The Swiss Investment Fund for Emerging Markets (SIFEM), the development finance institution of the Swiss Confederation, has announced it has invested US$10 million in the Renewable Energy Asia Fund II (REAF II).
It is a private equity fund focused on investing in renewable energy projects in South & Southeast Asia. The target of the fund is US$250 million.
REAF II is managed by Berkeley Energy, an investment manager founded in 2007 with the sole purpose to invest in renewable energy infrastructure projects in developing markets.
Berkeley Energy successfully reached a first close of its REAF II with US$112 million of committed capital for its 10 year closed end fund.
Berkeley currently manages two lines of products: one line in Asia consisting of REAF II, and its predecessor fund REAF I, and one line in Africa consisting of Africa Renewable Energy Fund (AREF).
REAF II is expected to make a significant contribution to the economic development of its target countries in South & Southeast Asia, by increasing the domestic power supply while reducing risk of dependence on fossil fuel imports. Moreover, with its in-house project development and management team, REAF II will directly contribute to the professionalization of its portfolio projects, and thereby support the diffusion of best practices in the renewable energy sector in developing countries.
Berkeley Energy has renewable energy and power engineering, construction and investment experience in developing markets, where it is a focused investor, developer and deliverer of renewable energy assets. Berkeley Energy works with its partner companies to provide engineering, management and financial support, whilst offering the ability to act as a bankable sponsor for renewable energy projects.