[Funding alert] GEF Capital raises nearly $200M for its climate-focused SAGF II Fund

GEF Capital Partners (GEF), a global sustainability Private Equity (PE) investor with emphasis on climate investing, has raised around $200 million from marquee investors and completed the final closure of its South Asia Growth Fund II (SAGF II).

The investors participating in the round include CDC Group of UK, European Investment Bank, Dutch investment firm FMO, Proparco, Swedfund, BIO, International Finance Corporation (IFC) — the private investment arm of the Word Bank, and the US Development Finance Corporation.

Founded in 2018, GEF Capital Partners is a global private equity firm formed following a collaborative spinout from Global Environment Fund, a pioneer in global sustainability and environmental investing. Today, GEF seeks to focus on investments that promote resource efficiency and contribute to building a more sustainable future.

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Commenting on the latest fund raise, Sridhar Narayan, one of the founders and Managing Partner at GEF Capital Partners, said:

“The climate sector presents an investment opportunity of more than $1 trillion in South Asia. GEF looks to build on the team’s strong track record of investing and providing attractive exits from the India portfolio of GEF and Global Environment Fund, which has built several billion-dollar companies, including ReNew Power, one of Asia’s largest renewable energy generation company and IEX, which is India’s largest energy exchange marketplace. “

SAGF II is a growth equity-fund targeting climate themed businesses in South Asia with a focus on India.

Anchored by a large commercial asset management firm headquartered in Europe, SAGF II builds on a $125 million predecessor fund that was led by key GEF team members. It had hit its first close in May last year after securing $130 million.

A statement released by GEF said that SAGF II will apply the core pillars of private equity investing to seek attractive financial returns within the climate sector for investors. "SAGF II’s investments are geared to support climate mitigation, adaptation, circular economy, and resource efficiency," it added.

The fund has already deployed over two-thirds of its commitments in Indian companies including Prince Pipes and Fittings Ltd through its initial public offering (IPO) in Decembet 2019; SeedWorks, part of the hybrid climate-smart agricultural seeds sector; and solar photovoltaic cell and module manufacturer Premier Energies.