One of India’s leading private equity funds and a renewable energy industry leader has teamed up to create a major fund management platform for green energy infrastructure in India to be called EverSource Capital.
The Everstone Group, a premier India and Southeast Asia business group and multi-asset investment firm, and Lightsource BP, a global market leader in renewable energy development, will work together as ‘EverSource Capital’ to jointly manage funds targeting contracted power, distribution infrastructure and energy services in India. The new JV will provide the funds with the financial and strategic resources of the partners aiming to create successful green energy businesses in partnership with local management teams.
The launch fund will be called the Green Growth Equity Fund (GGEF), which has a fundraising target of GBP 500 million (USD 700 million). The UK government and India’s National Investment and Infrastructure Fund (NIIF) have announced an agreement to become joint anchor investors in GGEF. The UK government and NIIF will each co-anchor GGEF, with a commitment of GBP 120 million (USD 168 million) each. UK and India contributions are investments that will generate returns for each country.
GGEF aims to raise funds from international institutional investors to invest into areas such as renewable energy, clean transportation, water and waste management, emerging technologies and sectors that feed into the above areas in India, which offer significant investment opportunities and potential for attractive returns.
“India’s demand for energy is growing rapidly with renewable energy playing an increasingly important role. BP is committed to advancing the energy transition and, through our shareholding in Lightsource BP, is expanding and deepening its relationship with India to deliver affordable, accessible and reliable low carbon solutions to customers,” said Dev Sanyal, CEO, BP Alternative Energy.
“India is one of the fastest and most dynamic markets for clean energy in the world. We know the market well through our renewable projects and we’re delighted to be teaming up with Everstone Group which complements our skill-set in the country,” said Nick Boyle, Group CEO, Lightsource BP.
“The joint initiative and commitment of India’s National Investment and Infrastructure Fund (NIIF) and the UK Government to invest in and develop green infrastructure in India is a unique and amazing investment opportunity. By using a pooled investment vehicle and a Public plus Private Partnership approach global investors will get the opportunity to be part of this exceptional investment platform. Everstone and Lightsource BP via their joint venture EverSource Capital are proud to have been selected as the investment manager for this fund, and will also be making a significant investment along with the UK government and NIIF,” said Sameer Sain, co-Founder and CEO, Everstone Group.
GGEF is set up as an Alternative Investment Fund (AIF) under India’s Security and Exchange Board of India (SEBI) Regulations, 2012. Further funds may be raised under the EverSource Capital platform in the future.