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Four Asian private equity firms raising capital – among others – for geothermal

Alexander Richter 14 Jun 2009

Four Asia-based private equity firms are rounding up capital for cleantech, marking the region’s first dedicated cleantech funds, with geothermal maybe seeing parts of it.

Reported by Cleantech earlier this week, “Four Asia-based private equity firms are rounding up capital for cleantech, marking the region’s first dedicated cleantech funds, according to London-based Preqin, a research and consultancy firm focused on alternative asset classes.

Preqin said the two largest funds hail from Hong Kong-based asset manager First Vanguard and Singapore-based Middle East & Asia Capital Partners, according to Business Week.”

Describing the different investment plans, the article talks about that “Middle East & Asia Capital Partners is compiling $400 million for its MAP Clean Energy Fund to invest in 10 to 15 geothermal, wind and bioethanol projects across Asia, with a focus on Indonesia, India and Pakistan.

Singapore-based private equity firm Ant Global Partners, in conjunction with the Indonesia Ministry of Finance, is financing a $250 million Ant Global Partners Cleantech Fund over the next three years for Indonesian water treatment and renewable projects. Selangor, Malaysia-based Abundance Venture Capital is also seeking $250 million for its AVC Abundance Energy Fund.”

“In total, Preqin said there are at least 10 private equity funds looking to raise up to $3.6 billion, with the four cleantech dedicated funds making up $1.4 billion of the sum. In recent weeks, the Cleantech Group spotted a number of other smaller private-equity or venture-capital funds in Asia with an emphasis on cleantech.

Despite the economic downturn, Preqin said cleantech fundraising remained steady in 2008, with 29 funds, mostly venture capital, raising $6 billion worldwide, about the same as what was raised in 2007.

Preqin said in North America funds for 2009 are looking to raise $9 billion, followed by European funds, which want to raise $7 billion.” So there seems to be hope that the private equity market will support some of the geothermal development in the region.

Source: Cleantech Group