Evolution One Fund targets expansion and start up phase businesses in SA and SADC region countires for Cleantech Investment

South Africa’s first private equity cleantech fund, the Evolution One Fund (“the Fund”), raised US$56 million from offshore investors in 2008 - and is now actively seeking quality projects to invest in.

Executive Director of the Fund’s adviser, Inspired Evolution Investment Management (Pty) Ltd, Christopher Clarke said: “Our investments will be directed at clean energy and environment focused technology companies and projects in South Africa and across the South African Development Community (“SADC”) region. The majority of the capital deployment will be directed to expansion, start up and early stage cleantech businesses. We are looking to close a minimum of two deals by April this year.

“Half of our focus is on cleaner energy generation projects and energy efficiency technologies. The other half is focused on the key environmental goods and services sectors and sub-sectors such as water, waste, air pollution abatement, agribusiness, forestry and natural products together with sustainable building technologies and materials.

“This is also an opportunity for local investors to become part of one of the fastest growing global industries. The fund is still open to investors until mid-2009 and we are prioritizing domestic and regional institutions. To date, no other fund has focused on the specialised role of cleantech in Africa where the superior performing technologies and inherent environmental and social benefits make it a vitally important driver of economic development throughout the region.”

The Evolution One Fund has an international presence – it is linked to one of the largest independent, global, cleantech players through its founding partner and cornerstone investor, Consensus Business Group, based in London. In addition, it is supported by the IFC, a member of the World Bank Group, which is a leading global investor and technical advisor in cleantech and climate change projects and businesses.

According to Clarke, in 2008 cleantech investments in North America, Europe, China and India surged by 38% to a total of $8.4 billion, up from $6.1 billion in 2007. This is a clear indicator that cleantech investments are viable and not a mere philanthropic response to climate change. For this reason the Fund is actively seeking to invest in new energy and environment companies which will produce sound returns on investment.

Evolution One Fund is a 10 year private equity fund and seeks to make 10-15 investments in South Africa and the SADC region over the next two to three years.

“Evolution One Fund is a dedicated, long-term cleantech value-added player. In 2007 developing nations accounted for 23% of global investments in clean energy. In the medium to long term, Southern Africa can become a major contributor to this specialised asset class” added Clarke.

Clarke believes a progressive and swift response to climate change and energy security by African governments will accelerate cleantech investments in the region. A recent World Economic Forum caucus, in Davos, on climate change predicted that carbon emissions will increase the global temperature by two degrees between now and 2030 unless there is an annual inflow of $515 billion into clean energy investments.