Masdar Share of Burgeoning Global Renewable Energy and Cleantech
Abu Dhabi-UAE: 13 July, 2011 – Masdar Capital, one of the five integrated units
of Masdar, said today it is growing into one of the leading players in the global
clean technology investment space, deploying funds globally and building a diverse
international portfolio in the five years since its inception.
Updating media at a briefing in Abu Dhabi, Alex O’Cinneide, Director and Head of
Investments at Masdar Capital, said: “We seek to grow and expand our status as a
global player in the cleantech investment arena and are looking to be a major force for
renewable investment globally. Our efforts in building an asset management business
headquartered in Abu Dhabi with strong international investors are beginning to pay
off. The growth of this sector will increasingly provide them and us with opportunities
and we believe an excellent return profile.”
Industry statistics suggest that annual investment in the global clean energy sector
registered a compound annual growth rate (CAGR) of 23% during 2004-2009, and is
forecast to increase three-fold by 2030.
The first quarter of 2011 saw deals worth US$4 billion in investments from venture
capitalists and private equity firms globally. In addition, total new investments in clean
energy increased 30% from US$186 billion in 2009 to US$243 billion in 2010 and global
renewable energy spending is predicted to touch a staggering US$461 billion by 2030.
Currently, Masdar Capital’s two major investment vehicles – Masdar Clean Tech
Fund (I) and DB Masdar Clean Tech Fund (II) – together have US$540 million
under management. The first fund’s investments range from solar thin-film to
waste-to-energy and water purification. The second fund will concentrate on clean
energy, environmental resource management, energy and material efficiency and
environmental services, with its first investment completed in Chinese wind energy.
The US$250 million Masdar Clean Tech Fund (I) launched in 2006 is fully invested,
targeting US$10 million-US$25 million investment ticket sizes in companies with
promising technology and defendable IP. The fund has invested in a range of companies
whose products and services range from solar power, waste treatment and sustainable
clean-water technologies. Complementing the fund’s direct-investment portfolio, US$35
million of the fund’s capital was committed to leading early stage funds that were
themselves focused on cutting-edge cleantech technology, and generally with a focus
on the renewable energy sector.
Masdar Capital’s successful 2010 exits, both through trade sales and IPOs, have
generated solid returns. The company exited from its investments in Germany-
headquartered Sic Processing, which was sold to Nordic Capital Fund IIV, a private
equity fund focused on investments in the Nordic region. The company is a leading
supplier in the recovery and processing of sawing slurry in silicon wafer production, and
operates sites in Norway, Germany, China, the US and Italy. Masdar Capital also exited
from HaloSource through an US$80 million IPO on London’s AIM Exchange for small
companies. Headquartered in the US with operations in China and India, HaloSource is
a leading clean-water and antimicrobial technology company.
The DB Masdar Clean Tech Fund (II) launched in 2010 completed its final close at
US$290 million. The average investment size targeted by this fund will be between
US$15-$40 million. The DB Masdar Clean Tech Fund seeks out promising growth-stage
renewable companies operating in most areas of the industry. Masdar Capital and
Deutsche Bank Climate Change Advisors (DBCCA) are co-managers of this fund and
have each committed US$50 million. The investor group, which was led by Siemens,
included General Electric, Japan Bank for International Cooperation, INPEX Corporation,
Nippon Oil Corporation, Mitsubishi Heavy Industries and the Development Bank of
Japan. The fund primarily looks for companies whose need for capital is driven by
the expansion of their existing products and services and commercialization of new
technology. The fund has geographic focus on companies based in Europe, North
America and Asia. The fund’s origination efforts, investment team skill sets, and
approach to portfolio construction are all focused on this growth-equity strategy.
Alex O’Cinneide added: “This team of investment professionals operating for many
years in the still emerging clean technology sphere has a world-class skill set and
expertise. The expertise gathered, combined with our position at the heart of the
Masdar initiative, is why large international investors and our partners have chosen to
place funds for management out of Abu Dhabi. Over the years, we have built strong
partnerships, powerful networks and a growing reputation for investment excellence.
We have also developed, nurtured and equipped a growing team of young Emiratis
with world-class investment skills and knowledge around origination, execution and
management of cleantech investments around the world.”
With a 12-member team based in Abu Dhabi, Masdar Capital builds long term
relationships with investee companies, investors and co-managers.
Industry estimates indicate growth in the new clean industries is driven by rapid
competition that is driving all businesses to remain consistently and incrementally
productive with fewer resources. This opens up a plethora of opportunities for venture
capital and private equity firms.
Combining deep industry insight, sharp financial acumen and operating expertise,
Masdar Capital, in partnership with co-managers, identifies investment opportunities
globally in the renewable energy sector. It primarily focuses on small to medium-
sized enterprises that address new technologies and offerings in climate change
including clean energy, environment resource, energy and material efficiency, as well
as environmental services.
Masdar Capital adopts stringent criteria to ensure it creates long-term value for our
investors. Before arriving at an investment decision, it gives ample credence to factors
such as management quality, technology, regulatory certainty, opportunities driven by
industry logic, geographic expansion, corporate governance and exit only after a three-
to-five-year lock-in period.
Masdar is Abu Dhabi’s multi-faceted initiative advancing the development, commercialisation and deployment of renewable
and alternative energy technologies and solutions. The company serves as a link between today’s fossil fuel economy
and the energy economy of the future - developing the “greenprint” for how we will live and work tomorrow. Backed by the
stability and reputation of the Mubadala Development Company, an investment vehicle of the government of Abu Dhabi,
Masdar is dedicated to the emirate’s long-term vision for the future of energy.
For more information about the Masdar Initiative, please visit: www.masdar.ae
About Masdar Capital
Masdar Capital (operating through Masdar Investments LLC, regulated by the UAE Central Bank), one of the five
integrated business units of Abu Dhabi’s clean energy initiative - Masdar, is mandated to help drive growth in the multi-
billion dollar global cleantech and renewables marketplace through building a rich portfolio of top-tier investments.
Deploying funds through two investment vehicles – Masdar Clean Technology Fund-I created in 2006, and the DB Masdar
Clean Tech Fund-II launched in 2009, Masdar Capital seeks to realise strong market standard returns. The funds acquire
stakes in international companies that Masdar can add value and offer strategic support for commercialization and
production in the MENA region. The targeted industry segments include clean energy, environmental resources, energy
and material efficiency, as well as environmental services.