Washington, D.C., January 8, 2008 --
IFC, a member of the World Bank Group, announced today it will make its first investment in a third-party environment-focused private equity fund to help benefit the environment and combat climate change. IFC’s investment of up to €15 million will help the fund, which is managed by Aloe Private Equity, pursue its strategy to invest in companies in Asia’s clean energy and environment sectors.
IFC’s funding will be used to invest in companies primarily in India and, when possible, in China, with a focus on clean and renewable energy, waste recycling, emissions controls, and eco-processes. Through its involvement in this fund, IFC will provide support to smaller businesses in the clean energy and environment sectors that are unlikely to receive funding from mainstream private equity groups.
“We welcome IFC’s investment and, more importantly, its strong support of Aloe Private Equity’s business model and social and environmental focus. IFC, with its unique expertise in the clean energy and environment sectors, will be a valuable partner in pursuing our strategy to expand in Asia and will provide tremendous benefits for existing and future portfolio companies,” said Vivek Tandon, General Partner at Aloe Private Equity.
Jean-Pascal Tranié, General Partner at Aloe Private Equity, said, “Through this environment- and sustainability-focused fund we aim to offer economic, environmental, and social returns to our investors. We look forward to working with IFC to repeat the success of our previous funds and further demonstrate the commercial viability of the clean energy and environment sectors.”
Haydee Celaya, IFC’s Director of Funds, said, ”IFC’s investment in Aloe Private Equity’s environment fund is in line with our strategy to support funds that are investing in technologies to combat climate change. Aloe Private Equity’s innovative investment strategy will help address some of the major challenges and opportunities for sustainable economic development in Asia’s emerging markets.”
Aloe Private Equity manages a number of environment funds. It recently raised over €110 million for the Aloe Environment Fund 2, which will invest in companies in Asia and Europe. The fund in which IFC will participate will co-invest alongside Aloe 2 but will support companies primarily in India and China.
Swedfund, a risk capital company owned by the Swedish government, and Proparco, the private sector financing arm of the French Development Agency, will invest €8 million and €5 million, respectively, in the new fund alongside IFC.
Through its first environment fund, Aloe Private Equity made investments in Greenko, an Indian biomass company that was recently successfully floated on the AIM London-based exchange. Other companies in which the fund invested are focusing on coal bed methane recovery; energy efficiency; and the recycling of materials such as batteries, plastic, steel dust, and fly ash.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
About Aloe Private Equity
Aloe Private Equity is a French management company founded in 2004 that has a proven track record in the environment sector and is a pioneer in social and environmental corporate responsibility. It manages a number of environment funds that invest in companies that seek to make a positive contribution to society, both socially and environmentally, while providing high financial returns to investors. Aloe Private Equity’s culture and strategy emphasize investments where it can not only make a significant strategic value contribution to the investee but also help promote environmental and social sustainable growth. Aloe has a particular interest in companies with proven products or solutions that wish to expand their businesses in India and China. For more information, visit
www.aloe-group.com
.
