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The Mexican division of Switzerland-based greenTEK Ventures could launch a second fund for green development in Mexico before the end of its first fund's term, managing director Jose Golffier told BNamericas.
Mexico is the first Latin American country in which greenTEK has launched a fund for financing green development that includes renewable energy and energy efficiency projects.
The Mexico I fund was launched at the end of 2010 with the intention to allocating US$100mn in equity, and has a 10-year term.
"[The launch of a second fund] could be much earlier, perhaps in the second, third or fourth year. We will have to see the speed with which we invest the first fund. The intention is to launch a second fund as quickly as possible," Golffier said.
The Mexico I fund has not yet approved its first project. Its strategic plan is to invest the US$100mn total in the first five years, though that could happen faster, fellow managing director Jorge Gage told BNamericas.
"Certainly for the size of the opportunity in Mexico, US$100mn is small. We think the market is much bigger. The projects are there, so we do not believe we will have a shortage of projects at any moment," Gage said.
The fund expects to invest in a maximum of 15 projects in the country, and is specifically focused on obtaining majority stakes in small and medium enterprises. The company could take a minority stake in a larger project, but is not interested in startups nor research and development, Gage added.
The fund will invest at least one-eighth of the US$100mn total in energy efficiency, renewable energies, water management or treatment, and greenhouse gas remediation each.