CDC Group, the UK government-owned emerging markets investor, will today announce it is putting $30m into a new microfinance hedge fund, underlining the increasing commercial interest in microfinance.

The hedge fund, called Minlam Microfinance Offshore Fund, has raised just under $40m, including money from John Muse, founder of Hicks, Muse, Tate & Furst, the US private equity group.