UK government's development finance institution CDC Group will step up its investments in India despite a slowing economy, stalled reforms and a hyper-competitive private equity landscape, dotted with few exits and dismal returns.
CDC has invested $260 million through five transactions in the last six weeks. Most of this has been through its traditional role as a 'fund-of-funds' investment firm which invests in other private equity (PE) funds.
On November 14, CDC agreed to invest $200 million in a new infrastructure fund (called IIF2) of IDFC Alternative — the asset management arm of infrastructure company IDFC.