Armstrong Asset Management, a newly-established independent clean energy asset manager is set to launch its first fund, the Armstrong South East Asia Clean Energy Fund (“ASEACE” or the “Fund”). The new private-equity vehicle aims to provide development capital to small-scale renewable energy and resource efficiency projects in Southeast Asia. With an expected first closing at US$66 million this month, the fund will include commitments from two leading European development finance institutions: GEEREF, the Fund-of-Funds advised by European Investment Bank (EIB) and European Investment Fund (EIF), and DEG, a member of KfW Bankengruppe. In addition, the third and largest limited partner in the initial close will be a Southeast Asian-based corporate with significant interests in multiple industry sectors.
With a target size of up to US$150 million, the 10-year fund will invest in small-scale infrastructure projects in Malaysia, Thailand and Indonesia and other Southeast Asian emerging markets. Typical projects sizes will generate power of up to 10 megawatt (MW) from renewable energy resources, such as solar, hydro, wind.
“ASEACE is on track to be the only operational clean energy fund dedicated to Southeast Asia. While both China and India tend to get more attention, for Armstrong, we’ve found that focusing on Southeast Asia has been a strong draw for our investors. It helps that new regulatory policies are being enacted by governments in the region which encourage the development of the renewable energy sector,” said Andrew Affleck, managing partner of Armstrong Asset Management. “In fact, Armstrong’s management team members have deep sector and cultural knowledge of Southeast Asia from their involvement in over 100 energy and infrastructure projects.”
“Our focus is on small-scale projects which provide some real advantages well-suited for Southeast Asia. It’s an investment strategy that we have employed in Europe previously and we are now adapting it for this region where opportunities are much greater,” said Mr Affleck who has 22 years of asset management and investment banking experience in the Asian region, having focused on clean energy investments for the last 7 years.
Prior to setting up Armstrong Asset Management, Andrew Affleck was CEO of Low Carbon Investors Ltd, a dedicated global clean energy fund management group with over US$300 million under management. During his four year tenure, he co-led the firm’s transformation from a US$50 million single fund cleantech venture business to a multi-fund clean energy infrastructure asset manager. The infrastructure funds have led to operational experience gained through the development and acquisition of 28 small scale (sub 10MW) solar and wind projects which in aggregate amount to 83MW.