GREEN GROWTH EQUITY FUND

What Is Green Growth Equity Fund?

Green Growth Equity Fund (GGEF) is a SEBI-registered Category II AIF (IN/AIF2/18-19/0529) managed by EverSource Capital that invests in climate and sustainable-infrastructure businesses in India, including renewable energy, e-mobility, resource efficiency, water and waste management. It reached final close at US$741 million in December 2021, above its US$700 million target, making it one of the largest single-country climate funds in emerging markets.

GGEF is a private-market fund, not a mutual fund or PMS. It invests institutional capital in operating businesses and platforms rather than listed securities, aiming to support climate-change mitigation and adaptation while generating financial returns.

The fund follows a control-oriented private equity model: EverSource takes majority stakes, helps set company strategy, brings in senior management and supports portfolio platforms as they scale.

Green Growth Equity Fund Snapshot

Green Growth Equity Fund, NIIF and the UK Government

Green Growth Equity Fund was created in 2018 with anchor support from India's National Investment and Infrastructure Fund (NIIF) and the UK Government through the Foreign, Commonwealth & Development Office (FCDO). NIIF reports an anchor commitment of more than US$170 million to GGEF.

The former CDC Group, now British International Investment, committed a further US$70 million in 2021. Dutch development bank FMO also approved financing for the fund, describing its mandate as investing in rapidly scalable, sustainable Indian businesses across renewable energy, resource efficiency, e-mobility and energy services.

This institutional backing built the fund's capital base and climate mandate, but it does not guarantee investment performance or capital safety.

Green Growth Equity Fund Investment Strategy

Green Growth Equity Fund invests across two broad climate themes, so its strategy is wider than renewable power generation alone:

1. Decarbonisation of energy and its uses: renewable energy, distributed solar, energy efficiency, e-mobility, energy services and related infrastructure.
2. Resource and environmental conservation: water, wastewater, waste management, resource recovery, recycling and other circular-economy opportunities.

EverSource identifies sectors where India needs large-scale infrastructure, then builds or scales businesses to meet that need, by investing in operating platforms, providing growth capital, backing management teams and helping portfolio companies raise further capital.

Which Sectors Does Green Growth Equity Fund Invest In?

Green Growth Equity Fund invests across seven segments of India's climate and green-infrastructure economy.

How Green Growth Equity Fund Builds Portfolio Platforms

Green Growth Equity Fund uses an owner-operator, platform-building model in which EverSource takes majority positions and works with management to grow each business, rather than treating investments as passive holdings. This can include:

• Setting the company's long-term strategy
• Recruiting or strengthening senior management
• Providing growth capital
• Building operational capabilities
• Expanding into new regions
• Supporting further fundraising
• Developing partnerships and project pipelines
• Improving environmental and social management systems

This approach suits infrastructure sectors, where businesses need significant capital, operating expertise and long development periods before they reach scale.

Green Growth Equity Fund Portfolio Companies

Green Growth Equity Fund's portfolio, as listed in EverSource's December 2025 disclosures, includes GreenCell Mobility, Lithium Urban Technologies, Radiance Renewables, EverEnviro, Kathari Water Management and Ecofy, while Ayana Renewable Power was exited in 2025.

In February 2025, GGEF, NIIF and British International Investment agreed to sell Ayana Renewable Power to ONGC NTPC Green Private Limited, and the deal completed in March 2025. Private-market holdings change, so check the latest fund disclosures for current holdings.

Green Growth Equity Fund Size and Current Status

Green Growth Equity Fund is a mature fund: it completed its final close at US$741 million in December 2021 and is not raising new commitments. By September 2023, EverSource reported that GGEF had committed more than US$600 million to portfolio assets.

The US$741 million is committed capital at final close. It is not the same as capital deployed, the current value of portfolio companies or any individual investor's interest.

How Green Growth Equity Fund Measures Climate Impact

Green Growth Equity Fund tracks impact through portfolio-level indicators such as renewable energy generated, emissions avoided, water-treatment capacity, waste treated, e-mobility kilometres and green jobs. As of December 2025, EverSource reported lifetime figures of about:

• 16 million tonnes of emissions avoided
• 187 MLD of water-treatment capacity
• 7.68 million tonnes of waste treated
• 15,000 direct green jobs

Environmental and social (E&S) factors are built into due diligence: every prospective investment goes through dedicated E&S review, with independent experts used for moderate- to high-risk deals, and E&S performance is monitored across the portfolio. Impact metrics are not investor returns, and strong climate outcomes do not guarantee financial performance.

Green Growth Equity Fund Minimum Investment, Fees and Tenure

Green Growth Equity Fund's minimum commitment, management fee, carried interest, tenure and capital-call terms are set in its Private Placement Memorandum (PPM); SEBI's minimum for any AIF investor is ₹1 crore. The PPM and subscription documents cover:

• Minimum commitment
• Management fee
• Performance fee or carried interest
• Hurdle rate, if any
• Fund tenure and extensions
• Capital-call schedule
• Distribution waterfall
• Expenses
• Transfer restrictions
• Exit provisions

For more on AIF costs, see ALTPORT's guide to AIF fees and charges.

Green Growth Equity Fund Exit Strategy

Green Growth Equity Fund realises its investments through strategic sales, secondary transactions, sales to financial investors, public listings where possible or other liquidity events allowed by its fund documents. The 2025 sale of Ayana Renewable Power to ONGC NTPC Green is an example of this private-equity exit route.

For other portfolio companies, exit timing depends on business maturity, buyer interest, market conditions and regulation. A single portfolio exit does not represent every investor's return, which depends on the whole portfolio, fees, expenses, capital-call timing and distributions.

Green Growth Equity Fund Risks

The main risks of Green Growth Equity Fund are infrastructure-development delays, regulatory and technology change, execution risk, illiquidity, valuation uncertainty, sector concentration and exit timing.

Infrastructure-development risk: Green infrastructure needs heavy upfront capital and long construction periods, and delays can hurt economics.

Regulatory risk: Renewable energy, e-mobility, waste and water depend on government policy, tariffs, subsidies and environmental rules.

Technology risk: Fast-changing storage, EV and efficiency technologies can alter the economics of existing investments.

Execution and operational risk: The platform model involves running operating businesses, so execution problems can affect growth and profits.

Liquidity risk: As a private AIF, the fund has no daily liquidity; exits depend on transactions and market conditions.

Valuation risk: Private companies have no quoted price, so valuations can change significantly between funding rounds, valuations and exits.

Concentration risk: A specialised climate fund is exposed to setbacks across renewable energy, e-mobility, waste, water or resource efficiency.

Exit risk: Portfolio companies may take longer than expected to reach a suitable exit.

FMO classifies GGEF's environmental and social risk category as A, reflecting the higher development and E&S risks of some infrastructure investments.

Green Growth Equity Fund Investment Team

Green Growth Equity Fund is managed by EverSource Capital, a joint venture between Everstone Capital and Lightsource BP, whose senior team combines private equity, infrastructure, renewable energy, corporate finance and operating experience.

• Dhanpal Jhaveri, Vice Chairman, Everstone Group, and CEO, EverSource, previously held senior roles at Vedanta Resources, ICICI Securities and KPMG.
• Prasanna Desai, Managing Director & COO, Renewable Energy & Green Finance, has over two decades of experience across corporate finance, investment banking, real estate and solar energy.
• Shishir Maheshwari, Managing Director, e-Mobility & Water Management, has over 15 years of investment and operating experience across private equity and entrepreneurial ventures.

Product-level responsibilities can change, so check the latest fund documents for current team roles.

Investors interested in climate and infrastructure investing can compare current options such as Edelweiss Infrastructure Yield Plus, browse the top AIF funds in India, read mutual fund vs PMS vs AIF, or speak to an ALTPORT advisor.