Man Investments has launched a new investment management subsidiary specialising in financing environmentally-related projects, Man Environmental Capital Opportunities, which seeks to capi
Man Investments has launched a new investment management subsidiary specialising in financing environmentally-related projects, Man Environmental Capital Opportunities, which seeks to capitalise on investment opportunities arising from responses to environmental concerns such as climate change, energy security and energy-related technological innovation.
Man Eco is a private equity manager that seeds and manages funds specialising in plant and infrastructure projects, long-term contracts and emissions credit. It began operations in 2006 and was established as a manager in its own right earlier this year, with funds under management of some USD600m at the end of February.
Nick Wood, a member of the management committee of Man Investments with more than 14 years experience in the investment industry, heads the new firm, which is based in London. Man Eco creates and manages private equity-like structures with an emphasis on owning physical assets in the field of environmental finance.
The launch of Man Eco follows the close at the end of last year of the China Methane Recovery Fund, a greenhouse gas fund that raised EUR400m. The project, believed to be the largest of its kind, aims to extract methane gas from coal mines in China’s Shanxi province to generate electricity and carbon credits, under the stipulations of the Kyoto Protocol.
Wood describes the fund-raising as ‘a great success, particularly during the uncertainties of the past six months’, saying it vindicates the belief of Man Eco that investors are keen to support projects offering strong return potential while dealing with environmental problems in an innovative and tangible way.
‘Man Eco will source and originate direct private capital investment funds based on environmental issues in various parts of the world,’ he says. ‘Investing in projects that benefit the environment is becoming more and more popular, and we see great opportunities to benefit investors and our natural world together.’ According to the firm, Man Eco already has plans for more projects of this type.
Man Investments is one of the world’s largest providers of hedge fund investments with a 25-year record in alternative investments and an estimated USD75bn under management at the end of March. The firm is part of London-listed Man Group, which employs some 1,600 people at its investment centres in London and Pfäffikon, Switzerland, and offices in Chicago, Hong Kong, Dubai, Dublin, Miami, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto.
