Singapore-based Armstrong Asset Management is poised to launch its first fund: an Asian private equity vehicle focused on clean energy.
The firm hopes to raise US$150 million for the 10-year Armstrong South East Asia Clean Energy Fund which will invest in small-scale infrastructure projects in Malaysia, Thailand, Indonesia and other Southeast Asian emerging markets. Typical projects will generate power of up to 10 megawatts from renewable energy resources, such as solar, hydro and wind.
Armstrong expects a first closing at US$66 million this month, with commitments from GEEREF (a fund of funds advised by the European Investment Bank and European Investment Fund) and DEG (a member of KfW Bankengruppe). The firm says it also has an unnamed “Asian-based corporate” lined up as its third and largest limited partner.
“ASEACE is on track to be the only operational clean energy fund dedicated to Southeast Asia. While both China and India tend to get more attention, for Armstrong, we’ve found that focusing on Southeast Asia has been a strong draw for our investors. It helps that new regulatory policies are being enacted by governments in the region which encourage the development of the renewable energy sector,” said Andrew Affleck, managing partner of Armstrong Asset Management. “In fact, Armstrong’s management team members have deep sector and cultural knowledge of Southeast Asia from their involvement in over 100 energy and infrastructure projects.”
Affleck is the former CEO of Low Carbon Investors, a dedicated global clean energy fund management group with over US$300 million iunder management.