Creating a Tipping Point: Public Private Partnership for Climate Change

Eugene Yun Eos Investment Partners

Vicious Circle Climate Finance in Asia

Inadequate Capital

Immature Private Equity Industry

Under developed Investment Infrastructure

Small Pool Of Investible Projects

Choice
1. Do nothing = vicious circle marginal improvement if lucky
break vicious circle but how?

1. Normal business =

3. Game change

Game Change
What investors want:
Emerging markets, particularly Asia

Cleaner investment (socially, environmentally friendly)

Scaled investment opportunities Non-commercial risk mitigation Quality fund manager Attractive fee structure Reliable target companies/projects Predictable, strong returns

No (unpleasant) surprises

Finding We need a game changer that addresses all issues simultaneously

7 Lessons
1. 2. 3. 4. 5. 6. 7. Complex problem Long list of investor likes/dislikes Think big Fund development Project development Non-commercial risk Public private partnership - genuine

Fund Structure
Donors ADB + Other Public and Private LPs

Risk Mitigation

FM
Project Development Facility

Fund Investments

Direct & Co-investments

GP2 GP2 GP

Private Equity Private Equity Funds Private Equity Funds Funds

P1

P2

P3

Game Changer
Invest at scale for significant impact (> $2 billion)

Generate highly favorable risk-adjusted returns

Mobilize private sector capital Develop investment infrastructure Incubate quality low carbon specialist funds Increase pool of investible projects

Provide risk mitigation tools

Bridge knowledge gap Build trust