Support for emerging market private equity funds to help address the shortfall of investment capital.

DFC can invest debt and equity into emerging market private equity funds to help address the shortfall of private equity capital in developing countries and help these economies access long-term growth capital, management skills, and financial expertise, all of which are key factors in expanding economic development and creating new opportunities for people in low-income and developing nations.

On March 10, 2020, DFC issued a Call for Proposals focused on information technology and communications. 

On May 11, 2020, DFC issued a Call for Proposals focused on the Health and Prosperity Initiative. 

Evaluation Criteria

Evaluation of prospective fund managers considers the following criteria:

  • Strategy: Investment thesis, origination capability, pipeline, structuring, value creation, exit thesis, and competitive positioning
  • Team: Geographic and sector experience, alignment, culture, governance, processes, record of collaboration, reputation, leadership, and depth of team; first-time managers and/or pioneer strategies will be considered
  • Track record: Attribution, value creation, value recovery, lessons learned, and relevance to fund strategy
  • Fundraising: Potential and capacity to close with limited partnerships compatible with DFC
  • Fund terms: Strong governance and economic alignment, as well as ability for co-investment participation

Investment Process

DFC will determine which applicants are selected for further consideration based on close alignment with the evaluation criteria outlined above. The selection process is extremely competitive, and DFC receives proposals from many highly qualified managers. Regrettably, DFC does not have the capacity to support all the worthy funds that apply.