Aureos Capital was established in 2001 as a joint venture between CDC Group plc and Norfund, two organisations with deep expertise in emerging markets. Aureos Capital was a successor to CDC Funds Group created in 1989. The firm’s initial mandate was twofold: to manage an existing portfolio developed by CDC since the early 1990s, and to launch new regional private equity funds aimed at generating both financial returns and positive development impact. Aureos’s founding team emerged from CDC’s Funds Group, bringing with them extensive experience in investing in emerging markets, making Aureos uniquely positioned to drive sustainable growth in these regions. CDC’s original mandate was to create jobs to alleviate poverty by investing in risk capital in small and medium-sized enterprises (SMEs). Aureos Capital developed it further by introducing know-how and technology.
Aureos rapidly expanded its operations, raising capital primarily from Development Financial Institutions (DFIs) and multilateral organisations. Over the course of its existence, the firm launched 17 funds in excess of USD1.5 billion focused on sustainable investments in SMEs across Latin America, Africa, and Asia. Starting with just 10 offices and 44 ex-CDC employees in 2001, Aureos grew to 29 offices worldwide, employing 170 professionals from more than 35 emerging markets. The firm extended its investment reach from 16 emerging and frontier markets to 35, becoming a true global player in impact investing.
Among its many achievements, Aureos was a pioneer in combining development impact and financial targets. Its Africa Health Fund, launched with support from investors like the International Finance Corporation (IFC) and the Bill & Melinda Gates Foundation, was the first of its kind. The fund’s objective was to invest in SMEs operating in Africa’s healthcare sector, with the goal of increasing accessibility whilst maintaining quality at affordable healthcare services for underserved populations, particularly those at the Bottom of the Pyramid. This initiative not only delivered tangible improvements in healthcare but also set a precedent for how private capital could address critical development challenges while delivering returns.
Aureos filled a critical financing gap in emerging markets by supporting the growth of SMEs – often referred to as the “missing middle” because they are too large for microfinance and too small for traditional institutional investors investing remotely without boots on the ground. Aureos provided not only much-needed capital but also capacity building, business mentorship and access to network regionally or globally, and rigorous Environmental, Social, and Governance (ESG) practices. By collaborating closely with entrepreneurs, the firm helped these businesses expand across regional markets, fuelling significant South-South trade and increasing local sourcing of goods and services. This approach demonstrated the vital role of SMEs in driving economic development and private sector growth in some of the world’s most challenging markets.
During its existence, Aureos invested in over 275 SMEs across Latin America, Africa, and Asia-Pacific, leaving a profound impact on the regions it served. By focusing on sustainable, long-term growth, the firm not only generated financial returns for its investors but also supported the creation of jobs, improved livelihoods, and bolstered economic resilience in emerging markets. Aureos’s legacy of bridging the gap between finance and development continues to inspire a new generation of impact investors and businesses committed to driving positive change.