03 May 2004
OPIC Guaranty Supports Central, Eastern European Investment Fund
OPIC approves $65 million investment guaranty
The Overseas Private Investment Corporation (OPIC) has approved a $65 million
investment guaranty for a private equity investment fund intended to increase
investments in business development in Central and Eastern Europe.
"Fund investments will provide capital for new business development
and existing company expansion, restructuring and privatization in the region," according
to an OPIC press release.
Countries and regions eligible for the fund's investments, managed by Advent
International Corporation, include Albania, Bosnia and Herzegovina, Bulgaria,
Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia,
Poland, Romania, Serbia and Montenegro, Slovakia, Slovenia, and Kosovo.
Following is the OPIC press release:
(begin text)
Overseas Private Investment Corporation
April 29, 2004
OPIC BOARD APPROVES $65 MILLION FOR CENTRAL AND EASTERN EUROPE INVESTMENT
FUND
WASHINGTON, D.C. -- The board of directors of the Overseas Private Investment
Corporation (OPIC) today approved an investment guaranty of $65 million for
the support of a private equity investment fund for central and eastern Europe
managed by Advent International Corporation. The target capitalization of
the fund is approximately $350 million.
The investment fund will deploy risk capital for investments in privately
held companies in fund-eligible countries. Fund investments will provide
capital for new business development and existing company expansion, restructuring
and privatization in the region.
Advent International Corporation is one of the largest and oldest private
equity firms in the United States. Since its inception in 1984, Advent has
raised $6 billion in cumulative capital, and has invested in 500 companies
in 35 countries. Advent was one of the first private equity firms to establish
a regional network in central and eastern Europe, with offices in Poland,
Hungary, the Czech Republic, Romania and Slovakia.
"OPIC's participation in this fund represents the latest in many ongoing
Bush Administration and OPIC efforts to stimulate investment and trade in
central and eastern Europe, following in particular OPIC's investment conference
for emerging Europe in March," OPIC President and CEO Dr. Peter Watson
said. "OPIC also recognizes the valuable support countries in the region
provided the United States for its effort in Iraq, and in the international
war against terrorism."
Included among the countries and regions eligible for the fund's investments
are Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic,
Estonia, Hungary, Latvia, Lithuania, Macedonia, Poland, Romania, Serbia and
Montenegro, Slovakia, Slovenia, and Kosovo.
OPIC was established as an agency of the U.S. government in 1971. It helps
U.S. businesses invest overseas, fosters economic development in new and
emerging markets, complements the private sector in managing risks associated
with foreign direct investment, and supports U.S. foreign policy. Because
OPIC charges market-based fees for its products, it operates on a self-sustaining
basis at no net cost to taxpayers.
OPIC's political risk insurance and financing help U.S. businesses of all
sizes invest in more than 150 emerging markets and developing nations worldwide.
Over the agency's 32-year history, OPIC has supported $150 billion worth
of investments that have helped developing countries to generate over 690,000
host-country jobs. OPIC projects have also generated $66 billion in U.S.
exports and created more than 257,000 American jobs.
(end text)
(Distributed by the Bureau of International Information Programs, U.S. Department
of State. Web site: http://usinfo.state.gov)
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