ADB, Private Equity Investments Partner in Climate-Related Transactions
4 August 2014: The Asian Development Bank (ADB), ORIX Corporation (ORIX) and Robeco Institutional Asset Management B.V. (Robeco) have formed a joint venture titled 'Asia Climate Partners' (ACP), which will undertake commercially-viable, private equity investments across a range of low-carbon transactions throughout Asia.
ACP will be: initially capitalized by US$400 million; based in Hong Kong, China; and staffed by private equity investment professionals. It will invest in renewable energy, clean technology, natural resource efficiency, water, agriculture, forestry and other climate-friendly companies that aim to generate market-driven, risk-adjusted returns and have a positive environmental and social impact.
Todd Freeland, Director General, Private Sector Operations Department, ADB, said ACP provides “an innovative platform to deploy capital into climate-related transactions across Asia that are designed to generate attractive returns.” He pointed to the benefits of having Robeco, a global asset manager, partner with ORIX and ADB, two of the most successful investors in the low-carbon sector in Asia. Given the increasing public and private sector focus in Asia on environmental challenges, and historically low levels of capital deployed to them, investment in renewable energy and resource efficiency has the potential to grow at two-three times economic growth over the next several decades. [ADB Press Release]