Our process from start to finish
We take a commercial approach to investments and have developed a streamlined approval process. Once an investment is made, we work with investee companies and funds to identify opportunities that add value.
Making the decision
A prospective deal might be brought to our attention by a sponsor, third party contact, or through direct outreach from CDC. If it is initially seen as viable, the deal team, including various specialists, conduct further research to decide whether it should be put before our Investment Committee. Our Investment Committee is made up of senior staff from CDC, as well as external representatives with an expertise in investing in the regions and sectors where we focus.
The Investment Committee process is made up of several stages that a deal must pass through before an investment is made. The deal team, along with our Environmental and Social Responsibility team and Business Integrity team, work closely with the potential investee to carry out due diligence, deal structuring, and to examine how the prospective deal meets our criteria. They then present their findings to our Investment Committee at a series of meetings.
If the Investment Committee makes the decision to go ahead with the deal, we outline our commitment to the deal sponsors and specify any conditions that need to be fulfilled before the funding is made available.
Following the investment decision, we work with investees to put in place several steps that ensure the company or fund is aligned with our standards. These may include an environmental policy and implementation strategy, a business integrity plan, a governance structure, or a strategy to enhance development impact.
We monitor our portfolio on a regular basis. We assess how the company is performing against a range of criteria, including achievement of milestones, risk management, environmental and social performance, valuation movements, and development impact. By tracking performance, we can identify situations where we can add value or intervene.
We understand that it takes time to build a great business so we stand with management teams for the long term. When it’s agreed that we have achieved our desired financial and developmental objectives – which can take up to seven years or longer – we work with investees to ensure a smooth exit.