Request for proposals
CDC’s shareholder, the UK’s Department for International Development (DFID) is developing new ways to foster the market for impact investment in Africa and South Asia. As part of this, CDC is requesting proposals from fund managers, holding companies, non-profit organisations and other investment vehicles for investment from a new £69m impact investment Fund (The DFID Impact Fund), which will be managed by CDC.
The DFID Impact Fund will invest in impact investment intermediaries providing capital to businesses and projects improving the lives of poor people in sub-Saharan Africa and South Asia. Backed by expert technical assistance, the DFID Impact Fund is designed to attract new investors to promising impact investment intermediaries.
The DFID Impact Fund will operate under different principles to CDC’s usual investment approach. Typically, under its current strategy, CDC’s focus is on investments that provide both reasonable commercial returns and the opportunity to grow businesses and create jobs and the environment for jobs. The DFID Impact Fund, however, is investing on an impact-first basis, whereby the investments will be focused on backing businesses that achieve positive impact specifically on the poorer sections of the population, either as consumers, producers or workers. Unlike CDC’s usual investments, the DFID Impact Fund has no set target for returns, but will at least expect to have its capital returned upon exit. Requirements set out in this request for proposals only apply to investments sought for application of the DFID Impact Fund.
CDC is accepting proposals until 12 Noon GMT on 8 February 2013 and the full RFP is available online here. CDC is asking those who submit proposals to complete a short basic information sheet here.
All proposals should be sent to: ImpactFund@cdcgroup.com
All hard copies should be sent to:
Impact Fund team, CDC Group plc
Cardinal Place, 80 Victoria Street
London SW1E 5JL
CDC has produced an extensive Q&A about the fund and the proposals process which is available here.