In Historic Commitment to Impact Investing, OPIC Board Approves $285 Million for Six Funds Catalyzing $875 Million in Investments
October 27, 2011
(OPIC)
More Investments to Follow in 2012
WASHINGTON, D.C. – Impact investing, a
fast-growing industry that is drawing a wide
range of private investors with the promise of
delivering social and environmental benefits to
emerging markets while at the same time
generating profits, was given an historic boost
today. The Board of Directors of the Overseas
Private Investment Corporation (OPIC), the U.S.
Government’s development finance institution,
approved financing for six new investment funds
that aim to inject $875 million into the
sector.
OPIC will provide financing up to $285 million
to equity funds that should raise more than
$875 million, representing the largest
commitment by the U.S. Government to impact
investing in emerging markets to date. The
selected equity funds were drawn from a record
88 responses to OPIC’s call for impact
investing proposals in March, a response so
positive that OPIC expects to announce
additional approved facilities in 2012.
“This is a watershed day in the evolution of
impact investing,” said OPIC President and CEO
Elizabeth Littlefield. “These new funds, and
the additional investment facilities we
announce in 2012, will help to fill financing
gaps and introduce more innovation into the
impact investing space, helping it grow and
mature.”
The funds approved today are a diverse group of
financing vehicles that will invest in emerging
market projects that improve lives, create
employment, enhance health care, protect
forests and address climate change.
“Each of them promises a strong development
impact —be it mobile banking for the unbanked,
investing in small businesses in the
post-conflict countries of Liberia and Sierra
Leone, improved health care in Africa,
preservation of highly vulnerable forests, or
growing small businesses in Mexico. OPIC has a
long history of investing for both social and
financial returns and we believe impact
investing will gain significant traction in the
coming years. We are proud to support its
development,” Ms. Littlefield said.
The six funds approved by the Board were:
Investment Fund for Health in Africa II (IFHA
II)
This private equity fund will invest in
companies that improve the health situation for
low and middle-income African citizens,
primarily in Africa. It expects to target
investments in companies that operate in small
and medium-sized hospitals and clinics,
healthcare products import, distribution and
manufacturing, insurance and supporting
industries such as water and sanitation, food
and nutrition, education and environmental
services.
OPIC selected as fund manager Africa Health
Systems Management Company B.V.
OPIC financing: $83 million
Target capitalization: $250 million
Latin Idea
This Fund will provide growth capital to
Mexican SMEs within the technology, media,
telecommunications and services sectors; SMEs
are important engines of employment creation
and economic growth but typically face a severe
shortage of capital in developing countries.
OPIC selected as fund manager Latin Idea
Ventures III LLC.
OPIC financing: $25 million
Target capitalization: $125 million
ManoCap
This fund will invest in SMEs in Sierra Leone
and Liberia, as well as other West African
countries, with a focus on post-conflict
nations. It will invest in a broad range of
sectors including agriculture, agro-processing,
sustainable fisheries, services, healthcare,
sanitation, construction and building
materials, tourism, light manufacturing, and
financial services. These SMEs are expected to
have a direct effect on the standard of living
of base-of-the-pyramid communities by providing
employment and access to goods and services.
OPIC selected as fund manager ManoCap LLC.
OPIC financing: $34 million
Target capitalization: $100 million
MPOWER
Ventures
This fund will focus on unbanked and the
under-banked populations in emerging markets
through the provision of prepaid debit cards,
or GPR cards, and related alternative financial
services. It will initially focus on Mexico,
Brazil, Colombia, Peru and Bolivia.
OPIC selected as fund manager MPOWER Ventures
III L.P.
OPIC financing: $15 million
Target capitalization: $50 million
Sarona
This fund-of-funds will invest in 12-18 private
equity funds that target market based returns
while investing in SMEs in frontier markets,
which are expected to contribute employment,
wealth creation, and access to goods and
services to underserved populations.
OPIC selected as fund manager Sarona Asset
Management, Inc.
OPIC financing: $87.5 million
Target capitalization: $250 million
Terra Bella
This private equity fund will invest in
projects that generate carbon credits through
the protection and enhancement of forests while
simultaneously generating valuable social and
environment co-benefits. Terra Bella will
generate returns through the sale of carbon on
the growing voluntary, compliance and
pre-compliance markets that are emerging in the
forest and land-use carbon sector.
OPIC selected as fund manager Terra Global
Investment Management LLC.
OPIC financing: $40 million
Target capitalization: $100 million
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