 |
|
|
|
|
Investment Philosophy |
|
|
Clean Resources Capital, invests in listed equity shares, convertibles and private equity. The CRC platform operates as a “clean tech hub”, pooling and maximising CLSA Capital Partners’ resources in a single asset management platform. This approach allows the CRC fund managers to leverage industry and country analysis performed by the CRC team in the clean technology evaluation process, enabling a broader and deeper understanding of the various sub-sectors within the clean resources area. Specifically, this approach will give the CRC team insight across the value chain of the clean technology sector providing an enhanced understanding of the displacement potential, competitive landscape and exit potential of an investment opportunity.
Public Funds
CRC utilises its managers’ ability to understand ‘what comes next’ in the renewable energy and clean resource development process and to follow the profitable transition from private to public equity. The CRC public equity funds focus principally on two classes of shares, one of which can invest in pre-IPO equity positions. CLSA relationships and CRC’s managers’ in-depth knowledge of sector aids pre-listing investment. CRC seeks to utilise its risk management experience to enable it to optimise post-listing position taking.
CRC is committed to long-term investment in high growth stocks, with the ability to short sell companies that are incurring excessive energy input costs, excessive valuation, failing to execute or incurring significant pollution risks. Investment is normally long biased but with the mandate to reduce exposure to currency, interest rates and broad market exposure when appropriate.
CRC seeks to hedge out currency movements and broad market exposure to protect gains. Maximum 25% of AUM invested outside Asia-Pacific in clean energy companies investing in Asia-Pacific and maximum 60% of AUM invested in any one country.
Private Equity
CRC intends to make private equity portfolio investments primarily in operating businesses within the clean technology sector which have revenues and operations in – or a strong link to – Asia-Pacific markets. Generally at the growth or expansion stage of development, private equity portfolio investments are expected to range in size from US$10 million to US$30 million and may be made in a wide range of instruments including preferred stock, common equity, warrants and convertible debt instruments.
While alternative energy generation has received most of the attention and investment, with an estimated 70% share of all new PE/VC investment in clean technology in 2008, CRC believes there are numerous attractive areas underserved by capital sources that have been identified through CRC’s research driven approach.
CRC’s private equity strategy is to identify and invest in:
- Proven clean technologies (sourced globally) for application to Asian markets
- Critical elements of the Asia-based supply chain for clean resource technologies
- High growth clean technology companies expanding sales volumes and production capacities
|
|
|
|
