Dragon Capital plans fundraising next year

Clean Development Fund II will target $100 million for sustainable development and low-carbon growth opportunities.

Vietnam’s Dragon Capital is planning to market a second clean development fund early next year, director of clean development at Dragon Capital Gavin Smith said.

The firm is targeting $100 million to invest in sustainable development in low carbon business growth opportunities.

The new fund will target commitments from institutional investors from Europe and Asia. “The existing investor base of Clean Development Fund I have indicated that they want to be involved,” Smith said.

Mekong Brahmaputra Clean Development Fund I is a 2010-vintage vehicle that targeted $100 million but closed on $45 million, according to PEI Research & Analytics.

That fund is now almost fully deployed in profitable investments in Vietnam, Laos, Cambodia, Thailand, Philippines and Sri Lanka, Smith said.

New investments in 2015 include in solar photovoltaic, small hydro and solid waste management.

According to Smith, Dragon Capital’s investment strategy “is tried and tested” with a mix of growth investments in existing corporate structures, green field developments and start-ups.

The company targets south and south east Asian markets from Nepal to the Philippines. The firm has representation in Vietnam, Thailand and the Philippines, said Smith.

In 2011, the firm launched the Indochina Opportunities Fund targeting $250 million and aiming to reach final close by 2013. Fundraising was cancelled in December 2012 due to lack of limited partner interest, according to PEI Research & Analytics.

Dragon Capital is an investment company founded in 1994 and focused on Vietnam, which now has assets under management of about $1.4 billion.

This article has been amended to remove a reference to the International Finance Corporation and Proparco, the private sector arm of Agence Française de Développement, as investors in the firm.