Singapore-based asset manager Armstrong Asset Management is to hold a first closing on $66m for its clean energy-focused development capital fund.
LPs included European finance institutions GEEREF, the fund of funds advised by European Investment Bank and European Investment Fund, an development finance group DEG, a member of KfW Bankengruppe, alongside an unnamed Asian corporate.
The fund, Armstrong South East Asia Clean Energy Fund (ASEACE) aims to provide development capital to small-scale renewable energy and resource efficiency projects in Southeast Asia.
With a target size of up to $150m, the ten-year fund will invest in small-scale infrastructure projects in Malaysia, Thailand and Indonesia and other Southeast Asian emerging markets. Typical projects sizes will generate power of up to 10MW from renewable energy resources, such as solar, hydro, wind.
“ASEACE is on track to be the only operational clean energy fund dedicated to Southeast Asia. While both China and India tend to get more attention, for Armstrong, we’ve found that focusing on Southeast Asia has been a strong draw for our investors. It helps that new regulatory policies are being enacted by governments in the region which encourage the development of the renewable energy sector,” said Andrew Affleck, managing partner of Armstrong Asset Management. “In fact, Armstrong’s management team members have deep sector and cultural knowledge of Southeast Asia from their involvement in over 100 energy and infrastructure projects.”
“Our focus is on small-scale projects which provide some real advantages well-suited for Southeast Asia. It’s an investment strategy that we have employed in Europe previously and we are now adapting it for this region where opportunities are much greater,” said Mr Affleck who has 22 years of asset management and investment banking experience in the Asian region, having focused on clean energy investments for the last seven years.
Prior to setting up Armstrong, Affleck was CEO of Low Carbon Investors, a clean energy fund management group with $300m under management.
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