UK-based renewable energy company Lightsource BP and Indian private equity firm Everstone Group have formed a fund management platform aimed at investing in green infrastructure in India, with the launch fund targeting £500 million (US$710 million).
The 50:50 JV named ‘EverSource Capital’ will manage an initial fund named the Green Growth Equity Fund (GGEF), which has the backing of the India and UK governments, who will become joint anchor investors. India’s National Investment and Infrastructure Fund (NIIF) and the UK government have already invested £120 million each in the GCEF.
The GCEF aims to raise funds from international institutional investors to invest in renewable energy, clean transportation, water and waste management, and other emerging technologies in India.
The JV, EverSource Capital, will manage the fund, targeting contracted power, distribution infrastructure and energy services in India and it may raise further funds in the future. It will provide these funds with financial and strategic resources “aiming to create successful green energy businesses in partnership with local management teams”, said a joint company release.
The Fund aims to sponsor entrepreneurs with the financial and other resources they need to create successful green energy businesses. The target investment size for GGEF will be equity cheques of approximately US$10–250 million for each individual investment, said the company website.
Nick Boyle, group CEO, Lightsource BP, said: “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.”
Sameer Sain, co-founder and CEO, Everstone Group, said: “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.”
Lightsource BP has over US$3 billion of capital invested across around 2GW of solar projects globally. In late 2017, BP acquired a 43% equity share in Lightsource and the company was rebranded as Lightsource BP.
Everstone Group has been active across India and Southeast Asia.