Private equity fund attracts investment in renewable energy in southern Africa
8 February 2012
The Lereko Metier Sustainable Capital Fund (LMSC), a private equity fund that invests money in renewable energy in southern Africa, has revealed that it has attracted investment from a number of leading development banks.
The German Development Finance Institution and Dutch development bank FMO are chief amongst the group of investors, the LMSC said.
With the South African Public Investment Corporation also being named as an investor, the LMSC had its first close recently at 200 million South African rand ($26 million).
Marc Immerman, lead executive of the LMSC, explained to environmental-finance.com that the ultimate ambition is to raise 500 million South African rand.
"We will drive commercial returns from viable low-carbon and commercially proven technologies," he told the news source.
"Given the nascent nature of the renewable energy industry, the fact that we can support early development is a key value-add."
The fund has confirmed that it is aiming for annual returns of between 15 and 20 per cent.