Aurarian Preps Clean Energy ABL Hedge Fund

Jul 18 2008 | 10:12am ET

New York-based Aurarian Capital is making its entrance into the cleantech space with a new debt hedge fund. The firm’s Clean Energy Asset Based Lending fund is set to debut this fall, and Aurarian hopes to make quick work of its fundraising process.

CEABL is focused on financing alternative energy plants and will have a one-day subscription period, during which Aurarian aims to raise $100 million, according to Jason Liu, vice president for strategic planning and investor relations.

“What we’re hoping to do is have the fund open and close on the same day, and investors would qualify for subsequent rounds based on their entry in the first round,” he said.

The new offering will initially invest in two financing deals in the geothermal and ethanol subsectors, which the firm is bullish on for the foreseeable future. The fund will invest in U.S. companies with its first round of financing, but will branch out across the globe in subsequent rounds.

“We think that this is on par with the Internet boom, but much more sustainable because the metrics are traditional metrics of revenues and earnings,” Liu said. “The potential for returns will be in the healthy double-digits.”

New hire Kent Larsen, a veteran energy executive, is the fund’s portfolio manager. Aurarian’s new offering charges 2% for management and 30% for performance above a 12% hurdle. Its minimum investment requirement is $1 million and it sports a three-year lockup.

Aurarian currently manages a pair of sub-$50 million small-cap equity hedge funds that also invest in the alternative energy space. The firm’s founder is Jason Gold, a former director of technology research at SAC Capital Advisors.


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