Private equity firm GEF Capital Partners has raised nearly $200 million from British CDC Group, IFC, and Dutch investment firm FMO, among others, to close its South Asia Growth fund II.
Said in a statement that other investors include European Investment Bank, ProParco, Swedfund, the US Development Finance Corporation, and BIO, a city-based firm.
According to Raj Pai, one of GEF Capital’s founders and managing partners, the fund was anchored by a large commercial asset management firm headquartered in Europe, and led by key GEF team members that created the $125 million predecessor fund.
He added that climate enhancement investment is not only about achieving positive environmental impact but also serves as a powerful operational and risk-mitigation theme.
It is a growth equity fund targeting climate-themed businesses in South Asia with a focus on India.
The company said it has deployed more than two-thirds of its commitments in a number of sector-leading companies, including Prince Pipes in the water conservation sector, Seedworks in the hybrid climate-smart agricultural seed sector, Premiere Energy – an integrated solar cell and module system. The company has also deployed Syrma SGS and 3SC – a supply chain decarbonization analytics and solutions provider in the manufacturing of energy-efficient electronic devices and components.
Sridhar Narayan, Co-Founder and Managing Partner, GEF Capital, said in a statement that the climate sector alone presents an investment opportunity of over USD 1 trillion in South Asia.
Sridhar also said that the fund specifically targets a diverse group of companies with resource-efficient supply chains with a focus on clean energy supply chains, energy efficiency technologies, and services, efficient use of water resources, and environmental products and services.
The company stated that the fund’s investments are geared to support climate mitigation, adaptation, circular economy, and resource efficiency.