Engie Factory Asia-Pacific acquired by New Zealand venture capital firm Pacific Channel

[SINGAPORE] Engie Factory Asia-Pacific (EFAP), along with its portfolio of securities it holds in seven early stage climate-tech ventures, has been acquired by New Zealand-headquartered venture capital (VC) firm Pacific Channel.

The deal value and commercial terms of the contract remain confidential, the firm said in response to queries from The Business Times on Tuesday (May 26). An Accounting and Corporate Regulatory Authority BizFile search, however, reveals that EFAP paid-up capital to stand at S$37.8 million. 

A spokesperson from Pacific Channel added that the firm has been investing in climate tech ventures via EFAP since mid-2020, and flagged how the move will further the VC’s climate tech investment expansion in the South-east Asian region.

EFAP’s portfolio of early stage ventures encompass:

• Amplicity
• Billion Bricks Homes
• GetSolar
• PHNXX
• Polar Cold
• Qatalyst
• Verta Bioenergy

They are focused on different areas such as solar solutions, cooling, climate markets, sustainable housing, bioenergy and data centre efficiency.

The New Zealand-headquartered firm specialises in deep-tech, VC and alternative investments with 79 portfolio companies in New Zealand and Australia.

It has achieved 11 successful exits across its portfolio, including names such as agri-tech player Regen and SciTOX, a biosensor developer.

Regarding its existing South-east Asian portfolio companies, Pacific Channel has invested in Singapore-based Transparently.AI – the world’s first artificial intelligence solution for early detection of accounting manipulation and fraud in both public and private companies, including green fraud.

Engie had moved to sell its startup stakes in Singapore and the region earlier in January.

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An e-mail seen by BT indicated how the company had extended an offer to its partner investors to buy all its interests in the startups held via EFAP. A separate alternative was for the group to divest EFAP entirely.

Observers told BT previously that profit constraints and tighter capital margins could be reasons for the venture arm’s proposed divestment.

The acquisition will see Pacific Channel’s Singapore platform operate as Pacific Channel Climate Ventures, and take over the investment management of the portfolio, while establishing a base for the firm in Singapore and South-east Asia.

Engie Innovation – the research and development division of the multinational company – will continue to provide corporate support to the ventures where relevant. This will be done via its wider innovation ecosystem, as part of the deal.

Brent Ogilvie, managing partner at Pacific Channel, said: “This marks a significant expansion of Pacific Channel’s climate-tech investment platform across the Apac region, extending our presence and active early stage investment model beyond Australia and New Zealand into South-east Asia.”

Certain Singapore-based EFAP employees will be retained by the venture firm, including former EFAP vice-president Tim van Vliet – who joins Pacific Channel as principal and South-east Asia region manager.

Discussions are still being held with other EFAP team members, said Pacific Channel, which the firm expects to finalise next month.

BT has sent further queries to EFAP and Engie South-east Asia on the matter.