Beats | October 3, 2019

New U.S. Development Finance Corp. is all dressed up with nowhere to go

David Bank
ImpactAlpha Editor

David Bank

ImpactAlpha, October 3 – The successor to the Overseas Private Investment Corp. was set to begin operations Oct 1. But most of the new capacities of the DFC, as it will be called, are on hold pending the passage of a federal budget. Temporary funding passed by Congress finances only existing programs. “Right now we continue to operate as OPIC,” David Bohigian, OPIC’s acting CEO, said at the GIIN’s investor forum in Amsterdam. 

  • Holding pattern. Paused for the moment is the new DFC’s authority to make equity investments in addition to the debt deals OPIC has done (see, “New U.S. development finance agency expands toolkit for female fund managers). Technical assistance and grants also are on hold. 
  • New lead. The U.S. Senate last month confirmed Adam Boehler to lead the DFC. Most recently an advisor to the Health and Human Services department, Boehler was earlier CEO of Landmark Health, a provider of home health care for the chronically ill. He is reportedly close to White House advisor Jared Kushner, who was once a college roommate. 
  • Impact first. Bohigian, who plans to stay on for a transition period, says he has been working to institutionalize social impact in the new DFC. “When a deal goes to the investment committee,” Bohigian said, “the first thing should be the impact, not the credit report.”