About the Fund
The Clean Resources Asia Growth Fund was launched in the fourth quarter of 2009 and partners with innovative companies having sustainable impact in the water and agriculture sectors via the provision of capital for growth and expansion.
The fund’s focus is the Asia-Pacific region’s rapid structural trend towards greater resource efficiency. This trend is being bolstered by concerns over the localized environmental degradation, population growth pressures and governmental desire for food, water and energy security.
The fund employs a research-driven investment process that emphasises "bottom-up" idea generation within these macro trends. The fund currently focuses on two main fields: sustainable agriculture and water while being opportunistic in clean energy and waste sectors.
- Sustainable agriculture is highly correlated to water as over 80% of water in Asia is used in the agriculture sector. Areas of interest include environmentally sustainable fertilizers, weed/pest control and water conservation technologies.
- Water is divided into supply, treatment and wastewater. Investable areas include desalination, irrigation solutions and wastewater treatment.
- Waste is a high growth area that the fund expects to become a major investment area for us as it matures, with increasing emphasis on the sustainable management of waste streams such as sludge, plastic and rubber.
- Cleaner energy encompasses natural gas, solar and wind energy, biofuel substitutes, hydro, geothermal, clean coal technology.
The Clean Resources Asia Growth Fund intends to make private equity portfolio investments primarily in operating businesses within the clean resources sector which have revenues and operations in, or with 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$20 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 a lot of attention and investment, the Clean Resources Asia Growth team considers that there are numerous attractive areas, such as sustainable agriculture, water, material recycling and energy efficiency, underserved by capital sources that have been identified through our research driven approach.
Clean Resources Asia Growth’s private equity strategy is to identify and invest in:
- Proven high impact technologies (sourced globally) for application to Asian markets
- Combining real assets with technology. This accelerates adoption and gives diligence advantage and business development advantage.