CDC boosts PE commitments in India

CDC has boosted its commitments in India by $104 million and invested in three private equity funds since March.

CDC, a UK government-backed emerging markets private equity investor, has committed $104 million (€81.3 million) to three private equity funds in India. The new commitments bring CDC’s total investments in the country to over $380 million, the company said in a statement.

In June, CDC invested $75 million to ICICI Ventures’ India Advantage Fund II, which focuses on medium to large growth transactions and buyouts. In May, CDC made a $4 million commitment to Lok Capital, and before that, in March, it invested $25 million into IDFC Private Equity’s second fund.

IDFC Private Equity’s fund focuses on developing India’s infrastructure. Lok was formed to make long term equity investments in micro finance institutions targeting the poor. In addition to funding, it seeks to provide commercial advice to the institutions.

Richard Laing, chief executive officer of CDC said: “These investments highlight our commitment to providing capital to bolster the private sector, the engine of growth in the world’s poorest countries, and we will continue to focus on Asia where capital is hard to come by.”

CDC is already an investor in four other India-specific private equity funds: Aureos South Asia Fund, Actis India Fund II, Baring India Fund II and GW Capital’s India Value Fund II.