Olympus raises $250m for cleantech fund

Asia Environmental Partners, which invests in renewable energy and environmental services companies regionally, is Olympus Capital’s first fund targeting this sector.

Hong Kong-headquartered Olympus Capital Holdings Asia has raised $250 million for the final close of Asia Environmental Partners, its first cleantech fund, the firm has announced.

Asia Environmental Partners is focused on making investments in renewable energy and environmental services companies in Asia. The fund targets investments in energy efficiency, clean energy distribution infrastructure, renewable energy projects, solid waste management, waste water treatment, water quality treatment infrastructure and pollution control, according to the International Finance Corporation, the private investment arm of the World Bank, which has committed $25 million to the fund.

The fund will make between 10 and 12 investments, each in the range of $20 million to $50 million. While it will focus primarily on investment opportunities in China and India, it will also seek deals pan-regionally as well. The fund has dedicated investment professionals across Asia and executives based in Hong Kong, New Delhi and New York, Olympus says on its website.

In July, Olympus led a $57.5 million investment in Zhaoheng Hydropower Holdings, a hydropower generator and supplier in China, for an undisclosed sized stake. That investment was made from Asia Environmental Partners and Olympus Capital Asia III, a $750 million fund focused on mid-market private equity and special situations that closed in June 2008.

In November 2008, the firm invested firm invested $35 million in Orient Green Power, a renewable energy generation company in India. In all, the firm has completed five transactions in the renewable energy and environmental services sector in Asia.

Established in 1997, Olympus Capital has invested about $1.3 billion in approximately 30 companies throughout Asia. Its investments are focused on manufacturing, agribusiness, business services, environmental services and financial services.