AAA Petronas puts $250m fund into operation

Petronas puts $250m fund into operation

Malaysia-based oil and gas producer Petronas launched a $250m corporate venturing fund called Piva yesterday that will invest in energy, industrial and materials applications.

The amount represents a final close of the unit’s first fund, according to CNBC, and Petronas is its sole limited partner. Initial details concerning Piva were revealed in July this year.

Formed earlier this year, Piva will back 15 to 20 North America and Europe-based companies, although it will principally target early and growth-stage deals in the US. It expects to unveil its first investment later this month.

The unit will initially invest between $5m and $10m in each company, with up to $30m available in the form of follow-on commitments. In addition to funding, portfolio companies will also be able to access contacts within the corporate’s international operation.

Piva’s strategy centres on future industry, energy and materials along with technologies like artificial intelligence, the internet-of-things, robotics, cleantech, electrification and automated and digital mobility.

The fund’s investment team is led by managing partner and chief executive Ricardo Angel, who was a managing director at GE Ventures, the corporate venturing arm of industrial technology conglomerate General Electric, prior to joining Piva earlier this year.

Angel said: “Over the next 20 years, new types of technologies will solve the most critical industrial, material and energy problems we face today.

“We started Piva under the strong belief that the founders and emerging companies ushering in this new era of industry and energy need an investor that brings a different approach to venture capital – one that is global, connected, fast-moving, makes big bets and has the perseverance to turn big ideas into reality.”

The vehicle will be overseen by Petronas Corporate Venture Capital, the $350m corporate venturing subsidiary announced by Petronas in October this year. Its remit also includes the group’s home market of Malaysia and the wider Asia-Pacific region.

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