Four Asia PE firms hone in on cleantech-only funds

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.

First Vanguard is raising $500 million for its China and Pacific Rim Water Infrastructure Fund, which is aimed for a first close before the end of 2009. The new fund is expected to invest in existing water infrastructure plants and facilities in Pacific Rim countries, with a main focus on China, including Hong Kong and Macau.

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 (see Energy efficiency rules week's cleantech roost and Cash-strapped cleantech firms seek cure in common stock).

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.

Cleantech venture investments have now declined for two consecutive quarters since peaking at $2.6 billion in the third quarter 2008, according to the Cleantech Group, representing the lowest level of venture capital investment in clean technology companies in two years (see Clean technology venture investment falls to $1 billion in 1Q09).

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