CDB Invests in DEVCAP Fund

July 23, 2009

 

No. 21/09 – BD

 

NEWS RELEASE

 

CDB TO INVEST USD 3 MILLION IN DEVCAP EQUITY FUND

 

The Caribbean Development Bank (CDB) is to invest up to USD 3 million in acquiring units in DEVCAP Equity Fund 2007. The Fund will be managed by Caribbean Development Capital Limited, commonly known as DEVCAP, which is a subsidiary of DFL Caribbean Holdings Limited.

 

Fund investments are to be made in transactions which span a number of CDB’s borrowing member countries and Suriname.  Such investments will be in the form of equity and equity related instruments, primarily in cross-border small and medium-scale enterprises that are privately held, with the objective of achieving long-term capital growth.  There will be a focus on enterprises with growth potential which have assets ranging from $0.3 – 30 million.

 

Investments will be made in start-up and expansion enterprises and buyouts with appropriately structured financing packages ranging from $75,000 to $1.5 million.  It is projected that investments will be made in approximately 25 ventures with an average size of $0.6 million.

 

The Fund is expected to be capitalised at $15 million.  Along with CDB and DFL Caribbean Holdings Limited, the European Investment Bank and the Inter-American Development Bank, through its Multi-lateral Investment Fund, will also participate in the Fund.  Selected private investors may also invest in the Fund.