Qualifications & Selection Criteria
- Target sectors and countries should be described in a fund’s submission.
- A fund’s investment thesis should reflect the fund manager’s prior experience and track record.
- OPIC is targeting funds with total capitalization of $100 million or more (including the OPIC commitment). Funds smaller than this may qualify for OPIC’s Innovative Financial Intermediary Program (“IFIP”). For more information on IFIP, please see the IFIP webpage.
- Growth equity has historically been and will remain an investment strategy of high interest to OPIC. However, OPIC will consider other private fund strategies, including buyouts, mezzanine, expansion credit, special situations, infrastructure, fund of funds, and real estate.
- Funds must be privately owned and managed.
- Credibility and thoughtfulness of the proposal; consistency and clarity of the investment thesis and proposed exit strategies.
- Previous track record of the fund management team making long-term risk investments in emerging markets, and the team's country or regional experience.
- Experience, depth, credibility and cohesiveness of the fund management team and details of its local presence for portfolio management and monitoring.
- Competitive position of the fund manager, including deal sourcing, ability to add value to investments, reputation and capital markets access.
- Ability of the fund manager to raise sufficient equity capital to close the proposed fund in a reasonable amount of time.
- The 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 may have a positive developmental impact on the host country/countries in areas including, but not limited to: job creation, infrastructure improvements, social policies and corporate social responsibility initiatives, as well as technology and knowledge transfer.
- Ability of the fund manager to comply with OPIC’s policies related to environmental and social sustainability as well as respect for human and workers’ rights. For further details on OPIC policies, please visit OPIC Policies.
- All 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. 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.