Masdar Capital funds reach US$540mn


Masdar Capital's two major investment vehicles, Masdar Clean Tech Fund and DB Masdar Clean Tech Fund together have US$540 million under management.

Alex O'Cinneide, Director and Head of Investments at Masdar Capital made this announcement in briefing to the media.

"We seek to grow and expand our status as a global player in the cleantech investment arena and are looking to be a major force for renewable investment globally. Our efforts in building an asset management business headquartered in Abu Dhabi with strong international investors are beginning to pay off. The growth of this sector will increasingly provide them and us with opportunities and we believe an excellent return profile," O'Cinneide said.

Industry statistics suggest that annual investment in the global clean energy sector registered a compound annual growth rate (CAGR) of 23% during 2004-2009, and is forecast to increase three-fold by 2030.

The first quarter of 2011 saw deals worth US$4 billion in investments from venture capitalists and private equity firms globally. In addition, total new investments in clean energy increased 30 per cent from US$186 billion in 2009 to US$243 billion in 2010 and global renewable energy spending is predicted to touch a staggering US$461 billion by 2030.

The Clean Tech Fund's investments range from solar thin-film to waste-to-energy and water purification. The second fund will concentrate on clean energy, environmental resource management, energy and material efficiency and environmental services, with its first investment completed in Chinese wind energy.

The US$250 million Masdar Clean Tech Fund (I) launched in 2006 is fully invested, targeting US$10mn-US$25mn investment ticket sizes in companies with promising technology and defendable IP. The fund has invested in a range of companies whose products and services range from solar power, waste treatment and sustainable clean-water technologies.


Complementing the fund's direct-investment portfolio, US$35 million of the fund's capital was committed to leading early stage funds that were themselves focused on cutting-edge cleantech technology, and generally with a focus on the renewable energy sector.

The DB Masdar Clean Tech Fund (II) launched in 2010 completed its final close at US$29mn. The average investment size targeted by this fund will be between US$15-$4mn. The DB Masdar Clean Tech Fund seeks out promising growth-stage renewable companies operating in most areas of the industry. Masdar Capital and Deutsche Bank Climate Change Advisors (DBCCA) are co-managers of this fund and have each committed US$50mn.

The investor group, which was led by Siemens, included General Electric, Japan Bank for International Cooperation, INPEX Corporation, Nippon Oil Corporation, Mitsubishi Heavy Industries and the Development Bank of Japan. The fund primarily looks for companies whose need for capital is driven by the expansion of their existing products and services and commercialization of new technology.

The fund has geographic focus on companies based in Europe, North America and Asia. The fund's origination efforts, investment team skill sets, and approach to portfolio construction are all focused on this growth-equity strategy.

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