British International Investment (BII)

British International Investment (BII), formerly CDC Group, is the United Kingdom’s development finance institution, investing patient capital in emerging markets since 1948. BII manages approximately $10 billion in net assets, deployed across Africa, South Asia, Southeast Asia, and the Caribbean. The institution was rebranded from CDC Group in 2022 to reflect its expanded mandate and modernized approach.

BII is wholly owned by the UK’s Foreign, Commonwealth & Development Office (FCDO) and operates as an impact investor, targeting both financial returns and measurable development outcomes. The institution has been a pioneer in establishing private equity and venture capital markets across some of the world’s most challenging investment environments.

Investment Strategy

BII’s investment strategy combines fund commitments, direct equity investments, and debt financing across emerging and frontier markets. The institution provides capital that is typically unavailable or insufficient from commercial sources, helping to build private sector capacity and create employment in developing economies.

Africa represents the largest geographic allocation, with investments spanning the continent from established markets like South Africa and Kenya to frontier markets like Ethiopia and the Democratic Republic of Congo. South Asia, particularly India, and Southeast Asia are other key markets.

The institution’s sector focus includes financial services (banks, insurance, fintech), infrastructure (power generation, transportation, digital infrastructure), healthcare, education, technology, manufacturing, and food and agriculture. Climate finance has become a strategic priority, with BII committing to invest a significant share of new capital in climate-related opportunities, particularly renewable energy and climate adaptation.

BII also provides technical assistance and advisory services to portfolio companies, helping to improve governance, environmental practices, and operational capabilities. This hands-on approach differentiates BII from purely financial investors.

Private Markets Approach

BII has one of the longest track records of any institutional investor in emerging market private equity. The fund investment program has committed capital to over 200 private equity, venture capital, and credit funds across Africa, Asia, and other markets. BII has been an anchor LP for many first-time and emerging fund managers, playing a catalytic role in establishing the private equity industry in numerous developing markets.

Direct equity investments complement the fund program. BII takes minority equity positions in private companies, typically at the growth or expansion stage, providing capital alongside strategic support. The direct investment team focuses on larger transactions where BII can make a meaningful impact on company development and governance.

Infrastructure investments are a growing component of the portfolio, including equity and debt positions in power generation (particularly renewables), transportation, and digital infrastructure projects. BII has participated in some of the largest renewable energy transactions in African markets.

Debt investments, including corporate loans and structured finance, provide another channel for deploying capital, particularly in markets where equity capital alone is insufficient. BII’s willingness to provide long-tenor debt in difficult markets fills a gap left by commercial lenders.

The institution’s combination of scale, market expertise, and development mandate makes it one of the most influential investors in emerging market private capital.