Edelweiss Alternatives, part of Edelweiss group, on Monday said it has launched its maiden climate fund, which will invest in different ventures related to cleaner climate. The fund will have a corpus of $500 million (Rs 4,150 crore) and a tenure of 10-12 years.
Edelweiss Alternatives is already in talks with various global institutional investors, including pension funds, sovereign funds and development financial institutions, said Subahoo Chordia, president and head – real assets at Edelweiss Alternatives.
The fund will invest between $25 million and $100 million in each deal and will do equity deals, he said. Chordia did not divulge the internal rate of return expected and when it plans to close the fund.
The fund will invest in themes 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, a release from the fund manager said.
“This will offer investors a long-term viable investment vehicle to participate in the world’s largest market for sustainable energy transition and generate far more worthwhile and steady returns,” it said.
Chordia said about $10 trillion of investment is required to achieve India’s 2070 net-zero target, according to estimates. “Our climate fund will look to invest in this growing and attractive investment opportunity, while also contributing to achieve the sustainable development goals like climate action (SDG 13), clean energy (SDG 7), clean water (SDG 7) and sustainable cities (SDG 11). Further, transport and buildings provide attractive decarbonising opportunities which also play a critical role in creating a sustainable and low-carbon future.”
