Edelweiss Alternatives, a unit of India’s Edelweiss Group, said it has launched its first climate fund with a corpus of $500 million.
The firm will invest in an array of climate-related projects — ranging from climate mitigation to climate adaptation like renewable energy, transmission infrastructure, EV infrastructure, Green infrastructure, water treatment, transport decarbonisation, industrial decarbonisation, and other related verticals.
According to media reports, the fund will invest between $25 million and $100 million in each deal over 10-12 years.
Edelweiss Alternatives is an existing investor in the renewable power and transmission sectors. Last year, Edelweiss Real Assets Managers Ltd, a unit of Edelweiss Alternatives, raised $282 million under AnZen India Energy Yield Plus Trust, its maiden energy infrastructure investment trust.
On the LP side, British International Investment (BII — formerly CDC Group) is also actively scouting for climate finance opportunities in the country.
Last month, climate and sustainability-focused PE fund Neev, backed by India’s SBICAP Ventures, said it was looking to make the final close of its second investment vehicle at about Rs 1,500 crore ($183 million) by September end or early October.
Separately, climate- and impact-focused venture capitalist Asha Ventures is understood to be in talks to raise a $100-million fund as it looks to back companies that can create a positive financial impact on the mass market segment in India.
Edelweiss Alternatives claims to have $5.9 billion of assets under management, with a focus on providing credit
and yield opportunities to global investors such as pension funds, insurance companies, large family offices, and ultra-high-net-worth individuals across performing credit (corporate and real estate), special situations, and infrastructure yield.