The management of emerging markets private equity major Actis Capital LLP has picked up the remaining 40 per cent stake held by UK government in the asset management firm. The deal includes a payment of $13 million (£8 million) in addition to a share in the profits of its funds over the next decade.
UK government said that this could mean over $100 million in payment over the years.
Actis was spun out as the private equity unit of UK government-owned development finance institution CDC Group in 2004. At that time, the government sold 60 per cent stake in the unit for just $600,000 or £373,000.
The CDC Group, which was founded as the Commonwealth Development Corporation in 1948, has been investing in India for more than two decades. Post spin out, CDC has been operating as a fund-of-funds and remains a key sponsor of the funds launched by Actis. Actis said in a statement that it has invested $2.75 bilion (£1.7 billion) on behalf of CDC and has returned $5 billion (£3.1 billion).
Actis currently manages $4.6 billion globally and has invested over $1 billion in India, according to its website. The firm, which invests in Africa, Asia and Latin America, is seeking $3.5 billion for its Actis Global 4 Fund.
Actis’ India team is led by JM Trivedi (South Asia head) with four other partners in Mumbai – Sanjiv Aggarwal (energy), Mahesh Chhabria (industrials), Shomik Mukherjee (consumer) and G Rathinam (industrials).