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
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