Fund Qualifications & Characteristics
- OPIC Relevance: Target strategy, sectors and countries should be described in a fund’s submission.
- Manager Experience: A fund’s investment thesis should reflect the fund manager’s prior experience and value creation track record.
- Fund Size: OPIC typically seeks applications for small to mid-cap fund strategies with total capitalization of between $100 million and $1 billion (including the OPIC commitment). Funds smaller than $100 million, with a heightened focus on impact and innovation, may qualify for OPIC’s Innovative Financial Intermediary Program (“IFIP”). For more information on IFIP, please see the IFIP webpage.
- Asset Class: While growth equity remains an investment strategy of high interest to OPIC, the agency will also consider other private fund strategies, including mezzanine, expansion credit, special situations, infrastructure, and real estate funds.
- US Connections: All eligible funds must satisfy OPIC’s “U.S. Connections” requirement, which means that the manager or GP must either (i) be a U.S. entity that is at least 25% U.S.-owned or a foreign entity that is majority U.S.-owned, OR (ii) raise investment capital from U.S. investors that is equal to or greater than 25% of the OPIC loan. As an example, for a $200 million dollar fund in which OPIC participates with a $50 million loan, the GP must raise $12.5 million of capital from U.S. investors (an amount equal to 25% of the OPIC loan). A fund need not have already secured U.S. investor commitments to apply to OPIC, but ability to raise U.S. investor commitments will be considered.
- Ownership: Funds must be privately owned and managed.