German family office Wermuth Asset Management is targeting a total fund size of €200m for its Tatarstan Cleantech Fund (TCTF), which is said to be the first ever international fund with a specific focus on Russia, and in particular, the Republic of Tatarstan.
Fundraising is already underway for the vehicle, with €110m already committed by its co-founders.
The Tatarstan region has an energy intensity per unit of GDP eleven times higher than Germany, which the managers said gives potential investors distinct opportunities. The region is also said to benefit from investor tax breaks and a preferred return to limited partners for investments that involve the Republic.
The intention is now to raise an additional €90m to reach the target fund size of €200m over the coming 18 months. It is conceived for ten years, with a six-year investment period and a four-year wind-down period.
It will predominantly source investment opportunities in medium- to small-sized companies in Russia, the US and Europe and has a preference for companies that have a proven track record in clean technologies.
Daniel Colbert, lead fund partner, said, “I am delighted and honoured to have the opportunity to lead an energetic and experienced team for the TCTF. I admire both the Republic of Tatarstan and Wermuth Asset Management for recognising the importance and value of clean technologies and their partnership in structuring the fund to achieve mutual and separate goals. I also see huge potential interest in the TCTF, not only from Russia-focused investors, but from cleantech investors around the world.”
Traditionally an oil and gas hub, Tatarstan is said to be now looking to become more energy efficient. The fund managers are also said to be interested in the development and construction of a ‘low energy consumption village’ similar to that set up by Masdar in Abu Dhabi, or in companies that are operating in the green building space.
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