CDC aims to develop capital markets and grow investment capacity in poor countries. To achieve this, CDC will frequently help a new fund get started by advising the fund team and then endorsing them to the market. CDC can demonstrate confidence in a fund and its team by committing capital at the fund’s first close, a move that can encourage others to invest. For example, CDC committed at first close in 108 out of the 142 funds in which it has invested since 2004.
Commitments at first close since 2004 (cumulative)
Without an all-important track record many investors will avoid first-time fund managers, but CDC has a long history of identifying and backing strong, new teams. Since 2004, of the 142 fund investments made by CDC over half have been made to first-time fund managers, and in 2012 such commitments represented 60% of the total. CDC’s appetite for backing first-time teams remains undiminished and in 2012 such commitments represented one third of the total.
First-time managers by year
As a development finance institution CDC pioneers investment in regions or sectors that others deem too high risk. In such cases CDC will frequently help a new fund get started by advising the fund team, helping with the fund strategy and providing significant investment. Of 142 fund investments since 2004, CDC provided over 50% of the committed capital at the first close in 39 cases, playing a significant role in helping the fund become established.