CDC expects its investments to achieve results that are appropriate to the opportunities and risks in a given market.
Among the features that CDC seeks in making a decision to commit to an investment are:
- A credible thesis aimed at CDC’s preferred markets with appropriate development impact;
- A strong management team that will apply high environmental and social standards and corporate governance; and
- Prospective returns which are commensurate with the potential risk.
The CDC equity investments team typically looks to invest in established businesses with revenues of $10m+ and a track-record of profitability. CDC will consider start-ups or green-field projects only where there is a strong sponsor (individual or company) who will co-invest alongside CDC and has a strong track-record and delivery capability.
CDC’s equity investments are focused on the following sectors:
- Infrastructure (especially power)
Nevertheless, CDC is a generalist investor and will look at any sector where we believe there is a development impact i.e. job creation potential, either directly or indirectly.
CDC’s preferred investment size is US$10m-US$100m (potentially more for infrastructure) and we typically provide growth capital to fund the expansion of businesses rather than replacement capital to buy-out existing shareholders.
If you would like to submit an equity investment proposal to CDC please prepare a short, concise presentation, including:
- an overview of the company, its history and growth plans;
- historic financial performance for the company;
- the quantum of capital you wish to raise and what this capital will be allocated towards; and
- a brief summary of key promoters and/or senior executives.
All proposals should be sent to firstname.lastname@example.org. Please note that CDC will assess proposals according to our investment criteria and will not enter into correspondence regarding our internal investment decisions.