Masdar invested the first $60 million of the DB Masdar Clean Tech Fund — set up with Deutsche Bank — in China and expects to pick its next projects in the next few days.

“We are making a second investment this week. It could be between $15 to $40 million,” Alex O’Cinneide, general manager of Masdar Capital, said.

“Four years from now, we could see the fund fully invested. The market is improving, we are seeing real interest with a lot of deals in the pipeline,” he said. He declined to give details of specific investments but said Masdar aimed to invest 30 percent in North America, 30 percent in Europe and the rest in Asia.

Masdar is the renewable energy initiative of Abu Dhabi.

Masdar’s first $250 million clean tech fund launched in 2006 in partnership with Credit Suisse.

“We seek to grow and expand our status as a global player in the clean-tech investment arena and are looking to be a major force for renewable investment globally,” added O’Cinneide.

“Our efforts in building an asset management business headquartered in Abu Dhabi with strong international investors are beginning to pay off. The growth of this sector will increasingly provide them and us with opportunities and we believe an excellent return profile.”

Industry statistics suggest that annual investment in the global clean energy sector registered a compound annual growth rate (CAGR) of 23 percent during 2004-2009, and is forecast to increase three-fold by 2030.

The first quarter of 2011 saw deals worth $4 billion in investments from venture capitalists and private equity firms globally.

In addition, total new investments in clean energy increased 30 percent from $186 billion in 2009 to $243 billion in 2010 and global renewable energy spending is predicted to touch a staggering $461 billion by 2030.

Currently, Masdar Capital’s two major investment vehicles — Masdar Clean Tech Fund (I) and DB Masdar Clean Tech Fund (II) — together have $540 million under management.

The first fund’s investments range from solar thin-film to waste-to-energy and water purification.

The second fund will concentrate on clean energy, environmental resource management, energy and material efficiency and environmental services, with its first investment completed in Chinese wind energy.

Alex O’Cinneide added: “This team of investment professionals operating for many years in the still emerging clean technology sphere has a world-class skill set and expertise.”