Asia Climate Partners (ACP), created through a joint venture between the Asian Development Bank (ADB), ORIX Corporation, and Robeco Institutional Asset Management, has set a target corpus of $750 million for its first fund, which will focus on investments in renewable energy, agribusiness, environmental services, and energy efficiency.

 

The fund, which has yet to conduct any transactions, has only just begun investment activity after establishing its headquarters in Hong Kong in October 2014. It is expected to make investments in excess of $20 million in midmarket private companies working within its targeted sectors, and will target a 20% gross return.

 

ACP has initial capitalization of $400 million from its founders and other investors, including approximately $100 million each from ORIX, ADB, and the UK Government, and last month the Bank of Tokyo-Mitsubishi UFJ agreed to commit $30 million to the fund which is currently seeking opportunities in India, China, and Southeast Asia.

 

The fund is also interested in making investments in companies that are working toward resolving challenges related to air and water pollution, inefficient usage of natural resources, and energy and electric shortages in its target markets.

 

Once this first fund has reached a deployment over 75% of its capital, ACP will consider launching a follow-on fund, according to a company spokesperson.