Private Sector Finance

Equity Investments in the Private Sector

ADB provides equity investments in order to facilitate the launching of new ventures or the privatization of state-owned enterprises.

We can either invest in projects

• directly or
• through financial intermediaries such as investment funds.

Direct Equity Investments

• a sector is being opened for private sector investment.
• it provides the opportunity for ADB to maximize policy leverage or gain detailed knowledge in a new sector.
• developmental projects are progressing slowly due to funding shortfall.

Indirect Equity Investments

ADB channels its equity investments through funds if

• ADB believes that a qualified fund manager can better supply the expertise that ADB lacks in a particular sector.
• several relatively small projects of similar characteristics require funding.

ADB does not seek a controlling interest in an investee company or institution nor assumes management responsibilities, except when needed to protect ADB’s interest. We reserve the right, however, to appoint nominees to the board of directors and exercise our rights as a shareholder.

As a policy, ADB disposes of its investment as soon as it has fulfilled its development role so that it can move on to support other worthy private sector projects.