Opportunity Information: Apply for APS 391 12 000001
Apply for APS 391 12 000001
- The Pakistan USAID Islamabad in the business and commerce sector is offering a public funding opportunity titled "Pakistan Private Investment Initiative PPII" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 98.001 USAID Foreign Assistance for Programs Overseas.
- This funding opportunity was created on Oct 17, 2012 and posted on Sep 7, 2012.
- Applicants must submit their applications by Sep 12, 2013. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- The funding agency has allocated a total of $76,000,000.00 to eligible and selected applicants.
- Each selected applicant is eligible to receive up to $24,000,000.00 in funding.
- The number of recipients for this funding is limited to 4 candidate(s).
- Eligible applicants include: Unrestricted (i.e., open to any type of entity above), subject to any clarification in text field entitled Additional Information on Eligibility.
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Opportunity Summary:
The Pakistan Private Investment Initiative (PPII) is a USAID/Pakistan grant-style assistance opportunity designed to mobilize private capital into high-growth small and medium-sized enterprises (SMEs) in Pakistan by partnering with professional investment fund management companies. Instead of financing SMEs directly, USAID is seeking qualified fund managers that can source, evaluate, structure, and manage equity or quasi-equity investments (for example, preferred equity, convertible instruments, or other equity-like financing) into Pakistani businesses with strong growth potential. The central idea is to use USAID participation to help catalyze commercially oriented investment vehicles that can expand access to risk capital for SMEs and support business expansion, job creation, and broader economic development.
USAID indicated it intended to make multiple awards, with an expected total of about four agreements. Under each agreement, USAID anticipated investing roughly USD 15 to 20 million per investment fund, with the program data listing an estimated total funding level of USD 76 million and an award ceiling of USD 24 million. A key requirement is cost share: fund managers must secure at least a 1:1 match (one dollar of private or partner capital for every USAID dollar), and proposals offering a higher match are viewed more favorably. To make this matching requirement credible, applicants are expected to provide evidence of investment commitments from prospective partners or investors, not just statements of intent.
The investment timeline is structured like a typical private equity or growth equity fund. The program describes a five-year investment window during which the fund would make new investments, followed by an expected five-year holding period for those investments before liquidation (exit). In practice, that implies a longer overall lifecycle from first close through exit activity, but the stated expectation is that investments would generally be held for about five years before being sold, redeemed, or otherwise exited. This structure signals that USAID is looking for disciplined portfolio construction and exit planning rather than open-ended financing.
Compensation for the fund management company is intended to be market-based and negotiable. While the notice does not specify exact terms, this typically means the fund manager would be paid in a way comparable to private investment funds (often involving a management fee and potentially performance-based compensation), subject to USAID rules and the negotiated agreement. The emphasis on market-based compensation suggests USAID wanted to attract experienced managers with demonstrated investment capabilities and to align incentives with portfolio performance and responsible stewardship.
From a process standpoint, this opportunity is run as a multi-tiered assistance procurement. Applicants first submit concept papers, and only the highest-rated concept submissions are invited to submit full applications. This approach reduces the initial burden on applicants and allows USAID to narrow the field to the most promising fund concepts and management teams before requiring full, detailed proposals.
Administratively, the opportunity is listed as discretionary assistance, categorized under business and commerce, and was open to unrestricted applicants (meaning any type of entity could apply, subject to any additional eligibility clarifications in the full announcement). The funding opportunity number is APS-391-12-000001, titled "Pakistan Private Investment Initiative PPII," issued by USAID in Islamabad. The posting date shown is September 7, 2012, and the application window in the record reflects an original closing date of September 12, 2012, later extended to a current closing date of September 12, 2013, with an archive date of October 12, 2013. For official questions or issues accessing the announcement, the listed contacts were Sufyan Javaid (sjaved@usaid.gov) and Maria Hassan (mahassan@usaid.gov) with phone numbers provided in the notice.
In plain terms, PPII is a co-investment platform where USAID acts as a major limited partner alongside private investors, and the selected fund managers are responsible for deploying the combined capital into promising Pakistani SMEs using equity or equity-like instruments, managing those investments over time, and ultimately exiting them within an expected holding period. The program is explicitly designed to leverage USAID dollars with private commitments, so the strength and credibility of the matching capital, the fund manager's track record, and the quality of the investment strategy are central to competitiveness.
Frequently Asked Questions (FAQs)
What is the Pakistan Private Investment Initiative (PPII)?
The Pakistan Private Investment Initiative (PPII) is a USAID/Pakistan grant-style assistance opportunity designed to mobilize private capital into high-growth small and medium-sized enterprises (SMEs) in Pakistan by partnering with professional investment fund management companies. The core idea is to use USAID participation to help catalyze commercially oriented investment vehicles that expand access to risk capital for Pakistani SMEs and support business expansion, job creation, and broader economic development.
Does PPII provide funding directly to SMEs?
No. PPII is structured to work through professional investment fund managers rather than financing SMEs directly. USAID is seeking fund managers that can source, evaluate, structure, and manage investments into Pakistani businesses.
Who is USAID looking to fund under PPII?
USAID is seeking qualified professional investment fund management companies that can build and manage equity or quasi-equity portfolios in Pakistani SMEs with strong growth potential.
What types of investments are expected under PPII?
The opportunity focuses on equity or quasi-equity investments. Examples listed include preferred equity and convertible instruments, as well as other equity-like financing structures.
What is the role of the selected fund manager?
The selected fund manager is expected to source deals, evaluate opportunities, structure transactions, deploy capital, manage portfolio companies and investments over time, and plan for and execute exits within the expected holding period.
How is USAID participation positioned within the investment fund?
In plain terms, PPII is described as a co-investment platform in which USAID acts as a major limited partner alongside private investors, while the selected fund managers are responsible for deploying the combined capital into promising Pakistani SMEs.
How many awards did USAID intend to make?
USAID indicated it intended to make multiple awards, with an expected total of about four agreements.
How much funding is anticipated per fund?
Under each agreement, USAID anticipated investing roughly USD 15 to 20 million per investment fund.
What is the estimated total funding level for the opportunity?
The program data lists an estimated total funding level of USD 76 million.
Is there an award ceiling?
Yes. The opportunity record lists an award ceiling of USD 24 million.
Is cost share (matching funds) required?
Yes. A key requirement is cost share: fund managers must secure at least a 1:1 match, meaning one dollar of private or partner capital for every USAID dollar.
Do higher matching ratios improve competitiveness?
Yes. Proposals offering a higher match than the 1:1 minimum are viewed more favorably based on the information provided.
What kind of evidence is expected for matching capital?
Applicants are expected to provide evidence of investment commitments from prospective partners or investors. The notice emphasizes that this should be more than statements of intent, so credibility and documented commitments matter.
What is the investment timeline under PPII?
The program describes a five-year investment window during which the fund would make new investments, followed by an expected five-year holding period for those investments before liquidation (exit).
How long are investments expected to be held before exit?
Investments are generally expected to be held for about five years before being sold, redeemed, or otherwise exited.
Does the structure imply a longer overall fund lifecycle?
Yes. While the notice highlights a five-year investment window and a five-year holding period expectation, it also notes that in practice this implies a longer overall lifecycle from first close through exit activity.
What does USAID appear to be emphasizing about portfolio management?
The structure signals an emphasis on disciplined portfolio construction and exit planning rather than open-ended financing.
How will the fund management company be compensated?
Compensation is intended to be market-based and negotiable. The notice does not specify exact terms, but it indicates compensation would typically be comparable to private investment funds, subject to USAID rules and the negotiated agreement.
Does the notice specify exact fee terms (management fee or performance fee)?
No. The notice states compensation is market-based and negotiable but does not provide exact terms or rates.
What is the application process format?
This opportunity is described as a multi-tiered assistance procurement. Applicants first submit concept papers, and only the highest-rated concept submissions are invited to submit full applications.
Why does the opportunity use a concept paper stage first?
Based on the description provided, the concept paper stage reduces the initial burden on applicants and allows USAID to narrow the field to the most promising fund concepts and management teams before requesting full, detailed proposals.
What type of opportunity is this administratively?
It is listed as discretionary assistance and categorized under business and commerce.
Who was eligible to apply?
The record states the opportunity was open to unrestricted applicants, meaning any type of entity could apply, subject to any additional eligibility clarifications in the full announcement.
What is the funding opportunity number and title?
The funding opportunity number is APS-391-12-000001, titled "Pakistan Private Investment Initiative PPII."
Which USAID office issued the opportunity?
The notice indicates it was issued by USAID in Islamabad.
What were the posting date and closing dates shown in the record?
The posting date shown is September 7, 2012. The record reflects an original closing date of September 12, 2012, later extended to a current closing date of September 12, 2013. The archive date shown is October 12, 2013.
Who were the listed contacts for official questions or access issues?
The listed contacts were Sufyan Javaid (sjaved@usaid.gov) and Maria Hassan (mahassan@usaid.gov). Phone numbers were provided in the notice.
What are the main competitiveness factors implied by the opportunity description?
Based on the information provided, the central factors include the strength and credibility of the matching capital, the fund manager's track record and demonstrated investment capability, and the quality and discipline of the investment strategy (including portfolio construction and exit planning).
What is the overall goal of PPII?
The overall goal is to leverage USAID dollars alongside private commitments to increase risk capital available to high-growth Pakistani SMEs, supporting expansion, job creation, and broader economic development.
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