Preqin’s Funds in Market online service shows that 22 funds specifically focused on the cleantech industry have held a final close so far this year, raising just under $2bn in aggregate capital commitments. Although more funds are likely to close by the end of the year, this is far lower than the $6bn raised by 53 cleantech vehicles in 2012.
Of the cleantech funds closed in 2013 to date, the average fund size is just $89mn, which is significantly smaller than the $238mn average fund size seen in the peak of cleantech fundraising in 2009. Nevertheless, eight of the 22 funds closed have managed to hold a final close on at least $100mn, and interestingly, 36% of funds closed in the year to date have been raised by first-time fund managers. These first-time funds managed to garner, on average, 81% of their target size, which is not far off the average 88% of target size achieved by more experienced GPs.
The largest cleantech fund to have closed in 2013 to date is Kaitai Clean Energy Industrial Investment Fund II, a balanced strategy fund with a focus on development of technology used in natural gas extraction and exploration in China, which managed to hold a final close size of $500mn after less than a year on the fundraising trail. Preqin’s data shows that Asia has in fact been the most prevalent geographic focus for cleantech vehicles this year, with 44% of all capital raised by cleantech-focused funds closed in 2013 YTD being channelled into continent.
There are currently 102 cleantech funds in market, targeting an aggregate of $22bn in investor commitments. The most frequented fund strategy for cleantech funds currently in market is infrastructure, with 50 infrastructure funds currently targeting an aggregate of $14bn for cleantech investments. This was also the most prevalent vehicle type for funds that have held a final close so far this year, with six infrastructure funds collectively raising $524mn. The largest cleantech vehicle currently in market is Terra Firma Infrastructure Fund for Global Renewable Energy, a joint venture between Terra Firma Capital Partners and China Development Bank that seeks investments in renewable energy assets globally, targeting $2bn in investor capital.