B. Gaon Holdings Ltd. (TASE: GAON) is continuing to consolidate its cleantech operations by setting up a new $100 million fund through Gaon Agro Industries Ltd. (TASE: GAT) that will invest in new water, energy, and smart agriculture technologies. The new fund will shortly launch a financing round among Israeli and foreign investors.
The new fund will mainly invest in Israeli companies, and will have a portfolio of 10-12 companies. The fund, to be called Aguagro II Fund, will be a follow-on of Aguagro Fund LP, which invested an estimated $50 million in developing technologies.
Aguagro Fund has nine Israeli companies in its portfolio. It has also invested in water technologies incubator Kinrot Technology Ventures, run by CEO Assaf Barnea.
"We will raise the money for Aguagro II from financial institutions and other financial companies in Israel and abroad, Gaon Holdings chairman Moshe Gaon told "Globes". "In Israel, there are a few venture capital funds that are engaged in cleantech. The establishment of our second fund, we will create a platform for parties that want to invest in Israeli innovation, in part thanks to our experience in setting up water purification project, faucets, and pipes. Our experience in the water industry gives us a strong base for fostering additional new technologies in the field."
Gaon added that Aguagro Fund would invest most of its capital in Israeli ventures, but it might also invest in foreign companies whose business it found interesting.
Plans to float Kinrot
Aguagro Fund was founded in January 2008. Investments include crop genetic engineering company Evogene Ltd. (TASE:EVGN), which seeks to improve crop traits for biodiesel and agriculture; Desalintech Ltd., which is developing next-generation reverse osmosis desalination technologies; Transbiodiesel Ltd., which has developed a method of using enzymes to producer biodiesel; Computerized Electricity Systems Ltd., which is developing energy management solutions for electric cars.
"Aquagro I Fund has used up its capital for investment and we need to expand our operations through a follow-on fund," said Gaon.
"We have not yet finalized the list of companies that will comprise the new fund's portfolio, but it will focus on the anticipated global food shortage due to the loss of land for agriculture and the worsening water shortage. We'll prefer to invest in companies that offer solutions for raising crops in harsh conditions. We will continue to invest in innovative water technologies, smart agriculture, and renewable energy, such as solar and wind power."
Gaon Holdings has not yet set the amount of cleantech and water investment by Aquagro II, but says that a decision will be made as part of the set-up procedures and discussions by the board of managers
Gaon told "Globes" that the companies that will continue to operate with financing from Aquagro I, and that the companies' success will be the model for Aquagro II.
Gaon Holdings also plans to float Kinrot on the TASE. Kinrot is placing its hopes on promising portfolio companies, such as ZoOpt Ltd., which has developed plankton sized food for fish larvae, which it believes is a breakthrough for bringing new ocean species, such as tuna, into industrial harvesting.
Published by Globes [online], Israel business news - www.globes-online.com - on August 29, 2011
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