Asia’s PAG raises $550m for clean energy fund

Asia-Pacific investment firm PAG announced on Monday that it has raised $550 million for its first renewable energy fund, Reuters reported.

The PAG REN I fund targets investments in physical assets in Asia, focusing primarily on solar power in Japan.

PAG, which manages over $55 billion in capital, stated that investors in the fund include pensions, sovereign wealth funds, and fund-of-funds investors from North America, Europe, and the Middle East.

In a separate announcement, Abu Dhabi’s Mubadala Investment Company revealed it made a cornerstone investment in PAG REN I, marking its first venture into Japan’s clean energy sector, though the size of the investment was undisclosed.

PAG noted that the Asia-Pacific region’s rapid growth requires over $2 trillion in renewable power and energy storage investments over the next decade. Japan, Asia’s second-largest energy market, needs to quintuple its annual renewables investment by 2030 to meet its renewable generation and net-zero emissions targets.

Additionally, in March, Mubadala was part of a consortium led by PAG that acquired a 60 per cent stake in Chinese property giant Dalian Wanda’s mall unit for $8.3 billion.