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Asia-Focused Private Equity Funds on the Road Investing in Cleantech - December 2012

by Aveline Tan

  • 07 Dec 2012
  • PE


Currently, there are 91 Asia-focused private equity funds on the road with an allocation to cleantech, which includes clean technology, renewable energy and environmental services. These funds are targeting an aggregate $17.7bn in capital commitments and, to date, close to half of these funds (47%) have held an interim close, collectively raising $4.6bn in commitments. Nineteen percent of these vehicles seek to invest exclusively in cleantech and the remainder have an allocation to other sectors within their remit.

The vast majority of Asia-focused private equity funds on the road with an allocation to cleantech are managed by Asia-based fund managers (84%), while the remaining vehicles are managed by fund managers based in France, the US, the UK, Israel, Bahrain and Spain. In terms of geographies, 63% of these vehicles are country-specific, investing in countries such as China, India, Vietnam and Japan. The remaining vehicles allocate capital regionally, in areas such as ASEAN and Australasia.

By aggregate target size, growth vehicles (61%) account for the majority of Asia-focused private equity funds on the road with an allocation to cleantech. This is followed by venture capital and buyout vehicles which account for 21% and 7% of aggregate target size respectively. Balanced and natural resources vehicles account for 4% of aggregate targeted commitments each and the remainder is accounted for by mezzanine vehicles.

The largest Asia-focused private equity fund on the road with an allocation to cleantech is Blue Economic Zone Industrial Investment Fund I. The fund targets $1.2bn and recently held a first close, raising approximately half the capital it seeks. Blue Economic Zone Industrial Investment Fund I is managed by China-based fund manager China Bright Stone Investment Management Group. The fund provides growth capital investments to Chinese companies operating in a wide range of industries, including clean technology, shipping and energy sectors.

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