European Future Energy Forum 2010

Masdar Capital is the unit which manages the Masdar Clean Tech Funds, a series of diversified venture capital investment vehicles focused on building portfolios of direct investments in some of the world’s most promising and pioneering technologies in cleantech and renewable energy.

Both funds act as active investors taking controlling and non-controlling stakes, in cleantech companies and helping to catalyse companies’ growth and scale up by providing capital and management expertise. As such, the funds are experts in evaluating technology and commercialisation risk in this sector.

Target companies

Prospective portfolio companies should have a tangible, disruptive product for an understood market, a strong management team and a viable business model. Target technologies The Funds look for companies with technologies and operations in the areas of renewable energy, energy efficiency, carbon management and monetisation, water usage and desalination.

Fact

The DB Masdar Clean Technology Fund (DBMCTF) will seek to develop a portfolio with geographic diversity across the United States, Europe and Asia. The Masdar Clean Technology Fund (MCTF) is 65% invested in the US and 35% Europe.

Masdar Clean Tech Fund

This fully deployed US$250 million fund invested US$45 million in three cleantech funds and the remaining US$205 million in 12 direct investments in companies, as lead- or co-lead-investor. It was launched in conjunction with partners Consensus Business Group, Credit Suisse and Siemens AG. DB Masdar Clean Tech Fund The Fund, with a target size of US$500 million and developed in conjunction with Deutsche Bank will invest its capital into building a top tier direct investments portfolio.

By the numbers

- MCTF: anticipated IRR of greater than 20% and 2.5x investment multiple
- DBMCTF: target IRR of 30% and 3x investment multiple
- Investment period for fi rst 3-4 years
- Exits after 5-6 years
- Size of equity investments approximately US$5-35 million

Fact

Masdar Capital’s investments include: Solyndra, SiC Processing, HaloSource, DuraTherm, Europlasma, Sulfurcell, HelioVolt, Enviromena and EnerTech Environmental.