Everstone’s green energy fund GGEF gets $70 mn LP cheque

 Everstone’s green energy fund GGEF gets $70 mn LP cheque

The Green Growth Equity Fund (GGEF), a green energy fund managed by EverSource Capital, has received $70 million in limited partner (LP) commitment from CDC Group Plc, the UK government’s development finance institution.

GGEF was earlier looking to raise around $700 million but is now targeting around $945 million after receiving a large dose of capital from the Green Climate Fund, the world’s largest climate financing vehicle. It is also set to raise $30 million from another DFI, The Capital Quest had reported previously.

EverSource is a joint venture created by Indian private equity firm Everstone Capital and the UK-based Lightsource BP in 2018. British energy giant BP had acquired a stake in solar developer Lightsource in 2017, and rebranded it as Lightsource BP.

With the latest investment, the green energy fund would have secured at least $642 million, excluding the general partner contribution from Everstone and Lightsource BP.

Last July, BP said it would invest $70 million in the GGEF. BP would also get the rights to co-invest in projects alongside the fund.

The fund’s other LPs include the Indian government-backed National Investment and Infrastructure Fund (NIIF) and the British government. Both institutions had originally committed £120 million each to seed the GGEF.

The fund was also in talks with Dutch investor Triodos, it is learnt.

The GGEF focuses on reducing carbon emissions and improving energy efficiency across its target sectors. It aims to invest in areas like renewable energy, energy efficiency, energy storage, e-mobility, resource conservation and associated value chains.

EverSource has struck a handful of deals in the renewable energy sector so far. Its first investment was in a utility-scale renewable energy platform called Ayana. The fund also backed Radiance Renewables, a distributed platform focused on developing, owning and operating assets for residential, commercial and industrial customers.

Radiance in April struck a deal to buy the non-core solar rooftop portfolio of Azure Power Global Ltd, an Indian solar energy company majority-owned by Canadian pension fund CDPQ, for $73.5 million.

EverSource has also invested in an e-mobility-focused company called GreenCell, which aims to become the largest pan-India company to provide e-mobility as a service.

Besides, the fund is creating waste management platform EverEnviro. In April, EverEnviro snapped up IL&FS Environmental Infrastructure & Services Ltd, a unit of debt-laden Infrastructure Leasing and Financial Services Ltd.

In February, EverSource said it was coming as an equity investor in a river cleaning project.

Vivek Sinha

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