The Mumbai-based firm’s chief executive Dhanpal Jhaveri told Infrastructure Investor the fund had secured commitments from India’s National Investment and Infrastructure Fund and the UK government’s Foreign, Commonwealth and Development Office, both of which are anchor investors. The fund also attracted investment from the United Nations’ Green Climate Fund.
“This is the first private sector fund investment in India, which has been backed by the UN’s Green Climate Fund. They’ve come in as a significant investor and for us… It’s a massive endorsement of all the work that we’re doing and what GCF recognises as something that is going to be strongly impactful for the Indian economy,” Jhaveri said.
“We’ve [also] had many institutional investors participate from North America and Europe as well as Asia… It’s a very high-quality global list of LPs which have come in and made commitments to this fund.”
Targeting energy transition and resource efficiency businesses within India, the fund’s investments so far include utility-scale renewable energy developer Ayana Renewable Power, waste management platform EverEnviro Resource Management and clean water platform Kathari Water.
“Energy transition is a big opportunity for us, from the generation of green energy all the way down to consumption. It’s a highly regulated industry in India but, increasingly, regulatory tailwinds are there to help support the conversion of a lot of energy sources into green energy [and] at the same time drive additional energy supply, because energy demand in India continues to grow above market compared to many other countries,” Jhaveri added.
“Besides the energy transition, the other sub-theme that we’re [focusing] on is the circularity of resources, [including] energy, water, and waste. There [are] a lot of challenges with dealing with resources and being able to either reuse them [or] recycle them, and we’ve been looking at businesses which are using technology and innovative processes to solve [this].”
While the fund itself will continue to be India-centric, the businesses owned and managed by the fund may have “regional aspirations” in future and look for opportunities to invest in Southeast Asia or the Middle East, he added.
“The journey has really just begun for us. We want to develop EverSource Capital into a leading climate impact investor, not just in India but also in the region. We want to continue to apply a controlled, private equity-like approach to investing even in this asset class [by] building these platforms into significant businesses which have their own growth capabilities and can therefore deploy a lot more capital than we can invest just from our own fund, [while generating] very clear, measured, risk-adjusted returns,” he said.
“I’m [proud] of what we can do [with the fund] and grateful that investors have liked what [we have to offer]. Now it’s really about being responsible and making sure that, over the next few years, we can do what we’ve set out to do.”