The Asian Development Bank (ADB) has accelerated private equity fund investments since 2003 and now has stakes in about 40 funds. An internal evaluation report in July '08 found that ADB was taking “material risks” by investing more money in private equity funds, even though internal controls on such investments showed “serious weaknesses.” ADB's private equity fund investments have produced "unsatisfactory" returns, selection has lacked focus, and environmental and other safeguards have been weak. The Bank’s private equity expansion had been unplanned and not geared to ADB's development objectives. The report also points to a lack of transparency about the investments and “serious weakness in the ADB’s monitoring arrangements for private equity funds”. The report claims that ADB “breached its capital allocation limit for private equity funds of 5%”, adding that “a new standard” is needed “for risk management purposes”.
For more, see:
Equity Investments in the Private Sector
http://www.adb.org/PrivateSector/Finance/equity.asp
Future of Investment Funds Strategy
http://www.adb.org/PrivateSector/fund-operations/default.asp
ADB Evaluation Study: Private Equity Funds Operations (July 2008)
http://www.adb.org/PrivateSector/fund-operations/default.asp
ADB financial sector loans & grants (approved & proposed as of Feb 2010)
http://www.adb.org/Projects/summaries.asp?query=&browse=1&ctry=ALL&sctr=3300&stat=1&stat=2&type=1&type=2&type=3&type=4&type=5
JBIC Signs MOU with ADB to Strengthen Cooperation in Equity Investment in Fund Operations (May 2009)
http://www.jbic.go.jp/en/about/press/2009/0507-01/index.html
A “Hands-Off Approach” to High-Risk Finance in the Midst of the Financial Crisis:
Featuring the Asian Development Bank and “Clean Energy” Private Equity Funds
http://www.forum-adb.org/docs/Clean-Energy-Private-Equity-Funds.pdf
ADB Pitches for US$2-B Clean-Energy Funding
http://en.chinaventure.com.cn/News/29416.html
ADB probe criticises its own investments
http://www.forum-adb.org/inner.php?sec=4&id=73&b=1
ADB's private equity investments bust limits – FT (April 08)
http://in.reuters.com/article/privateEquity/idINSP15229820080428