Eversource Capital, having successfully closed India’s largest climate impact fund in 2022, is now embarking on a new mission to raise at least $1 billion for investments in climate-focused companies across Asia. The fund will prioritize investments in water management, food security, agricultural value chains, and recycling initiatives. According to Dhanpal Jhaveri, CEO of Eversource, the new fund will target investments in companies that are actively mitigating climate change impacts. Eversource intends to diversify its portfolio beyond India, exploring opportunities in Southeast Asian countries such as Indonesia, the Philippines, Vietnam, and Bangladesh. Eversource, a joint venture between Everstone Capital and Lightsource BP, had previously raised $741 million for its maiden fund in 2022, attracting investors like National Investment & Infrastructure Fund and British International Investment. Amidst a growing global focus on combating climate change, Eversource is among numerous asset managers, including Brookfield Asset Management Ltd. and BlackRock Inc., seeking investments aligned with climate strategies. Asia, in particular, presents a significant opportunity due to its unmet needs in climate mitigation and adaptation, estimated at $815 billion by the International Monetary Fund. Eversource’s team is actively evaluating projects and companies that align with their climate mitigation and adaptation goals. The fund has already invested in seven companies through its first fund, including waste management platform EverEnviro Resource Management Ltd., e-buses operator GreenCell Mobility Ltd., and climate lender Ecofy Finance Pvt. Eversource typically targets an annual return of over 20% on equity investments over a life cycle of up to seven years. According to Jhaveri, Eversource acts as a feeder to global investors and private equity firms, nurturing companies to a certain level before facilitating their acquisition by larger players.
Eversource Capital Eyes $1 Billion Fund for Climate Impact Investments in Asia
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