Institutional investors plan to increase allocations to clean energy funds in 2009, according to Almeida Capital report

27 January 2009

Despite the severe downturn in the private equity markets and the corresponding reduction in liquidity, institutional investors – including pension funds, insurance companies and endowments – remain positive about cleantech and sustainable energy funds. The latest research by Almeida Capital, a specialist fundraising and placement firm, surveyed 150 of the most active and influential institutional investors worldwide in Q4 2008 about their investment plans for 2009.

Cleantech venture funds and sustainable energy private equity funds will see an increase in allocation from 19 per cent of institutional investors whilst 7 per cent plan to decrease allocations to the sector. This net increase of 8 per cent compares favourably to the level of interest seen in general venture funds where allocations will show a net decrease of 2 per cent in 2009, with 13 per cent of investors increasing and 19 per cent decreasing allocations.

The survey does show that institutional investors believe that the attractiveness, in terms of potential returns generation, has reduced for the cleantech/sustainable energy sector. Overall, 41 per cent of institutional investors regard the sector as attractive or very attractive, down 8 per cent from the previous survey a year earlier. However, this perceived decrease in attractiveness needs to be seen in the context where investors regard all categories of private equity, except secondaries and special situation funds, as less attractive in 2009 compared to 2008. In the latest survey venture showed an aggregate decrease of 13 per cent in terms of investors that regard the category as attractive or very attractive whilst large buy-outs saw a decline of 25 per cent.

‘These results should be seen as very positive for the sector given the pressures on Limited Partners [institutional investors] and the negative sentiment seen for other parts of the private equity and venture capital market,’ according to Richard Sachar, managing director of Almeida Capital. “Over 40 per cent of our global Limited Partner investor base are potentially interested in investing in high quality clean energy funds or are at least keen to understand the sector much better.’

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Tags: clean energy, cleantech, private equity, venture capital

This story was published on Tuesday, January 27th, 2009 at 6:45 pm and is filed under Africa, Asia, Australasia, Europe, Latin America, Middle East, North America, biomass/biofuel, companies, deals, energy efficiency, energy storage, funds, geothermal, solar, water, wind. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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