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Edelweiss Alternatives to Raise $500M for its First Climate Fund

Edelweiss Alternatives to Raise $500M for its First Climate Fund

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Edelweiss Alternatives, part of Edelweiss group, 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.

The climate fund, registered in Singapore, will invest in related projects of Indian companies, primarily in the form of equity, Subahoo Chordia, said Subahoo Chordia, president and head Real Assets Funds at Edelweiss Alternatives.

“We have started getting deal flows, and we are in the process of evaluating them,” he added.

According to the media, 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.

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Edelweiss Alternatives said the corpus will be invested 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.”

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