 Although the IFC 's shareholders initially only allowed it to make loans , the IFC was authorized in 1961 to make equity investments , the first of which was made in 1962 by taking a stake in <unk> , a former manufacturer of auto parts in Spain that is now part of Bosch Spain . The IFC invests in businesses ' equity either directly or via private equity funds , generally from five up to twenty percent of a company 's total equity . IFC ’ s private equity portfolio currently stands at roughly $ 3 @.@ 0 billion committed to about 180 funds . The portfolio is widely distributed across all regions including Africa , East Asia , South Asia , Eastern Europe , Latin America and the Middle East , and recently has invested in Small Enterprise Assistance Funds ' ( <unk> ) Caucasus Growth Fund , <unk> Capital 's Kula Fund II ( Papua New Guinea , Fiji , Pacific Islands ) and Leopard Capital ’ s Haiti Fund . Other equity investments made by the IFC include preferred equity , convertible loans , and participation loans . The IFC prefers to invest for the long @-@ term , usually for a period of eight to fifteen years , before exiting through the sale of shares on a domestic stock exchange , usually as part of an initial public offering . When the IFC invests in a company , it does not assume an active role in management of the company . 
