FMO proposes €18m investment in PE fund
Dutch development financier FMO is proposing an €18 million investment in the Africa Renewable Energy Fund II (AREF II), a private equity fund investing in clean energy generating assets across sub-Saharan Africa (excluding South Africa). The fund is managed by Berkeley Energy and is expected to reach first close in 2020, having development finance institutions including FMO as anchor investors.
AREF II is the follow-on fund of the Africa Renewable Energy Fund (AREF), in which FMO invested in 2014.
FMO’s investment in the Africa Renewable Energy Fund II will come from two government funds, Access to Energy Fund (AEF) and Building Prospects Fund (BPF). The funding objective is to deploy capital towards investments that deliver social and environmental benefits as well as financial returns. The AREF II investment mandate is focused on renewable energy generation in Africa, and as such the fund will play an important role in the support to the transition to clean energy as well as increasing access to energy in underserved and challenging markets. The fund manager has a unique blend of team skills, experience and networks allowing for a compelling proposition.
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