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OPIC Board Approves $66 Million For Investment Fund For SMEs In Brazil

Friday, June 22, 2012

(OPIC)  WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment Corporation (OPIC), the U.S Government’s development finance institution, approved $66 million in financing for a new investment fund designed to provide much-needed growth capital to small and medium-sized enterprises (SMEs) in Brazil.

The fund, DGF Capital III, will make investments intended to expand company product lines, promote investment in new equipment and facilities, improve corporate governance standards, and enhance financial reporting and controls. It will focus on companies with leading market positions in high-growth sectors such as business services, information technology, healthcare, and consumer goods. The fund has a target capitalization of $200 million.

“Brazilian small and medium-sized businesses are underserved by private equity financing – a fact which prevents them from realizing their full potential and effectively contributing to the country’s economy,” said OPIC President and CEO Elizabeth Littlefield. “This fund will help Brazil unlock some of that potential, by investing precisely in those SMEs which stand the best chance to emerge as leaders in their respective industries.”

OPIC selected as fund manager DGF Investimentos, a pioneering, independent Brazilian private equity firm with approximately $300 million in assets under management. DGF Investimentos’ partners have built a solid track record of 27 investments and 15 exits since 1998. Closing of OPIC’s financing is subject to certain conditions and negotiation of final terms.