Washington, D.C., January 8, 2008 --
IFC, a member of the World Bank Group, announced today it will make
its first investment in a third-party environment-focused private equity
fund to help benefit the environment and combat climate change. IFC’s
investment of up to €15 million will help the fund, which is managed
by Aloe Private Equity, pursue its strategy to invest in companies in Asia’s
clean energy and environment sectors.
IFC’s funding will be used to invest in companies primarily in India and,
when possible, in China, with a focus on clean and renewable energy, waste
recycling, emissions controls, and eco-processes. Through its involvement
in this fund, IFC will provide support to smaller businesses in the clean
energy and environment sectors that are unlikely to receive funding from
mainstream private equity groups.
“We welcome IFC’s investment and, more importantly, its strong support
of Aloe Private Equity’s business model and social and environmental focus.
IFC, with its unique expertise in the clean energy and environment sectors,
will be a valuable partner in pursuing our strategy to expand in Asia and
will provide tremendous benefits for existing and future portfolio companies,”
said Vivek Tandon, General Partner at Aloe Private Equity.
Jean-Pascal Traniť, General Partner at Aloe Private Equity, said, “Through
this environment- and sustainability-focused fund we aim to offer economic,
environmental, and social returns to our investors. We look forward to
working with IFC to repeat the success of our previous funds and further
demonstrate the commercial viability of the clean energy and environment
Haydee Celaya, IFC’s Director of Funds, said, ”IFC’s investment in Aloe
Private Equity’s environment fund is in line with our strategy to support
funds that are investing in technologies to combat climate change. Aloe
Private Equity’s innovative investment strategy will help address some
of the major challenges and opportunities for sustainable economic development
in Asia’s emerging markets.”
Aloe Private Equity manages a number of environment funds. It recently
raised over €110 million for the Aloe Environment Fund 2, which will
invest in companies in Asia and Europe. The fund in which IFC will participate
will co-invest alongside Aloe 2 but will support companies primarily in
India and China.
Swedfund, a risk capital company owned by the Swedish government, and Proparco,
the private sector financing arm of the French Development Agency, will
invest €8 million and €5 million, respectively, in the new fund alongside
Through its first environment fund, Aloe Private Equity made investments
in Greenko, an Indian biomass company that was recently successfully floated
on the AIM London-based exchange. Other companies in which the fund invested
are focusing on coal bed methane recovery; energy efficiency; and the recycling
of materials such as batteries, plastic, steel dust, and fly ash.
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people have the opportunity to escape poverty and improve
their lives. In FY07, IFC committed $8.2 billion and mobilized an additional
$3.9 billion through loan participations and structured finance for 299
investments in 69 developing countries. IFC also provided advisory services
in 97 countries. For more information, visit www.ifc.org.
About Aloe Private Equity
Aloe Private Equity is a French management company founded in 2004 that
has a proven track record in the environment sector and is a pioneer in
social and environmental corporate responsibility. It manages a number
of environment funds that invest in companies that seek to make a positive
contribution to society, both socially and environmentally, while providing
high financial returns to investors. Aloe Private Equity’s culture
and strategy emphasize investments where it can not only make a significant
strategic value contribution to the investee but also help promote environmental
and social sustainable growth. Aloe has a particular interest in companies
with proven products or solutions that wish to expand their businesses
in India and China. For more information, visit www.aloe-group.com.