Over its 40+ year history, OPIC has demonstrated its ability to respond to market demands that the private sector has been
unable to support entirely on its own. Political risk insurance, extended loan maturities, private equity funds, and creative
financing structures such as non-bank financial intermediaries and microfinance institutions show OPIC’s leading and adaptive
approach to mobilizing private investment in developing markets.
As the U.S. Government’s development financing institution, OPIC has helped to expand the access to capital for those
developing economies, particularly in the SME sector.
With regulatory environments and market conditions continually changing, OPIC is increasingly being asked to back projects
with atypical structures that do not fit squarely within either our traditional financing programs or our traditional investment
funds program, although they contain elements typical of each one.
Typically, these projects propose to include both pooled capital, like an investment fund, and debt financing, like OPIC
loans and guarantees. Many of these hybrid projects involve initiatives by financial intermediaries to provide lending to
SMEs in developing countries. This includes projects that mobilize investors who seek to promote social and economic
improvements in developing countries, as well as secure financial returns from their investments (sometimes called “impact investing”).
To address this market-driven demand, OPIC has introduced the Innovative Financial Intermediary Program as a two-year, $500 million
pilot with the aim of expanding sources of capital flowing into developing economies, with a focus on SMEs.
The program supports financial intermediaries who will invest in enterprises in OPIC eligible countries where the investment vehicle is
smaller in size than usually found in an OPIC private equity transaction, or where the investment vehicle deploys capital using debt or equity investments.
Establishing a new process allows OPIC to respond more effectively to these new structures while relying on the expertise and best practices
within the organization’s finance and investment funds functions.
Global, based on OPIC eligible countries
OPIC will accept proposals on an ongoing basis and review them quarterly, with the assistance of an external investment advisor.
Applications will be submitted at OPIC.gov and will be evaluated on a range of criteria including, but not limited to, track record and experience, investment thesis, management team,
fund economics, investment structure and development impact.
√ Pitch book
√ Response to the IFIP questionnaire
As with all OPIC projects, investments made through this program will be required to comply
with OPIC’s environmental, social, worker rights, and U.S. effects standards and criteria, as well as OPIC’s U.S. investment eligibility requirements.