Actis Capital

Actis is a private equity firm focused on investments in emerging markets in Africa, China, India, Latin America, and South East Asia. Actis has over 100 investment professionals located in nine countries around the emerging markets.

Actis was formed in July 2004, as a spinout of CDC Group plc (formerly the Commonwealth Development Corporation), an organization established by the UK Government in 1948 to invest in developing economies in Africa, Asia, and the Caribbean. The Actis management team acquired majority ownership of CDC's emerging markets investment platform.

Actis has US$4.8 billion of capital under management across three global emerging markets funds and a series of smaller, focused regional funds. Actis closed its Actis Emerging Markets 3 fund with $2.9 billion of investor commitments. The fund was launched in September 2007 with an original target of $2.5 billion.^[2] CDC remains an active sponsor of Actis' investment activities, committing $650 million to the firm's third fund.^[3]

Spinout controversy

In 2007, U.K. prime minister Gordon Brown came under attack over the sell-off of Actis after it became apparent that the formerly government-owned business had made millions of pounds for its former employees.

At the time Actis was created in 2004, a 60% stake was sold to CDC managers and staff for a total consideration of £373,000. The new company was given a five-year 'umbrella' guarantee that it would continue to manage all CDC's existing overseas investments totalling $900 million in CDC funds. According to the U.K. Department for International Development, the price was agreed after a valuation by financial advisers KPMG. Under the 2004 deal that created Actis, if the company was to be sold on the open market within 10 years, 80% of the profits and proceeds would go back to the government.^[4]

References

External links

• Actis (company website)