Deutsche Bank and Masdar clean-tech fund raises $265m

London, 21 January: Deutsche Bank and Masdar have raised $265 million in the first close of their clean-tech private equity fund.

The DB Masdar Clean Tech Fund will invest in a portfolio of expansion and later-stage companies, via venture capital and private equity. It will focus on the clean energy sector, as well as environmental resources firms working in water and waste management, and material efficiency firms, for example those involved in building and power grid efficiency.

Sultan Ahmed Al Jaber, chief executive of Masdar, Abu Dhabi’s state-owned renewables initiative, said: “Completing first close on the DB Masdar Clean Tech Fund is a clear statement of intent. We understand both the financial and social value of companies that are tackling global environmental challenges; we are committed to supporting them by providing capital investment and management expertise.”

Siemens was the lead investor in the first close of the fund, along with the Japan Bank for International Cooperation, Inpex Corporation, Nippon Oil, the Development Bank of Japan and GE.

The fund will be co-managed by Masdar Venture Capital and DB Climate Change Advisors (DBCCA). It will make its first investments this year, Masdar said.

“In these challenging economic times, the size of this first close and quality of participants demonstrates a profound confidence in climate change investing and in the joint DBCCA and Masdar investment team,” added Kevin Parker, global head of Deutsche Asset Management.

This week also saw Masdar launch a joint venture with German utility E.ON to develop carbon projects.

E.ON Masdar Integrated Carbon (EMIC) will invest a pot of $140 million, half from each of the partners, in projects to reduce greenhouse gas emissions and earn carbon credits under the Kyoto Protocol’s Clean Development Mechanism (CDM). EMIC will develop, finance and implement carbon projects in the Middle East, Africa and Asia. The Middle East and Africa have been relatively untapped by CDM developers, with African projects making up only 2% of those registered so far.

EMIC will focus on projects which can generate large volumes of carbon credits, such as those in the power generation and the oil and gas sectors.