OPIC commits $625M to South Asia related PE, VC funds

The Overseas Private Investment Corporation (OPIC), the US government’s development finance institution, has agreed to commit up to $625 million to private equity and venture capital funds in South Asia, according to a press statement.

The board of OPIC has approved financial commitment of up to $200 million to LeapFrog Investments, an impact investor that targets financial services and healthcare companies in Africa and emerging Asian economies.

The fund 'LeapFrog Emerging Consumer Fund III' will make investments in businesses that offer financial and healthcare delivery services to emerging or under-served consumers in South Asia, Southeast Asia and Sub-Saharan Africa, according to the statement. 

ISQ Asia Aggregator Ltd, a private equity fund managed by I Squared Capital, will also receive up to $200 million capital commitment from OPIC. It will invest in infrastructure assets across South and Southeast Asia. 

“The economies ISQ will support with OPIC financing traditionally face difficulty in attracting commercial capital for infrastructure, a critical foundation for lasting development,” the statement said.

Besides, financing commitments of up to $150 million and $75 million have also been approved for Abraaj Investment Management and Apis Growth Fund I, L.P., managed by Apis Partners, LLP.

Abraaj Growth Markets Health Fund LP, managed by Dubai-based private equity firm Abraaj Investment Management, will invest in healthcare companies across South Asia and Sub-Saharan Africa.

On the other side, Apis Partners will invest through Apis Growth Fund I, L.P across under-served financial services sectors in Africa and South Asia.

“Emerging market private equity is one place where investors are finding development impact strategies at scale," Brooks Preston, OPIC’s vice president for Investment Funds, said.

All the four funds have South Asia as one of the focus targets markets. In India, Abraaj Investment, LeapFrog and Isq Asia are more active.

While LeapFrog has backed Indian companies such as IFMR Holdings Pvt Ltd, Magma Fincorp Ltd, Mahindra Insurance Brokers Ltd and Shriram Credit Company Ltd; Abraaj Investment has invested in Aditya Birla Renewables Ltd and Rainbow Childrens Medicare Pvt Ltd.

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