User:Discott/China-Africa Development Fund

The China-Africa Development Fund, more commonly known as CAD Fund, is a Chinese investment fund focusing on stimulating and facilitating Chinese investments in Africa. It is China's largest private equity fund focusing on African investments.

Focus
CAD Fund primary purpose is to serve Sino-African trade cooperation through market-based mechanisms by reducing risk to Chinese investors in Africa. It does this by providing bridging finance, financial advice, Africa specific managerial advice and identifies potential investment opportunities. It also helps African projects find suitable Chinese investment partners. It aims to invest in low risk projects which provide sustained and consistent returns over a long period of time. This is partly done with the objective of helping Chinese firms operating in Africa to expand their market share, get closer to end consumers, or secure natural resources.

Background
The creation of CAD Fund was announced as one of the "Eight Measures" for Sino-African relations at the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) by President Hu Jintao on November 4th, 2006. It was established in June 2007 with US$1 billion of initial funding by the China Development Bank and is envisioned to grow to US$5 billion in the future. The fund entered into it's second round of fundraising in May 2010 to raise US$2 billion.

By 2010 the fund had invested in 30 projects in Africa worth around US$800 million. In 2009 alone the fund invested US$140 million of China's total US$1.3 billion invested in Africa that year. Much of the funds investments have been focused on acquiring stakes in mining interests such as its joint purchase with China Guangdong Nuclear Power Group for Rio Tinto's 11.1% share in Kalahari Minerals valued at US$996 million in February 2012.