The Overseas Private Investment Corporation, the US government’s development finance institution, is seeking to invest $400 million (£262.8 million; €367.6 million) in seven or eight emerging market-focused private equity fund managers involved in sustainable investment strategies, including agriculture.
In a statement, OPIC said the total would be broken down into $40 million to $50 million tranches, with spokesman Charles Stadtlander saying that priority would be given to funds involved in infrastructure improvements, clean energy, agriculture, clean water access and supporting small and medium enterprises.
“Private equity funds are essential tools for economic development in emerging markets,” OPIC president and CEO Elizabeth Littlefield said in the statement.
“OPIC backs cutting edge funds that can raise significant pools of smart capital and demonstrate that commercial returns and sustainable development go hand in hand.”
OPIC will consider providing between $35 million and $150 million in capital to each of the selected funds, according to Stadtlander, a commitment which will represent generally no more than 25 percent of a fund’s total capitalization. It has committed $4.1 billion to 62 private equity funds in emerging markets since 1987.
The agency is accepting proposals between May 11 and June 8 and details for the call for proposals may be found on OPIC’s website at www.opic.gov.
Reporting by Annabelle Ju.