CDC arm Actis to focus on emerging markets

Actis, the management company of CDC Capital Partners, plans to raise funds under management in emerging markets from $2.5 billion to $3 billion. The company aims at becoming a leading private equity investor in emerging markets.

It will invest and manage capital for CDC and aims to increase the number of third party investors it has from its current levels of 70.

Actis was created from CDC Capital Partners when it was announced last month that its management and staff would acquire a majority stake in the company. The company has been active in India for 17 years with investments totalling $330 million invested in approximately 35 businesses.

Donald Peck, managing director, Actis India, at the launch said that the company, in the next five years, aims to become a leading private equity investor in emerging markets. "The launch of Actis in India will enable us to operate more effectively here," he added.

South Asia, Africa and China are the favoured investment destinations of the company. Its focus is on power and small and medium enterprises (SME), making later stage equity and mezzanine investments, typically ranging from $5-$100 million.

The sale of CDC's stake in UTI Bank in India was announced late in 2003.

Actis has also completed a number of deals, having led the first successful privatisation backed by private equity in India with Punjab Tractors and the first management buy-out in Egypt with El Rashidi El Mizan.