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Global New Deal Allocation

19.05.2015
By RisCura

The ACP region continues to attract the highest allocations of new capital from EDFIs, both in value and in number of deals. In 2013 EDFIs invested in a total of 202 new deals in ACP, amounting to USD 2.5bn of new investment. This level is significantly above the average of 51 deals amounting to USD 669m and the next highest; South Asia at 70 deals and USD 1.1bn.

 

Comparing two DFIs

Comparing the allocations of EDFIs vs. the International Finance Corporation (IFC), the world’s largest DFI in terms of the size of DFI investments, over the period of 2008-2009, EDFIs had a notable slant towards the ACP region. EDFIs continued to increase the value of their investment by 19%, marking an increase of 1% in its portfolio. By comparison the IFC continued its focus on South America, while keeping their overall nominal allocation constant.

 

Despite the divergence of geographic focus, the increase in DFI investment in the wake of the Global Financial Crisis (GFC) signals a counter-cyclical element to the flow of DFI capital. It then follows that, in terms of contraction, when conventional forms of funding, such as debt, tend to diminish, there are greater investment opportunities for DFIs.

NEXT: Regional DFI vs GDP

Author

  • RisCura is a global financial services firm with more than $200 billion in assets under advice and reporting. We partner with institutional investors across emerging markets, bringing specialist investment management, advisory, and analytical expertise to help clients make informed, long-term investment decisions.

    Guided by our “Invest with Care” philosophy, we recognise that investment decisions are not only about money and numbers, but about the people and futures they affect. Through tailored solutions, deep research, and a client-centric approach, RisCura helps investors navigate complexity, manage risk, and create lasting value for their beneficiaries.

    RisCura is known for its focus on liability-driven investing, responsible investment practices, investment transparency, reliable valuations, independent risk assessments, performance standards, and long-term investment outcomes.

    Our capabilities span investment advisory, investment management, investment analytics, institutional platform services, and alternative investment services. Across these areas, we combine consistent methodology and proprietary tools with deep local insight, recognising that each market is unique while responsible investing remains universal.