Frontier Bangladesh II LP

South Asia Communications and IT Services, Other consumer services

Frontier Bangladesh fund I, raised in 2009, was the first Bangladesh focused private equity fund raised in the market.

The Frontier Bangladesh II LP fund, the successor to Frontier Bangladesh I, invests in mid-sized companies in Bangladesh to support the country’s nascent private equity market.

It focuses on the healthcare, agriculture, energy, solar power, food and beverage, consumer electronics and consumer finance sectors.

Our investment

In 2015, CDC invested $20 million into Frontier Bangladesh II, alongside the IFC and other European DFIs, including Germany’s DEG, the Netherlands’ FMO and Norway’s Norfund. Our investment provides much-needed growth capital to support the expansion of Bangladesh’s medium-sized businesses in key sectors.

Expected impact

Despite a lack of reliable power and infrastructure, the Bangladesh economy is growing steadily. Fuelled by an expanding middle-class with increased spending power, and low labour costs underpinning a strong export sector, in 2016 the IMF ranked the country as the second fastest growing major economy.

Our investment enables the fund manager to support the expansion of the country's high-growth medium-sized businesses, fuelling regional growth and creating direct and indirect jobs.

The fund invested in ecommerce business Zero Gravity Ventures, which supports the growth of both B2B and B2C ecommerce platforms.

It has also invested in telecomms infrastructure provider, Fiber@Home

Environmental and social aspects

The fund manager has a well-established approach to E&S management and we will continue to support and monitor its approach as the portfolio grows.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
South Asia
Countries

For funds, the countries listed here are those the fund has invested in so far.

:
Bangladesh
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

:
Communications and IT Services, Other consumer services
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
Frontier GP
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
April 2015
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$20m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Cayman Islands

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
Zero Gravity Ventures Limited Bangladesh South Asia Other consumer services October 2017 Active
Fiber @ Home Limited Bangladesh South Asia Communications and IT Services December 2017 Active