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30 September 2008
Evolution One Fund Launches
The fund has conducted its first close in July 2008 at ZAR 400 million raised from four core international investors: IFC (a member of
the World Bank Group), Castleway Properties (owned by the Tchenguiz Family Trust), the Swiss Investment fund for Emerging Markets
(Sifem) and the Finnish Fund for Industrial Cooperation (Finnfund). The fund is currently being marketed to investors in southern and
South Africa and plans to make its first investments in 2008.
Cleantech spans many industries: clean energy generation; water purification; waste management; and efficient production technology.
Evolution One’s investment philosophy is based on the concept of additionality whereby accelerated development and use of cleantech
products, services and processes not only provide superior performance at lower costs but also reduce environmental and climate
change impacts, thereby promoting mutually reinforcing benefits for society.
Global investment activity in the sector is already significant, estimated to be US$ 148.4 billion in 2007 (source: New Energy Finance) and
is forecast to exceed US$ 226 billion by 2016 from private equity and venture capital alone. High growth opportunities are emerging
in the agribusiness, cleaner production, pollution control, waste management and transportation sectors, as well as the core areas of
energy and water. However, to date, no fund has focused on the role of cleantech in Africa where environmental and social issues make
it a vitally important driver of the economic development of the region.
The Evolution One Fund will make around 10 to 15 investments over a period of three to five years across the whole SADC region. The
fund will focus on cleaner energy and the environment – aiming to generate an enhanced annual internal rate of return by focusing on
the following eight sectors and sub-sectors:
• Cleaner energy generation and energy efficiency
• Cleaner production technologies and processes
• Air quality and emissions control
• Water quality and management
• Waste management
• Agribusiness and forestry
• Natural products, organics and natural health
• Sustainable buildings and environmental real estate
In all cases, particular attention will be paid to small, medium and micro-enterprises; broad-based black economic empowerment; and
transformation benefits of underlying investment projects.
Dr Zuko Kubukeli, Executive Director of Inspired Evolution Investment Management said, “Cleantech provides cross-sector opportunities
to make more sustainable investments without foregoing the traditional returns of private equity. Having raised ZAR 400 million
from our core international investors, we are now targeting a second round of international and local investors. We are single-mindedly
focusing on building strategic partnerships and on sourcing proprietary and appropriate technologies for application within the SADC
region across a variety of investment projects.”
Mr Vincent Tchenguiz, Chairman of Consensus Business Group, advisor to the Tchenguiz Family Trust – one of the cornerstone investors
and a founding partner in Inspired Evolution Investment Management – said: “Consensus Business Group has had a strategic focus
on the global environmental sector for a number of years. We have developed innovative business models to deliver strong financial
returns and to add strategic value to our investee companies. We look forward to working with Evolution One Fund – we are confident
that our long-term, wide ranging experience in the sector will serve to benefit the Fund.”
Ms Haydee Celaya, IFC Director for Private Equity and Investment Funds, said, “IFC’s investment in Evolution One Fund is in line with
the World Bank’s overall strategy to support projects investing in technologies to combat climate change. This investment demonstrates
IFC’s commitment to be a pioneer and a leader in the clean energy and climate change sectors in southern Africa.”
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