OPIC Commits $87.5 Million to First Fund-of-Funds, Supporting Impact Investment
May 14, 2012
(OPIC)
WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC), the U.S.
Government’s development finance institution, today signed a commitment letter
pledging $87.5 million in financing for the first fund-of-funds in the agency’s
portfolio, the latest step in OPIC’s support for the fast-growing impact
investment sector.
The Sarona Frontier Markets Fund 2 LP proposes to invest in 12-18 private
equity funds that target market- based returns while investing in small and
medium-sized enterprises (SMEs) in frontier and emerging markets, which are
expected to contribute employment, wealth creation, and access to goods and
services to underserved populations.
OPIC’s Board of Directors approved the Sarona Fund last October as part of the
agency’s support for six new investment funds that aim to inject $875 million
into the impact investment sector – the largest U.S. government commitment to
impact investing in emerging markets to date. Sarona has a target capitalization
of $250 million.
The Sarona fund will be managed by Sarona Asset Management, Inc., an Ontario
company recently spun out of Mennonite Economic Development Associates Inc.
(MEDA), a Pennsylvania non-profit corporation dedicated to creating business
solutions to poverty. MEDA and its subsidiaries, MEDA Investments Inc. and
Sarona Asset Management Inc., have been investing in small to mid-market
businesses in developing countries since 1953.
“The Sarona fund-of-funds represents the best of impact investing,” said OPIC
President and CEO Elizabeth Littlefield. “It will raise capital from investors
attracted by stable financial returns combined with measureable development
impacts; bring environmental, social and governance standards to each of its
investments; and ultimately invest in high-growth SMEs in frontier markets,
which in turn will generate employment, wealth creation, and access to goods and
services for underserved populations.”
The signing of the OPIC commitment preceded a 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.