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Fri 21 Jan 2011 10:03 AM

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Masdar closes $290m clean tech fund

Green energy firm plans third investment fund, which will depend on how the market looks

Masdar closes $290m clean tech fund
Masdars second fund will have a 40 percent allocation in Europe and 30 percent in both the US and Asia

Abu Dhabi’s green energy firm Masdar plans to launch its third investment fund, after it closed a $290m clean tech fund late last year, highlighting growing interest in renewable energy, the general manager of Masdar Capital said.

“Despite difficult market conditions, we got commitment from investors,” Alex O’Cinneide told Reuters on Thursday on the sidelines of a conference.

“The third fund depends on how the market looks, whether it is a global fund or a specialised fund,” he said.

Masdar is the renewable energy initiative of Abu Dhabi, one of the world’s top oil producers, which wants renewables to account for 7 percent of total power supply by 2020.

Masdar’s second fund, the DB Masdar Clean Tech Fund, set up with with Deutsche Bank, will have an allocation of 40 percent in Europe and 30 percent in both the US and Asia.

Mitsubishi Heavy Industries invested $25m late last year, taking the second fund’s size to $290m from the first close of $265m in early 2010.

Last month, the fund invested $25m in China’s UPC Renewables along with Macquarie Capital, which invested an equal amount.

“We are looking actively for deals in Japan and Taiwan. We are very interested in solar, wind, waste and component makers,” the general manager said.

Returns in 2010 were “very good” as Masdar realised two profitable exits, he said.

Masdar’s first $250m clean tech fund in partnership with Swiss bank Credit Suisse was closed and invested 70 percent in the US and 30 percent in Europe.

On Tuesday, Masdar delayed a planned $2.2bn hydrogen power project and scrapped a solar module manufacturing facility in Abu Dhabi.

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