UK’s development finance institution CDC Group plc (CDC) generated return of £207 million ($317 million) in 2009 and invested £359 million ($551 million)as fresh sum in businesses in developing countries of which almost a third was invested in Asia. The net return of £207 million allowed CDC to raise its net asset base to £2.5 billion ($3.84 billion).
The year also marked the start of CDC’s new, five-year investment policy which will see it make at least 75% of new investments in low income countries and half of the total going to sub-Saharan Africa.
As much as 95% of the fresh investments in developing countries went to Africa and Asia. The finance institution also committed capital of £207 million to 11 new investment funds and generated £162 million ($248 million) of cash from its portfolio(apparently exits) for future re-investment. It also mobilised £742 million ($1.13 billion) of additional third party capital.
Richard Laing, Chief Executive of CDC, said in a statement: “These are positive results which show that, despite the tough conditions caused by the global downturn, the companies in which CDC has a stake are performing well.”
He said CDC is invested in 134 funds with 65 fund managers, with over £1.5 billion ($2.3 billion) of commitments still available to be drawn down by these funds for new investments in the world’s developing economies.
In Africa, CDC grew the value of its portfolio to £731 million ($1.12 billion), made £142 million ($218 million) of commitments to new funds and backed five new Africa-focused funds, including the first ever private equity fund in Sierra Leone.
In Asia, it invested £122 million ($187 million) and increased the value of its portfolio to £ 607 million ($932 million). Last year it also committed £55 million ($84 million) to funds and backed four new funds including the first India-only agribusiness private equity fund.