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OPIC Board of Directors Approves over $1 billion in financing to support Development Investments


December 10, 2015

 

WASHINGTON – The Board of Directors of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s Development Finance Institution, today approved new financing to support investment funds working in emerging markets with strong opportunity for development impact. The funds approved for planned OPIC commitment will invest in Sub-Saharan Africa, Latin-America, South Asia, Southeast Asia and Turkey, in sectors including new healthcare, financial services, renewable energy and infrastructure.

“When fully implemented, the funds approved for OPIC financing today will show the spectrum of development impact that private investors can achieve with the right catalytic support,” said Elizabeth Littlefield, OPIC’s President and CEO. “Spanning four continents and investing capital into key sectors like healthcare, financial access, energy and infrastructure, these investment funds present sound strategies for financial returns that bring with them social and development returns. With over a billion dollars in new catalytic capital to spark these strategies, I look forward to the results from this exciting group of new funds led by a dynamic and innovative group of private equity managers.”

“Emerging market private equity is one place where investors are finding development impact strategies at scale," added Brooks Preston, OPIC’s Vice President for Investment Funds. "And in any market, the key to sound financial strategy is cutting-edge fund managers – all of whom are central to the funds approved today for OPIC support. The high quality of these fund managers is exciting, and they have potential to transform the countries and sectors where they operate. Our team looks forward to partnering with these funds to show that financial performance and development goals can complementary.” 

The board of directors’ approvals for OPIC support included:

  • Up to $75 million in financing to Apis Growth Fund I, L.P., managed by Apis Partners, LLP.  The Fund’s financial inclusion focus provides an opportunity for OPIC and institutional investors to deploy needed capital into attractive but significantly under-served financial services sectors in Africa and South Asia. Providing affordable financial services to large but widely dispersed low-income populations has been demonstrated to be a catalytic force behind economic growth and development in emerging markets.

 

  • Up to $65 million in financing to Kandeo Fund II, managed by Kandeo Investment Advisors, LLC. This fund will make investments in financial services across Colombia, Mexico and Peru that will expand financial access to segments of the population currently underbanked or unbanked. Financial inclusion is a key foundation for lasting development and economic growth, and through Kandeo, OPIC will be able to have a positive effect in this key developing region

 

  • Up to $200 million in financing to LeapFrog Emerging Consumer Fund III, managed by LeapFrog Investments Group, Ltd.  This fund will make investments in businesses that offer financial and healthcare delivery services to emerging or under-served consumers in South Asia, Southeast Asia and Sub-Saharan Africa.  As a “profit with purpose” enterprise, it has two complementary objectives: it seeks capital appreciation through its investments in high growth businesses, and through these enterprises it aims to reach millions of low income consumers with quality, affordable products and services.

 

  • Up to $150 million in financing to Abraaj Growth Markets Health Fund, L.P., managed by Abraaj Investment Management, Ltd. This fund seeks to achieve development impact across South Asia and Sub-Saharan Africa by investing in healthcare companies. Emerging market healthcare continues to lag behind developed markets, and OPIC support to private investment in healthcare by groups like Abraaj will help raise standards for facilities and care.

 

  • Up to $200 million in financing to ISQ Asia Aggregator, Ltd., a private equity fund managed by I Squared Capital. The fund will make infrastructure investments across South and Southeast Asia. The economies ISQ will support with OPIC financing traditionally face difficulty in attracting commercial capital for infrastructure, a critical foundation for lasting development.

 

  • Up to $50 million in financing to Meridiam Infrastructure Africa Fund, managed by Meridiam SAS. This fund will make investments across Africa in key OPIC focus sectors to build lasting development, including renewable power, transportation and other essential infrastructure. Through investments in energy projects, the fund’s work also shares goals with President Obama’s Power Africa initiative

 

  • Up to $150 million in financing to 57 Stars Global Opportunity Fund 4, managed by 57 Stars LLC.  This fund of funds will support direct private equity investors in emerging markets, in some cases with their first efforts in such markets.  As a result of the broadened scope of ultimate investments and the strategy of the manager, consumer-facing enterprises across the developing world will have access to new growth capital, thus spurring economic development.

 

  • Up to $75 million in financing to Falcon Mezzanine Partners Africa PCC, a private equity fund sponsored by Falcon Investment Advisors. The fund will serve a critical development role across sub-Saharan Africa by providing catalytic capital to medium-sized companies that consistently face difficulty in obtaining private financing.

 

  • Up to $75 million in financing to the IIG Growth and Buyout Fund I, managed by IIG Investment Advisors. The fund will operate in Turkey, making investments in key growth sectors, including potentially healthcare, education and retail. OPIC support will catalyze capital to middle-market businesses that currently lack access to commercial capital.

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OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help address critical development challenges and in doing so, advances U.S. foreign policy and national security priorities. 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, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. 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.

 All OPIC projects adhere to high environmental and social standards and respect human rights, including worker's rights. By mandating high standards, OPIC aims to raise the industry and regional standards of the countries where it funds projects. OPIC services are available for new and expanding business enterprises in more than 160 countries worldwide.