Actis moves closer to full management buyout

While some analysts estimate that the Department for International Development can expect to raise up to GBP200 million ($307 million) by selling its 40% holding, others claim it will be a fraction of that, Financial News reported. The government spun out Actis from CDC, its development finance arm, in 2004, receiving just GBP373,000 for a 60% interest.

Negotiations on price erupted into a war of words between officials and management. Paul Fletcher (pictured), CEO of Actis, accused the government of employing "shakedown" tactics in June, while Andrew Mitchell, international development secretary, attacked the way "the management of Actis have so enthusiastically exploited the taxpayer's position." A spokesman for the department also described the fact that UK taxpayers receive no share of the private equity firm's profits as shameful.

Both parties have since said they will make no further comment until a deal is complete. This is expected before the end of March.

Actis has $4.6 billion in assets under management and invests exclusively in Africa, Asia and Latin America. According to AVCJ Research, it has raised nine funds focused specifically on Asia: three China vehicles, three India vehicles, two South Asia vehicles, and one ASEAN vehicle. Its global funds also operate in the region.

Actis was named Private Equity Firm of the Year at the AVCJ Indian Awards in December and also won the Private Equity Exit of the Year prize for the sale of Paras Pharmaceuticals to Benckiser Group in December 2010 for INR32.6 billion ($726 million).

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• Topics
• Europe
• GPs
• Greater China
• Southeast Asia
• South Asia
• Actis Capital
• Spin outs
• CDC Group
• buyout
• Asia
• Europe