• Berkeley Energy’s third dedicated renewable energy fund for emerging markets
  • Berkeley Energy’s has now in excess of $400m AUM for renewable energy
  • Principal office located in Singapore
  • Target fund raise of $250m over the next 12 months

On March 11, 2016 Berkeley Energy successfully reached a first close of its Renewable Energy Asia Fund II with $112m of committed capital for its 10 year closed end fund.

Investors in the first close included the Netherlands Development Finance Corporation (FMO), the International Finance Company (IFC) and the IFC Catalyst Fund, a private equity fund managed by the IFC Asset Management Company (AMC) (who together contributed $60m), the European Investment Bank (EIB) managed Global Energy Efficiency and Renewable Energy Fund (GEEREF) and Oikocredit.

FMO and GEEREF have also invested in all of Berkeley Energy’s other renewable energy funds to date; the $110m Renewable Energy Asia Fund (REAF) in 2009 which is fully deployed into 7 projects and the $200m Africa Renewable Energy Fund (AREF), the first dedicated renewable energy fund for Sub-Saharan Africa, which had a final close last year at its hard cap and is headquartered in Nairobi and has so far invested in a further 9 projects. FMO also provided an innovative warehousing facility to Berkeley Energy prior to the first close of REAF II enabling it to begin investing the fund early.

REAF II will shortly be completing a second close with a further group of investors to take the fund to c.$150m before targeting its final close at $250m later in the year. The new fund will invest in emerging markets in Asia, where Berkeley Energy has been active since its founding in 2007, with a principal focus on the Philippines, India and Indonesia.

Berkeley Energy is a dedicated renewable energy investor with more than 30 staff over 6 offices worldwide with a strong technical and engineering focus in-house, enabling it to develop projects in tandem with local sponsors or on its own, acting as a bankable sponsor of projects, sourcing equipment and managing the construction phase with the aim of aggregating a portfolio of operating renewable energy assets and maturing such projects for exit.

Berkeley Energy now manages a global emerging markets renewable energy portfolio of excess of 20 projects with 5 projects and more than 200MW now operating, and a further 4 projects in construction with the remainder in development. Berkeley Energy invests mainly in development stage projects, typically in wind, small hydro and geothermal but also in solar and biomass.

TC Kundi, Berkeley Energy’s Managing Partner and co-Founder said: “We are particularly happy to have secured such a large combined investment from the IFC and the IFC Catalyst Fund given their expertise and knowledge of both the markets we operate in, and the competitive environment. We are also very pleased to welcome back our loyal investors FMO and GEEREF who have taken a prominent role in each of our funds, helping us to establish our investment ethos and of course, we are delighted to welcome Oikocredit to the fund, who have particular investment experience in the region.”

Berkeley Energy’s Partner and co-Founder Alastair Vere Nicoll said: “We are excited to have reached this milestone of a first close of REAF II which demonstrates the benefit of controlling our project delivery from development to operation to ensure well developed and constructed assets are added to the clean generating mix of the power hungry economies in which we invest.”

 “We expect REAF II’s investments to have direct and meaningful development impact that is consistent with IFC’s climate change agenda,” said Vivek Pathak, IFC’s Director for East Asia and the Pacific. “Specifically, the Fund will support the promotion of renewable energy production, the improvement of environmental standards and the demonstration effect for renewable energy projects in the emerging markets.”

 “We are pleased that the IFC Catalyst Fund is investing in partnership with Berkeley Energy in REAF II, thereby helping to fulfil its mandate to address climate change while seeking to make commercial returns,” said Reyaz Ahmad, Head of IFC Catalyst Fund.   

FMO’s CIO Linda Broekhuizen said: “We are very pleased to continue our successful partnership with

Berkeley Energy and to contribute to the further development of much needed renewable energy projects. They will benefit not only local economic development and job creation, but also contribute to lower CO2 emissions.”

Dr. Gunter Fischer, Senior Investment Manager at GEEREF said: “We are proud to continue and expand with our investment in REAF II, the partnership between GEEREF and Berkeley Energy. The Berkeley Energy team is clearly one of the most experienced in the market and with its in-house development capabilities is able to address interesting renewable energy opportunities not accessible to other market players. As such Berkeley Energy and REAF II help GEEREF deliver on its “People, Planet and Profit” mandate.

“We are eager to work with the partners in the fund and especially appreciate Berkeley’s strong technical competence and sustainable investment approach,” said David ten Kroode, Oikocredit’s renewable energy manager.

ABOUT IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.

ABOUT AMC

IFC Asset Management Company LLC (AMC), a wholly-owned subsidiary of IFC, invests third-party capital, enabling investors to benefit from IFC’s expertise in achieving strong equity returns, as well as positive development impact in the countries in which it invests. AMC has raised $8.7 billion of capital across 11 investment funds, including the IFC Catalyst Fund. For more information, visit www.ifcamc.org.

ABOUT FMO

FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 9.2 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl

ABOUT GEEREF

GEEREF is an innovative Fund of Funds investing in specialist private equity funds focusing on small and medium-sized renewable energy and energy efficiency projects. Focusing on emerging markets and developing countries, GEEREF was launched in 2008 with public sector seed capital from the European Union, the Federal Republic of Germany and the Kingdom of Norway. The aim of GEEREF is also to attract private capital and the team has recently successfully completed its fundraising from private sector investors. GEEREF is advised by the European Investment Bank Group. This partnership is partly financed with the financial assistance of the European Union, the Federal Republic of Germany and the Kingdom of Norway.

ABOUT OIKOCREDIT

Oikocredit is a worldwide cooperative and social investor, providing credit and equity to microfinance institutions and directly to trade cooperatives, fair trade organizations and small to medium enterprises (SMEs) in developing countries. Oikocredit’s strategic focus areas are inclusive finance, agriculture, renewable energy and Africa. Oikocredit has a development financing portfolio totalling €900.2 million, invested across 69 countries worldwide. Oikocredit is privately financed through the investments of 51,000 individuals and organizations offering a positive triple bottom line to investors: social, environmental and financial. www.oikocredit.coop