Emerging markets investor CDC has made its first direct investment, providing $32.5m of financing as part of a $65m finance facility for African agribusiness company Export Trading Group.
Mark Pay, CDC’s managing director in charge of direct investments, said, “We chose ETG because it combines strong development impact – touching the lives of thousands of small holder farmers across sub-Saharan Africa – with a compelling investment case. ETG is poised for strong growth, having begun to achieve scale after 30 years of hard work and investment by ETG’s founders.”
Earlier this year CDC confirmed it was of its strategy to focus on direct investments, alongside its historic fund of funds practice. The strategy was put in place following public criticism that the state-backed firm was too focused on financial gains, enriching top executives and investing in areas already well served by private capital.
Last week, AltAssets reported that CDC was looking to invest $500m directly into Indian businesses over the next four to five years, as part of recently announced plans to focus 20 per cent of its business on direct investments
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