OPIC Completes Financing for First Private Equity Fund Investing in Palestinian Companies
May 22, 2012
(OPIC)
WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC), the U.S.
Government’s development finance institution, concluded an agreement providing
$30 million in financing to the first private equity fund designed to invest in
Palestinian companies. The fund will inject much-needed capital into small
business enterprises across a variety of sectors of the Palestinian economy.
The Siraj Palestine Fund I was one of five funds approved by OPIC’s Board of
Directors in June 2010 in response to an announcement by President Obama that
the United States would launch funds to support technological development in
Muslim-majority countries. The fund had an initial target capitalization of $80
million, but ultimately raised $90 million, including the OPIC financing.
The fund is designed to invest in start-ups and small and medium-sized
enterprises in the Palestinian Territories, with a focus on companies with the
potential to become market leaders in the Territories or expand their operations
internationally, primarily in the Middle East and North Africa. OPIC selected as
fund manager Siraj Fund Management Company, a Ramallah-based company owned by
Massar International.
Siraj Palestine Fund I has already invested in four companies – a gas
distribution company endeavoring to become a market leader in liquefied
petroleum gas distribution; a logistics and distribution services company; a
start-up that specializes in the production and sale of dates; and an
engineering firm that provides architectural design, supervision and project
management services. In addition to these four initial investments, five more
were approved in April of 2012 while many more promising deals are in the
pipeline.
“A viable private equity sector and small business financing infrastructure are
two telltale developments in the growth of any emerging market. The fact that
Siraj Palestine Fund I contributes to both is an outstanding feature of this
investment fund,” said OPIC President and CEO Elizabeth Littlefield. “The Siraj
Palestine Fund I will help to unleash the potential of Palestinian businesses,
while promoting technological advancements and sustainable development – all
goals of President Obama’s announcement.”
Massar International Chairman and fund General Partner Bashar Masri stated,
“OPIC’s much-needed support of the Siraj Palestine Fund I comes at a crucial
juncture for the Palestinian economy. Access to capital for infrastructure
expansion and operational upgrades is the missing link for dozens of viable
Palestinian companies. Without it, they cannot meet domestic demand, innovate or
compete successfully in the international marketplace. Strengthening key
industry players across multiple sectors will ultimately make the entire
Palestinian economy more robust.”
The signing of the financing agreement served to open an OPIC meeting of general
partners managing OPIC-supported private equity investment funds, hosted by the
agency’s Investment Funds Department.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.