Investment Strategy

The central value proposition of ACP is to offer the largest, fully-fledged private equity investment platform for environmental finance in emerging Asia. ACP is looking to partner with established environmental businesses, with sound operating fundamentals and strong growth potential that benefit from the rapid macroeconomic and environmental dynamics in the target regions.

ACP will target a broad spectrum of investment opportunities across three sector groupings: i) Renewable Energy, ii) Resource Efficiency, and iii) Environmental Industries, as outlined below.

Target Sectors

ACP will focus predominantly on investments in companies established in the Developing Member Countries (DMCs) of ADB. Within the DMCs, ACP will focus on those offering the most attractive investment prospects, with a particular focus on China, India and selected countries in Southeast Asia.

In identifying individual market and sector opportunities, ACP will deploy rigorous, bottom-up market assessment tools to identify the best possible fit to the ACP’s investment criteria and targeted returns profile. 

Investment Criteria

  • Established businesses with enterprise value between USD 50 and 500 million that are profitable or have a clear strategy to reach profitability
     
  • Ticket sizes between USD 20 million and USD 65 million per portfolio company as single transactions or in a milestone-based growth plan
     
  • Strong business fundamentals as well as dominant or fast-growing market share in their primary markets with significant growth potential regionally or internationally
     
  • Dynamic management team that is eager to work with ACP as an active partner to manage risks and fully realize opportunities
     
  • Flexibility to take either control or minority positions
     
  • Companies seeking growth capital to access international markets and/or a listing event within 2-7 years