(Press Release) Ecus Private Equity, a local, dedicated and independent funds manager with vast experience in the Chilean small and middle market is currently fundraising for its latest vehicle, Ecus Renewable Energy Fund. The Fund, structured as a close-end regulated public fund, has a target of US$ 100 million and expects to reach a first closing in Q1 of 2015, complementing the seed capital of US$ 7 million already provided by AXA Group.
Ecus REF aims to form a well-diversified portfolio of investments in the Chilean renewable energy sector, targeting technologies such as solar photovoltaic, thermo solar, small hydro, wind, and biomass, with a marginal allocation to combined cycle LNG. Investment prospects in this sector are driven by:
- Chile’s lack of fossil fuel energy sources and heavy dependence on expensive imported fossil fuels
- Increasing energy demand driven by the mining activity and the population’s economic development.
- High energy prices of 170 US$/MWh (among the highest in the World) and expected long term prices of at least 100 US$/MWh
- Country’s exceptional natural conditions for renewable energy generation
- Growing attractiveness of NCRE projects driven by pro-investment regulation and decreasing investment costs
Ecus REF already has a clearly identified deal flow and expects to deploy its capital within the next 2–3 years. The Fund aims at providing an annual cash flow and a net IRR of 14%, with significant upside potential depending on crude oil and energy prices.