MEACP raises fund target to $500m

The MAP Clean Energy Fund has increased its target by $100m and is aiming for a first close on $70m by December.

Singapore-based private equity firm Middle East & Asia Capital Partners (MEACP) has raised the target of its clean energy fund to $500 million from $400 million.

MEACP is aiming for a first close on $70 million by the end of the year and a final close by the end of 2010, Vince Choi, a director of investments at the firm, told PEI Asia.

The firm will look to raise the additional $100 million from Islamic investors via a sharia-compliant vehicle, according to Bloomberg. The firm confirmed it has raised its target by $100 million but declined to provide further details about the increase in target size.

In March 2008, Manila-based Asian Development Bank committed $20 million to the MAP Clean Energy Fund. The firm has also raised a $50 million debt facility from independent US government agency Overseas Private Investment Corporation. It is targeting investors from Asia and the Middle East.

Previously, the fund was focused on projects in India, Indonesia, Malaysia, Pakistan, the Philippines, Thailand and Vietnam. Now, it will invest in those countries as well as China, Choi said.

He added the fund will invest in clean power generation assets in sectors including wind energy, solar energy, hydro energy and clean conventional fuels.

There are a number of Asia-focused clean energy funds in the market. Two of these include investment firm Global Environment Fund’s South Asia Clean Energy fund and Entropy Ventures’ Amadeus Asian Clean Energy Fund, which are targeting $200 million and up to $100 million, respectively.

Last month, Hong Kong-based Olympus Capital Holdings Asia raised $250 million for its first clean technology fund to invest in renewable energy and environmental services companies in Asia.