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INVESTMENT FUNDS

Selection Process

OPIC works with external private equity investment advisors on every aspect of the Call for Proposals to assist in managing the process and evaluating proposals received in response to the Call. Each proposal received by OPIC will be reviewed against the Selection Criteria.

Selection of Funds for Diligence
An Evaluation Committee comprised of OPIC staff and assisted by the advisors will determine which applicants are selected for further consideration based on their initial application. These semifinalists should be prepared to (i) provide OPIC with additional information, and (ii) travel to OPIC’s headquarters in Washington, D.C. for an interview with the Evaluation Committee and the advisors.

For the finalists that progress beyond the Evaluation Committee interview, a team comprised of both OPIC staff and the advisors may conduct on-site final due diligence at a mutually agreeable time, although OPIC reserves the right to select candidates for further due diligence based solely on their written proposals.

Recommendations of Semi-Finalists to the OPIC Investment Committee
Upon the completion of on-site due diligence and review of a final investment report authored by the advisors, the Evaluation Committee will evaluate the manager against the Selection Criteria and decide whether to recommend a manger to OPIC’s Investment Committee. The Evaluation Committee reserves the right to recommend any of the finalists or none of them.

Recommendations of Finalists to the Board of Directors
OPIC’s Investment Committee, comprised of senior OPIC officials and chaired by the President and CEO of OPIC, evaluates each finalist. The President and CEO of OPIC decides which finalists to recommend to the Board of Directors. OPIC’s Board of Directors, which meets quarterly, reviews each finalist and votes on whether or not to approve a loan to the fund.

Non-Qualifying Proposals
Those fund managers not selected to move forward in the process will be notified by OPIC via email. The selection process is extremely competitive, and OPIC receives proposals from many highly-qualified managers. Regrettably, OPIC does not have the capacity to support all of the worthy funds that apply.

 

Selection Criteria

  • Strategy:  Credibility and thoughtfulness of the proposal; consistency and clarity of the investment thesis, value creation strategy, and proposed exit strategies.
  • Track Record:  Previous track record of the fund manager’s making long-term risk investments in emerging markets, and the team’s country or regional experience.
  • Team & Organization:  Experience, depth, credibility and cohesiveness of the fund management team and details of its local presence for portfolio management and monitoring.
  • Competitive Position:  The differentiated competitive position of the fund manager, including deal sourcing, ability to add value to investments, reputation and capital markets access.
  • Development Impact:  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.
  • Environment and Social Governance:  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.
  • Fundraising:   Ability of the fund manager to raise sufficient equity capital to close the proposed fund in a reasonable amount of time.
  • Fund Administration:  The fund manager’s experience as a fiduciary in managing institutional capital, meeting reporting requirements and administering a fund.
  • Capitalization:  Amount, terms and conditions of the requested OPIC financing.