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Everstone to co-manage $710m India green infra fund

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Everstone Capital has been chosen by the governments of India and the UK as a co-manager of the Green Growth Equity Fund (GGEF), a PE vehicle set up to invest in sustainable infrastructure projects in India with a target of GBP500 million ($710 million).

Lightsource BP, a developer of global renewable energy projects, will manage the fund with Everstone, according to a release. The firms will form a joint venture called EverSource Capital to oversee investments, tapping the financial and strategic experience of both partners. EverSource will target investments in contracted power, distribution infrastructure and energy services in India.

The UK government and India's National Investment and Infrastructure Fund (NIIF) will anchor GGEF with a joint investment of GBP240 million. Additional capital be raised under the EverSource platform, which has been registered with the Securities and Exchange Board of India (SEBI) as an alternative investment fund (AIF).

GGEF was announced by the Indian and UK governments a year ago. It will initially focus on energy investments but is intended to expand its remit eventually to include water treatment, waste management, and transportation. The majority of its capital is expected to come from global institutional investors.

Along with its primary investment goals, the fund is also expected to demonstrate the growth potential for India's infrastructure sector and encourage additional participation by private investors. It will also develop the City of London as a location for the Indian government to raise capital from global markets.

Lightsource BP was founded in 2010 as Lightsource but rebranded last year after BP acquired a 43% stake. The company has invested over $3 billion in solar energy projects worldwide, with a total capacity of around two gigawatts. It provides structured finance solutions to its local partners, along with engineering and operations and management assistance.

NIIF was set up in 2015 with a view to raising about INR400 billion ($6.2 billion) for infrastructure projects, including a INR200 billion contribution from the Indian government. It is intended to catalyze economic activity in greenfield and brownfield projects, and has received the backing of the Abu Dhabi Investment Authority and the Asian Infrastructure Investment Bank.

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