Investment Strategy

INVESTMENT STRATEGY

The Fund is characterised by a novel investment strategy and approach which sets it apart from the way most funds work. The main distinguishing feature is an integrated approach to project development and investment. This means that the Fund may participate actively in the development of projects from a very early stage. However, the Fund is also open to investments in mature projects.

The Fund’s mandate is Sub-Saharan Africa with a focus on Eastern and Southern Africa, particularly Kenya, Rwanda, South Africa, Tanzania and Uganda. However, developers from any country in Sub-Saharan Africa are welcome to submit proposals to us.

DI Frontier Market Energy & Carbon Fund invests in renewable energy and energy efficiency projects that contribute to reducing green house gas emissions such as:

  • Wind power
  • Hydro power
  • Solar power
  • Solar heating
  • Geothermal
  • Biomass power
  • Biogas from industrial, agricultural and household waste
  • Fuel switch
  • Energy efficiency

Projects may be standalone such as wind farms or captive such as bagasse based power generation at sugar factories.

The Fund has a preference for projects with a total investment between EUR 5-100m. The Fund may commit EUR 3-10m to a single investment using several instruments such as:

  • Equity
  • Mezzanine capital (e.g. convertible debt or preferred shares)
  • Short term debt financing

All investments must be related to specific energy projects and assets. The Fund has a medium to long term perspective on its investments with a typical investment horizon of 5-10 years.