OPIC Board Approves $100 Million Investment in Paladin Realty's 4th Latin American Fund
First-time home buyers to benefit with new affordable housing
May 8, 2013
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment Corporation (OPIC) recently approved a new financing commitment of up to $100 million to Paladin Realty Latin America Investors IV LP, a new investment fund sponsored by Paladin Realty Partners, LLC, a leading institutional real estate fund manager focused on Latin America. The fund, which held its initial closing earlier this year at $75 million and has a target capitalization of $400 million to 600 million, aims to build thousands of affordable housing units throughout Latin America.
“This new fund will continue Paladin Realty’s 15-year strategy of supporting affordable homeownership in Latin America and the growth of its housing industry,” said OPIC President and CEO Elizabeth L. Littlefield. “We are thrilled to partner with this innovative U.S. investment firm to bring these development-stage projects to realization.”
A primary focus of the Latam IV fund’s investment strategy will be to finance the development of new housing for the region’s growing workforce. The fund aims to build approximately 12,000 affordable housing units throughout Latin America. By creating an asset base for first-time homebuyers, Paladin’s Latam IV fund will support the growth of local housing markets – and with them construction and related industries – where there is pent-up demand and growing deficit of supply. More than half of the families in 41 of Latin America’s biggest cities cannot afford to buy a proper formal dwelling using their own means, according to a 2012 study by the Inter-American Development Bank.
OPIC, which is one of the largest sponsors of private equity funds in emerging markets, has previously supported two Paladin Realty investment funds focused on Latin America. Pension Consulting Alliance performed due diligence on the fund and Paladin Realty on OPIC’s behalf.
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 277,000 American jobs.