UK government sells remaining stake in Actis

The government will also receive a share of carried interest accrued through investments made by the company in the future.

Actis launched in 2004 as a spin-off of state-owned CDC, with the aim of drawing private capital to developing countries that had previously been dependent upon aid. The company's management, led by Paul Fletcher, bought a 60% stake for £373,000.

Actis raised a £1.7bn fund in 2008. The investor states that it has returned £3.1bn to CDC, and by extension the UK taxpayer, to date. Reports suggest that the government may enjoy a share of the company's carried interest totalling up to £62m on future investments.

The announcement marks the end of a partnership that sparked controversy around profits and privatisation. In 2011, international development secretary Andrew Mitchell criticised Actis' failure to deliver returns to the government, stressing the disproportionate profits enjoyed by the firm's management. The emerging markets investor viewed the government's criticism as a means of lessening the company's standing as it stood in the shadow of an imminent exit.

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• Topics
• UK / Ireland
• United Kingdom
• Actis
• UK Government