Global Energy Efficiency and Renewable Energy Fund I

GEEREF (the Global Energy Efficiency and Renewable Energy Fund) is an emerging market fund-of-funds.

GEEREF invests in funds in Asia, Africa and Latin America which target infrastructure projects and companies in the sectors of energy efficiency and renewable energy. GEEREF was launched in 2008 with public funding from Germany, Norway and the European Union (‘A Shareholders’) totalling €112 million. It seeks to accelerate private investment into its target markets by providing a superior risk-adjusted return, drawing upon the resources of EIB and EIF in private equity and energy infrastructure investment globally.

GEEREF has committed €74 million to seven funds and is seeking a further €112 million from a limited number of private investor subscriptions for ‘B Units’ to deploy capital swiftly into its current fund pipeline. GEEREF’s unique public/private structure grants a preferred return to B Units, offering significant downside protection and accelerated liquidity through a diversified portfolio into some of the world’s fastest growing markets.

Financial description

GEEREF invests in traditional private equity funds (€50m to €150m AUM) investing in clean energy infrastructure in emerging markets. These underlying funds invest construction equity into new build clean energy projects requiring €3m to €10m of equity.
Clean energy infrastructure projects target yields circa 15% at the operating level with a view to delivering gross funds returns in the region of 15% to 25%, assuming some yield compression on exit.
Returns from cash reflows to GEEREF net of GP fees and expenses are estimated in GEEREF's portfolio model Base Case at 15%, leaving a net portfolio return of 11%.
Private investors (B Unitholders) benefit from an annual preferred return of 4% + 6% (on committed not drawn capital) ahead of a pro rata distribution to all investors. The Base Case return (net of all fees and expenses) for private investors is estimated at 24% IRR and 1.8X COCM.