SAM Private Equity holds first close of third-generation Robeco SAM Clean Tech Fund
SAM, the investment boutique focused exclusively on Sustainability Investing, together with its parent company Robeco, announce today the first close of its third generation Clean Tech Private Equity Fund at USD 200 million. The Robeco SAM Clean Tech Private Equity III Fund (the “Fund”) is a hybrid private equity vehicle investing in the leading primary and secondary global clean-tech funds as well as selective co-investments. Building on strong demand from global institutional investors, the program is on course to reach its target fund size of USD 500 million.
Tapping into global megatrends
The Robeco SAM Clean Tech Private Equity III Fund strives to benefit from the attractive risk/return profiles of investment opportunities in late-stage technology deployment and project development with a focus on renewable energy, energy efficiency and infrastructure, materials, recycling, green buildings, water and agriculture. The Fund taps a market driven by megatrends such as aging infrastructure, resource scarcity and climate change as well as by increasing government regulation aimed at securing energy supplies and protecting the environment. SAM believes that the significant amount of capital that will be allocated to the global clean-tech sector represents an interesting investment opportunity.
Andrew Musters, Global Head of Private Equity at Robeco and SAM: “We are very pleased with the successful first close of the Robeco SAM Clean Tech Private Equity III and the strong commitment from global institutional investors. We are equally pleased with the deal flow. The increasing number, high quality and attractive valuations of investments as well as the cross-fertilization between the three building blocks of our investment strategy enable us to offer investors a compelling investment opportunity.”
Extensive experience and expertise
The Fund is structured to benefit from the experience of the previous clean-tech fund generations, such as its predecessor Robeco Clean Tech Private Equity II Fund, which was launched in 2006.The new Fund provides for separate investment vehicles to facilitate tailor-made investment solutions in SAM Private Equity’s three main areas of expertise: primary clean-tech fund investments, secondary clean-tech fund investments, and clean-tech co-investments.
Strong track record
Compared with mainstream private equity, the portfolio of 30 primary fund investments has proven relatively more resilient to the challenging economic climate. In 2009, the fund’s secondary fund investments profited from historically low valuations and are expected to deliver promising investment returns. In addition, a number of co-investments are making important progress toward a successful exit.
Diversified investment portfolio
The Fund’s diversified portfolio is expected to consist of approximately 15 to 25 fund investments and 10 to 20 co-investments. The target allocation for clean-tech private equity funds is 75%, of which, one-third can be invested in secondary investment opportunities. Direct co-investments are targeted to make up 25% of the portfolio. Actual allocations into funds and co-investments can fluctuate in a range of 65-85% and 15-35%, respectively. Geographically, the portfolio is projected to be equally balanced between exposure in North America, Western Europe and the rest of the world.
SAM and Robeco leverage synergies
In July 2009, Robeco’s Clean Tech Private Equity team moved from Rotterdam to Zurich to join SAM, a member of Robeco. The move bolsters the synergies between SAM’s sustainability research and investment capabilities in listed companies and Robeco’s expertise in investing in non-listed companies in the growing clean-tech sector.
Robeco SAM Clean Tech Private Equity III, L.P. at a glance:
Target Fund Size: USD 500 million
Minimum Subscription: USD 5 million
Commitment Period: 5 years after final closing of the Fund
Term: 10 years, potential extension of two two-year periods
General Partner: Robeco SAM Clean Tech III General Partner, LLC, a Delaware limited liability company
Investment Manager: Robeco Institutional Asset Management, B.V., a Dutch limited liability company