Cambodia-Laos Development Fund
- Region: Asia & Pacific
- Country: Cambodia
- Sector: Investment funds
- Year: 2009
- Domicile: Luxembourg
- Instrument: Fund
- Commitment (MNOK) as of 22.12.2017: 25.9
- Original Commitment (MNOK): 25.9
Small PE fund for Cambodia and Laos, managed by EMI and launched in December 2009. Total capital of USD 19.6m.
The Cambodia-Laos Development Fund was established in 2009. The fund invests in SMEs in Cambodia and Laos and will make its first investments in 2010.
Cambodia and Laos are both classified as LDCs. However, their economies have grown in recent years and the countries now have great potential for further growth through the development of sectors such as tourism, manufacturing, retail trade, and through better use of their natural resources. But there are also major obstacles to further growth. The available capital has largely taken the form of short-term bank loans which have not been readily available to SMEs. The capital market has lacked private equity funds that are willing to invest risk capital in enterprises in the growth phase.
Norfund wishes to play an active part in the further development of these countries by contributing to developing the financial infrastructure and bringing growth capital to SMEs. Norfund has therefore invested in a management organisation, Emerging Markets Investment (EMI), through its investment in the Cambodia-Laos Development Fund. Although there is often high risk associated with this type of investment, it is important that Norfund and others are willing to carry it.