HK investment firm PAG to pour $1b into new greentech-focused unit

PAG, an alternative investment firm based in Hong Kong, has launched PAG Renewables, a company that will develop, operate, and invest in renewable energy across Asia.

James Buford, president and CEO of PAG Renewables / Photo credit: PAG

Along with the launch, the firm also said its subsidiary PAG Real Assets has acquired a solar energy project development platform in Japan from US-based First Solar.

The platform’s operation teams will join PAG’s team of more than 150 across Asia, forming the core of PAG Renewables’ business. James Buford, country manager of First Solar Japan, will serve as PAG Renewables’ president and CEO.

The acquisition makes the newly formed company one of Japan’s biggest operators of renewable energy, with a capacity of over 600 megawatts of direct current.

PAG said it plans to pour more than US$1 billion into its new unit over the next several years. PAG Renewables will also operate and manage PAG’s existing greentech portfolio.

Sustainability is a “core tenet” of the firm’s investment philosophy, and transitioning to the use of clean energy that’s locally produced in Asia Pacific “will require an investment of trillions over the next decade,” PAG president Jon-Paul Toppino said in a statement.

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Established in 1997, PAG is an APAC-focused investment firm that specializes in credit, private equity, and real assets. The firm said it is managing US$50 billion worth of assets and has invested US$32 billion across more than 7,000 properties in the region. It operates through 12 key offices globally.

Investment in renewable energy in Asia is expected to outpace fossil fuel expenditure by the next decade, with the total amount projected to reach US$1.3 trillion by 2030.