Singapore-based venture capital and private equity firm Clime Capital has closed its second fund, the Southeast Asia Clean Energy Fund II (SEACEF II), raising $175 million from philanthropic, public, and private investors.
According to the company announcement, SEACEF II, similar to its predecessor but with a fourfold increase in resources, will invest in the development stage of projects and companies that will accelerate decarbonisation through renewable energy, energy efficiency, electric mobility, and climate-friendly technologies, primarily in Vietnam, the Philippines, and Indonesia.
The fund is backed by investors providing first-loss junior and senior tranches. The first-loss junior tranche absorbs losses first in case of defaults or underperformance. They are the riskiest but offer highest potential returns. Senior tranches, on the other hand, are less risky as they are paid first but have lower returns.
Key investors in SEACEF II include Allied Climate Partners, Australian Development Investments (an Australian government initiative), the Global Energy Alliance for People and Planet (GEAPP), Impact Assets, British International Investment (BII), the Cisco Foundation, Dutch development bank FM, the International Finance Corporation (IFC), Norway’s Norfund, REI Co-op, Sweden’s Swedfund International, the Asian Development Bank, and Proparco.
This unique association of public, private, and philanthropic capital allows higher risk-taking, tailored investments for early-stage companies, and flexible, patient guidance to attract additional private capital as risk decreases.
The fund invested $35 million in 2024 across five solar and electric mobility projects, the most recent being its investment in energy management firm Ampotech.
The release stated that Proparco’s investment in SEACEF II is expected to create or sustain 2,020 jobs, align fully with the Paris Agreement, and generate 90% climate co-benefits, avoiding 27 tCO2 annually. It also supports the 2X Challenge commitment to gender equality. SEACEF II will drive strong value creation for companies, backed by technical assistance to enhance environmental and social standards, it said.
