP supports smaller-scale financial intermediaries/vehicles investing in enterprises in OPIC-eligible countries, with a specific focus on innovation and developmental impact. IFIP has enabled OPIC to develop a new process to consider these unique, smaller structures and respond more effectively to them while leveraging the expertise and best practices within the Agency’s finance and investment funds departments.  

IFIP Eligibility

As with all OPIC projects, investments made through this program will be required to comply with OPIC's U.S. investment eligibility requirements, as well as its environmental, social, worker rights, and U.S. effects standards and criteria.

The chart below provides key information on eligible structures for IFIP; however, OPIC strongly recommends that potential applicants use the IFIP Eligibility Self-Screener to determine if their proposed vehicle meets the minimum requirements for application to IFIP. 

IFIP-Eligible Structures

Maximum Fund Capitalization*

OPIC Commitment Description
Small Equity Funds $100M Up to 1/3 of total fund capitalization; capped at $33.3M Funds that make equity and equity-like investments, including mezzanine and subordinated debt, into portfolio companies.
Hybrid Funds and Debt Funds $100M Up to 2/3 of total fund capitalization**; capped at $50M Includes, inter alia, funds that make investments into portfolio companies in the form of: both debt and equity; solely senior debt; or both senior and subordinated debt.
Non-Bank Financial Institutions and Intermediaries No Limit Up to 1/3 of total fund capitalization (equity-focused NBFIs) and up to 2/3 (debt-focused NBFIs); capped at $50M Non-Bank Financial Institutions and Intermediaries deploying 25% or more of their capital as equity investments into portfolio companies.
Hybrid Microfinance Investment Vehicles (MIVs) No Limit Up to 2/3 of total fund capitalization**; capped at $50M MIVs investing 25% or more of their total portfolio as equity.

* Including OPIC's participation

** The level of financing that OPIC will consider is largely commensurate with the risk of the investment strategy of the fund, in terms of forms of capital the fund will deploy and the target portfolio composition. Generally, the higher end of the range will be considered for funds investing a higher level of debt than equity.

Evaluation Criteria

Applications submitted through the IFIP application website will be evaluated on a range of criteria, including the following:

Fund Strategy

Management Team

Track Record

Fundraising

Governance

Impact Potential

Clarity of Investment Objectives

Market Opportunity

Pipeline of Opportunities

Innovation

 

Years of Relevant Experience

Team Composition

Years Working Together

Relationships & Resources

Fund Manager & Investment Team Deal History

Value Created

 

Capital Commitments to Date

Demonstrable Funding Pipeline

Previous Fundraising Track Record

Fundraising Strategy/Ability to meet OPIC U.S. Connection requirement (if applicable)

Compensation, Carry

Conflicts of Interest

GP  Commitment

Impact Intent/Strategy

Target Population

Impact Metrics/Tracking

Scalability

 

 

 

 

 

 

 

 

 

 

 

 

IFIP Application Process

The IFIP application process involves submission of a questionnaire (OPIC Form 256 - Investment Funds Questionnaire) and supporting documentation, including a pitch book, investment/transaction pipeline, and (if available) Private Placement Memorandum (PPM). OPIC accepts proposals on an ongoing basis and reviews them quarterly with the assistance of an external investment advisor.

The next quarterly deadline is January 31, 2018.

To begin the application process, please creat an account and complete and submit the OPIC Form 256 along with the required supporting materials. Some additional resources to consider when preparing application to IFIP:

If, after reviewing these resources, you have any questions regarding the Innovative Financial Intermediaries Program, please contact the IFIP Program Manager at IFIP@opic.gov.

To learn more about the Innovative Financial Intermediaries Program, please visit the IFIP application website. If you have any questions after reviewing the website and FAQ please contact us at IFIP@opic.gov