GEF Capital raises $200 mn for climate-focused investments in South Asia

 
GEF Capital Partners (GEF), a global Private Equity (PE) investor with emphasis on climate investing has raised nearly $200 million from marquee investors and completed the final closure of its South Asia Growth Fund II (SAGF II).The fund aims to target climate-themed businesses across South Asia particularly India .
 
The amount was raised from a clutch of global investors including CDC Group of UK, European Investment Bank, Dutch investment firm FMO, Proparco, Swedfund, BIO, International Finance Corporation (IFC), the private investment arm of the World Bank and the US Development Finance Corporation
 
SAGF II has already deployed over two-thirds of its commitments in several sector-leading companies in India including Prince Pipes - a company serving the water and water conservation sector, SeedWorks operating in the hybrid climate-smart agricultural seeds sector, Premier Energies which is one of India’s largest integrated solar cell and module manufacturers, Syrma SGS which is an original design manufacturer of energy efficient electronic devices and components and 3SC, a supply chain decarbonisation analytics and solutions provider.
 
SAGF II was anchored by a large commercial asset management firm headquartered in Europe and builds on a $125 million predecessor fund that was led by key GEF team members.
 
“GEF looks to invest capital in ways that operate effectively to improve the world around us, while supporting commercially attractive returns to its investors. In doing so, GEF seeks to partner with companies and management teams that are at the inflection point of growth and expansion. Climate growth investing is not just about achieving a positive environmental impact but also acts as a powerful operating and risk-mitigation theme. Focusing on the effects of climate change, along with the adoption of ESG and Impact principles, can build resilience into companies’ business models,” Raj Pai, one of the founders and Managing Partner at GEF Capital Partners said.
 
Sridhar Narayan, also a founder and Managing Partner at GEF Capital Partners, said that the climate sector presents an investment opportunity of more than $1 trillion in South Asia.

“GEF looks to build on the team’s strong track record of investing and providing attractive exits from the India portfolio of GEF and Global Environment Fund, which has built several billion-dollar companies, including ReNew Power, one of Asia’s largest renewable energy generation company and IEX, which is India’s largest energy exchange marketplace,” Narayan said.
 
SAGF II will apply the core pillars of private equity investing to seek attractive financial returns within the climate sector for investors. SAGF II’s investments are geared to support climate mitigation, adaptation, circular economy and resource efficiency. In particular, SAGF II will target a diverse set of companies along the resource efficiency supply chain with a focus on clean energy supply chain, energy efficiency technologies and services, efficient use of water resources and environmental products and services, as per an official handout.