Dechert advised Clime Capital on First Close of South-East Asia Clean Energy Fund II

Dechert advised Clime Capital on First Close of South-East Asia Clean Energy Fund II

It received US$127 million in commitments

Dechert LLP has advised Clime Capital, a Singapore-based fund management company, on the first close of its South-East Asia Clean Energy Fund (SEACEF) II.

Like its inaugural SEACEF I fund, SEACEF II will invest in promising renewable energy generation, energy efficiency, electric mobility, and electrical grid businesses at their early-stage, high-risk development phases. It will also offer additional capital to accelerate the scale-up of its portfolio companies.

The fund is the first blended finance investment fund established in South-East Asia to provide early-stage high-risk capital to support promising businesses accelerating the region's low-carbon transition.

Commenting on the fund close, Dean Collins, the Singapore managing partner at Dechert stated, “Following the successful launch of SEACEF I, we are pleased to support Clime Capital once again as it continues making headway on investing in South-East Asia’s transition to a low-carbon society.

Collins added, “Tapping on Dechert’s investment funds structuring and establishment expertise, SEACEF II is one of the few closed-ended Article 8 funds focused on South-East Asia. Building upon the principles of blended finance, we helped Clime Capital create a unique investment product which allows different investors, with different objectives, to participate together through a single fund vehicle towards projects that contribute to sustainable development goals.”

Meanwhile, Joshua Kramer, the chief investment officer at Clime Capital remarked, “The first close of SEACEF II lays the groundwork for Clime Capital to accelerate and contribute towards the region’s net-zero transition. By crowding in capital to de-risk early-stage businesses and development projects, we have demonstrated that small amounts can be leveraged to produce significant impacts. We are glad to draw on Dechert’s expertise as our lead legal advisor on the launch of SEACEF I in 2020 and now for the closure of SEACEF II, to secure meaningful funding for critical clean energy projects across South-East Asia.”

The fund’s first close is backed by junior first-loss investors, including Allied Climate Partners, Australian Development Investments, the Global Energy Alliance for People and Planet, and Impact Assets. The senior equity investors include British International Investment, the Cisco Foundation, FMO (the Dutch entrepreneurial development bank), the International Finance Corporation, Norway’s Norfund, REI Co-op, and Swedfund International of Sweden.

Dechert acted as lead counsel to Clime Capital, advising on structuring, legal, tax and regulatory aspects of the formation and fundraising of SEACEF II.

The Dechert team in Singapore was led by partner Dean Collins. He was supported by partner Thomas Kim and associates Anna Bellingham, Shawn Yeo, Shaw Ong, and Jastine Yew.

Its London team comprised partner Mikhaelle Schiappacasse and associates Rowena English-Verrell, Nikhil Nathwani, and Tabatha Chandler.