Posted by: APO | 21 May 2008

CDC commits US$650m to new emerging markets fund

Wednesday 21st May 2008

PRESS RELEASE

 

CDC commits US$650m to new emerging markets fund

 

CDC Group (“CDC”), the UK government-backed private equity emerging markets

fund of funds investor, today announces that it has committed US$650m to Actis’

third series of funds for investment across emerging markets – Actis Emerging

Markets 3 LP. The series of funds comprises a Global Fund and four regional

investment pools targeted at Africa, South Asia, China and Latin America.

Actis makes direct investments in companies across emerging markets. The firm was

formed following a demerger from CDC in July 2004 when it assumed all direct

investment activity and operations previously overseen by CDC. Actis now has over

US$3.5bn funds under management and over 100 professionals located in 14

offices.

Actis has a strong presence in the markets where it will be investing capital from

Emerging Markets 3 LP and has recently recruited an investment team in Latin

America.

The key factors fuelling an attractive investment environment for private equity in the

markets in which Actis will invest include:

Africa – rise in commodities and growing consumer markets (especially in

Nigeria, Egypt and South Africa) as well as strengthening GDP rates

South Asia – increasing understanding of private equity, particularly in India given

the significant rise in private equity investment; growing number of change of

control transactions

China – strong economic growth and realisation opportunities given recent IPO

and M&A performance

Latin America – increased political stability and prudent macro economic policies

resulting in a decline in inflation and interest rates, along with demand for SME

funding.

Richard Laing, Chief Executive of CDC, said:

“Actis is a leading pan-emerging markets private equity firm. Its 60-year track record

of investment in emerging economies in Asia, Latin America and Africa differentiates

the firm from many of the most recent entrants to the market. It has become wellknown

for its sophisticated structuring of private equity deals, including the first

leveraged buyouts in both India and Egypt, and the first private equity-funded

privatisation of an Indian company.

“Actis also has an excellent reputation for its environmental, social and governance

principles when investing in companies in emerging markets. We believe there

remain considerable investment opportunities across emerging markets, particularly

at a time when they are not experiencing such a significant credit squeeze as

Western economies.”

 

CDC Group

CDC is a government-owned fund of funds with net assets of £2.7bn.

It uses its own balance sheet to invest in private equity funds focused on the

emerging markets of Asia, Africa and Latin America, with particular emphasis on

South Asia and sub-Saharan Africa.

CDC’s mission is to generate wealth by providing capital for investment in

sustainable and responsibly managed private sector businesses.

For further information http://www.cdcgroup.com


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