ADB to become GP

It has already received $200 million from anchor investors and will partner with a global financial institution in running the fund.

The pan-Asia fund will work in a broad range of sectors, such as natural resources, agriculture, environmental services and other segments related to climate change.

ADB so far has invested directly in private sector projects or contributed capital to other GPs. In 2012, $1.76 billion went into projects while $7.74 billion of financing was approved.

This includes a $25 million contribution to the $625 million Philippine Investment Alliance for Infrastructure (PINAI) Fund managed by Macquarie Infrastructure Management Asia. The fund is jointly financed by ADB, Philippines' state-owned pension fund Government Service Insurance System, Dutch pension fund asset manager APG, and the Macquarie Group.

Toru Kubo, ADB's principal climate change specialist and head of the carbon market program told AVCJ last year that the there are lots of opportunities in Southeast Asia because it is a segment largely untapped. "However, the investment ecosystem doesn't really exist and there has been a vacuum in the venture capital space," he said.

Earlier this year it also made a $30 million equity investment into India's NSL Renewable Power. According to Martin Lemoine, ADB's senior investment specialist in the wind and hydro sectors Indian banks are quite comfortable lending to projects so the financing market is quite developed.

"The gap was more on the equity side where we have been approached by many renewable energy developers," he added.

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• Topics
• South Asia
• Cleantech
• Fundraising
• LPs
• GPs
• Asian Development Bank
• Cleantech
• GPs
• LPs
• Fundraising