CDC commits $650m to Actis funds

The emerging markets fund of funds has made its second large commitment to Actis' funds this year, investing in the firm’s global private equity fundraising attempts. In January it invested nearly $1bn in the firm’s latest infrastructure fund.

CDC, the UK government-backed emerging markets fund of funds, has committed $650 million to the latest series of funds raised by Actis, an emerging market alternative investment firm, according to a statement.

PEO exclusively reported that Actis was aiming to raise approximately $2.5 billion last year. The fundraising was divided between a global umbrella fund of at least $1.25 billion as well as around $1.25 billion for separate regional funds dedicated to China, South Asia, Africa and Latin America, according to investors in the funds.

The strategy was difficult for some investors, because they were expected to commit to the global fund if they wanted to invest in the individual regional funds. This potentially made it difficult for some limited partners to invest.

Actis declined to comment.

It has recently recruited an investment team for Latin America and it has an established presence in the other three markets.

In January CDC committed $750 million to Actis’ second infrastructure fund, as well as seeding the fund with $167 million of legacy African energy assets. This was CDC’s largest ever single fund commitment and the final one under preferential terms agreed with Actis as part of its agreement to spin out of CDC in 2004. This increased CDC’s exposure to Actis to 62 percent of all its funds.

Actis now has more than $3.5 billion under management, and more than 100 professionals located in 14 offices.