Origo launches China-focused cleantech fund

The fund, which has a target of $200m, is eyeing a first close of $75m later this year.

Once again demonstrating the allure of China’s cleantech sector, Beijing-headquartered Origo Partners has partnered with UK investment management firm Ecofin to launch a China-focused cleantech fund targeting $200 million.

The fund, China Cleantech Partners (CCP), will have a focus on alternative energy, environmental remediation, water, and energy storage and distribution, according to a statement.

In addition to investing directly into targeted Chinese cleantech companies, the fund will also act as a limited partner in Origo Xinxiang Renewable Energy Fund, a RMB500 million (€57.2 million; $78.3 million) fund established by Origo and the municipal government of Xinxiang. The fund has received a RMB125 million commitment from the Xinxiang government and the CCP will contribute the remaining RMB375 million, the statement noted.

A first close of CCP on $75 million is expected later this year while a final close is scheduled in 2012. Origo and an Ecofin subsidiary have each made an initial commitment of $15 million to the fund.

“We believe this partnership will form the basis for a highly differentiated approach to identifying, investing, and supporting the most exciting Chinese cleantech businesses set against the backdrop of an increasingly global supply chain and competitive environment,” Chris Rynning, chief executive of Origo, said in the statement.

With a major focus on Mongolia, London Stock Exchange-listed Origo acquired a 20 percent stake in molybdenum explorer Moly World for $10 million in June. The transaction followed a $13 million investment in Jilin-based rice processor and distributor China Rice in March.