Insitor Energy Access Fund
Last updated 11 May 2020, by Impactyield.
The Insitor Energy Access Fund is a venture capital fund that finances clean energy affordable low-carbon alternatives is Developing Asia, which is home to more than half of the world’s energy poor.
The Insitor Energy Access Fund is a sub-fund of the “INSITOR IMPACT FUND SICAV SIF”, an umbrella fund incorporated in Luxembourg as a corporate partnership limited by shares and qualified as an investment fund with variable share capital.
As committed hands-on investor, Insitor Energy Access Fund provides technical advice and management support to the portfolio businesses, leveraging ideas, skills, and finance. The target capitalization of the Fund is USD 15 Million.
The Fund investsin companies whose business models increase low-income families’ access to energy, while replacing high-carbon energy sources with effective and affordable low-carbon alternatives. Investments will mostly be made in proven technologies such as solar, wind, hydro, and biomass. The Fund will also be invested in companies that focus on avoided deforestation and biofuels.
Size and type of individual investments: investments may be in the form of equity, mezzanine, and/or debt to provide maximum flexibility in meeting the company’s needs. The Fund will invest USD 250K – 2M as a unique investor, co-investor, or in syndication.
Stage: the Fund will concentrate on early stage businesses that require financial and hands-on management support to grow to a scale attractive to local and international investors.
Investment framework: Insitor’s intention is to make approximately twenty investments across the two sub-funds over their lifespan, with an average outstanding portfolio of ten to fifteen companies. The holding period is expected to be five to seven years.
Continuing support: the Fund expects to provide portfolio companies with the management support and capital they need to bring business processes, human resources, structures, or technologies to market standards, and to assist them in achieving their social and financial objectives.
Equal rights to ownership basic services technology and economic resources
Sustainable food production and resilient agricultural practices
Universal access to modern energy
Increase global percentage of renewable energy
Double the improvement in energy efficiency
Expand and upgrade energy services for developing countries
Key performance indicators
Asset manager: Insitor Management
Product track record: Fund has 7 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Below risk-adjusted market-rate of return
Fund domicile: Luxembourg
Product status: Closed - no longer investing
Inception year: 2015
Vintage year: 2015
Target close date: n.a.
Product term: 10 years
Assets under management: 15,000,000 USD (US Dollar)
Investment size: Min: 250,000; Max: 2,000,000; Avg: 1,000,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 3.5%
Carried interest: 20%
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Over 700 million people in Developing Asia lack access to electricity. Nearly 2 billion use traditional biomass for cooking. Energy poverty is most severe among rural communities, many of whom are relying on inefficient, polluting and health-threatening fuel sources for their heating, lighting, cooking, and business needs.
Over the next two decades Developing Asia’s energy demand will nearly double while the region as a whole will be responsible for almost half of all global energy-related emissions. While governments and institutions focus on delivering large-scale countrywide solutions, a new generation of privately owned companies is entering the market to serve the clean energy demand of low-income families, micro businesses, and rural communities.
These companies typically face difficulties financing their early growth. Impact investors focused on access to energy for low-income communities have a unique opportunity to achieve an attractive combination of social and financial returns by financing high-quality clean energy businesses and growing them to a larger scale and higher profile.
Social impact evaluation is conducted on a case-by-case basis, tailor made to the the specific objectives and operating environment of investees. 3 – 5 indicators are defined for each, with monthly reporting to the Fund.