JCM launches emerging markets clean energy fund

Toronto-based JCM Capital has started marketing its Clean Power Infrastructure Fund VI, a vehicle focused on solar photovoltaic projects in emerging markets.

The fund, which has a target of $150 million, aims to become one of the largest infrastructure vehicles dedicated to clean power in developing countries. It will seek to invest in markets with robust regulatory frameworks and power demand in Latin and South America and sub-Saharan Africa.

The vehicle already counts a cornerstone investor, with initial commitments worth $15 million. JCM expects to hold a first close of $50 million in late 2014.

Fund VI is a successor to JCM’s Clean Power Development Fund V, whose portfolio includes projects in Mexico, Ecuador, Cameroon and Malawi. The firm expects to keep on investing alongside DFIs, which are also expected to become limited partners in Fund VI.

“In Africa alone, the African Development Bank estimates that more than $40 billion annually of new electricity generation capacity is required in order to support economic growth, and solar PV will be the fastest-growing form of generation in these markets,” said Tom Heintzman, managing director of JCM’s infrastructure unit, in a statement.

The launch comes alongside the hire of Heintzman at the head of the firm’s infrastructure division. Heintzman, a 20-year clean energy insider, will join from Bullfrog Power, Canada’s largest renewable energy retailer. His duties at JCM will also involve managing and executing Fund VI.