INVEST Project: Mobilizing Private Investment for Development 2018 Annual Report

Based in Washington, D.C., the INVEST project includes DAI subcontractors CrossBoundary, Tideline, and Convergence, as well as a growing network of 140 partners. The project's vision is to bolster USAID's ability to mobilize private capital to address development challenges. Through INVEST, USAID accesses the expertise it needs to evaluate and execute approaches to mobilize private capital. This supports USAID's focus on enterprise-led development, unlocking the potential of the private sector to move countries beyond the need for assistance. INVEST was designed to directly address operational challenges that usually inhibit USAID from working alongside the investment community. It ensures rapid procurement—within four to six weeks—so USAID can act within investors' short timelines. It enables flexible, specialized project design and implementation, and provides access to partners with localized expertise in investment and development. INVEST's approach involves three key buckets: learning and adaptation, access to partners, and specialized project design and implementation. Assessments enable USAID to understand market conditions, including determining the range of potential opportunities, market dynamics, and key actors needed to mobilize private capital. Transaction advisory services involve hands-on support to move transactions towards financial close, including developing a viable pipeline of transactions suited for USAID support, identifying external financing or risk mitigation support, conducting due diligence, preparing transaction documents, and linking supply and demand of capital. Designing and structuring a new fund, risk mitigation instrument, or other financing solution involves designing varying structures, platforms, or financial instruments, and fleshing out a specific financial structure, mechanism, or approach to determine its suitability. INVEST has built a wide-ranging network of firms and development finance specialists so that USAID can access the expertise it needs, on demand. In its first year of implementation, INVEST has grown its partner network from 26 to 140 members. The project has released RFPs and received responses from different partners, with 52% of total value procured and currently procuring from US-based small businesses, and 92% of total value procured and currently procuring from niche actors, small businesses, and/or non-traditional partners. INVEST is actively supporting 19 transactions, including 11 companies, 3 infrastructure deals, and 5 financing instruments or funds.