Renewable Energy Funds - get up to $100 million from OPIC
The Overseas Private Investment Corporation ("OPIC") is inviting proposals from qualified private equity fund managers for the formation and management of one or more investment funds (“funds”) that plan to invest approximately half of its or their capital in companies or projects within the Renewable Energy sector. OPIC will provide financing ranging between $25 million and $100 million in total capital for each selected fund.
OPIC has engaged Dalberg Global Development Advisors (“Dalberg”), an independent strategy advisor, to assist in evaluating proposals received in response to this Call for Proposals (“Call”).
Purpose of Call
OPIC seeks to finance one or more selected funds to facilitate the investment of risk capital to companies within the renewable energy sector for new business development, existing company expansion, restructuring, and/or privatization. OPIC is primarily interested in supporting funds that will focus on investing in renewable energy companies and/or projects. Funds may also invest in other related sectors in the field of energy and environmental sustainability.
Fund Investment Focus
OPIC seeks to address an important policy objective of the U.S. Government to promote the global renewable energy sector. Investments in the renewable energy sector could include solar thermal and solar photovoltaic, wind power, hydro, geothermal, and biomass (including waste to energy). These investments may be in renewable energy projects, or in the companies that provide the products and services for these sectors. In addition, funds can also invest in related energy and environmental sustainability sectors, including energy efficiency products, systems and equipment, emissions control and treatment, wastewater treatment and waste management. Funds should focus more on growth or expansion private equity investments rather than seed or early stage technology investments, and funds’ investment strategies should not focus on carbon credits only.
Fund Geographic Focus
Funds may be country, regionally or globally oriented and will invest predominantly in OPIC-eligible countries in one or more of the following regions: Asia (including South and Southeast Asia), Eurasia (includes Central and Eastern Europe, the Balkans, Russia, former NIS), Central Asia, Latin America or the MENA region.
OPIC will consider providing up to $100 million in capital to one or more selected managers for financing that will generally represent no more than 33% of a fund’s total capitalization. Funds that OPIC deems to be highly developmental could receive up to 50% of a fund’s total capitalization. OPIC’s financing will be provided in the form of senior debt loaned by OPIC (see FAQs for more detail). The balance of each selected fund’s capital would be equity raised from private or institutional investors, international financial institutions, and other interested parties.
OPIC Selection Process
The selection process under this Call will be as follows:
- Non-Qualifying Proposals: With Dalberg’s assistance, 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.
- Selection of Finalists: An OPIC Evaluation Committee comprised of OPIC staff and assisted by Dalberg 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, 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 Dalberg shortly thereafter.
- 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 of Directors. 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:
- the credibility and thoughtfulness of the proposal, and the consistency and clarity of the fund manager’s investment strategy and proposed exit strategies;
- the track record of the prospective fund management team in making long-term risk capital investments in emerging markets, and its in-country or regional experience;
- the experience, depth, credibility and cohesiveness of the fund management team;
- the fund manager’s understanding of renewable energy markets in their designated country or region, and their level of commitment to invest approximately half of the fund’s capital in projects or companies in the renewable energy sector;
- the competitive position of the fund manager, including deal sourcing, value addition, reputation, and capital market access;
- the ability of the fund manager to raise sufficient capital to close the proposed fund within a reasonable time;
- the fund manager’s experience as a fiduciary in managing institutional capital, meeting reporting requirements, and administering a fund;
- the proposed fund’s environmental impact from renewable energy investments in its target countries and/or region, and
- 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
Each proposal must 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.
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. For the benefit of the Call finalists and the process, OPIC may choose to share their proposals with other potential interested investors, but will ask for written permission from the Call finalists before doing so. In addition, OPIC may consult with pertinent offices within the Department of Energy or other US Government agencies regarding submitted proposals as part of the selection process.
Deadline for Proposals:
Proposals must be submitted both in written form and electronically by 5:00 P.M., Eastern Daylight Time, on April 25th, 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 Call finalists to be available to visit OPIC in Washington, D.C. between June 11th and June 13th, 2008, and to receive an on-site due diligence team from OPIC and Dalberg during the period of July 7th to July 18th, 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:
- Proceed to the Submit Proposals link located on the web site. Complete the required and optional information on the Registration Form. Click the “Submit” button to transmit your information to OPIC.
- Send fifteen (15) printed copies of the proposal and one (1) electronic copy of all files on a CD or DVD to: Overseas Private Investment Corporation, Investment Funds Department, 1100 New York Avenue, NW, Washington, DC, 20527, Attn:
Global Renewable Energy Fund. These must be received by OPIC by 5:00 P.M., Eastern Daylight Time, April 25, 2008.
- Please submit three (3) printed copies to Peter Tynan, Dalberg Global Development Advisors, 818 18th St. NW, Washington, DC 20006, and via e-mail to firstname.lastname@example.org by 5:00 P.M. Eastern Daylight Time, April 25, 2008.
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 3:00 p.m. EDT on April 17, 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 to the Supplemental Information page of the web site as soon as possible after the Inquiry Deadline. As all applicants will be able to view the questions and answers, applicants should be cognizant of divulging proprietary information in their questions. Questions submitted after the Inquiry Deadline will not be considered.
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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