Top Climate Investor in India Wants to Raise $1 Billion Fund - Latest Global News

Top Climate Investor in India Wants to Raise $1 Billion Fund

Eversource Capital, which closed India’s largest climate fund in 2022, is aiming to raise at least $1 billion as it looks for companies to back in other Asian countries, according to its chief executive.

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(Bloomberg) — Eversource Capital, which closed India’s largest climate fund in 2022, is seeking to raise at least $1 billion as it looks for companies to back in other Asian countries, according to its chief executive.

“Water, food, agri value chain and recycling will be the key themes the new fund will invest in,” Eversource CEO Dhanpal Jhaveri said in an interview at his Mumbai office, without a timeline for the latest round of fundraising to call .

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The climate-focused asset manager plans to attract both new investors and existing backers for its second fund. While India will remain the focus, there are plans to diversify into countries such as Indonesia, the Philippines, Vietnam and Bangladesh, Jhaveri said.

Eversource – the joint venture of local private equity firm Everstone Capital and Britain’s Lightsource BP – raised $741 million for its first fund in 2022 from investors including the National Investment & Infrastructure Fund and British International Investment.

There is a growing cohort of asset managers from Brookfield Asset Management Ltd. to BlackRock Inc., which is looking for investments aimed at combating climate change. The global scientific community overwhelmingly agrees that climate change poses a threat to the economy and society as a whole through lost working hours, food chain disruptions and worsening health outcomes.

Read more: Brookfield raises $10 billion for Energy Transition Fund

While Europe is still ahead of the rest of the world when it comes to investing in climate strategies, interest is growing in Asia. There is also a large unmet need. Asian economies face an $815 billion financing gap to meet their climate mitigation and adaptation needs, the International Monetary Fund said in its blog.

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Already looking

According to Jhaveri, Eversource’s 32-person team is already looking for projects and companies that want to combat climate change to invest in from the next fund.

Through its first fund, the company invested in seven companies, including waste management platform EverEnviro Resource Management Ltd., e-bus operator GreenCell Mobility Ltd. and climate lender Ecofy Finance Pvt.

Some exits are likely to be possible through sales to larger investors, Jhaveri said. Eversource typically targets an annual return of over 20% on capital investment over a lifecycle of up to seven years, he added.

“We are a classic feeder for global investors such as large pension funds and private equities,” said Jhaveri. “We get the companies to a certain level and then they buy us out and play the whole game.”

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