Wermuth AM has gained exposure to this sector through its Europe-Tatarstan Cleantech Fund, which was launched earlier this year together with the sovereign fund of the Republic of Tatarstan, an autonomous republic in West-Central Russia.
The new project is the first dedicated cleantech venture fund in Russia. Its target internal rate of return is around 30%. On top of that, the fund provides financial incentives to outside investors to mitigate the perceived additional regional risks. These ensure that investors get up to two times the return for every Euro invested, at the same time being protected from losses on the downside.
Michel Hendricks, senior fund partner, says Wermuth expects a similar boom in the energy sector as that witnessed in the information technology sector. “Denmark and Germany, for example, are already making a revolutionary step in the direction of innovation,” he says.