JCM Capital launches $150 million solar fund

Private equity firm JCM Capital has launched a $150 million solar support fund targeting emerging solar markets in Latin America and parts of Africa.

The Canadian-based solar financing firm will steer capital towards those markets that already possess suitable regulatory frameworks and robust – but under-supported – electricity demand.

The Clean Power Infrastructure Fund VI builds upon the Fund V, which was instrumental in developing utility-scale PV projects in Mexico, Ecuador, Cameroon and Malawi. Early movement for the fund includes a $15 million lead investor, with a first-close target of $50 million by the end of 2014.

JCM’s chief role in emerging PV markets has been to make green-field solar projects a reality, working with local project development teams to ensure completion and leveraging its financial, operational, development, legal and regulatory experience to see each project through to completion. JCM has developed 70 such solar projects in the Americas and Africa over the past five years.

"This fund will provide investors with an attractive value proposition: the steady cash flows of infrastructure combined with the growth of emerging markets," said JCM Capital’s new Infrastructure Group MD, Tom Heintzman. "JCM’s solar PV projects in Africa and Latin America will provide clean energy necessary to support the significant growth underway in these regions. In Africa alone, the African Development Bank estimates that more than $40 billion annually of new electricity generation capacity is required in order to support economic growth, and solar PV will be the fastest-growing form of generation in these markets."