The board of directors of the Overseas Private Investment Corp. (OPIC) – the U.S. government's development finance institution that operates on a self-sustaining basis at no net cost to taxpayers – has approved $175 million in financing for two new investment funds that will bring the latest renewable energy technologies to emerging markets in Latin America, Southeast Asia and Sub-Saharan Africa.
The first fund – TPG Alternative & Renewable Technologies Partners (TPG ART) – will receive $125 million in financing to invest in companies matching the best renewable energy technologies from the U.S. and Europe to markets in Latin America and Southeast Asia. TPG ART will also support the adoption of renewable energy technologies that will have a lower environmental impact than traditional methods of energy generation.
The second fund – the GEF Africa Growth Fund – will receive $50 million to invest in environment-related energy infrastructure across Sub-Saharan Africa in order to improve the efficiency of energy and agribusiness production in the region. The fund will target investments in clean electricity generation, energy-management systems, distribution infrastructure, energy-efficiency technologies and services, and companies that promote sustainable management and the harvesting of timber and agriculture.
According to the OPIC, GEF's investments in clean and renewable forms of energy will help offset the increased demand for fossil-fuel power generation in the subcontinent. The fund has a target capitalization of $150 million.
TPG ART is managed by TPG, a global private investment firm founded in 1992 with $51.5 billion of assets under management. GEF Africa Growth Fund is managed by GEF Management Corp., founded in 1990 with the objective of making investments in growing companies that make positive contributions to the global environment, human health and the quality of life.