The money was subscribed in the second stage of asset-raising for the China Methane Recovery Fund (CMRF), the fund's sponsor, Man Investments, announced today.
Man Investments, one of the world's largest providers of hedge fund investments, said the fund could benefit the environment while earning returns for investors from sales of electricity and carbon credits.
Methane gas is a potent greenhouse gas which arises normally from mining. The investment projects are organised with Chinese partners under the Kyoto Protocol, an international agreement which encourages investment to cut greenhouse gas emissions in developing countries.
MTM Capital Partners, an asset management business specialising in environmental projects, will manage the fund. Man Investments has a majority stake in MTM.
The final stage of asset-raising for the CMRF will close before the end of the year, with a maximum of a further USD 164 million sought from institutional investors.
The CMRF is the first in a range of new environmentally-related investment funds that Man Investments intends to take to market.
Antoine Massad, Chief Executive Officer of Man Investments Middle East Limited, described the venture as an exciting mix of environmental, social and commercial considerations.
"We are backing this fund because MTM's strategy shows very good return potential," Massad said.
"But equally important is its capacity to significantly benefit the environment by reducing harmful greenhouse gas emissions, and to contribute to China's economic growth through installing much-needed additional electricity generating capacity."
He said MTM's long experience in China gives it an edge both in sourcing investment opportunities and operating in partnership with Chinese companies. In developing projects in China, MTM has access to leading technology and technical support, and is now active in the country implementing these projects.
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Man Investments raises USD 382million for pioneering greenhouse gas fund
- United Arab Emirates: Wednesday, September 05 - 2007 at 15:10
- PRESS RELEASE
Institutional Investors have committed USD 382 million into a pioneering fund to invest in technology that extracts methane gas from coal mines in China and uses it to generate electricity.
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Notes and media contacts
Issued by Borouj Consulting on behalf of Man Investments. For more information, please contact:Randa Mazzawi at Tel: 9714 3403005,
Basma Alwesh at Tel: 9714 3403005,
About MTM
MTM Corporate Finance Limited was founded in 1989 as an independent investment bank with special interest in China. ED&F Man (the predecessor of Man Group) bought a minority stake in 1990 and sold out in 1999. MTM Capital Partners Limited, the fund management arm, was founded in 2003 when MTM saw a big opportunity in methane capture projects in China.
Rikky Hassan and Geoffrey Isaac are co-founders and key principals of the business. The company employs 12 people: eight in London, four in Beijing.
A core strategy of MTM is to originate, own, and control the supply of CERs (Certified Emissions Reductions, a type of carbon credit) by investing directly in the underlying projects. Its first fund operates as a project originator and developer of methane capture projects in China, specialising in coal mine methane and peripheral investments in landfill gas projects. Initially, the fund will concentrate on the Shanxi province, which holds 30% of China's coal reserves and has high quality infrastructure.
Through the Kyoto Protocol, industrialised nations have agreed to cut net CO2 emissions by reducing greenhouse gas emissions, either domestic or from developing countries. Methane recovery projects are a top priority for China and consistent with the Chinese policy on clean development mechanism and foreign direct investment.
About Man Investments
Man Investments is part of the Man Group and is one of the world's largest hedge fund providers, with USD 67 billion1 under management. Man Investments has inherited from Man Group a strong entrepreneurial spirit driven by performance and innovation. Man Investments has key centres in London and Pfäffikon (Switzerland) and offices in Chicago, Hong Kong, Dubai, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto. Further information on Man Investments can be found at www.maninvestments.com
About Man Group plc
Established in 1783, the Man Group has developed from a global commodities trader to a leading financial services company listed in the FTSE 100 Index of the London Stock Exchange. It employs about 1500 people in 13 countries. Man Group has a market capitalisation of USD 18.9 billion2. Further information on Man Group can be found at www.mangroupplc.com
1 At 30 June 2007
2 At 30 August 2007.
Posted by Lara Lynn Golden, News EditorWednesday, September 05 - 2007 at 15:10 UAE local time (GMT+4)
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