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Description |
An equity investment in Asia Environmental Partners II, L.P. ( AEP II or the Fund ), a US$300 million regional fund focused on growth opportunities in renewable energy, waste management and recycling services, water management, energy efficiency, pollution control, and low-carbon consumer products in the PRC, India and Southeast Asia. The Fund is sponsored by Olympus Capital Asia ( Olympus ), an established regional private equity firm with a 17 year track record of sourcing, growing and exiting middle market companies in Asia. Olympus has invested more than $1.8 billion of equity capital on behalf of its funds and co-investors in over 40 portfolio companies throughout Asia, including the PRC, India, Japan, the Republic of Korea, and Southeast Asia, and is one of the few regional private equity fund managers to have delivered consistent profits across the key markets in which it invests, through multiple economic cycles. In addition, Olympus has one of the longest standing teams in Asian private equity, consisting of 33 investment professionals (including nine managing directors, each with an average tenure of 14 years with the firm) located in six offices (Hong Kong, Shanghai, New Delhi, Seoul, Singapore, and Tokyo). Recognizing the significant opportunity in the environmental and natural resources sector, Olympus made their first environmental investment in 2005 and launched Asia Environmental Partners ( AEP ) in 2008, which is one of the first funds in Asia dedicated to this space. |
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Objectives and Scope |
AEP II intends to invest in a balanced portfolio of 7- 10 middle-market growth companies, with a focus on the PRC, India, and the Association of Southeast Asian Nations (ASEAN). Targeted subsectors will include (i) renewable energy projects, services, distribution, and associated equipment; (ii) solid and hazardous waste management; (iii) recycling services; (iv) water management, services, and equipment; (v) energy-efficiency products and services; (vi) pollution control and prevention devices and services; and (vii) consumer products with low-carbon impact. AEP II will focus on established and profitable operations in these subsectors, investing in a combination of asset-based (primarily brownfield) companies and providers of services or equipment. Building on an emerging trend to consolidate Asian private investment in environmental services, AEP II will, where appropriate, build regional platform clusters around a specific growth opportunity. |
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Linkage to Country/Regional Strategy |
Interventions in all ADB's DMCs would be aligned with the respective country partnership strategies, (i.e., of the PRC, India, Indonesia, the Philippines, Thailand, and Viet Nam), which frequently emphasize climate change mitigation and adaptation, private sector development, clean energy, and sustainable growth as core themes. |
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