IFC commits $20m to Armstrong's SE Asia cleantech fund

This adds to the $65 million raised when the maiden fund, named Armstrong South East Asia Clean Energy Fund, reached its first close last August. A final close of $150 million is expected by August.

The 10-year fund, which was launched in May of last year, will provide development capital to small-scale renewable energy and resource efficiency projects in Southeast Asia. Typical projects sizes will generate power of up to 10 megawatts from renewable energy resources, such as solar, hydro and wind. It will make 10-15 investments of $5-12 million each. 

Earlier commitments to the fund have come from European development finance institutions (DFIs) GEEREF and DEG, and an Asian-based corporation.

"IFC's track record of investing with emerging market managers at an early stage is second to none and Armstrong will benefit greatly from their experience and market knowledge," said Andrew Affleck, managing partner at Armstrong.

He added that the fund has a further $63 million in soft commitments and is likely to end up oversubscribed, although the firm will stick to a realistic hard cap. The additional commitments are expected to come from European family offices, European institutional funds and a number of other development finance institutions.

Earlier this month Armstrong made its first investment from the fund, taking a 60% interest in a 30 MW porfolio of solar projects in Thailand controlled by Symbior Solar Siam (SSS), a subsidiary of Hong Kong-based Symbior Energy.

The private equity firm has a number of other mature pipeline deals, specifically in the solar and mini-hydro sectors, and is now aiming to commit to three to four deals in the coming year.

"Over the last 12 months, the proposition for renewables in Southeast Asia has become even more compelling," said Affleck. "Supply side costs have continued to decrease, meaning that in a number of project cases around the region, subsidies are not required in order to make the economics work."

Armstrong has also expanded its team recently in anticipation of a final close this year, appointing Yasushi Ujioka as investment director last month.

 

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• Topics
• Southeast Asia
• Cleantech
• Fundraising
• LPs
• Singapore
• Cleantech
• Fundraising
• Armstrong Asset Management
• IFC
• LPs