Singapore-headquartered private equity firm Armstrong Asset Management has raised $130m in the third closing for its Armstrong South East Asia Clean Energy Fund, to focus on small-scale renewable energy and resource efficiency projects in Southeast Asia.
Development finance investors backing the fund included IFC Catalyst Fund, FMO (the Netherlands Development Finance Company), and Obviam, on behalf of the Swiss Investment Fund for Emerging Markets (SIFEM).
IFC Catalyst Fund is a fund of funds investment programme focused on funds investing in climate change in emerging markets. It is managed by IFC Asset Management Company, a wholly-owned subsidiary of the International Finance Corporation, which is a member of the World Bank Group and the largest multilateral organization focused on private sector development in across emerging markets.
In addition to the IFC Catalyst Fund commitment of $20m, earlier in May this year, IFC approved a commitment in the Armstrong Fund of $20m, the first investment by IFC in a private equity fund dedicated to clean energy in Southeast Asia.
“We are excited to partner with the Armstrong Fund,” said Reyaz Ahmad, head of the IFC Catalyst Fund. “The capital, expertise, and innovation they will bring to clean energy in Southeast Asia exemplifies the role private equity can play in helping to address climate change while generating financial returns.”
Obviam is an independent investment advisor specialising in long-term investments in emerging and frontier markets, on behalf of public, institutional, and private clients, including SIFEM, the Development Finance Institution (DFI) of the Swiss Confederation.
“Obviam is looking forward to a long term partnership with Armstrong, who offers a unique blend of in-depth Renewable Energy and South East Asia investment experience. We expect the Fund to a play an important role in fostering the application of Clean and Renewable energies in the region, working towards minimizing fossil fuel based dependence,” said Claude Barras, CEO of Obviam.
Prior to IFC’s commitment in May 2013, earlier commitments at the initial close of the Armstrong Fund in August 2012, totaling $65m, had come from European development finance institutions GEEREF and DEG; and unnamed Asian-based corporation.
Armstrong focuses on providing development capital to smaller-scale renewable energy and resource efficiency projects in Southeast Asia’s emerging markets. On 16 August, the Armstrong Fund announced its commitment of up to $30m to finance an initial pipeline of solar photovoltaic and biogas power projects, developed by Annex Power, in Thailand, the Philippines and Indonesia.
In May, it announced its first investment in the development and construction of a 30MW portfolio of solar projects in Thailand, alongside Hong Kong-based energy company Symbior Energy.
The firm said it expects to make a total of between ten to 15 investments from the fund, each ranging from $5m to $12m. Projects of a typical size would generate up to 10MW from renewable energy resources of solar, hydro, wind or biogas.
Copyright © 2013 AltAssets