Norfund, a Norwegian development finance institution (DFI), is on the hunt to buy stakes in pan-Asian renewables development platforms, according to three sources familiar.

The Scandinavian manager is targeting platforms which are backed by general partners (GPs), the sources said. It has a preference for those with utility-scale clean energy projects across the region.

Norfund has held informal talks with advisors and potential targets for stake acquisitions, the sources said.

However, sourcing platforms with sizeable investment tickets and risk-returns high enough to satisfy the European DFI present potential obstacles, one of the sources said.

Examples of GPs operating Asian renewables platforms include Denmark’s A.P. Moller Capital, London-based Actis, and Singapore’s Seraya Partners. A.P. Moller Capital established Southeast Asia-focused Verdant Energy earlier this May with a USD 400m cheque.

In 2022, Actis bought a majority stake in Levanta Renewables while Seraya Partners owns energy transition platform Astrid Renew.

Asia represents Norfund’s second largest investment region across funds, loans, and equity, with a presence in clean energy, its website shows. In terms of renewables funds, the DFI has so far invested in:

• SEACEF II, a Southeast Asian vehicle managed by Singapore’s Clime Capital
• Swiss-based SUSI Partners’ Asia Energy Transition Fund
• Schneider Electric’s Energy Access Asia Fund

Besides fund stakes, Norfund also invests direct equity in renewables. Its largest regional investments are Fourth Partner Energy and SAEL Industries, both based in India.

Norfund did not respond to request for comment.

Owned and funded by the Norwegian Government, Norfund was established in 1997 to help build sustainable businesses and industries in developing countries by providing equity capital and other risk capital.