Environment and energy-focused private equity firm Global Environment Fund has announced a $127m India fund aimed at SMEs.
The new fund is the first of its kind in India according to a report in the Asian Venture Capital Journal.
GEF managing director Raj Pai told them the fund had already sealed its first deal with the $11.5m commitment to Bangalore-based energy efficiency firm Kalki Communication Technologies.
Pai explained his firm would prefer taking minority stakes of anything between $3m and $15m in companies, with the aim of doing three or four deals a year.
He said, “India is a maturing market; it needs local approach and presence.
“One cannot do offshore investments any longer.
“The market needs a dedicated pool of capital and people.”
The GEF has been investing in businesses providing cost-effective solutions to environment and energy challenges since 1990.
It manages private equity dedicated to clean technology, emerging markets, and sustainable forestry, with approximately $1bn in aggregate capital under management.
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