BURLINGTON, Vt. — International development company DAI took the unusual step this week of announcing a majority investment in a London-based specialist investment bank that focuses largely on African companies.
By joining forces with investment group Magister — creating a new venture called DAI Magister — the organization hopes to become a go-to adviser for midsize technology-enabled outfits looking to raise capital in what the partners believe is an investment market poised for major growth.
It is a unique move for an international development consultancy that does the bulk of its business with public funding, on behalf of government donors such as the U.S. Agency for International Development and the U.K. Foreign, Commonwealth & Development Office. For DAI, the investment reflects an effort to step outside the realm of subsidized public funding for economic development and to establish a commercially viable approach to growing businesses in lower-income countries.