CDC Group receives new investment targets, appoints Richard Gillingwater chairman

The new targets will lead to more of CDC's investments being made in low-income countries, particularly in sub-Saharan Africa and South Asia, the firm said.

The new targets will mean that CDC will make more than 75 per cent of new investments in low income countries (those with an annual gross national income per capita of less than $905); will invest more than 50 per cent of its funds in sub-Saharan Africa; and will be able to invest up to £125m in SME funds in other developing countries.

Richard Laing, chief executive, CDC, said, 'At this time more than ever it is vital that we should focus our efforts where they are most needed. The upheaval in global capital markets means that promising businesses in poorer countries face an even bigger challenge to attract capital. And it is these businesses that drive economic growth, which is the only long-term and sustainable route out of poverty for developing countries. This makes it all the more important that CDC builds on its success in bringing investment to areas where the private sector has often been reluctant to tread.

'To that end we have just announced a significant new commitment of $210m to five new funds investing in Africa, bringing our total commitment to African funds to $1.9bn making us the largest private equity investor in sub-Saharan Africa,' he added.

CDC also appointed a new chairman, Richard Gillingwater, the dean of Cass Business School in London. From 2003 to 2007 he was the first chief executive and then chair of the Government's Shareholder Executive.

CDC has assets of $4bn under management. The firm recently made a commitment to Aureos Capital's new Aureos Africa Fund, which last month held a first closing on $253.5m.

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