Global Acceleration Partners Inc. (G.A.P.) commits to raise and invest at least $100 million to create, invest in, and support joint ventures between Chinese and international partners that transfer and diffuse cleantech into the Chinese economy. G.A.P. will establish an impact at scale investment company to manage this program in cooperation with Tsing Capital. Together, the two groups bring over a century of expertise relating to China and international cleantech, sustainability, technology transfer, investment, and related disciplines.
There will be several phases to the initiatives implementation during its first year, beginning with securing $40 million by November 2015. G.A.P. will then make the first two investments before the third quarter of 2016, during which it will simultaneously conduct the second and final closing of $60 million additional. In the fourth quarter of 2016 G.A.P. will complete three more investments. In 2017 it will make five investments and operationalize the 2016 investments. In 2018 G.A.P. intends to complete five investments, reserving balance of capital for follow-on financings, and operationalize the 2017 investments. During 2019 it will operationalize all investments and begin to recycle capital and/or raise next fund for the next generation investments. In operationalizing investments, meaningful impact metrics will be generated.
China is facing an environmental crisis of vital significance to itself and the global community. Already the largest emitter of greenhouse gases, the effects of Chinas pollution are costing up to 6% of its GDP. Poisoned air, soil, and water are adversely impacting millions of lives and threatening the countrys long term stability. As Chinas leadership and citizens seek modern environmental solutions, they will need to cooperate with international technology providers. Public sector and civil society initiatives are starting to lay groundwork for such cooperation, yet the necessary pace of adoption can only happen through market-based instruments which have yet to be developed or deployed.
Further, as part of the global climate agreement being sought by the United Nations Conference on Climate Change, the parties must agree on means of transferring clean, low-pollution technologies to historically underserved communities. New approaches to technology transfer are required that go beyond the role of multilateral agencies such as the UN.
G.A.P. seeks third party investors motivated by mission, with a minimum ticket of $5 million. It also seeks Chinese go-to-market partners, namely companies seeking cleantech, with strong customer relations, good reputation, and willingness to invest in a local company and its projects. It also seeks Western companies with proven technologies such as commercialized tech, having comparative advantage in China with little current presence. G.A.P. is also interested to engage with impact specialists to optimize reporting and benefits.
G.A.P. offers partners its deep expertise and relationships in cleantech and sustainability, both in China and globally. G.A.P. also offers infrastructure, an established team, and the ability to leverage off substantial investments to date.