Green Area Fund Lin Ting: Green Investment Border Expansion, Investment Institutions Now More Interactive

"Overseas institutions have been focusing on ESG for many years, and the economy of investment has emerged. With the advocacy of green investment, the definition and understanding of "green" is changing. In April this year, Lin Ting, managing partner of the green fund management company, said in an interview with the economic report reporters in twenty-first Century.

The green field fund is a venture capital management institution focusing on the field of ecological environment. The scale of its management is about 3 billion 500 million yuan, which includes the national energy CLP, the beta technology, the Shun Hua lithium industry, the construction repair, and the Zhongke run Yu.

The representative of the green domain is that the team has been concentrating on the field of ecological environment for more than ten years. The team has been investing in the idea of the industrial boutique fund. It has not stuck to the way of IPO withdrawal, so that they can continue to create excellent and different returns for the fund LP in the market where the RMB fund is out of difficulty.

Lin Tat had mentioned earlier that the green domain fund achieved cash returns for LP through the following rounds of retreat, retreat, or merger and exit. The past LP investment rate of each fund was more than 80%.

Because of its performance in green investment, the green fund has been written as a case of ESG in the China Fund Industry Association's "social responsibility report on China's private equity industry".

Lin ting. Data map

Extension of investment

This newspaper has previously reported the establishment and development background of the green fund and its industrial ecology (see the evolution theory of clean technology investment of the green field fund in November 2018).

As an industry professional fund, we must continue to achieve excellent returns. Similarly, the research drive enables the green fund to have independent judgement and decision-making.

Based on the study of industry policy, technology trend and industrial structure, the track focused by different funds of the green area has different emphasis on the framework of ecological environment. The fourth phase of the investment period is a green fund with the theme of new eco economy. The main investment directions include environmental governance, new energy vehicles and comprehensive energy use.

"We have redefined the green investment category of the fund. In the past, making green investment is a narrow environmental governance. Now we are exploring the "green" elements from the two social activities of production and life. Lin Ting introduced.

That is to say, today's green investment has expanded from a narrow sense of clean technology to a wider range of contributions to sustainable environmental development in the past decade, and has been more interlinked with the major consumption and advanced manufacturing themes of PE/VC institutions.

The intersection of ecological environment and big consumption and advanced manufacturing is "green life" and "green production" respectively. Lin Ting, for example, said that under the theme of green life, the track that the team is focusing on is the environment home. The two key tracks under the theme of green production include environment-friendly, degradable new materials, and intelligent manufacturing technologies related to synergy and emission reduction.

Big synergy of small funds

The green domain fund has always been holding the strategy of boutique investment. Lin Ting self humbly said, "we have always been small funds".

But regardless of the admission time or the overall return of the fund, the green fund is the pioneer in the field of green investment. For example, they invested in air treatment, desulfurization and denitrification enterprises in 2009. In 2013, they formally planned the layout of new energy vehicles, and entered the hazardous waste disposal track in 2016. These advance plans are directly related to the concept driven by the foregoing research.

The size of the fund of about 500 million yuan each time determines that the investment projects in the green area are limited. On the other hand, the team will have more energy to invest in post project management.

Lin Ting believes that people who invest in projects and manage projects should not be separated: "the characteristics of small funds are that we have enough energy to invest in projects, solve problems, integrate resources and accelerate growth."

Many years of deep ploughing in the field of ecological environment have led the green region team to build their own industry ecosystem: their natural investment relationship between upstream and downstream, supply chain, and the LP of the fund's founders and executives.

Since the beginning of 2020, Lin ting and his team have begun to apply the concept of ecosphere in the industrial field for many years to cooperate with investment institutions. For example, one of their incremental jobs this year is to communicate more with their VC counterparts and invest in the "green" elements from the partners' projects.

Lin Ting introduced such different perspectives as the industry fund and the comprehensive fund in the common view of the project: "environmental protection and new energy in a narrow sense are more pure environmental friendliness. We have been watching it all the time. The extension of investment boundary is still carried out along the main line of environmental friendliness and green.

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