Lightsource, Everstone create £500m green energy fund for India

UK-based solar energy developer Lightsource BP and Indian private equity firm Everstone Group have come together to form a £500m green energy fund for India.

The partners have formed a 50:50 fund management joint venture (JV) named as EverSource Capital, which will manage funds targeting contracted power, distribution infrastructure and energy services in the Asian country.

EverSource Capital will arrange funds with the financial and strategic resources of the two partners with an objective to create green energy businesses in partnership with local management teams.

Lightsource BP Group CEO Nick Boyle said: “India is one of the fastest and most dynamic markets for clean energy in the world. We know the market well through our renewable projects and we’re delighted to be teaming up with Everstone Group which complements our skill-set in the country.”

Green Growth Equity Fund (GGEF) will be the name of the first launched fund of the JV, which has been given a £500m fundraising target. It has the backing of the UK government and India’s National Investment and Infrastructure Fund (NIIF), which will become the fund’s joint anchor investors with a commitment of £120m each.

Everstone Group co-founder and CEO Sameer Sain said: “By using a pooled investment vehicle and a Public plus Private Partnership approach global investors will get the opportunity to be part of this exceptional investment platform.

“Everstone and Lightsource BP via their joint venture EverSource Capital are proud to have been selected as the Investment Manager for this fund, and will also be making a significant investment along with the UK government and NIIF.”

GGEF has been established as an alternative investment fund (AIF), said Lightsource BP. The company also said that more funds are likely to be raised under the EverSource Capital JV in the future.

Lightsource BP is jointly owned by Lightsource Renewable Energy and BP. It was established after BP made a deal last December to acquire 43% in Lightsource Renewable for $200m, in a move to return to the solar industry.