Political

An impressive piece of work by Andrew Mitchell

Robert Peston reports:

Andrew Mitchell, the International Development Secretary, will announce later today that he is selling the government’s residual 40% stake in Actis, the world’s leading emerging-markets private-equity fund, for $10m (£6.2m) in cash plus a large future share of what is known as carried interest in three funds.

This share of carried interest – or the profit that accrues to the funds’ managers – is expected to generate more than $100m (£62m) for taxpayers.

What’s impressive about that?

Well this:

The government’s share of Actis has been valued by its financial adviser, Hawkpoint, at between zero and $3m.

Andrew Mitchell thought he could do much better – and has.

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