Pacific Channel acquires ENGIE South East Asia

Pacific Channel, a New Zealand-based venture capital firm, has expanded its footprint in the climate tech sector through the acquisition of Engie Factory Asia-Pacific (EFAP). This acquisition includes EFAP's portfolio of investments in seven early-stage companies focused on climate technology. The financial terms of the deal remain undisclosed, although a regulatory filing indicates that EFAP's paid-up capital is S$37.8 million.

The acquisition closely aligns with Pacific Channel's strategy to enhance its investment portfolio in the Southeast Asian climate tech sector. Since mid-2020, the firm has been leveraging EFAP to make targeted investments in this area, according to a Pacific Channel spokesperson. The acquired portfolio comprises companies engaged in solar solutions, sustainable housing, cooling technologies, bioenergy, climate markets, and data centre efficiency. The firms involved include Amplicity, Billion Bricks Homes, GetSolar, PHNXX, Polar Cold, Qatalyst, and Verta Bioenergy.

Brent Ogilvie, managing partner at Pacific Channel, described the acquisition as a critical step in extending the firm's influence and activities from its traditional bases in Australia and New Zealand into the wider Asia-Pacific region. The deal establishes a new hub in Singapore under the banner of Pacific Channel Climate Ventures, taking over the investment management of the portfolio. Ogilvie underscored the firm's commitment to fostering early-stage investment in the region.

This move comes as Engie divests its startup stakes within Singapore and the broader Southeast Asian market. Analysts suggest that this shift could be due to constrained profits and tighter capital margins pressuring Engie to streamline its focus. Despite the sale, Engie Innovation will continue to support the former EFAP ventures, contributing its corporate innovation resources.

The acquisition will see staff continuity, with key EFAP personnel, such as former vice-president Tim van Vliet, transitioning to Pacific Channel as principal and Southeast Asia region manager. This continuity is expected to provide stability and expertise for the ongoing management and growth of the acquired portfolio. The deal fortifies Pacific Channel's presence in one of the world's most dynamic and rapidly growing regions for climate technology, setting the stage for potential future investments and collaborations.