In response to the critical shortfall of private equity capital in developing countries, OPIC provides support for the creation of privately-owned and managed investment funds. These funds make direct equity and equity-related investments in new, expanding or privatizing emerging market companies. OPIC- supported funds assist emerging market economies to secure long-term growth capital, access management skills, and secure the financial expertise, all of which are key factors in expanding economic development.

OPIC-supported funds are among the largest providers of private equity capital to emerging markets. Since 1991, OPIC has committed (as of FY 2007) nearly $3 billion in funding to almost 40 private equity funds. These funds in turn have invested $3.5 billion in more than 400 privately-owned and managed companies, the vast majority of which are small and medium-sized entities located across 53 developing countries in emerging-market regions eligible for OPIC support. The beneficial impact of OPIC’s credit support of funds that invest in companies is significantly greater than the amount of capital that OPIC contributes directly to the funds: private equity direct investment creates a multiplier effect as new capital attracts additional investment and financing in companies.