Masdar Venture Capital: Making Finance Accessible to Clean Technology Companies

Alexander O’Cinneide, Fund Manager

Masdar Venture Capital

• This unit is tasked with building a portfolio of companies through investing Masdar’s capital alongside our partners.

We do this to:

-Earn strong returns from investing in mid-to-late stage clean tech companies that are addressing climate change through the development and use of clean technologies

-Support and monetize on solution-oriented technologies that address energy security, climate change, and global sustainable development

-Promote thought leadership and innovation in resource conservation and clean technologies

Investment Opportunities

• What we look for when looking at investments

Regulatory Certainty

Opportunities Driven by Industry Logic

Geographic Expansion

Exit Options (3-5 yrs)

Technology

Experienced, hands-on team with proven management capabilityManagement Quality

Propriety and protected (ideally international patents) technology with potential for large-scale applicationDemonstrated superior performance; disruptive possibilities

Reasonable certainty around stable regulatory environment

Fragmented market (leading to consolidation)Potential for scale benefits or vertical integration

Seek opportunities for geographic expansion of investee companies

Multiple exit options/timeframes possible via an IPO, natural owners and secondary buyers

Environmental Protection

• Land conservation• Environmental restoration• Timberland• Forestry• Sea defenses

Clean tech Innovation

• Infrastructure management• Supply chain management

Power Storage Technology

• Battery technology • Fuel cells

Transport and Sustainable Biofuels

• Low carbon transportation• Bio-diesel, ethanol

Environmental Resource

Water

• Desalination/purification• Wastewater treatment• Distribution and management

Agriculture

• Irrigation innovation• Clean pesticides• Consumer food purity• Seeds

Waste Management

• Recycling• Toxin management• Waste-to-Energy• Land remediation

Energy and Material Efficiency

Advanced Materials

• Advanced coatings• Lightweight substitutes• Solvents and biodegradables

Building Efficiency

• Building management include green data centre mgmt

• Heating and cooling systems• Lighting systems• Insulation• Micro generation/micro CHPPower Grid Efficiency

• Transmission (including smart grids)

• Smart metering• Storage• Infrastructure

Environmental Services

Business Services

• Insurance• Logistics• Green focused banking• Microfinance• Consultancy/advisory• Intellectual property

Our Investment Universe

Primary investment target Secondary investment target

Power Generation

• Solar• Wind• Clean coal (sequestration,

infrastructure)• Other clean power generation

(geothermal, hydro, biomass, wave/tidal, methane capture)

Clean Energy Environmental Resource

Energy and Material Efficiency

Environmental Services

Current Business of Masdar Venture Capital

Masdar Clean Tech Fund (“1st Fund”)

• $250m fund Partnership with-Credit Suisse-Consensus Business Group-Siemens

• $5 – 20m investment ticket size in companies with promising technology and defendable IP

• Current Investments range from Solar Thin-Film to Waste-to-Energy and Water Purification

• Investments range from early stage to late stage Pre-IPO investments

• Established in January 2010, raising $500-750m, first close recently completed at $265m

• General Partners: Masdar and Deutsche Bank

• Limited Partners: Siemens, Development Bank of Japan, GE, Nippon Oil, Inpex, JBIC

• Similar Investment targets to our first fund

Masdar Clean Tech Fund(“2nd Fund”)

Masdar Clean Tech Fund I

• Masdar Clean Tech Fund I is a $250 million diversified venture capital investment vehicle that has built a portfolio of direct and joint venture investments in clean technology as well as investments in select clean technology funds. The fund was founded by ADFEC in 2006

• Masdar Clean Tech Fund is made up of investments from the following:

Investment Distribution

• The Fund is investing approximately $205 million in direct investments in clean tech companies sourced by the Fund and co-investments alongside fund managers. The remaining $45 million is invested in leading funds focusing on cutting-edge clean technology

Masdar Clean Tech Fund I Portfolio

DB Masdar Clean Tech Fund

• Masdar Clean Tech Fund II will be a $500-$750 million venture capital investment vehicle. The fund announced the first close of $265 million in January 2010 and look forward to deploying capital in building a pipeline in various sectors with a diversified regional focus

• DB Masdar Clean Tech Fund is a made-up of commitments from the following, as well as select financial and strategic partners from Asia and Europe:

Masdar Venture Capital Funds Looking Forward

• Through Masdar Venture Capital, Masdar will continue to develop and manage funds

• Masdar is committed to being a leader in the management of venture funds focused on the Advanced Energy and Sustainability sector

• It is the intention for these family of funds to provide Masdar with access to technology, projects and large enterprises which the Government of Abu Dhabi can utilize and develop