Actis completes full management buyout with $100m deal

Andrew Mitchell, the international development secretary, said the agreement represented a much better deal for British taxpayers. "While Actis has generated significant profits, the previous shareholding structure meant the taxpayer and government did not receive any direct financial return at all," he said. "This sale now gives the British taxpayer an opportunity to share in the future profits of the funds managed by this highly successful business."

Mitchell has been highly critical of the previous arrangement, prompting Actis CEO Paul Fletcher to accuse the government of employing "shakedown" tactics.

The government spun out Actis from CDC, its development finance arm, in 2004, receiving just GBP373,000 for a 60% interest. An independent financial advisor to the government previously valued the remaining 40% at between zero and $3 million. Some analysts suggested the sale could generate up to GBP200 million, while others made considerably lower projections.

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. CDC remains a cornerstone investor in Actis' vehicles, with the private equity firm claiming to have invested GBP1.7 billion on CDC's behalf and returned GBP3.1 billion.

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