SINGAPOREHONG KONG, May 20 Reuters AsiaPacific investment firm PAG said on Monday it had raised 550 million for its first renewable energy fund, which focuses on investments in physical assets in Asia and includes solar power in Japan as its primary target.

PAG, which manages more than 55 billion of capital ranging from private equity to credit, said in a statement that investors in the PAG REN I fund include pensions, sovereign wealth funds and fundoffunds investors in North America, Europe and the Middle East.

In a separate statement on Monday, Abu Dhabi sovereign investor Mubadala Investment Company said it had made a cornerstone investment in PAG REN I, marking its first investment in Japan39;s clean energy sector.

Mubadala did not provide details on the size of its investment.

The strong response to this fund demonstrates investor confidence in the need and opportunity to enable the transition from fossil fuels to clean, domestically produced sources of energy generation in Asia, PAG Renewables President and CEO James Buford said in a statement.

PAG39;s first renewable fund adds to fundraising activities in the energy market in the AsiaPacific region. PAG said it is the largest and fastestgrowing region globally and requires more than 2 trillion of investment in renewable power generation and energy storage over the next decade.

Japan is the secondlargest energy market in Asia and needs annual renewables investment to grow more than fivefold between 2023 and…