In 2008, CDC reviewed the way we measure our impact. Our methodology is similar to the International Finance Corporation’s (IFC) framework for investments through financial intermediaries. We strive to remain in step with the latest thinking on development impact measurement and work closely with our colleagues in other development finance institutions (DFIs).
Between 2004 and 2012 CDC operated primarily as a fund-of-funds investor, placing capital in investment funds with a typical 10 year life span. The funds are measured at the mid-point and at the end of the life of the fund, examining four key parameters:
• Financial performance;
• Economic performance;
• Environment, social and governance (ESG) performance; and
• Private sector development.
A six-scale rating system is applied for each parameter and a core set of over 30 indicators is used to measure performance.
We also measure CDC’s own impact by attracting other investors to developing countries and adding value to the work of our fund managers.
In 2012, 20 funds were evaluated covering 137 underlying investee businesses.
For a fuller perspective on CDC’s performance, including how it is measured, please see pages 38-43 of the
From 2012, CDC will return to direct equity investing and will also provide debt in both direct and intermediated forms. As such, new measurement techniques will be employed to assess the effectiveness of our investments. More information will be available in 2012.