The Development Finance Corporation (DFC), a relatively obscure government entity, opened its first office on Wall Street last week. With a fund of $205 billion, its aim is to outpace China in global investments.
“U.S. investment is probably one of the most significant tools of economic national strategy—or perhaps the most significant,” DFC CEO Ben Black mentioned when discussing the agency’s plans.
While other areas of government were seeing budget cuts, DFC took a different route, increasing military spending from $60 billion to $205 billion to mitigate China’s influence through its Belt and Road Initiative.
The agency was established in 2019 during President Trump’s first term and has made notable investments in rare earth minerals, securing cobalt from the Democratic Republic of the Congo and other resources from Angola. Additionally, it set up the Ukraine Critical Minerals Fund during Trump’s tenure.
Now, the agency has set bolder goals, turning its focus toward developed countries, aiming to broaden America’s economic presence internationally with investments across Europe and other regions.
Although DFC’s dollar-for-dollar capability doesn’t match that of China, it employs a uniquely American model centered on public-private partnerships.
China’s Belt and Road Initiative, a massive $1 trillion global infrastructure effort started in 2013, has long surpassed U.S. investments overseas.
A DFC spokesperson noted, “China alone committed around $250 billion to this initiative last year.” They added, “We can’t—and shouldn’t—aim to match the Chinese dollar. Our government and system differ. Instead, we hope that each dollar we invest encourages multiple private sector investments.”
To further its capitalist strategy, DFC is fortifying its presence on Wall Street. Officials believe that being in New York will help them attract top talent and secure investments in the country’s financial heart.
“To fulfill President Trump’s ambitious foreign policy goals, we need to act as swiftly as the private sector,” Black emphasized. “Establishing an office in New York City will enable us to seize investment opportunities globally and attract premier private sector talent, helping to connect Washington with Wall Street.”
Mr. Black, who has a background in private investing, has taken the lead since last October. His name might ring a bell; he’s the son of Leon Black, a founder of Apollo Global Management. He boasts nearly 20 years of experience in finance, starting as an analyst at Goldman Sachs, moving on to Apollo, and later founding Fortinbras Enterprises.
He brought Conor Coleman, a co-founder of Fortinbras, on board as DFC’s chief of staff and head of investments. And they’re just getting warmed up.
“The private sector is actively seeking partners. They need assurance that when they venture into international markets with us, the U.S. government has a relevant presence,” Coleman shared. “We’re attracting individuals eager to serve our country and bring unique skills that, perhaps, haven’t always been recognized as valuable in that context.”
