2 Feb 2012
Wermuth Asset Management (“WAM”) is to launch the Tatarstan Cleantech Fund (“TCTF”) with the €110m committed by the co-founders of the fund, the Republic of Tatarstan and WAM.
WAM has targeted a total fund size of €200m and is expecting additional fundraising to reach this over the next 18 months.
TCTF is the first international cleantech fund with a specific mandate to focus on the needs of the Russian Federation, and the Republic of Tatarstan in particular. The fund aims to address climate change and other environmental issues by investing in cleantech companies that could benefit by selling into or initiating production in the Republic and offer technology of relevance to Tatarstan.
The TCTF offers investors the economic benefit of applying clean technologies in Tatarstan and Russia, benefits which are far greater in this area than in developed countries. Due, in part, to a free trade zone that provides tax breaks to investors, the TCTF also offers an attractive investment climate as well as representing a good base from which to access Russian and other Eurasian markets.
The Fund is conceived for 10 years: a six-year investment period and a four-year wind-down period, with targeted overall returns of 30% per annum. The Fund offers a 2x preferred return to non-Tatarstan investors whenever a deal leads to CAPEX in Tatarstan.
WAM has targeted a total fund size of €200m and is expecting additional fundraising to reach this over the next 18 months.
TCTF is the first international cleantech fund with a specific mandate to focus on the needs of the Russian Federation, and the Republic of Tatarstan in particular. The fund aims to address climate change and other environmental issues by investing in cleantech companies that could benefit by selling into or initiating production in the Republic and offer technology of relevance to Tatarstan.
Wermuth Asset Management CIO and managing partner, Jochen Wermuth, said: “With documentation and approvals now in place, we look forward to getting to work and demonstrating the substantial potential we see for investors to take advantage of the significant benefits Russia, and the Republic of Tatarstan, can achieve by utilising and investing in clean technologies.”
The TCTF offers investors the economic benefit of applying clean technologies in Tatarstan and Russia, benefits which are far greater in this area than in developed countries. Due, in part, to a free trade zone that provides tax breaks to investors, the TCTF also offers an attractive investment climate as well as representing a good base from which to access Russian and other Eurasian markets.
The Fund is conceived for 10 years: a six-year investment period and a four-year wind-down period, with targeted overall returns of 30% per annum. The Fund offers a 2x preferred return to non-Tatarstan investors whenever a deal leads to CAPEX in Tatarstan.
