MGF advise and invests public and private sector risk capital in specialist renewable energy and energy efficiency private equity funds developing medium-to-large scale projects in emerging markets.
Investing in Clean Energy Funds in Emerging Markets
MGF, as a Fund-of-Funds, advises and invests in private equity funds that specialize in providing equity finance to medium-to-large scale clean energy projects in developing countries.
MGF’s funds focus on renewable energy and energy efficiency projects which deploy proven technologies.
The opportunity for renewable energy investing in developing economies is driven by three principal factors:
1) population and economic growth;
2) energy demand growth; and
3) a growing share of clean power in the energy mix.
The latter reflects an emphasis on energy security and independence, concerns about balance of payments, improving economics relative to fossil fuels costs and carbon pricing in some regions.
Energy efficiency is now widely recognised as one of the most economical ways of addressing climate change and many countries have established energy efficiency targets. The range of policies being adopted by governments is wide and includes regulations, market based instruments, financial instruments and awareness measures, often brought together in an overarching strategy or framework.
Investors have been steadily increasing their allocations to emerging market private equity funds over the last decade, attracted by the high growth rates in these regions coupled with a better understanding of investment risk. Skilled fund managers in emerging markets are able to create value through investments in high growth businesses with significant scope for operational improvements. Limited access to capital means that funds with a strong local presence can build large quality pipelines of investment opportunities while facing low levels of competition.
MGF is uniquely positioned to leverage this opportunity, building on the global institutional best expertise in clean energy infrastructure investments and private equity globally.