Latin America Capital Markets Fund

The Overseas Private Investment Corporation ("OPIC") is inviting proposals from qualified private sector fund managers for the formation and management of one or more investment funds (“Funds”) that will invest in Latin America. OPIC will provide debt financing of between $25 million and $150 million for each selected Fund.

The Funds will be privately owned and managed and will be expected to build a diversified portfolio in terms of exposure to the various investments in the specific strategies outlined based on the proposals submitted.

OPIC has engaged Franklin Park (“FP”), an independent advisor to institutional investors, to assist in evaluating proposals received in response to this Call for Proposals (“Call”).

Purpose of Call

Through this Call, OPIC seeks to finance one or more selected funds to facilitate the investment of risk capital that will expand the breadth and/or depth of capital markets in Latin America. OPIC is primarily interested in supporting funds that address specific market gaps in forms of capital and investment product in Latin America. Consideration will be given to fund proposals that will, (i) provide private sector businesses with a source of capital not presently available in scale, (ii) provide investors with new or increased product for investment, and/or (iii) otherwise best meet the OPIC Selection Criteria.

Fund Sector Focus

OPIC is open to receive proposals that address the Purpose of the Call and otherwise meet the Call criteria. Proposals can address public or private capital markets, debt or equity strategies and products and should be sustainable and scalable. A representative list of strategies and products of interest to OPIC include: medium and long-term debt, local currency debt, mezzanine financing, private equity for SMEs, and new publicly listed debt and equity securities.

Fund Geographic Focus

Fund(s) may be country or regionally oriented and will make investments predominantly in areas addressing the Purpose of the Call.  

Fund Capitalization

OPIC anticipates providing up to $150 million in debt financing to each selected fund.  OPIC’s support should represent no more than a third of the fund’s total capital, with a minimum OPIC commitment of $25 million. OPIC’s financing will be provided in the form of senior long-term indebtedness loaned or guaranteed by OPIC (see the web page How Funds Work).  The balance of each selected fund’s capital is to be equity raised from private investors, international financial institutions, and other interested parties.

OPIC Selection Process

The selection process under this Call will be as follows:

1. Non-Qualifying Proposals:  OPIC will evaluate each proposal to determine if it was submitted in accordance with the requirements set forth in the Call.  All non-qualifying proposals (not subject to a waiver for cure of minor information deficiencies) will be rejected at this time and the proposing firms so notified.
2. Selection of Finalists: An OPIC Evaluation Committee comprised of OPIC staff and assisted by FP will evaluate the remaining proposals.  Based on the Selection Criteria set forth below, the Evaluation Committee will select finalists for further consideration.  Finalists will be notified promptly by OPIC and will be invited to a due diligence interview with the Evaluation Committee in Washington, D.C. and will be expected to be available for on site due diligence visits by OPIC and FP shortly thereafter.
3. Recommendations:  Upon the completion of due diligence, the Evaluation Committee will make its recommendation for selecting one or more funds to the OPIC Investment Committee and the OPIC Board.  The Evaluation Committee reserves the right not to recommend any of the finalists.

OPIC Selection Criteria

In assessing proposals, OPIC will consider, among other things, the following criteria with respect to each proposal:

1. the credibility and thoughtfulness of the proposal and the consistency and clarity of the fund manager’s investment strategy;
2. the track record of the prospective fund manager in making long-term risk capital investments in emerging markets and in particular its on-the-ground regional experience;
3. the experience, depth, credibility and team cohesiveness of the fund manager;
4. the fund manager’s experience as a fiduciary in managing institutional capital meeting reporting requirements and administering a fund;
5. the competitive position of the fund manager including deal sourcing capabilities, reputation and capital market access; 
6. the ability of the fund sponsors to raise sufficient capital to close the proposed fund within a reasonable time;
7. the proposed fund’s developmental impact, on capital markets and otherwise, in its target countries/region; and,
8. the terms and conditions of the proposed OPIC financing, including the leverage ratio sought.

OPIC may make its determination with respect to any proposal based solely on the written submission.

Minimum Requirements

Each proposal should provide substantially all of the information requested in the Questionnaire accompanying the Call.

Additional Information from OPIC

Periodically, OPIC may post additional information on its Internet web site in the form of Supplements to the Call. Any information so designated on OPIC's web site may supplement or modify, and will be considered a part of the information set forth in the Call.

Confidentiality

OPIC maintains strict confidentiality with respect to all business confidential information.  OPIC will not, however, treat as confidential or proprietary general ideas and concepts contained within any proposal.

Deadline for Proposals:

Proposals must be submitted both in written form and electronically by 5:00 P.M., Eastern Daylight Time, on May 22nd, 2008.  

OPIC reserves the right, in its sole discretion: (1) not to consider any proposal submitted after the deadline, and (2) to extend the deadline.

OPIC anticipates that it will evaluate promptly all proposals received and requires that fund managers, if selected, be available to visit OPIC in Washington D.C. between June 25th and June 27th, 2008, and to receive an on-site due diligence team from OPIC and FP during the period of July 14h to July 25th, 2008.  For more detail with respect to the proposed schedule please see the Due Diligence Timeline.

How to Submit a Proposal

To submit a proposal, you must complete the following three steps:

1. Submit one copy of the proposal electronically by clicking the "Submit Proposal" link. When prompted by your browser, opt to continue to establish the secure connection with OPIC's applications server. Complete the required and optional information on the Proposal Submission Form and attach an electronic copy of your proposal. The proposal should use standard word-processing, spreadsheet, and/or PDF files. Click the "Submit" button to transmit your proposal to OPIC securely. The proposal will be encrypted using 128-bit SSL security.

2. Send fifteen (15) printed copies of the proposal to: Overseas Private Investment Corporation, Investment Funds Department, 1100 New York Avenue, NW, Washington, DC, 20527, Attn: Latin America Capital Markets Fund. These must be received by OPIC by 5:00 P.M., Eastern Daylight Time, May 22, 2008.
3. Please submit three (3) printed copies of the proposal by mail or courier to Michael Bacine, Franklin Park, 3 Bala Plaza, Suite 500 West, Bala Cynwyd, PA 19004 and one copy via e-mail to mbacine@franklinparkllc.com by 5:00 P.M. Pacific Daylight Time on May 22, 2008.

Supplementing Proposals

Proposals submitted may be supplemented at any time up to the deadline for submission of proposals.

Information on OPIC's Funds

To obtain a description of OPIC's Investment Funds, please visit the OPIC's Investment Funds page on the OPIC web site.

Questions Relating to this Call

All questions concerning the Call must be received by OPIC by 5:00 p.m. EDT on May 9, 2008 (the "Inquiry Deadline") using the "Submit Comment/Questions" form on this web site. Questions received in accordance with this section will be answered and posted the Supplemental Information page. As all proposers will be able to view the questions and answers, proposers should be cognizant of divulging proprietary information in their questions. Questions submitted after the Inquiry Deadline will not be considered.

Incurring Costs

OPIC will not be liable for any costs incurred in connection with the submission of a proposal.

Rejection of Proposals

OPIC reserves the right not to select any of the proposals and to re-initiate the Call, or to suggest that proposals be supplemented or combined with other proposals without reinitiating the selection process. The issuance of the Call does not obligate OPIC to provide support to any proposal or any selected fund.

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