Our approach

CDC will only invest in companies with a commitment to high standards of business conduct, and which do not knowingly support corrupt practices.


Before investing we undertake detailed background research on potential investments, spending time understanding how they work, to avoid businesses or individuals that do not share our high standards of business integrity. We do this through public record searches, legal, financial and business integrity due diligence and using advisors. We also spend time with the management team and sponsors to understand their motivations and values. If a particular country or sector is strongly associated with corrupt practices, we carry out enhanced due diligence checks before we invest.

If we discover that a firm has inadequate or ineffective systems, we will work with that firm to develop and enhance its systems and to improve standards. Part of CDC’s development impact includes helping fund managers and portfolio companies upgrade their procedures, including business integrity, where they are inadequate.

During the investment period

After investing, we continue to work proactively with fund managers and portfolio companies to implement and improve business integrity systems, and provide best practice guidance. We risk rate investments to prioritise monitoring and training.

Liaison and visits

We receive monitoring reports and liaise regularly with our partners through meetings, telephone calls, conferences and committees to monitor compliance with anti-money laundering (AML), know your customer (KYC) and business integrity policies and CDC’s Code of Responsible Investing.

  • We actively work with fund managers and portfolio companies to improve their approach to business integrity issues. 
  • Our ‘Toolkit for Fund Managers’ helps private equity investors identify and manage business integrity issues to international standards.

The team also provides training to CDC staff to help them understand relevant legislation, the importance of high business integrity standards, monitoring investments and in identifying and managing issues.

Benefits to Business

  • Reduces hidden costs
  • Promotes competition and a level playing field
  • Builds trust and improves security of contracts
  • Removes the prosecution risks to individuals and corporation 

Benefits to Society

  • Strengthens institutions and the rule of law
  • Reduces costs of goods and services
  • Promotes equality, accountability and democracy