CDC Group, the private equity operation that invests on behalf of the UK government in emerging markets, has created a direct investment division ahead of the sale of the government's remaining stake in growth capital firm Actis, and has brought in former Actis partner Mark Pay to run the business.

Pay has rejoined CDC after working at Actis where he moved in 2004. Actis was the direct buyout arm of CDC until 2004 when the government sold a 60% stake to management.